Bill Text: OH HB386 | 2011-2012 | 129th General Assembly | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: , to amend Section 3 of Sub. H.B. 277 of the 129th General Assembly, and to repeal Section 4 of Sub. H.B. 277 of the 129th General Assembly to make changes to the law regarding video lottery terminals, casino gaming, bingo and instant bingo, and horse racing, to establish a moratorium on new establishments conducting sweepstakes by sweepstakes terminal devices, to make appropriations, and to declare an emergency.

Spectrum: Bipartisan Bill

Status: (Passed) 2012-06-11 - Effective Date [HB386 Detail]

Download: Ohio-2011-HB386-Comm_Sub.html
As Reported by the House State Government and Elections Committee

129th General Assembly
Regular Session
2011-2012
Sub. H. B. No. 386


Representative Blessing 

Cosponsors: Representatives Gerberry, Combs, Letson 

A BILL
To amend sections 111.15, 122.014, 173.121, 2505.09, 1
2505.12, 2915.01, 2915.02, 2915.06, 2915.08, 2
2915.09, 2915.091, 2915.092, 2915.093, 2915.094, 3
2915.10, 2915.101, 2915.12, 2923.31, 2933.51, 4
3301.0714, 3769.08, 3769.087, 3769.089, 3770.02, 5
3770.03, 3770.05, 3770.07, 3770.071, 3770.21, 6
3772.01, 3772.03, 3772.04, 3772.091, 3772.10, 7
3772.13, 3772.16, 3772.17, 3772.28, 3772.99, 8
4301.03, 4303.17, 5753.01, and 5753.03, to enact 9
sections 121.421, 2505.122, 2915.18, and 3770.22, 10
and to repeal section 3772.14 of the Revised Code 11
and to amend Section 261.20.90 of Am. Sub. H.B. 12
153 of the 129th General Assembly, to amend 13
Section 3 of Sub. H.B. 277 of the 129th General 14
Assembly, and to repeal Section 4 of Sub. H.B. 277 15
of the 129th General Assembly to make changes to 16
the law regarding video lottery terminals, casino 17
gaming, bingo and instant bingo, and horse racing, 18
to require thoroughbred and standardbred racing 19
permit holders to pay a local tax, to create 20
charity card rooms, to make appropriations, and to 21
declare an emergency.22


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

       Section 1.  That sections 111.15, 122.014, 173.121, 2505.09, 23
2505.12, 2915.01, 2915.02, 2915.06, 2915.08, 2915.09, 2915.091, 24
2915.092, 2915.093, 2915.094, 2915.10, 2915.101, 2915.12, 2923.31, 25
2933.51, 3301.0714, 3769.08, 3769.087, 3769.089, 3770.02, 3770.03, 26
3770.05, 3770.07, 3770.071, 3770.21, 3772.01, 3772.03, 3772.04, 27
3772.091, 3772.10, 3772.13, 3772.16, 3772.17, 3772.28, 3772.99, 28
4301.03, 4303.17, 5753.01, and 5753.03 be amended and sections 29
121.421, 2505.122, 2915.18, and 3770.22 of the Revised Code be 30
enacted to read as follows: 31

       Sec. 111.15.  (A) As used in this section:32

       (1) "Rule" includes any rule, regulation, bylaw, or standard 33
having a general and uniform operation adopted by an agency under 34
the authority of the laws governing the agency; any appendix to a 35
rule; and any internal management rule. "Rule" does not include 36
any guideline adopted pursuant to section 3301.0714 of the Revised 37
Code, any order respecting the duties of employees, any finding, 38
any determination of a question of law or fact in a matter 39
presented to an agency, or any rule promulgated pursuant to 40
Chapter 119., section 4141.14, division (C)(1) or (2) of section 41
5117.02, or section 5703.14 of the Revised Code. "Rule" includes 42
any amendment or rescission of a rule.43

       (2) "Agency" means any governmental entity of the state and 44
includes, but is not limited to, any board, department, division, 45
commission, bureau, society, council, institution, state college 46
or university, community college district, technical college 47
district, or state community college. "Agency" does not include 48
the general assembly, the controlling board, the adjutant 49
general's department, or any court.50

       (3) "Internal management rule" means any rule, regulation, 51
bylaw, or standard governing the day-to-day staff procedures and 52
operations within an agency.53

       (4) "Substantive revision" has the same meaning as in 54
division (J) of section 119.01 of the Revised Code.55

       (B)(1) Any rule, other than a rule of an emergency nature, 56
adopted by any agency pursuant to this section shall be effective 57
on the tenth day after the day on which the rule in final form and 58
in compliance with division (B)(3) of this section is filed as 59
follows:60

       (a) The rule shall be filed in electronic form with both the 61
secretary of state and the director of the legislative service 62
commission;63

       (b) The rule shall be filed in electronic form with the joint 64
committee on agency rule review. Division (B)(1)(b) of this 65
section does not apply to any rule to which division (D) of this 66
section does not apply.67

       An agency that adopts or amends a rule that is subject to 68
division (D) of this section shall assign a review date to the 69
rule that is not later than five years after its effective date. 70
If no review date is assigned to a rule, or if a review date 71
assigned to a rule exceeds the five-year maximum, the review date 72
for the rule is five years after its effective date. A rule with a 73
review date is subject to review under section 119.032 of the 74
Revised Code. This paragraph does not apply to a rule of a state 75
college or university, community college district, technical 76
college district, or state community college.77

       If all filings are not completed on the same day, the rule 78
shall be effective on the tenth day after the day on which the 79
latest filing is completed. If an agency in adopting a rule 80
designates an effective date that is later than the effective date 81
provided for by division (B)(1) of this section, the rule if filed 82
as required by such division shall become effective on the later 83
date designated by the agency.84

       Any rule that is required to be filed under division (B)(1) 85
of this section is also subject to division (D) of this section if 86
not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), or 87
(8) of this section.88

       If a rule incorporates a text or other material by reference, 89
the agency shall comply with sections 121.71 to 121.76 of the 90
Revised Code.91

       (2) A rule of an emergency nature necessary for the immediate 92
preservation of the public peace, health, or safety shall state 93
the reasons for the necessity. The emergency rule, in final form 94
and in compliance with division (B)(3) of this section, shall be 95
filed in electronic form with the secretary of state, the director 96
of the legislative service commission, and the joint committee on 97
agency rule review. The emergency rule is effective immediately 98
upon completion of the latest filing, except that if the agency in 99
adopting the emergency rule designates an effective date, or date 100
and time of day, that is later than the effective date and time 101
provided for by division (B)(2) of this section, the emergency 102
rule if filed as required by such division shall become effective 103
at the later date, or later date and time of day, designated by 104
the agency.105

       An emergency rule becomes invalid at the end of the ninetieth 106
day it is in effect. Prior to that date, the agency may file the 107
emergency rule as a nonemergency rule in compliance with division 108
(B)(1) of this section. The agency may not refile the emergency 109
rule in compliance with division (B)(2) of this section so that, 110
upon the emergency rule becoming invalid under such division, the 111
emergency rule will continue in effect without interruption for 112
another ninety-day period.113

       (3) An agency shall file a rule under division (B)(1) or (2) 114
of this section in compliance with the following standards and 115
procedures:116

       (a) The rule shall be numbered in accordance with the 117
numbering system devised by the director for the Ohio 118
administrative code.119

       (b) The rule shall be prepared and submitted in compliance 120
with the rules of the legislative service commission.121

       (c) The rule shall clearly state the date on which it is to 122
be effective and the date on which it will expire, if known.123

       (d) Each rule that amends or rescinds another rule shall 124
clearly refer to the rule that is amended or rescinded. Each 125
amendment shall fully restate the rule as amended.126

       If the director of the legislative service commission or the 127
director's designee gives an agency notice pursuant to section 128
103.05 of the Revised Code that a rule filed by the agency is not 129
in compliance with the rules of the legislative service 130
commission, the agency shall within thirty days after receipt of 131
the notice conform the rule to the rules of the commission as 132
directed in the notice.133

       (C) All rules filed pursuant to divisions (B)(1)(a) and (2) 134
of this section shall be recorded by the secretary of state and 135
the director under the title of the agency adopting the rule and 136
shall be numbered according to the numbering system devised by the 137
director. The secretary of state and the director shall preserve 138
the rules in an accessible manner. Each such rule shall be a 139
public record open to public inspection and may be transmitted to 140
any law publishing company that wishes to reproduce it.141

       (D) At least sixty-five days before a board, commission, 142
department, division, or bureau of the government of the state 143
files a rule under division (B)(1) of this section, it shall file 144
the full text of the proposed rule in electronic form with the 145
joint committee on agency rule review, and the proposed rule is 146
subject to legislative review and invalidation under division (I) 147
of section 119.03 of the Revised Code. If a state board, 148
commission, department, division, or bureau makes a substantive 149
revision in a proposed rule after it is filed with the joint 150
committee, the state board, commission, department, division, or 151
bureau shall promptly file the full text of the proposed rule in 152
its revised form in electronic form with the joint committee. The 153
latest version of a proposed rule as filed with the joint 154
committee supersedes each earlier version of the text of the same 155
proposed rule. Except as provided in division (F) of this section, 156
a state board, commission, department, division, or bureau shall 157
also file the rule summary and fiscal analysis prepared under 158
section 127.18 of the Revised Code in electronic form along with a 159
proposed rule, and along with a proposed rule in revised form, 160
that is filed under this division. If a proposed rule has an 161
adverse impact on businesses, the state board, commission, 162
department, division, or bureau also shall file the business 163
impact analysis, any recommendations received from the common 164
sense initiative office, and the associated memorandum of 165
response, if any, in electronic form along with the proposed rule, 166
or the proposed rule in revised form, that is filed under this 167
division.168

       As used in this division, "commission" includes the public 169
utilities commission when adopting rules under a federal or state 170
statute.171

       This division does not apply to any of the following:172

       (1) A proposed rule of an emergency nature;173

       (2) A rule proposed under section 1121.05, 1121.06, 1155.18, 174
1163.22, 1349.33, 1707.201, 1733.412, 4123.29, 4123.34, 4123.341, 175
4123.342, 4123.40, 4123.411, 4123.44, or 4123.442 of the Revised 176
Code;177

       (3) A rule proposed by an agency other than a board, 178
commission, department, division, or bureau of the government of 179
the state;180

       (4) A proposed internal management rule of a board, 181
commission, department, division, or bureau of the government of 182
the state;183

       (5) Any proposed rule that must be adopted verbatim by an 184
agency pursuant to federal law or rule, to become effective within 185
sixty days of adoption, in order to continue the operation of a 186
federally reimbursed program in this state, so long as the 187
proposed rule contains both of the following:188

       (a) A statement that it is proposed for the purpose of 189
complying with a federal law or rule;190

       (b) A citation to the federal law or rule that requires 191
verbatim compliance.192

       (6) An initial rule proposed by the director of health to 193
impose safety standards and quality-of-care standards with respect 194
to a health service specified in section 3702.11 of the Revised 195
Code, or an initial rule proposed by the director to impose 196
quality standards on a facility listed in division (A)(4) of 197
section 3702.30 of the Revised Code, if section 3702.12 of the 198
Revised Code requires that the rule be adopted under this section;199

       (7) A rule of the state lottery commission pertaining to 200
instant game rules as provided in division (A) of section 3770.03 201
of the Revised Code.202

       If a rule is exempt from legislative review under division 203
(D)(5) of this section, and if the federal law or rule pursuant to 204
which the rule was adopted expires, is repealed or rescinded, or 205
otherwise terminates, the rule is thereafter subject to 206
legislative review under division (D) of this section.207

       (E) Whenever a state board, commission, department, division, 208
or bureau files a proposed rule or a proposed rule in revised form 209
under division (D) of this section, it shall also file the full 210
text of the same proposed rule or proposed rule in revised form in 211
electronic form with the secretary of state and the director of 212
the legislative service commission. Except as provided in division 213
(F) of this section, a state board, commission, department, 214
division, or bureau shall file the rule summary and fiscal 215
analysis prepared under section 127.18 of the Revised Code in 216
electronic form along with a proposed rule or proposed rule in 217
revised form that is filed with the secretary of state or the 218
director of the legislative service commission.219

       (F) Except as otherwise provided in this division, the 220
auditor of state or the auditor of state's designee is not 221
required to file a rule summary and fiscal analysis along with a 222
proposed rule, or proposed rule in revised form, that the auditor 223
of state proposes under section 117.12, 117.19, 117.38, or 117.43 224
of the Revised Code and files under division (D) or (E) of this 225
section. 226

       Sec. 121.421.  (A) Notwithstanding division (D)(3) of section 227
121.41 of the Revised Code, the inspector general shall do the 228
following to determine whether wrongful acts or omissions have 229
been committed or are being committed by present or former 230
employees:231

       (1) Investigate employees of the office of the attorney 232
general who are contractually vested with duties to enforce 233
Chapter 3772. of the Revised Code;234

       (2) Provide support in furtherance of enforcing Chapter 3772. 235
of the Revised Code.236

       (B) The inspector general and each deputy inspector may 237
administer oaths, examine witnesses under oath, and issue 238
subpoenas and subpoenas duces tecum to compel the attendance of 239
witnesses and the production of all kinds of books, records, 240
papers, and tangible things. Upon the refusal of a witness to be 241
sworn or to answer any question put to the witness, or if a person 242
disobeys a subpoena, the inspector general shall apply to the 243
court of common pleas for a contempt order, as in the case of 244
disobedience to the requirements of a subpoena issued from the 245
court of common pleas, or a refusal to testify in the court.246

       (C) The inspector general may enter into any contracts that 247
are necessary to complete an investigation. The contracts may 248
include contracts for the services of persons who are experts in a 249
particular field and whose expertise is necessary for successful 250
completion of the investigation.251

       (D) If the authority of the attorney general terminates or 252
expires, the authority vested in the inspector general by this 253
section terminates upon the conclusion of ongoing investigations 254
or upon issuance of the final report of the investigations.255

       Sec. 122.014.  (A) As used in this section, "gaming 256
activities" means activities conducted in connection with or that 257
include any of the following:258

       (1) Casino gaming, as authorized and defined in Section 6(C) 259
of Article XV, Ohio Constitution;260

       (2) Casino gaming, as defined in division (D)(E) of section 261
3772.01 of the Revised Code; or262

       (3) The pari-mutuel system of wagering as authorized and 263
described in Chapter 3769. of the Revised Code.264

       (B) The department of development or any other entity that 265
administers any program or development project established under 266
Chapter 122., 166., or 184. of the Revised Code or in sections 267
149.311, 5709.87, or 5709.88 of the Revised Code shall not provide 268
any financial assistance, including loans, tax credits, and 269
grants, staffing assistance, technical support, or other 270
assistance to businesses conducting gaming activities or for 271
project sites on which gaming activities are or will be conducted.272

       Sec. 173.121.  (A) As used in this section, "bingo," "bingo 273
game operator," and "participant" have the same meanings as in 274
section 2915.01 of the Revised Code.275

       (B) Notwithstanding sections 2915.07 to 2915.13 of the 276
Revised Code, a multipurpose senior center may conduct bingo games 277
described in division (S)(O)(1) of section 2915.01 of the Revised 278
Code, but only if it complies with all of the following 279
requirements:280

       (1) All bingo games are conducted only on the premises of the 281
facility.282

       (2) All participants are sixty years of age or older.283

       (3) All bingo game operators are sixty years of age or older 284
and receive no compensation for serving as operators.285

       (4) No participant is charged an admission fee, and no 286
participant is charged more than twenty-five cents to purchase a 287
bingo card or sheet.288

       (5) All proceeds from games are used only for any of the 289
following:290

       (a) To pay winners monetary or nonmonetary prizes;291

       (b) To provide refreshments;292

       (c) To defray any costs directly related to conducting the 293
games;294

       (d) To defray costs of services the facility provides in 295
accordance with section 173.12 of the Revised Code.296

       Sec. 2505.09.  Except as provided in section 2505.11 or 297
2505.12 or another section of the Revised Code or in applicable 298
rules governing courts, the perfection of an appeal, including an 299
administrative-related appeal, does not operate as a stay of 300
execution until a stay of execution has been obtained pursuant to 301
the Rules of Appellate Procedure or in another applicable manner, 302
and a supersedeas bond is executed by the appellant to the 303
appellee, with sufficient sureties and, subject to section 304
2505.122 of the Revised Code, in a sum that is not less than, if 305
applicable, the cumulative total for all claims covered by the 306
final order, judgment, or decree and interest involved, except 307
that the bond shall not exceed fifty million dollars excluding 308
interest and costs, as directed by the court that rendered the 309
final order, judgment, or decree that is sought to be superseded 310
or by the court to which the appeal is taken. That bond shall be 311
conditioned as provided in section 2505.14 of the Revised Code.312

       Sec. 2505.12.  An appellant is not required to give a 313
supersedeas bond in connection with any of the following:314

       (A) AnPerfection of an appeal by any of the following:315

       (1) An executor, administrator, guardian, receiver, trustee, 316
or trustee in bankruptcy who is acting in that person's trust 317
capacity and who has given bond in this state, with surety 318
according to law;319

       (2) The state or any political subdivision of the state;320

       (3) Any public officer of the state or of any of its 321
political subdivisions who is suing or is sued solely in the 322
public officer's representative capacity as that officer.323

       (B) AnPerfection of an administrative-related appeal of a 324
final order that is not for the payment of money.325

       Sec. 2505.122.  Any appellant who obtains a stay of execution 326
pending the appeal of a final order, adjudication, or decision 327
pursuant to section 2506.01 of the Revised Code shall 328
simultaneously execute a supersedeas bond to the appellee with 329
sufficient sureties and in an amount established in section 330
2505.09 of the Revised Code. In establishing the amount of the 331
bond, the court shall give great weight and due consideration to 332
the reasonable value of the matter at issue in the final order, 333
adjudication, or decision, the circumstances giving rise to the 334
appeal, and the economic impact of other consequences of delay to 335
the appellee and to those prevented from taking action that was 336
permitted by the final order, adjudication, or decision.337

       Sec. 2915.01.  As used in this chapter:338

       (A) "Bookmaking" means the business of receiving or paying 339
off bets.340

       (B) "Bet" means the hazarding of anything of value upon the 341
result of an event, undertaking, or contingency, but does not 342
include a bona fide business risk.343

       (C) "Scheme of chance" means a slot machine, lottery, numbers 344
game, pool conducted for profit, or other scheme in which a 345
participant gives a valuable consideration for a chance to win a 346
prize, but does not include bingo, a skill-based amusement 347
machine, or a pool not conducted for profit.348

       (D) "Game of chance" means poker, craps, roulette, or other 349
game in which a player gives anything of value in the hope of 350
gain, the outcome of which is determined largely by chance, but 351
does not include bingo.352

       (E) "Game of chance conducted for profit" means any game of 353
chance designed to produce income for the person who conducts or 354
operates the game of chance, but does not include bingo.355

       (F) "Gambling device" means any of the following:356

       (1) A book, totalizer, or other equipment for recording bets;357

       (2) A ticket, token, or other device representing a chance, 358
share, or interest in a scheme of chance or evidencing a bet;359

       (3) A deck of cards, dice, gaming table, roulette wheel, slot 360
machine, or other apparatus designed for use in connection with a 361
game of chance;362

       (4) Any equipment, device, apparatus, or paraphernalia 363
specially designed for gambling purposes;364

       (5) Bingo supplies sold or otherwise provided, or used, in 365
violation of this chapter.366

       (G) "Gambling offense" means any of the following:367

       (1) A violation of section 2915.02, 2915.03, 2915.04, 368
2915.05, 2915.06, 2915.07, 2915.08, 2915.081, 2915.082, 2915.09, 369
2915.091, 2915.092, 2915.10, or 2915.11 of the Revised Code;370

       (2) A violation of an existing or former municipal ordinance 371
or law of this or any other state or the United States 372
substantially equivalent to any section listed in division (G)(1) 373
of this section or a violation of section 2915.06 of the Revised 374
Code as it existed prior to July 1, 1996;375

       (3) An offense under an existing or former municipal 376
ordinance or law of this or any other state or the United States, 377
of which gambling is an element;378

       (4) A conspiracy or attempt to commit, or complicity in 379
committing, any offense under division (G)(1), (2), or (3) of this 380
section.381

       (H) Except as otherwise provided in this chapter, "charitable 382
organization" means any tax exempt religious, educational, 383
veteran's, fraternal, sporting, service, nonprofit medical, 384
volunteer rescue service, volunteer firefighter's, senior 385
citizen's, historic railroad educational, youth athletic, amateur 386
athletic, or youth athletic park organization. An organization is 387
tax exempt if the organization iseither of the following:388

       (1) An organization that is, and has received from the 389
internal revenue service a determination letter that currently is 390
in effect stating that the organization is, exempt from federal 391
income taxation under subsection 501(a) and described in 392
subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or 393
501(c)(19) of the Internal Revenue Code, or if the organization is 394
a;395

       (2) A volunteer rescue service organization, volunteer 396
firefighter's organization, veteran's organization, fraternal 397
organization, or sporting organization that is exempt from federal 398
income taxation under subsection 501(a) and is described in399
subsection 501(c)(4), (c)(7), (c)(8), (c)(10), or (c)(19) of the 400
Internal Revenue Code. To401

        To qualify as a "charitable organization," an organization, 402
except a volunteer rescue service or volunteer firefighter's 403
organization, shall have been in continuous existence as such in 404
this state for a period of two years immediately preceding either 405
the making of an application for a bingo license under section 406
2915.08 of the Revised Code or the conducting of any game of 407
chance as provided in division (D) of section 2915.02 of the 408
Revised Code. A charitable organization that is exempt from 409
federal income taxation under subsection 501(a) and described in 410
subsection 501(c)(3) of the Internal Revenue Code and that is 411
created by a veteran's organization, a fraternal organization, or 412
a sporting organization does not have to have been in continuous 413
existence as such in this state for a period of two years 414
immediately preceding either the making of an application for a 415
bingo license under section 2915.08 of the Revised Code or the 416
conducting of any game of chance as provided in division (D) of 417
section 2915.02 of the Revised Code.418

       (I) "Religious organization" means any church, body of 419
communicants, or group that is not organized or operated for 420
profit and that gathers in common membership for regular worship 421
and religious observances.422

       (J) "Educational organization" means any organization within 423
this state that is not organized for profit, the primary purpose 424
of which is to educate and develop the capabilities of individuals 425
through instruction by means of operating or contributing to the 426
support of a school, academy, college, or university.427

       (K) "Veteran's organization" means any individual post or 428
state headquarters of a national veteran's association or an 429
auxiliary unit of any individual post of a national veteran's 430
association, which post, state headquarters, or auxiliary unit is 431
incorporated as a nonprofit corporation and either has received a 432
letter from the state headquarters of the national veteran's 433
association indicating that the individual post or auxiliary unit 434
is in good standing with the national veteran's association or has 435
received a letter from the national veteran's association 436
indicating that the state headquarters is in good standing with 437
the national veteran's association. As used in this division, 438
"national veteran's association" means any veteran's association 439
that has been in continuous existence as such for a period of at 440
least five years and either is incorporated by an act of the 441
United States congress or has a national dues-paying membership of 442
at least five thousand persons.443

       (L)(K) "Volunteer firefighter's organization" means any 444
organization of volunteer firefighters, as defined in section 445
146.01 of the Revised Code, that is organized and operated 446
exclusively to provide financial support for a volunteer fire 447
department or a volunteer fire company and that is recognized or 448
ratified by a county, municipal corporation, or township.449

       (M)(L) "Fraternal organization" means any society, order, 450
state headquarters, or association within this state, except a 451
college or high school fraternity, that is not organized for 452
profit, that is a branch, lodge, or chapter of a national or state 453
organization, that exists exclusively for the common business or 454
sodality of its members.455

       (N)(M) "Volunteer rescue service organization" means any 456
organization of volunteers organized to function as an emergency 457
medical service organization, as defined in section 4765.01 of the 458
Revised Code.459

       (O) "Service organization" means either of the following:460

       (1) Any organization, not organized for profit, that is 461
organized and operated exclusively to provide, or to contribute to 462
the support of organizations or institutions organized and 463
operated exclusively to provide, medical and therapeutic services 464
for persons who are crippled, born with birth defects, or have any 465
other mental or physical defect or those organized and operated 466
exclusively to protect, or to contribute to the support of 467
organizations or institutions organized and operated exclusively 468
to protect, animals from inhumane treatment or provide immediate 469
shelter to victims of domestic violence;470

       (2) Any organization that is described in subsection 471
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code 472
and is either a governmental unit or an organization that is tax 473
exempt under subsection 501(a) and described in subsection 474
501(c)(3) of the Internal Revenue Code and that is an 475
organization, not organized for profit, that is organized and 476
operated primarily to provide, or to contribute to the support of 477
organizations or institutions organized and operated primarily to 478
provide, medical and therapeutic services for persons who are 479
crippled, born with birth defects, or have any other mental or 480
physical defect.481

       (P) "Nonprofit medical organization" means either of the 482
following:483

       (1) Any organization that has been incorporated as a 484
nonprofit corporation for at least five years and that has 485
continuously operated and will be operated exclusively to provide, 486
or to contribute to the support of organizations or institutions 487
organized and operated exclusively to provide, hospital, medical, 488
research, or therapeutic services for the public;489

       (2) Any organization that is described and qualified under 490
subsection 501(c)(3) of the Internal Revenue Code, that has been 491
incorporated as a nonprofit corporation for at least five years, 492
and that has continuously operated and will be operated primarily 493
to provide, or to contribute to the support of organizations or 494
institutions organized and operated primarily to provide, 495
hospital, medical, research, or therapeutic services for the 496
public.497

       (Q) "Senior citizen's organization" means any private 498
organization, not organized for profit, that is organized and 499
operated exclusively to provide recreational or social services 500
for persons who are fifty-five years of age or older and that is 501
described and qualified under subsection 501(c)(3) of the Internal 502
Revenue Code.503

       (R)(N) "Charitable bingo game" means any bingo game described 504
in division (S)(O)(1) or (2) of this section that is conducted by 505
a charitable organization that has obtained a license pursuant to 506
section 2915.08 of the Revised Code and the proceeds of which are 507
used for a charitable purpose.508

       (S)(O) "Bingo" means either of the following:509

       (1) A game with all of the following characteristics:510

       (a) The participants use bingo cards or sheets, including 511
paper formats and electronic representation or image formats, that 512
are divided into twenty-five spaces arranged in five horizontal 513
and five vertical rows of spaces, with each space, except the 514
central space, being designated by a combination of a letter and a 515
number and with the central space being designated as a free 516
space.517

       (b) The participants cover the spaces on the bingo cards or 518
sheets that correspond to combinations of letters and numbers that 519
are announced by a bingo game operator.520

       (c) A bingo game operator announces combinations of letters 521
and numbers that appear on objects that a bingo game operator 522
selects by chance, either manually or mechanically, from a 523
receptacle that contains seventy-five objects at the beginning of 524
each game, each object marked by a different combination of a 525
letter and a number that corresponds to one of the seventy-five 526
possible combinations of a letter and a number that can appear on 527
the bingo cards or sheets.528

       (d) The winner of the bingo game includes any participant who 529
properly announces during the interval between the announcements 530
of letters and numbers as described in division (S)(O)(1)(c) of 531
this section, that a predetermined and preannounced pattern of 532
spaces has been covered on a bingo card or sheet being used by the 533
participant.534

       (2) Instant bingo, punch boards, and raffles.535

       (T)(P) "Conduct" means to back, promote, organize, manage, 536
carry on, sponsor, or prepare for the operation of bingo or a game 537
of chance.538

       (U)(Q) "Bingo game operator" means any person, except 539
security personnel, who performs work or labor at the site of 540
bingo, including, but not limited to, collecting money from 541
participants, handing out bingo cards or sheets or objects to 542
cover spaces on bingo cards or sheets, selecting from a receptacle 543
the objects that contain the combination of letters and numbers 544
that appear on bingo cards or sheets, calling out the combinations 545
of letters and numbers, distributing prizes, selling or redeeming 546
instant bingo tickets or cards, supervising the operation of a 547
punch board, selling raffle tickets, selecting raffle tickets from 548
a receptacle and announcing the winning numbers in a raffle, and 549
preparing, selling, and serving food or beverages.550

       (V)(R) "Participant" means any person who plays bingo.551

       (W)(S) "Bingo session" means a period that includes both of 552
the following:553

       (1) Not to exceed five continuous hours for the conduct of 554
one or more games described in division (S)(O)(1) of this section, 555
instant bingo, and seal cards;556

       (2) A period for the conduct of instant bingo and seal cards 557
for not more than two hours before and not more than two hours 558
after the period described in division (W)(S)(1) of this section.559

       (X)(T) "Gross receipts" means all money or assets, including 560
admission fees, that a person receives from bingo without the 561
deduction of any amounts for prizes paid out or for the expenses 562
of conducting bingo. "Gross receipts" does not include any money 563
directly taken in from the sale of food or beverages by a 564
charitable organization conducting bingo, or by a bona fide 565
auxiliary unit or society of a charitable organization conducting 566
bingo, provided all of the following apply:567

       (1) The auxiliary unit or society has been in existence as a 568
bona fide auxiliary unit or society of the charitable organization 569
for at least two years prior to conducting bingo.570

       (2) The person who purchases the food or beverage receives 571
nothing of value except the food or beverage and items customarily 572
received with the purchase of that food or beverage.573

       (3) The food and beverages are sold at customary and 574
reasonable prices.575

       (Y)(U) "Security personnel" includes any person who either is 576
a sheriff, deputy sheriff, marshal, deputy marshal, township 577
constable, or member of an organized police department of a 578
municipal corporation or has successfully completed a peace 579
officer's training course pursuant to sections 109.71 to 109.79 of 580
the Revised Code and who is hired to provide security for the 581
premises on which bingo is conducted.582

       (Z)(V) "Charitable purpose" means that the net profit of 583
bingo, other than instant bingo, is used by, or is given, donated, 584
or otherwise transferred to, any of the following:585

       (1) Any organization that is described in subsection 586
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code 587
and is either a governmental unit or an organization that is tax 588
exempt under subsection 501(a) and described in subsection 589
501(c)(3) of the Internal Revenue Code;590

       (2) A veteran's organization that is a post, chapter, or 591
organization of veterans, or an auxiliary unit or society of, or a 592
trust or foundation for, any such post, chapter, or organization 593
organized in the United States or any of its possessions, at least 594
seventy-five per cent of the members of which are veterans and 595
substantially all of the other members of which are individuals 596
who are spouses, widows, or widowers of veterans, or such 597
individuals, provided that no part of the net earnings of such 598
post, chapter, or organization inures to the benefit of any 599
private shareholder or individual, and further provided that the 600
net profit is used by the post, chapter, or organization for the 601
charitable purposes set forth in division (B)(12) of section 602
5739.02 of the Revised Code, is used for awarding scholarships to 603
or for attendance at an institution mentioned in division (B)(12) 604
of section 5739.02 of the Revised Code, is donated to a 605
governmental agency, or is used for nonprofit youth activities, 606
the purchase of United States or Ohio flags that are donated to 607
schools, youth groups, or other bona fide nonprofit organizations, 608
promotion of patriotism, or disaster relief;609

       (3) A fraternal organization that has been in continuous 610
existence in this state for fifteen years and that uses the net 611
profit exclusively for religious, charitable, scientific, 612
literary, or educational purposes, or for the prevention of 613
cruelty to children or animals, if contributions for such use 614
would qualify as a deductible charitable contribution under 615
subsection 170 of the Internal Revenue Code;616

       (4) A volunteer firefighter's organization that uses the net 617
profit for the purposes set forth in division (L)(K) of this 618
section.619

       (AA)(W) "Internal Revenue Code" means the "Internal Revenue 620
Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter 621
amended.622

       (BB)(X) "Youth athletic organization" means any organization, 623
not organized for profit, that is organized and operated 624
exclusively to provide financial support to, or to operate, 625
athletic activities for persons who are twenty-one years of age or 626
younger by means of sponsoring, organizing, operating, or 627
contributing to the support of an athletic team, club, league, or 628
association.629

       (CC)(Y) "Youth athletic park organization" means any 630
organization, not organized for profit, that satisfies both of the 631
following:632

       (1) It owns, operates, and maintains playing fields that 633
satisfy both of the following:634

       (a) The playing fields are used at least one hundred days per 635
year for athletic activities by one or more organizations, not 636
organized for profit, each of which is organized and operated 637
exclusively to provide financial support to, or to operate, 638
athletic activities for persons who are eighteen years of age or 639
younger by means of sponsoring, organizing, operating, or 640
contributing to the support of an athletic team, club, league, or 641
association.642

       (b) The playing fields are not used for any profit-making 643
activity at any time during the year.644

       (2) It uses the proceeds of bingo it conducts exclusively for 645
the operation, maintenance, and improvement of its playing fields 646
of the type described in division (CC)(Y)(1) of this section.647

       (DD) "Amateur athletic organization" means any organization, 648
not organized for profit, that is organized and operated 649
exclusively to provide financial support to, or to operate, 650
athletic activities for persons who are training for amateur 651
athletic competition that is sanctioned by a national governing 652
body as defined in the "Amateur Sports Act of 1978," 90 Stat. 653
3045, 36 U.S.C.A. 373.654

       (EE)(Z) "Bingo supplies" means bingo cards or sheets; instant 655
bingo tickets or cards; electronic bingo aids; raffle tickets; 656
punch boards; seal cards; instant bingo ticket dispensers; and 657
devices for selecting or displaying the combination of bingo 658
letters and numbers or raffle tickets. Items that are "bingo 659
supplies" are not gambling devices if sold or otherwise provided, 660
and used, in accordance with this chapter. For purposes of this 661
chapter, "bingo supplies" are not to be considered equipment used 662
to conduct a bingo game.663

       (FF)(AA) "Instant bingo" means a form of bingo that uses664
shall use folded or banded tickets or paper cards with perforated 665
break-open tabs, a face of which is covered or otherwise hidden 666
from view to conceal a number, letter, or symbol, or set of 667
numbers, letters, or symbols, some of which have been designated 668
in advance as prize winners. "Instant bingo" includes seal cards, 669
and may also include games in which some winners are determined by 670
the random selection of one or more bingo numbers by the use of a 671
seal card or bingo blower. In all "instant bingo" the prize amount 672
and structure shall be predetermined. "Instant bingo" does not 673
include any device that is activated by the insertion of a coin, 674
currency, token, or an equivalent, and that contains as one of its 675
components a video display monitor that is capable of displaying 676
numbers, letters, symbols, or characters in winning or losing 677
combinations.678

       (GG)(BB) "Seal card" means a form of instant bingo that uses 679
instant bingo tickets in conjunction with a board or placard that 680
contains one or more seals that, when removed or opened, reveal 681
predesignated winning numbers, letters, or symbols.682

       (HH)(CC) "Raffle" means a form of bingo in which the one or 683
more prizes are won by one or more persons who have purchased a 684
raffle ticket. The one or more winners of the raffle are 685
determined by drawing a ticket stub or other detachable section 686
from a receptacle containing ticket stubs or detachable sections 687
corresponding to all tickets sold for the raffle. "Raffle" does 688
not include the drawing of a ticket stub or other detachable 689
section of a ticket purchased to attend a professional sporting 690
event if both of the following apply:691

        (1) The ticket stub or other detachable section is used to 692
select the winner of a free prize given away at the professional 693
sporting event; and694

       (2) The cost of the ticket is the same as the cost of a 695
ticket to the professional sporting event on days when no free 696
prize is given away.697

       (II)(DD) "Punch board" means a board containing a number of 698
holes or receptacles of uniform size in which are placed, 699
mechanically and randomly, serially numbered slips of paper that 700
may be punched or drawn from the hole or receptacle when used in 701
conjunction with instant bingo. A player may punch or draw the 702
numbered slips of paper from the holes or receptacles and obtain 703
the prize established for the game if the number drawn corresponds 704
to a winning number or, if the punch board includes the use of a 705
seal card, a potential winning number.706

       (JJ)(EE) "Gross profit" means gross receipts minus the amount 707
actually expended for the payment of prize awards.708

       (KK)(FF) "Net profit" means gross profit minus expenses.709

       (LL)(GG) "Expenses" means the reasonable amount of gross 710
profit actually expended for all of the following:711

       (1) The purchase or lease of bingo supplies;712

       (2) The annual license fee required under section 2915.08 of 713
the Revised Code;714

       (3) Bank fees and service charges for a bingo session or game 715
account described in section 2915.10 of the Revised Code;716

       (4) Audits and accounting services;717

       (5) Safes;718

       (6) Cash registers;719

       (7) Hiring security personnel;720

       (8) Advertising bingo;721

       (9) Renting premises in which to conduct a bingo session;722

       (10) Tables and chairs;723

       (11) Expenses for maintaining and operating a charitable 724
organization's facilities, including, but not limited to, a post 725
home, club house, lounge, tavern, or canteen and any grounds 726
attached to the post home, club house, lounge, tavern, or canteen;727

       (12) Payment of real property taxes and assessments that are 728
levied on a premises on which bingo is conducted;729

       (13) Any other product or service directly related to the 730
conduct of bingo that is authorized in rules adopted by the 731
attorney general under division (B)(1) of section 2915.08 of the 732
Revised Code.733

       (MM)(HH) "Person" has the same meaning as in section 1.59 of 734
the Revised Code and includes any firm or any other legal entity, 735
however organized.736

       (NN)(II) "Revoke" means to void permanently all rights and 737
privileges of the holder of a license issued under section 738
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable 739
gaming license issued by another jurisdiction.740

       (OO)(JJ) "Suspend" means to interrupt temporarily all rights 741
and privileges of the holder of a license issued under section 742
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable 743
gaming license issued by another jurisdiction.744

       (PP)(KK) "Distributor" means any person who purchases or 745
obtains bingo supplies and who does either of the following:746

       (1) Sells, offers for sale, or otherwise provides or offers 747
to provide the bingo supplies to another person for use in this 748
state;749

       (2) Modifies, converts, adds to, or removes parts from the 750
bingo supplies to further their promotion or sale for use in this 751
state.752

       (QQ)(LL) "Manufacturer" means any person who assembles 753
completed bingo supplies from raw materials, other items, or 754
subparts or who modifies, converts, adds to, or removes parts from 755
bingo supplies to further their promotion or sale.756

       (RR)(MM) "Gross annual revenues" means the annual gross 757
receipts derived from the conduct of bingo described in division 758
(S)(O)(1) of this section plus the annual net profit derived from 759
the conduct of bingo described in division (S)(O)(2) of this 760
section.761

       (SS)(NN) "Instant bingo ticket dispenser" means a mechanical 762
device that dispenses an instant bingo ticket or card as the sole 763
item of value dispensed and that has the following 764
characteristics:765

        (1) It is activated upon the insertion of United States 766
currency.767

        (2) It performs no gaming functions.768

        (3) It does not contain a video display monitor or generate 769
noise.770

        (4) It is not capable of displaying any numbers, letters, 771
symbols, or characters in winning or losing combinations.772

       (5) It does not simulate or display rolling or spinning 773
reels.774

        (6) It is incapable of determining whether a dispensed bingo 775
ticket or card is a winning or nonwinning ticket or card and 776
requires a winning ticket or card to be paid by a bingo game 777
operator.778

        (7) It may provide accounting and security features to aid in 779
accounting for the instant bingo tickets or cards it dispenses.780

       (8) It is not part of an electronic network and is not 781
interactive.782

       (TT)(OO)(1) "Electronic bingo aid" means an electronic device 783
used by a participant to monitor bingo cards or sheets purchased 784
at the time and place of a bingo session and that does all of the 785
following:786

        (a) It provides a means for a participant to input numbers 787
and letters announced by a bingo caller.788

        (b) It compares the numbers and letters entered by the 789
participant to the bingo faces previously stored in the memory of 790
the device.791

        (c) It identifies a winning bingo pattern.792

        (2) "Electronic bingo aid" does not include any device into 793
which a coin, currency, token, or an equivalent is inserted to 794
activate play.795

       (UU)(PP) "Deal of instant bingo tickets" means a single game 796
of instant bingo tickets all with the same serial number.797

       (VV)(QQ)(1) "Slot machine" means either of the following:798

       (a) Any mechanical, electronic, video, or digital device that 799
is capable of accepting anything of value, directly or indirectly, 800
from or on behalf of a player who gives the thing of value in the 801
hope of gain; 802

        (b) Any mechanical, electronic, video, or digital device that 803
is capable of accepting anything of value, directly or indirectly, 804
from or on behalf of a player to conduct bingo or a scheme or game 805
of chance.806

       (2) "Slot machine" does not include a skill-based amusement 807
machine or an instant bingo ticket dispenser.808

       (WW)(RR) "Net profit from the proceeds of the sale of instant 809
bingo" means gross profit minus the ordinary, necessary, and 810
reasonable expense expended for the purchase of instant bingo 811
supplies, and, in the case of instant bingo conducted by a 812
veteran's, fraternal, or sporting organization, minus the payment 813
by that organization of real property taxes and assessments levied 814
on a premises on which instant bingo is conducted.815

       (XX)(SS) "Charitable instant bingo organization" means an 816
organization that is exempt from federal income taxation under 817
subsection 501(a) and described in subsection 501(c)(3) of the 818
Internal Revenue Code and is a charitable organization as defined 819
in this section. A "charitable instant bingo organization" does 820
not include a charitable organization that is exempt from federal 821
income taxation under subsection 501(a) and described in 822
subsection 501(c)(3) of the Internal Revenue Code and that is 823
created by a veteran's organization, a fraternal organization, or 824
a sporting organization in regards to bingo conducted or assisted 825
by a veteran's organization, a fraternal organization, or a 826
sporting organization pursuant to section 2915.13 of the Revised 827
Code.828

       (YY)(TT) "Game flare" means the board or placard that 829
accompanies each deal of instant bingo tickets and that has 830
printed on or affixed to it the following information for the 831
game:832

       (1) The name of the game;833

       (2) The manufacturer's name or distinctive logo;834

       (3) The form number;835

       (4) The ticket count;836

       (5) The prize structure, including the number of winning 837
instant bingo tickets by denomination and the respective winning 838
symbol or number combinations for the winning instant bingo 839
tickets;840

       (6) The cost per play;841

       (7) The serial number of the game.842

       (ZZ) "Historic railroad educational organization" means an 843
organization that is exempt from federal income taxation under 844
subsection 501(a) and described in subsection 501(c)(3) of the 845
Internal Revenue Code, that owns in fee simple the tracks and the 846
right-of-way of a historic railroad that the organization restores 847
or maintains and on which the organization provides excursions as 848
part of a program to promote tourism and educate visitors 849
regarding the role of railroad transportation in Ohio history, and 850
that received as donations from a charitable organization that 851
holds a license to conduct bingo under this chapter an amount 852
equal to at least fifty per cent of that licensed charitable 853
organization's net proceeds from the conduct of bingo during each 854
of the five years preceding June 30, 2003. "Historic railroad" 855
means all or a portion of the tracks and right-of-way of a 856
railroad that was owned and operated by a for-profit common 857
carrier in this state at any time prior to January 1, 1950.858

       (AAA)(UU)(1) "Skill-based amusement machine" means a 859
mechanical, video, digital, or electronic device that rewards the 860
player or players, if at all, only with merchandise prizes or with 861
redeemable vouchers redeemable only for merchandise prizes, 862
provided that with respect to rewards for playing the game all of 863
the following apply:864

       (a) The wholesale value of a merchandise prize awarded as a 865
result of the single play of a machine does not exceed ten 866
dollars;867

       (b) Redeemable vouchers awarded for any single play of a 868
machine are not redeemable for a merchandise prize with a 869
wholesale value of more than ten dollars;870

       (c) Redeemable vouchers are not redeemable for a merchandise 871
prize that has a wholesale value of more than ten dollars times 872
the fewest number of single plays necessary to accrue the 873
redeemable vouchers required to obtain that prize; and874

       (d) Any redeemable vouchers or merchandise prizes are 875
distributed at the site of the skill-based amusement machine at 876
the time of play.877

       A card for the purchase of gasoline is a redeemable voucher 878
for purposes of division (AAA)(UU)(1) of this section even if the 879
skill-based amusement machine for the play of which the card is 880
awarded is located at a place where gasoline may not be legally 881
distributed to the public or the card is not redeemable at the 882
location of, or at the time of playing, the skill-based amusement 883
machine.884

       (2) A device shall not be considered a skill-based amusement 885
machine and shall be considered a slot machine if it pays cash or 886
one or more of the following apply:887

       (a) The ability of a player to succeed at the game is 888
impacted by the number or ratio of prior wins to prior losses of 889
players playing the game.890

       (b) Any reward of redeemable vouchers is not based solely on 891
the player achieving the object of the game or the player's score;892

       (c) The outcome of the game, or the value of the redeemable 893
voucher or merchandise prize awarded for winning the game, can be 894
controlled by a source other than any player playing the game.895

       (d) The success of any player is or may be determined by a 896
chance event that cannot be altered by player actions.897

       (e) The ability of any player to succeed at the game is 898
determined by game features not visible or known to the player.899

       (f) The ability of the player to succeed at the game is 900
impacted by the exercise of a skill that no reasonable player 901
could exercise.902

       (3) All of the following apply to any machine that is 903
operated as described in division (AAA)(UU)(1) of this section:904

       (a) As used in division (UU) of this section, "game" and 905
"play" mean one event from the initial activation of the machine 906
until the results of play are determined without payment of 907
additional consideration. An individual utilizing a machine that 908
involves a single game, play, contest, competition, or tournament 909
may be awarded redeemable vouchers or merchandise prizes based on 910
the results of play.911

       (b) Advance play for a single game, play, contest, 912
competition, or tournament participation may be purchased. The 913
cost of the contest, competition, or tournament participation may 914
be greater than a single noncontest, competition, or tournament 915
play.916

       (c) To the extent that the machine is used in a contest, 917
competition, or tournament, that contest, competition, or 918
tournament has a defined starting and ending date and is open to 919
participants in competition for scoring and ranking results toward 920
the awarding of redeemable vouchers or merchandise prizes that are 921
stated prior to the start of the contest, competition, or 922
tournament. 923

       (4) For purposes of division (AAA)(UU)(1) of this section, 924
the mere presence of a device, such as a pin-setting, 925
ball-releasing, or scoring mechanism, that does not contribute to 926
or affect the outcome of the play of the game does not make the 927
device a skill-based amusement machine.928

       (BBB)(VV) "Merchandise prize" means any item of value, but 929
shall not include any of the following:930

       (1) Cash, gift cards, or any equivalent thereof;931

       (2) Plays on games of chance, state lottery tickets, bingo, 932
or instant bingo;933

       (3) Firearms, tobacco, or alcoholic beverages; or934

       (4) A redeemable voucher that is redeemable for any of the 935
items listed in division (BBB)(VV)(1), (2), or (3) of this 936
section.937

       (CCC)(WW) "Redeemable voucher" means any ticket, token, 938
coupon, receipt, or other noncash representation of value.939

       (DDD)(XX) "Pool not conducted for profit" means a scheme in 940
which a participant gives a valuable consideration for a chance to 941
win a prize and the total amount of consideration wagered is 942
distributed to a participant or participants.943

       (EEE)(YY) "Sporting organization" means a hunting, fishing, 944
or trapping organization, other than a college or high school 945
fraternity or sorority, that is not organized for profit, that is 946
affiliated with a state or national sporting organization, 947
including but not limited to, the Ohio league of Ohio sportsmen, 948
and that has been in continuous existence in this state for a 949
period of three years.950

       (FFF)(ZZ) "Community action agency" has the same meaning as 951
in section 122.66 of the Revised Code.952

       (AAA) "Permitted location" means a building leased by a 953
county in this state under a lease pursuant to which charitable 954
organizations have operated festivals weekly for the eighteen 955
months immediately preceding the effective date of this amendment, 956
at which games of chance were offered.957

       (BBB) "Charity card room" means a facility at a permitted 958
location that offers games of chance conducted by a charitable 959
organization.960

       Sec. 2915.02.  (A) No person shall do any of the following:961

       (1) Engage in bookmaking, or knowingly engage in conduct that 962
facilitates bookmaking;963

       (2) Establish, promote, or operate or knowingly engage in 964
conduct that facilitates any game of chance conducted for profit 965
or any scheme of chance;966

       (3) Knowingly procure, transmit, exchange, or engage in 967
conduct that facilitates the procurement, transmission, or 968
exchange of information for use in establishing odds or 969
determining winners in connection with bookmaking or with any game 970
of chance conducted for profit or any scheme of chance;971

       (4) Engage in betting or in playing any scheme or game of 972
chance as a substantial source of income or livelihood;973

       (5) With purpose to violate division (A)(1), (2), (3), or (4) 974
of this section, acquire, possess, control, or operate any 975
gambling device.976

       (B) For purposes of division (A)(1) of this section, a person 977
facilitates bookmaking if the person in any way knowingly aids an 978
illegal bookmaking operation, including, without limitation, 979
placing a bet with a person engaged in or facilitating illegal 980
bookmaking. For purposes of division (A)(2) of this section, a 981
person facilitates a game of chance conducted for profit or a 982
scheme of chance if the person in any way knowingly aids in the 983
conduct or operation of any such game or scheme, including, 984
without limitation, playing any such game or scheme.985

       (C) This section does not prohibit conduct in connection with 986
gambling expressly permitted by law.987

       (D) This section does not apply to any of the following:988

       (1) Games of chance, if all of the following apply:989

       (a) The games of chance are not craps for money or roulette 990
for money.991

       (b) The games of chance are conducted by a charitable 992
organization that is, and has received from the internal revenue 993
service a determination letter that is currently in effect, 994
stating that the organization is, exempt from federal income 995
taxation under subsection 501(a) and described in subsection 996
501(c)(3) of the Internal Revenue Code.997

       (c) The games of chance are conducted at festivals of the 998
charitable organization that are conducted either for a period of 999
four consecutive days or less and not more than twice a year or 1000
for a period ofa total of five consecutive days not more than 1001
once a year, and are conducted on premises owned by the charitable 1002
organization for a period of no less than one year immediately 1003
preceding the conducting of the games of chance, on premises 1004
leased from a governmental unit, or on premises that are leased 1005
from a veteran's or fraternal organization and that have been 1006
owned by the lessor veteran's or fraternal organization for a 1007
period of no less than one year immediately preceding the 1008
conducting of the games of chance.1009

       A charitable organization shall not lease premises from a 1010
veteran's or fraternal organization to conduct a festival 1011
described in division (D)(1)(c) of this section if the veteran's 1012
or fraternal organization already has leased the premises twelve 1013
times during the preceding year to charitable organizations for 1014
that purpose. If a charitable organization leases premises from a 1015
veteran's or fraternal organization to conduct a festival 1016
described in division (D)(1)(c) of this section, the charitable 1017
organization shall not pay a rental rate for the premises per day 1018
of the festival that exceeds the rental rate per bingo session 1019
that a charitable organization may pay under division (B)(1) of 1020
section 2915.09 of the Revised Code when it leases premises from 1021
another charitable organization to conduct bingo games.1022

       (d) All of the money or assets received from the games of 1023
chance after deduction only of prizes paid out during the conduct 1024
of the games of chance are used by, or given, donated, or 1025
otherwise transferred to, any organization that is described in 1026
subsection 509(a)(1), 509(a)(2), or 509(a)(3) of the Internal 1027
Revenue Code and is either a governmental unit or an organization 1028
that is tax exempt under subsection 501(a) and described in 1029
subsection 501(c)(3) of the Internal Revenue Code;1030

       (e) The games of chance are not conducted during, or within 1031
ten hours of, a bingo game conducted for amusement purposes only 1032
pursuant to section 2915.12 of the Revised Code.1033

       No person shall receive any commission, wage, salary, reward, 1034
tip, donation, gratuity, or other form of compensation, directly 1035
or indirectly, for operating or assisting in the operation of any 1036
game of chance.1037

       (2) Any tag fishing tournament operated under a permit issued 1038
under section 1533.92 of the Revised Code, as "tag fishing 1039
tournament" is defined in section 1531.01 of the Revised Code;1040

       (3) Bingo conducted by a charitable organization that holds a 1041
license issued under section 2915.08 of the Revised Code.1042

       (E) Division (D) of this section shall not be construed to 1043
authorize the sale, lease, or other temporary or permanent 1044
transfer of the right to conduct games of chance, as granted by 1045
that division, by any charitable organization that is granted that 1046
right.1047

       (F) Whoever violates this section is guilty of gambling, a 1048
misdemeanor of the first degree. If the offender previously has 1049
been convicted of any gambling offense, gambling is a felony of 1050
the fifth degree.1051

       Sec. 2915.06. (A) No person shall give to another person any 1052
item described in division (BBB)(VV)(1), (2), (3), or (4) of 1053
section 2915.01 of the Revised Code in exchange for a noncash 1054
prize, toy, or novelty received as a reward for playing or 1055
operating a skill-based amusement machine or for a free or 1056
reduced-price game won on a skill-based amusement machine.1057

        (B) Whoever violates division (A) of this section is guilty 1058
of skill-based amusement machine prohibited conduct. A violation 1059
of division (A) of this section is a misdemeanor of the first 1060
degree for each redemption of a prize that is involved in the 1061
violation. If the offender previously has been convicted of a 1062
violation of division (A) of this section, a violation of that 1063
division is a felony of the fifth degree for each redemption of a 1064
prize that is involved in the violation. The maximum fine 1065
authorized to be imposed for a felony of the fifth degree shall be 1066
imposed upon the offender.1067

       Sec. 2915.08.  (A)(1) Annually before the first day of 1068
January, a charitable organization that desires to conduct bingo, 1069
instant bingo at a bingo session, or instant bingo other than at a 1070
bingo session shall make out, upon a form to be furnished by the 1071
attorney general for that purpose, an application for a license to 1072
conduct bingo, instant bingo at a bingo session, or instant bingo 1073
other than at a bingo session and deliver that application to the 1074
attorney general together with a license fee as follows:1075

       (a) Except as otherwise provided in this division, for a 1076
license for the conduct of bingo, two hundred dollars;1077

        (b) For a license for the conduct of instant bingo at a bingo 1078
session or instant bingo other than at a bingo session for a 1079
charitable organization that previously has not been licensed 1080
under this chapter to conduct instant bingo at a bingo session or 1081
instant bingo other than at a bingo session, a license fee of five 1082
hundred dollars, and for any other charitable organization, a 1083
license fee that is based upon the gross profits received by the 1084
charitable organization from the operation of instant bingo at a 1085
bingo session or instant bingo other than at a bingo session, 1086
during the one-year period ending on the thirty-first day of 1087
October of the year immediately preceding the year for which the 1088
license is sought, and that is one of the following:1089

       (i) Five hundred dollars, if the total is fifty thousand 1090
dollars or less;1091

       (ii) One thousand two hundred fifty dollars plus one-fourth 1092
per cent of the gross profit, if the total is more than fifty 1093
thousand dollars but less than two hundred fifty thousand one 1094
dollars;1095

       (iii) Two thousand two hundred fifty dollars plus one-half 1096
per cent of the gross profit, if the total is more than two 1097
hundred fifty thousand dollars but less than five hundred thousand 1098
one dollars;1099

       (iv) Three thousand five hundred dollars plus one per cent of 1100
the gross profit, if the total is more than five hundred thousand 1101
dollars but less than one million one dollars;1102

       (v) Five thousand dollars plus one per cent of the gross 1103
profit, if the total is one million one dollars or more;1104

       (c) A reduced license fee established by the attorney general 1105
pursuant to division (G) of this section.1106

       (d) For a license to conduct bingo for a charitable 1107
organization that prior to the effective date of this amendment1108
July 1, 2003, has not been licensed under this chapter to conduct 1109
bingo, instant bingo at a bingo session, or instant bingo other 1110
than at a bingo session, a license fee established by rule by the 1111
attorney general in accordance with division (H) of this section.1112

       (2) The application shall be in the form prescribed by the 1113
attorney general, shall be signed and sworn to by the applicant, 1114
and shall contain all of the following:1115

       (a) The name and post-office address of the applicant;1116

       (b) A statement that the applicant is a charitable 1117
organization and that it has been in continuous existence as a 1118
charitable organization in this state for two years immediately 1119
preceding the making of the application or for five years in the 1120
case of a fraternal organization or a nonprofit medical 1121
organization;1122

       (c) The location at which the organization will conduct 1123
bingo, which location shall be within the county in which the 1124
principal place of business of the applicant is located, or within 1125
the municipal corporation in which the principal place of business 1126
of the applicant is located if the organization is located in more 1127
than one municipal corporation, the days of the week and the times 1128
on each of those days when bingo will be conducted, whether the 1129
organization owns, leases, or subleases the premises, and a copy 1130
of the rental agreement if it leases or subleases the premises;1131

       (d) A statement of the applicant's previous history, record, 1132
and association that is sufficient to establish that the applicant 1133
is a charitable organization, and a copy of a determination letter 1134
that is issued by the Internal Revenue Service and states that the 1135
organization is tax exempt under subsection 501(a) and described 1136
in subsection 501(c)(3), 501(c)(4), 501(c)(7), 501(c)(8), 1137
501(c)(10), or 501(c)(19) of the Internal Revenue Code;1138

       (e) A statement as to whether the applicant has ever had any 1139
previous application refused, whether it previously has had a 1140
license revoked or suspended, and the reason stated by the 1141
attorney general for the refusal, revocation, or suspension;1142

       (f) A statement of the charitable purposes for which the net 1143
profit derived from bingo, other than instant bingo, will be used, 1144
and a statement of how the net profit derived from instant bingo 1145
will be distributed in accordance with section 2915.101 of the 1146
Revised Code;1147

       (g) Other necessary and reasonable information that the 1148
attorney general may require by rule adopted pursuant to section 1149
111.15 of the Revised Code;1150

       (h) If the applicant is a charitable trust as defined in 1151
section 109.23 of the Revised Code, a statement as to whether it 1152
has registered with the attorney general pursuant to section 1153
109.26 of the Revised Code or filed annual reports pursuant to 1154
section 109.31 of the Revised Code, and, if it is not required to 1155
do either, the exemption in section 109.26 or 109.31 of the 1156
Revised Code that applies to it;1157

       (i) If the applicant is a charitable organization as defined 1158
in section 1716.01 of the Revised Code, a statement as to whether 1159
it has filed with the attorney general a registration statement 1160
pursuant to section 1716.02 of the Revised Code and a financial 1161
report pursuant to section 1716.04 of the Revised Code, and, if it 1162
is not required to do both, the exemption in section 1716.03 of 1163
the Revised Code that applies to it;1164

       (j) In the case of an applicant seeking to qualify as a youth 1165
athletic park organization, a statement issued by a board or body 1166
vested with authority under Chapter 755. of the Revised Code for 1167
the supervision and maintenance of recreation facilities in the 1168
territory in which the organization is located, certifying that 1169
the playing fields owned by the organization were used for at 1170
least one hundred days during the year in which the statement is 1171
issued, and were open for use to all residents of that territory, 1172
regardless of race, color, creed, religion, sex, or national 1173
origin, for athletic activities by youth athletic organizations 1174
that do not discriminate on the basis of race, color, creed, 1175
religion, sex, or national origin, and that the fields were not 1176
used for any profit-making activity at any time during the year. 1177
That type of board or body is authorized to issue the statement 1178
upon request and shall issue the statement if it finds that the 1179
applicant's playing fields were so used.1180

       (3) The attorney general, within thirty days after receiving 1181
a timely filed application from a charitable organization that has 1182
been issued a license under this section that has not expired and 1183
has not been revoked or suspended, shall send a temporary permit 1184
to the applicant specifying the date on which the application was 1185
filed with the attorney general and stating that, pursuant to 1186
section 119.06 of the Revised Code, the applicant may continue to 1187
conduct bingo until a new license is granted or, if the 1188
application is rejected, until fifteen days after notice of the 1189
rejection is mailed to the applicant. The temporary permit does 1190
not affect the validity of the applicant's application and does 1191
not grant any rights to the applicant except those rights 1192
specifically granted in section 119.06 of the Revised Code. The 1193
issuance of a temporary permit by the attorney general pursuant to 1194
this division does not prohibit the attorney general from 1195
rejecting the applicant's application because of acts that the 1196
applicant committed, or actions that the applicant failed to take, 1197
before or after the issuance of the temporary permit.1198

       (4) Within thirty days after receiving an initial license 1199
application from a charitable organization to conduct bingo, 1200
instant bingo at a bingo session, or instant bingo other than at a 1201
bingo session, the attorney general shall conduct a preliminary 1202
review of the application and notify the applicant regarding any 1203
deficiencies. Once an application is deemed complete, or beginning 1204
on the thirtieth day after the application is filed, if the 1205
attorney general failed to notify the applicant of any 1206
deficiencies, the attorney general shall have an additional sixty 1207
days to conduct an investigation and either grant or deny the 1208
application based on findings established and communicated in 1209
accordance with divisions (B) and (E) of this section. As an 1210
option to granting or denying an initial license application, the 1211
attorney general may grant a temporary license and request 1212
additional time to conduct the investigation if the attorney 1213
general has cause to believe that additional time is necessary to 1214
complete the investigation and has notified the applicant in 1215
writing about the specific concerns raised during the 1216
investigation.1217

       (B)(1) The attorney general shall adopt rules to enforce 1218
sections 2915.01, 2915.02, and 2915.07 to 2915.13 of the Revised 1219
Code to ensure that bingo or instant bingo is conducted in 1220
accordance with those sections and to maintain proper control over 1221
the conduct of bingo or instant bingo. The rules, except rules 1222
adopted pursuant to divisions (A)(2)(g) and (G) of this section, 1223
shall be adopted pursuant to Chapter 119. of the Revised Code. The 1224
attorney general shall license charitable organizations to conduct 1225
bingo, instant bingo at a bingo session, or instant bingo other 1226
than at a bingo session in conformance with this chapter and with 1227
the licensing provisions of Chapter 119. of the Revised Code.1228

       (2) The attorney general may refuse to grant a license to any 1229
organization, or revoke or suspend the license of any 1230
organization, that does any of the following or to which any of 1231
the following applies:1232

       (a) Fails or has failed at any time to meet any requirement 1233
of section 109.26, 109.31, or 1716.02, or sections 2915.07 to 1234
2915.11 of the Revised Code, or violates or has violated any 1235
provision of sections 2915.02 or 2915.07 to 2915.13 of the Revised 1236
Code or any rule adopted by the attorney general pursuant to this 1237
section;1238

       (b) Makes or has made an incorrect or false statement that is 1239
material to the granting of the license in an application filed 1240
pursuant to division (A) of this section;1241

       (c) Submits or has submitted any incorrect or false 1242
information relating to an application if the information is 1243
material to the granting of the license;1244

       (d) Maintains or has maintained any incorrect or false 1245
information that is material to the granting of the license in the 1246
records required to be kept pursuant to divisions (A) and (C) of 1247
section 2915.10 of the Revised Code, if applicable;1248

       (e) The attorney general has good cause to believe that the 1249
organization will not conduct bingo, instant bingo at a bingo 1250
session, or instant bingo other than at a bingo session in 1251
accordance with sections 2915.07 to 2915.13 of the Revised Code or 1252
with any rule adopted by the attorney general pursuant to this 1253
section.1254

       (3) For the purposes of division (B) of this section, any 1255
action of an officer, trustee, agent, representative, or bingo 1256
game operator of an organization is an action of the organization.1257

       (C) The attorney general may grant licenses to charitable 1258
organizations that are branches, lodges, or chapters of national 1259
charitable organizations.1260

       (D) The attorney general shall send notice in writing to the 1261
prosecuting attorney and sheriff of the county in which the 1262
organization will conduct bingo, instant bingo at a bingo session, 1263
or instant bingo other than at a bingo session, as stated in its 1264
application for a license or amended license, and to any other law 1265
enforcement agency in that county that so requests, of all of the 1266
following:1267

       (1) The issuance of the license;1268

       (2) The issuance of the amended license;1269

       (3) The rejection of an application for and refusal to grant 1270
a license;1271

       (4) The revocation of any license previously issued;1272

       (5) The suspension of any license previously issued.1273

       (E) A license issued by the attorney general shall set forth 1274
the information contained on the application of the charitable 1275
organization that the attorney general determines is relevant, 1276
including, but not limited to, the location at which the 1277
organization will conduct bingo, instant bingo at a bingo session, 1278
or instant bingo other than at a bingo session and the days of the 1279
week and the times on each of those days when bingo will be 1280
conducted. If the attorney general refuses to grant or revokes or 1281
suspends a license, the attorney general shall notify the 1282
applicant in writing and specifically identify the reason for the 1283
refusal, revocation, or suspension in narrative form and, if 1284
applicable, by identifying the section of the Revised Code 1285
violated. The failure of the attorney general to give the written 1286
notice of the reasons for the refusal, revocation, or suspension 1287
or a mistake in the written notice does not affect the validity of 1288
the attorney general's refusal to grant, or the revocation or 1289
suspension of, a license. If the attorney general fails to give 1290
the written notice or if there is a mistake in the written notice, 1291
the applicant may bring an action to compel the attorney general 1292
to comply with this division or to correct the mistake, but the 1293
attorney general's order refusing to grant, or revoking or 1294
suspending, a license shall not be enjoined during the pendency of 1295
the action.1296

       (F) A charitable organization that has been issued a license 1297
pursuant to division (B) of this section but that cannot conduct 1298
bingo or instant bingo at the location, or on the day of the week 1299
or at the time, specified on the license due to circumstances that 1300
make it impractical to do so may apply in writing, together with 1301
an application fee of two hundred fifty dollars, to the attorney 1302
general, at least thirty days prior to a change in location, day 1303
of the week, or time, and request an amended license. The 1304
application shall describe the causes making it impractical for 1305
the organization to conduct bingo or instant bingo in conformity 1306
with its license and shall indicate the location, days of the 1307
week, and times on each of those days when it desires to conduct 1308
bingo or instant bingo. Except as otherwise provided in this 1309
division, the attorney general shall issue the amended license in 1310
accordance with division (E) of this section, and the organization 1311
shall surrender its original license to the attorney general. The 1312
attorney general may refuse to grant an amended license according 1313
to the terms of division (B) of this section.1314

       (G) The attorney general, by rule adopted pursuant to section 1315
111.15 of the Revised Code, shall establish a schedule of reduced 1316
license fees for charitable organizations that desire to conduct 1317
bingo or instant bingo during fewer than twenty-six weeks in any 1318
calendar year.1319

       (H) The attorney general, by rule adopted pursuant to section 1320
111.15 of the Revised Code, shall establish license fees for the 1321
conduct of bingo, instant bingo at a bingo session, or instant 1322
bingo other than at a bingo session for charitable organizations 1323
that prior to the effective date of this amendmentJuly 1, 2003,1324
have not been licensed to conduct bingo, instant bingo at a bingo 1325
session, or instant bingo other than at a bingo session under this 1326
chapter.1327

       (I) The attorney general may enter into a written contract 1328
with any other state agency to delegate to that state agency the 1329
powers prescribed to the attorney general under Chapter 2915. of 1330
the Revised Code.1331

        (J) The attorney general, by rule adopted pursuant to section 1332
111.15 of the Revised Code, may adopt rules to determine the 1333
requirements for a charitable organization that is exempt from 1334
federal income taxation under subsection 501(a) and described in 1335
subsection 501(c)(3) of the Internal Revenue Code to be in good 1336
standing in the state.1337

       Sec. 2915.09.  (A) No charitable organization that conducts 1338
bingo shall fail to do any of the following:1339

       (1) Own all of the equipment used to conduct bingo or lease 1340
that equipment from a charitable organization that is licensed to 1341
conduct bingo, or from the landlord of a premises where bingo is 1342
conducted, for a rental rate that is not more than is customary 1343
and reasonable for that equipment;1344

       (2) Except as otherwise provided in division (A)(3) of this 1345
section, use all of the gross receipts from bingo for paying 1346
prizes, for reimbursement of expenses for or for renting premises 1347
in which to conduct a bingo session, for reimbursement of expenses 1348
for or for purchasing or leasing bingo supplies used in conducting 1349
bingo, for reimbursement of expenses for or for hiring security 1350
personnel, for reimbursement of expenses for or for advertising 1351
bingo, or for reimbursement of other expenses or for other 1352
expenses listed in division (LL)(GG) of section 2915.01 of the 1353
Revised Code, provided that the amount of the receipts so spent is 1354
not more than is customary and reasonable for a similar purchase, 1355
lease, hiring, advertising, or expense. If the building in which 1356
bingo is conducted is owned by the charitable organization 1357
conducting bingo and the bingo conducted includes a form of bingo 1358
described in division (S)(O)(1) of section 2915.01 of the Revised 1359
Code, the charitable organization may deduct from the total amount 1360
of the gross receipts from each session a sum equal to the lesser 1361
of six hundred dollars or forty-five per cent of the gross 1362
receipts from the bingo described in that division as 1363
consideration for the use of the premises.1364

       (3) Use, or give, donate, or otherwise transfer, all of the 1365
net profit derived from bingo, other than instant bingo, for a 1366
charitable purpose listed in its license application and described 1367
in division (Z)(V) of section 2915.01 of the Revised Code, or 1368
distribute all of the net profit from the proceeds of the sale of 1369
instant bingo as stated in its license application and in 1370
accordance with section 2915.101 of the Revised Code.1371

       (B) No charitable organization that conducts a bingo game 1372
described in division (S)(O)(1) of section 2915.01 of the Revised 1373
Code shall fail to do any of the following:1374

       (1) Conduct the bingo game on premises that are owned by the 1375
charitable organization, on premises that are owned by another 1376
charitable organization and leased from that charitable 1377
organization for a rental rate not in excess of the lesser of six 1378
hundred dollars per bingo session or forty-five per cent of the 1379
gross receipts of the bingo session, on premises that are leased 1380
from a person other than a charitable organization for a rental 1381
rate that is not more than is customary and reasonable for 1382
premises that are similar in location, size, and quality but not 1383
in excess of four hundred fifty dollars per bingo session, or on 1384
premises that are owned by a person other than a charitable 1385
organization, that are leased from that person by another 1386
charitable organization, and that are subleased from that other 1387
charitable organization by the charitable organization for a 1388
rental rate not in excess of four hundred fifty dollars per bingo 1389
session. No charitable organization is required to pay property 1390
taxes or assessments on premises that the charitable organization 1391
leases from another person to conduct bingo sessions. If the 1392
charitable organization leases from a person other than a 1393
charitable organization the premises on which it conducts bingo 1394
sessions, the lessor of the premises shall provide the premises to 1395
the organization and shall not provide the organization with bingo 1396
game operators, security personnel, concessions or concession 1397
operators, bingo supplies, or any other type of service. A 1398
charitable organization shall not lease or sublease premises that 1399
it owns or leases to more than onethree other charitable 1400
organizationorganizations per calendar week for the purpose of1401
conducting bingo sessions on the premises. A person that is not a 1402
charitable organization shall not lease premises that it owns, 1403
leases, or otherwise is empowered to lease to more than three 1404
charitable organizations per calendar week for conducting bingo 1405
sessions on the premises. In no case shall more than nine bingo 1406
sessions be conducted on any premises in any calendar week.1407

       (2) Display its license conspicuously at the premises where 1408
the bingo session is conducted;1409

       (3) Conduct the bingo session in accordance with the 1410
definition of bingo set forth in division (S)(O)(1) of section 1411
2915.01 of the Revised Code.1412

        (C) No charitable organization that conducts a bingo game 1413
described in division (S)(O)(1) of section 2915.01 of the Revised 1414
Code shall do any of the following:1415

       (1) Pay any compensation to a bingo game operator for 1416
operating a bingo session that is conducted by the charitable 1417
organization or for preparing, selling, or serving food or 1418
beverages at the site of the bingo session, permit any auxiliary 1419
unit or society of the charitable organization to pay compensation 1420
to any bingo game operator who prepares, sells, or serves food or 1421
beverages at a bingo session conducted by the charitable 1422
organization, or permit any auxiliary unit or society of the 1423
charitable organization to prepare, sell, or serve food or 1424
beverages at a bingo session conducted by the charitable 1425
organization, if the auxiliary unit or society pays any 1426
compensation to the bingo game operators who prepare, sell, or 1427
serve the food or beverages;1428

       (2) Pay consulting fees to any person for any services 1429
performed in relation to the bingo session;1430

       (3) Pay concession fees to any person who provides 1431
refreshments to the participants in the bingo session;1432

       (4) Except as otherwise provided in division (C)(4) of this 1433
section, conduct more than three bingo sessions in any seven-day 1434
period. A volunteer firefighter's organization or a volunteer 1435
rescue service organization that conducts not more than five bingo 1436
sessions in a calendar year may conduct more than three bingo 1437
sessions in a seven-day period after notifying the attorney 1438
general when it will conduct the sessions.1439

       (5) Pay out more than six thousand dollars in prizes for 1440
bingo games described in division (S)(O)(1) of section 2915.01 of 1441
the Revised Code during any bingo session that is conducted by the 1442
charitable organization. "Prizes" does not include awards from the 1443
conduct of instant bingo.1444

       (6) Conduct a bingo session at any time during the ten-hour1445
eight-hour period between midnighttwo a.m. and ten a.m., at any 1446
time during, or within ten hours of, a bingo game conducted for 1447
amusement only pursuant to section 2915.12 of the Revised Code, at 1448
any premises not specified on its license, or on any day of the 1449
week or during any time period not specified on its license. 1450
Division (A)(6) of this section does not prohibit the sale of 1451
instant bingo tickets beginning at nine a.m. for a bingo session 1452
that begins at ten a.m. If circumstances make it impractical for 1453
the charitable organization to conduct a bingo session at the 1454
premises, or on the day of the week or at the time, specified on 1455
its license, or if a charitable organization wants to conduct 1456
bingo sessions on a day of the week or at a time other than the 1457
day or time specified on its license, the charitable organization 1458
may apply in writing to the attorney general for an amended 1459
license pursuant to division (F) of section 2915.08 of the Revised 1460
Code. A charitable organization may apply twice in each calendar 1461
year for an amended license to conduct bingo sessions on a day of 1462
the week or at a time other than the day or time specified on its 1463
license. If the amended license is granted, the organization may 1464
conduct bingo sessions at the premises, on the day of the week, 1465
and at the time specified on its amended license.1466

       (7) Permit any person whom the charitable organization knows, 1467
or should have known, is under the age of eighteen to work as a 1468
bingo game operator;1469

       (8) Permit any person whom the charitable organization knows, 1470
or should have known, has been convicted of a felony or gambling 1471
offense in any jurisdiction to be a bingo game operator;1472

       (9) Permit the lessor of the premises on which the bingo 1473
session is conducted, if the lessor is not a charitable 1474
organization, to provide the charitable organization with bingo 1475
game operators, security personnel, concessions, bingo supplies, 1476
or any other type of service;1477

       (10) Purchase or lease bingo supplies from any person except 1478
a distributor issued a license under section 2915.081 of the 1479
Revised Code;1480

       (11)(a) Use or permit the use of electronic bingo aids except 1481
under the following circumstances:1482

        (i) For any single participant, not more than ninety bingo 1483
faces can be played using an electronic bingo aid or aids.1484

        (ii) The charitable organization shall provide a participant 1485
using an electronic bingo aid with corresponding paper bingo cards 1486
or sheets.1487

        (iii) The total price of bingo faces played with an 1488
electronic bingo aid shall be equal to the total price of the same 1489
number of bingo faces played with a paper bingo card or sheet sold 1490
at the same bingo session but without an electronic bingo aid.1491

       (iv) An electronic bingo aid cannot be part of an electronic 1492
network other than a network that includes only bingo aids and 1493
devices that are located on the premises at which the bingo is 1494
being conducted or be interactive with any device not located on 1495
the premises at which the bingo is being conducted.1496

        (v) An electronic bingo aid cannot be used to participate in 1497
bingo that is conducted at a location other than the location at 1498
which the bingo session is conducted and at which the electronic 1499
bingo aid is used.1500

        (vi) An electronic bingo aid cannot be used to provide for 1501
the input of numbers and letters announced by a bingo caller other 1502
than the bingo caller who physically calls the numbers and letters 1503
at the location at which the bingo session is conducted and at 1504
which the electronic bingo aid is used.1505

        (b) The attorney general may adopt rules in accordance with 1506
Chapter 119. of the Revised Code that govern the use of electronic 1507
bingo aids. The rules may include a requirement that an electronic 1508
bingo aid be capable of being audited by the attorney general to 1509
verify the number of bingo cards or sheets played during each 1510
bingo session.1511

       (12) Permit any person the charitable organization knows, or 1512
should have known, to be under eighteen years of age to play bingo 1513
described in division (S)(O)(1) of section 2915.01 of the Revised 1514
Code.1515

        (D)(1) Except as otherwise provided in division (D)(3) of 1516
this section, no charitable organization shall provide to a bingo 1517
game operator, and no bingo game operator shall receive or accept, 1518
any commission, wage, salary, reward, tip, donation, gratuity, or 1519
other form of compensation, directly or indirectly, regardless of 1520
the source, for conducting bingo or providing other work or labor 1521
at the site of bingo during a bingo session. 1522

       (2) Except as otherwise provided in division (D)(3) of this 1523
section, no charitable organization shall provide to a bingo game 1524
operator any commission, wage, salary, reward, tip, donation, 1525
gratuity, or other form of compensation, directly or indirectly, 1526
regardless of the source, for conducting instant bingo other than 1527
at a bingo session at the site of instant bingo other than at a 1528
bingo session.1529

       (3) Nothing in division (D) of this section prohibits an 1530
employee of a fraternal organization, veteran's organization, or 1531
sporting organization from selling instant bingo tickets or cards 1532
to the organization's members or invited guests, as long as no 1533
portion of the employee's compensation is paid from any receipts 1534
of bingo.1535

       (E) Notwithstanding division (B)(1) of this section, a 1536
charitable organization that, prior to December 6, 1977, has 1537
entered into written agreements for the lease of premises it owns 1538
to another charitable organization or other charitable 1539
organizations for the conducting of bingo sessions so that more 1540
than two bingo sessions are conducted per calendar week on the 1541
premises, and a person that is not a charitable organization and 1542
that, prior to December 6, 1977, has entered into written 1543
agreements for the lease of premises it owns to charitable 1544
organizations for the conducting of more than two bingo sessions 1545
per calendar week on the premises, may continue to lease the 1546
premises to those charitable organizations, provided that no more 1547
than four sessions are conducted per calendar week, that the 1548
lessor organization or person has notified the attorney general in 1549
writing of the organizations that will conduct the sessions and 1550
the days of the week and the times of the day on which the 1551
sessions will be conducted, that the initial lease entered into 1552
with each organization that will conduct the sessions was filed 1553
with the attorney general prior to December 6, 1977, and that each 1554
organization that will conduct the sessions was issued a license 1555
to conduct bingo games by the attorney general prior to December 1556
6, 1977.1557

       (F) This section does not prohibit a bingo licensed 1558
charitable organization or a game operator from giving any person 1559
an instant bingo ticket as a prize.1560

       (G) Whoever violates division (A)(2) of this section is 1561
guilty of illegally conducting a bingo game, a felony of the 1562
fourth degree. Except as otherwise provided in this division, 1563
whoever violates division (A)(1) or (3), (B)(1), (2), or (3), 1564
(C)(1) to (12), or (D) of this section is guilty of a minor 1565
misdemeanor. If the offender previously has been convicted of a 1566
violation of division (A)(1) or (3), (B)(1), (2), or (3), (C)(1) 1567
to (11), or (D) of this section, a violation of division (A)(1) or 1568
(3), (B)(1), (2), or (3), (C), or (D) of this section is a 1569
misdemeanor of the first degree. Whoever violates division (C)(12) 1570
of this section is guilty of a misdemeanor of the first degree, if 1571
the offender previously has been convicted of a violation of 1572
division (C)(12) of this section, a felony of the fourth degree.1573

       Sec. 2915.091.  (A) No charitable organization that conducts 1574
instant bingo shall do any of the following:1575

       (1) Fail to comply with the requirements of divisions (A)(1), 1576
(2), and (3) of section 2915.09 of the Revised Code;1577

       (2) Conduct instant bingo unless either of the following 1578
applies:1579

       (a) That organization is, and has received from the internal 1580
revenue service a determination letter that is currently in effect 1581
stating that the organization is, exempt from federal income 1582
taxation under subsection 501(a), is described in subsection 1583
501(c)(3) of the Internal Revenue Code, is a charitable 1584
organization as defined in section 2915.01 of the Revised Code, is 1585
in good standing in the state pursuant to section 2915.08 of the 1586
Revised Code, and is in compliance with Chapter 1716. of the 1587
Revised Code;1588

       (b) That organization is, and has received from the internal 1589
revenue service a determination letter that is currently in effect 1590
stating that the organization is, exempt from federal income 1591
taxation under subsection 501(a), is described in subsection 1592
501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) or is a veteran's 1593
organization described in subsection 501(c)(4) of the Internal 1594
Revenue Code, and conducts instant bingo under section 2915.13 of 1595
the Revised Code.1596

       (3) Conduct instant bingo on any day, at any time, or at any 1597
premises not specified on the organization's license issued 1598
pursuant to section 2915.08 of the Revised Code;1599

       (4) Permit any person whom the organization knows or should 1600
have known has been convicted of a felony or gambling offense in 1601
any jurisdiction to be a bingo game operator in the conduct of 1602
instant bingo;1603

       (5) Purchase or lease supplies used to conduct instant bingo 1604
or punch board games from any person except a distributor licensed 1605
under section 2915.081 of the Revised Code;1606

       (6) Sell or provide any instant bingo ticket or card for a 1607
price different from the price printed on it by the manufacturer 1608
on either the instant bingo ticket or card or on the game flare;1609

       (7) Sell an instant bingo ticket or card to a person under 1610
eighteen years of age;1611

       (8) Fail to keep unsold instant bingo tickets or cards for 1612
less than three years;1613

       (9) Pay any compensation to a bingo game operator for 1614
conducting instant bingo that is conducted by the organization or 1615
for preparing, selling, or serving food or beverages at the site 1616
of the instant bingo game, permit any auxiliary unit or society of 1617
the organization to pay compensation to any bingo game operator 1618
who prepares, sells, or serves food or beverages at an instant 1619
bingo game conducted by the organization, or permit any auxiliary 1620
unit or society of the organization to prepare, sell, or serve 1621
food or beverages at an instant bingo game conducted by the 1622
organization, if the auxiliary unit or society pays any 1623
compensation to the bingo game operators who prepare, sell, or 1624
serve the food or beverages;1625

       (10) Pay fees to any person for any services performed in 1626
relation to an instant bingo game, except as provided in division 1627
(D) of section 2915.093 of the Revised Code;1628

       (11) Pay fees to any person who provides refreshments to the 1629
participants in an instant bingo game;1630

        (12)(a) Allow instant bingo tickets or cards to be sold to 1631
bingo game operators at a premises at which the organization sells 1632
instant bingo tickets or cards or to be sold to employees of a D 1633
permit holder who are working at a premises at which instant bingo 1634
tickets or cards are sold;1635

       (b) Division (A)(12)(a) of this section does not prohibit a 1636
licensed charitable organization or a bingo game operator from 1637
giving any person an instant bingo ticket as a prize in place of a 1638
cash prize won by a participant in an instant bingo game. In no 1639
case shall an instant bingo ticket or card be sold or provided for 1640
a price different from the price printed on it by the manufacturer 1641
on either the instant bingo ticket or card or on the game flare.1642

       (13) Fail to display its bingo license, and the serial 1643
numbers of the deal of instant bingo tickets or cards to be sold, 1644
conspicuously at each premises at which it sells instant bingo 1645
tickets or cards;1646

        (14) Possess a deal of instant bingo tickets or cards that 1647
was not purchased from a distributor licensed under section 1648
2915.081 of the Revised Code as reflected on an invoice issued by 1649
the distributor that contains all of the information required by 1650
division (E) of section 2915.10 of the Revised Code;1651

        (15) Fail, once it opens a deal of instant bingo tickets or 1652
cards, to continue to sell the tickets or cards in that deal until 1653
the tickets or cards with the top two highest tiers of prizes in 1654
that deal are sold;1655

       (16) Possess bingo supplies that were not obtained in 1656
accordance with sections 2915.01 to 2915.13 of the Revised Code.1657

       (B)(1) A charitable organization may conduct instant bingo 1658
other than at a bingo session at not more than five separate 1659
locations. A charitable organization that is exempt from federal 1660
taxation under subsection 501(a) and described in subsection 1661
501(c)(3) of the Internal Revenue Code and that is created by a 1662
veteran's organization or a fraternal organization is not limited 1663
in the number of separate locations the charitable organization 1664
may conduct instant bingo other than at a bingo session.1665

       (2) A charitable organization may purchase, lease, or use 1666
instant bingo ticket dispensers to sell instant bingo tickets or 1667
cards.1668

        (C) The attorney general may adopt rules in accordance with 1669
Chapter 119. of the Revised Code that govern the conduct of 1670
instant bingo by charitable organizations. Before those rules are 1671
adopted, the attorney general shall reference the recommended 1672
standards for opacity, randomization, minimum information, winner 1673
protection, color, and cutting for instant bingo tickets or cards, 1674
seal cards, and punch boards established by the North American 1675
gaming regulators association.1676

       (D) Whoever violates division (A) of this section or a rule 1677
adopted under division (C) of this section is guilty of illegal 1678
instant bingo conduct. Except as otherwise provided in this 1679
division, illegal instant bingo conduct is a misdemeanor of the 1680
first degree. If the offender previously has been convicted of a 1681
violation of division (A) of this section or of such a rule, 1682
illegal instant bingo conduct is a felony of the fifth degree.1683

       Sec. 2915.092.  (A)(1) Subject to division (A)(2) of this 1684
section, a charitable organization, a public school, a chartered 1685
nonpublic school, a community school, or a veteran's organization, 1686
fraternal organization, or sporting organization that is exempt 1687
from federal income taxation under subsection 501(a) and is 1688
described in subsection 501(c)(3), 501(c)(4), 501(c)(7), 1689
501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue Code 1690
may conduct a raffle to raise money for the organization or school 1691
and does not need a license to conduct bingo in order to conduct a 1692
raffle drawing that is not for profit.1693

       (2) If a charitable organization that is described in 1694
division (A)(1) of this section, but that is not also described in 1695
subsection 501(c)(3) of the Internal Revenue Code, conducts a 1696
raffle, the charitable organization shall distribute at least 1697
fifty per cent of the net profit from the raffle to a charitable 1698
purpose described in division (Z)(V) of section 2915.01 of the 1699
Revised Code or to a department or agency of the federal 1700
government, the state, or any political subdivision.1701

       (B) Except as provided in division (A) or (B) of this 1702
section, no person shall conduct a raffle drawing that is for 1703
profit or a raffle drawing that is not for profit.1704

       (C) Whoever violates division (B) of this section is guilty 1705
of illegal conduct of a raffle. Except as otherwise provided in 1706
this division, illegal conduct of a raffle is a misdemeanor of the 1707
first degree. If the offender previously has been convicted of a 1708
violation of division (B) of this section, illegal conduct of a 1709
raffle is a felony of the fifth degree.1710

       Sec. 2915.093. (A) As used in this section, "retail income 1711
from all commercial activity" means the income that a person 1712
receives from the provision of goods, services, or activities that 1713
are provided at the location where instant bingo other than at a 1714
bingo session is conducted, including the sale of instant bingo 1715
tickets. A religious organization that is exempt from federal 1716
income taxation under subsection 501(a) and described in 1717
subsection 501(c)(3) of the Internal Revenue Code, at not more 1718
than one location at which it conducts its charitable programs, 1719
may include donations from its members and guests as retail 1720
income.1721

        (B) A charitable instant bingo organization may conduct 1722
instant bingo other than at a bingo session at not more than five 1723
separate locations.1724

       (C)(1) If a charitable instant bingo organization conducts 1725
instant bingo other than at a bingo session, the charitable 1726
instant bingo organization shall enter into a written contract 1727
with the owner or lessor of the location at which the instant 1728
bingo is conducted to allow the owner or lessor to assist in the 1729
conduct of instant bingo other than at a bingo session, identify 1730
each location where the instant bingo other than at a bingo 1731
session is being conducted, and identify the owner or lessor of 1732
each location.1733

       (2) A charitable instant bingo organization that conducts 1734
instant bingo other than at a bingo session is not required to 1735
enter into a written contract with the owner or lessor of the 1736
location at which the instant bingo is conducted, provided that 1737
the owner or lessor is not assisting in the conduct of the instant 1738
bingo other than at a bingo session and provided that the conduct 1739
of the instant bingo other than at a bingo session at that 1740
location is not more than five days per calendar year and not more 1741
than ten hours per day.1742

       (D)(C) Except as provided in division (G)(F) of this section, 1743
no charitable instant bingo organization shall conduct instant 1744
bingo other than at a bingo session at a location where the 1745
primary source of retail income from all commercial activity at 1746
that location is the sale of instant bingo tickets.1747

       (E)(D) The owner or lessor of a location that enters into a 1748
contract pursuant to division (C)(B) of this section shall pay the 1749
full gross profit, minus the expenses incurred by the owner or 1750
lessor of a location that can be attributed to conducting instant 1751
bingo at that location, to the charitable instant bingo 1752
organization, in return for the deal of instant bingo tickets. The 1753
owner or lessor may retain the money that the owner or lessor 1754
receives for selling the instant bingo tickets, provided, however, 1755
that after the deal has been sold, the owner or lessor shall pay 1756
to the charitable instant bingo organization the value of any 1757
unredeemed instant bingo prizes remaining in the deal of instant 1758
bingo tickets.1759

       As used in this division, "full gross profit" means the 1760
amount by which the total receipts of all instant bingo tickets, 1761
if the deal had been sold in full, exceeds the amount that would 1762
be paid out if all prizes were redeemed.1763

        As used in this division, "expenses" means reasonable amounts 1764
actually expended, and accounted for on a monthly basis, in total 1765
not to exceed twenty per cent of the full gross profit of the 1766
deal, for all of the following:1767

        (1) Audits and accounting services;1768

        (2) Safes;1769

        (3) Cash registers;1770

        (4) Advertising instant bingo;1771

        (5) Tables and chairs;1772

        (6) Wages for employees of the owner or lessor that are 1773
attributable to managing or assisting with the conduct of instant 1774
bingo;1775

        (7) Expenses that can be attributed to maintaining the owner 1776
or lessor's premises at which instant bingo is conducted, 1777
including rent or other costs of facility ownership, property or 1778
casualty insurance premiums, and utility costs.1779

       The deduction of expenses under this section shall not make 1780
any owner or lessor a professional solicitor as defined in 1781
division (J) of section 1716.01 of the Revised Code.1782

       (F)(E) A charitable instant bingo organization shall provide 1783
the attorney general with all of the following information:1784

        (1) That the charitable instant bingo organization has 1785
terminated a contract entered into pursuant to division (C)(B) of 1786
this section with an owner or lessor of a location;1787

        (2) That the charitable instant bingo organization has 1788
entered into a written contract pursuant to division (C)(B) of 1789
this section with a new owner or lessor of a location;1790

        (3) That the charitable instant bingo organization is aware 1791
of conduct by the owner or lessor of a location at which instant 1792
bingo is conducted that is in violation of this chapter.1793

       (G)(F) Division (D)(C) of this section does not apply to a 1794
volunteer firefighter's organization that is exempt from federal 1795
income taxation under subsection 501(a) and described in 1796
subsection 501(c)(3) of the Internal Revenue Code, that conducts 1797
instant bingo other than at a bingo session on the premises where 1798
the organization conducts firefighter training, that has conducted 1799
instant bingo continuously for at least five years prior to July 1800
1, 2003, and that, during each of those five years, had gross 1801
receipts of at least one million five hundred thousand dollars.1802

       Sec. 2915.094. (A) No owner or lessor of a location shall 1803
assist a charitable instant bingo organization in the conduct of 1804
instant bingo other than at a bingo session at that location 1805
unless the owner or lessor has entered into a written contract, as 1806
described in division (C) of section 2915.093 of the Revised Code, 1807
with the charitable instant bingo organization to assist in the 1808
conduct of instant bingo other than at a bingo session.1809

       (B) The location of the lessor or owner shall be designated 1810
as a location where the charitable instant bingo organization 1811
conducts instant bingo other than at a bingo session.1812

        (C) No owner or lessor of a location that enters into a 1813
written contract as prescribed in division (A) of this section 1814
shall violate any provision of Chapter 2915. of the Revised Code, 1815
or permit, aid, or abet any other person in violating any 1816
provision of Chapter 2915. of the Revised Code.1817

        (D) No owner or lessor of a location that enters into a 1818
written contract as prescribed in division (A) of this section 1819
shall violate the terms of the contract.1820

       (E)(1) Whoever violates division (C) or (D) of this section 1821
is guilty of illegal instant bingo conduct. Except as otherwise 1822
provided in this division, illegal instant bingo conduct is a 1823
misdemeanor of the first degree. If the offender previously has 1824
been convicted of a violation of division (C) or (D) of this 1825
section, illegal instant bingo conduct is a felony of the fifth 1826
degree.1827

        (2) If an owner or lessor of a location knowingly, 1828
intentionally, or recklessly violates division (C) or (D) of this 1829
section, any license that the owner or lessor holds for the retail 1830
sale of any goods on the owner's or lessor's premises that is 1831
issued by the state or a political subdivision is subject to 1832
suspension, revocation, or payment of a monetary penalty at the 1833
request of the attorney general.1834

       Sec. 2915.10.  (A) No charitable organization that conducts 1835
bingo or a game of chance pursuant to division (D) of section 1836
2915.02 of the Revised Code shall fail to maintain the following 1837
records for at least three years from the date on which the bingo 1838
or game of chance is conducted:1839

       (1) An itemized list of the gross receipts of each bingo 1840
session, each game of instant bingo by serial number, each raffle, 1841
each punch board game, and each game of chance, and an itemized 1842
list of the gross profits of each game of instant bingo by serial 1843
number;1844

       (2) An itemized list of all expenses, other than prizes, that 1845
are incurred in conducting bingo or instant bingo, the name of 1846
each person to whom the expenses are paid, and a receipt for all 1847
of the expenses;1848

       (3) A list of all prizes awarded during each bingo session, 1849
each raffle, each punch board game, and each game of chance 1850
conducted by the charitable organization, the total prizes awarded 1851
from each game of instant bingo by serial number, and the name, 1852
address, and social security number of all persons who are winners 1853
of prizes of six hundred dollars or more in value;1854

       (4) An itemized list of the recipients of the net profit of 1855
the bingo or game of chance, including the name and address of 1856
each recipient to whom the money is distributed, and if the 1857
organization uses the net profit of bingo, or the money or assets 1858
received from a game of chance, for any charitable or other 1859
purpose set forth in division (Z)(V) of section 2915.01, division 1860
(D) of section 2915.02, or section 2915.101 of the Revised Code, a 1861
list of each purpose and an itemized list of each expenditure for 1862
each purpose;1863

       (5) The number of persons who participate in any bingo 1864
session or game of chance that is conducted by the charitable 1865
organization;1866

       (6) A list of receipts from the sale of food and beverages by 1867
the charitable organization or one of its auxiliary units or 1868
societies, if the receipts were excluded from gross receipts under 1869
division (X)(T) of section 2915.01 of the Revised Code;1870

       (7) An itemized list of all expenses incurred at each bingo 1871
session, each raffle, each punch board game, or each game of 1872
instant bingo conducted by the charitable organization in the sale 1873
of food and beverages by the charitable organization or by an 1874
auxiliary unit or society of the charitable organization, the name 1875
of each person to whom the expenses are paid, and a receipt for 1876
all of the expenses.1877

       (B) A charitable organization shall keep the records that it 1878
is required to maintain pursuant to division (A) of this section 1879
at its principal place of business in this state or at its 1880
headquarters in this state and shall notify the attorney general 1881
of the location at which those records are kept.1882

       (C) The gross profit from each bingo session or game 1883
described in division (S)(O)(1) or (2) of section 2915.01 of the 1884
Revised Code shall be deposited into a checking account devoted 1885
exclusively to the bingo session or game. Payments for allowable 1886
expenses incurred in conducting the bingo session or game and 1887
payments to recipients of some or all of the net profit of the 1888
bingo session or game shall be made only by checks drawn on the 1889
bingo session or game account.1890

       (D) Each charitable organization shall conduct and record an 1891
inventory of all of its bingo supplies as of the first day of 1892
November of each year.1893

       (E) The attorney general may adopt rules in accordance with 1894
Chapter 119. of the Revised Code that establish standards of 1895
accounting, record keeping, and reporting to ensure that gross 1896
receipts from bingo or games of chance are properly accounted for.1897

       (F) A distributor shall maintain, for a period of three years 1898
after the date of its sale or other provision, a record of each 1899
instance of its selling or otherwise providing to another person 1900
bingo supplies for use in this state. The record shall include all 1901
of the following for each instance:1902

       (1) The name of the manufacturer from which the distributor 1903
purchased the bingo supplies and the date of the purchase;1904

       (2) The name and address of the charitable organization or 1905
other distributor to which the bingo supplies were sold or 1906
otherwise provided;1907

       (3) A description that clearly identifies the bingo supplies;1908

       (4) Invoices that include the nonrepeating serial numbers of 1909
all paper bingo cards and sheets and all instant bingo deals sold 1910
or otherwise provided to each charitable organization.1911

       (G) A manufacturer shall maintain, for a period of three 1912
years after the date of its sale or other provision, a record of 1913
each instance of its selling or otherwise providing bingo supplies 1914
for use in this state. The record shall include all of the 1915
following for each instance:1916

       (1) The name and address of the distributor to whom the bingo 1917
supplies were sold or otherwise provided;1918

       (2) A description that clearly identifies the bingo supplies, 1919
including serial numbers;1920

       (3) Invoices that include the nonrepeating serial numbers of 1921
all paper bingo cards and sheets and all instant bingo deals sold 1922
or otherwise provided to each distributor.1923

       (H) The attorney general or any law enforcement agency may do 1924
all of the following:1925

       (1) Investigate any charitable organization or any officer, 1926
agent, trustee, member, or employee of the organization;1927

       (2) Examine the accounts and records of the organization;1928

       (3) Conduct inspections, audits, and observations of bingo or 1929
games of chance;1930

       (4) Conduct inspections of the premises where bingo or games 1931
of chance are conducted;1932

       (5) Take any other necessary and reasonable action to 1933
determine if a violation of any provision of sections 2915.01 to 1934
2915.13 of the Revised Code has occurred and to determine whether 1935
section 2915.11 of the Revised Code has been complied with.1936

       If any law enforcement agency has reasonable grounds to 1937
believe that a charitable organization or an officer, agent, 1938
trustee, member, or employee of the organization has violated any 1939
provision of this chapter, the law enforcement agency may proceed 1940
by action in the proper court to enforce this chapter, provided 1941
that the law enforcement agency shall give written notice to the 1942
attorney general when commencing an action as described in this 1943
division.1944

       (I) No person shall destroy, alter, conceal, withhold, or 1945
deny access to any accounts or records of a charitable 1946
organization that have been requested for examination, or 1947
obstruct, impede, or interfere with any inspection, audit, or 1948
observation of bingo or a game of chance or premises where bingo 1949
or a game of chance is conducted, or refuse to comply with any 1950
reasonable request of, or obstruct, impede, or interfere with any 1951
other reasonable action undertaken by, the attorney general or a 1952
law enforcement agency pursuant to division (H) of this section.1953

       (J) Whoever violates division (A) or (I) of this section is 1954
guilty of a misdemeanor of the first degree.1955

       Sec. 2915.101. Except as otherwise provided by law, a 1956
charitable organization that conducts instant bingo shall 1957
distribute the net profit from the proceeds of the sale of instant 1958
bingo as follows:1959

        (A)(1) If a veteran's organization, a fraternal organization, 1960
or a sporting organization conducted the instant bingo, the 1961
organization shall distribute the net profit from the proceeds of 1962
the sale of instant bingo, as follows:1963

       (a) For the first two hundred fifty thousand dollars, or a 1964
greater amount prescribed by the attorney general to adjust for 1965
changes in prices as measured by the consumer price index as 1966
defined in section 325.18 of the Revised Code and other factors 1967
affecting the organization's expenses, as defined in division 1968
(LL)(GG) of section 2915.01 of the Revised Code, or less of net 1969
profit from the proceeds of the sale of instant bingo generated in 1970
a calendar year:1971

       (i) At least twenty-five per cent shall be distributed to an 1972
organization described in division (Z)(V)(1) of section 2915.01 of 1973
the Revised Code or to a department or agency of the federal 1974
government, the state, or any political subdivision.1975

       (ii) Not more than seventy-five per cent may be deducted and 1976
retained by the organization for reimbursement of or for the 1977
organization's expenses, as defined in division (LL)(GG) of 1978
section 2915.01 of the Revised Code, in conducting the instant 1979
bingo game.1980

       (b) For any net profit from the proceeds of the sale of 1981
instant bingo of more than two hundred fifty thousand dollars or 1982
an adjusted amount generated in a calendar year:1983

       (i) A minimum of fifty per cent shall be distributed to an 1984
organization described in division (Z)(V)(1) of section 2915.01 of 1985
the Revised Code or to a department or agency of the federal 1986
government, the state, or any political subdivision.1987

       (ii) Five per cent may be distributed for the organization's 1988
own charitable purposes or to a community action agency.1989

       (iii) Forty-five per cent may be deducted and retained by the 1990
organization for reimbursement of or for the organization's 1991
expenses, as defined in division (LL)(GG) of section 2915.01 of 1992
the Revised Code, in conducting the instant bingo game.1993

       (2) If a veteran's organization, a fraternal organization, or 1994
a sporting organization does not distribute the full percentages 1995
specified in divisions (A)(1)(a) and (b) of this section for the 1996
purposes specified in those divisions, the organization shall 1997
distribute the balance of the net profit from the proceeds of the 1998
sale of instant bingo not distributed or retained for those 1999
purposes to an organization described in division (Z)(V)(1) of 2000
section 2915.01 of the Revised Code.2001

        (B) If a charitable organization other than a veteran's 2002
organization, a fraternal organization, or a sporting organization 2003
conducted the instant bingo, the organization shall distribute one 2004
hundred per cent of the net profit from the proceeds of the sale 2005
of instant bingo to an organization described in division 2006
(Z)(V)(1) of section 2915.01 of the Revised Code or to a 2007
department or agency of the federal government, the state, or any 2008
political subdivision.2009

       (C) Nothing in this section prohibits a veteran's 2010
organization, a fraternal organization, or a sporting organization 2011
from distributing any net profit from the proceeds of the sale of 2012
instant bingo to an organization that is described in subsection 2013
501(c)(3) of the Internal Revenue Code when the organization that 2014
is described in subsection 501(c)(3) of the Internal Revenue Code 2015
is one that makes donations to other organizations and permits 2016
donors to advise or direct such donations so long as the donations 2017
comply with requirements established in or pursuant to subsection 2018
501(c)(3) of the Internal Revenue Code.2019

       Sec. 2915.12. (A) Sections 2915.07 to 2915.11 of the Revised 2020
Code do not apply to bingo games that are conducted for the 2021
purpose of amusement only. A bingo game is conducted for the 2022
purpose of amusement only if it complies with all of the 2023
requirements specified in either division (A)(1) or (2) of this 2024
section:2025

       (1)(a) The participants do not pay any money or any other 2026
thing of value including an admission fee, or any fee for bingo 2027
cards or sheets, objects to cover the spaces, or other devices 2028
used in playing bingo, for the privilege of participating in the 2029
bingo game, or to defray any costs of the game, or pay tips or 2030
make donations during or immediately before or after the bingo 2031
game.2032

       (b) All prizes awarded during the course of the game are 2033
nonmonetary, and in the form of merchandise, goods, or 2034
entitlements to goods or services only, and the total value of all 2035
prizes awarded during the game is less than one hundred dollars.2036

       (c) No commission, wages, salary, reward, tip, donation, 2037
gratuity, or other form of compensation, either directly or 2038
indirectly, and regardless of the source, is paid to any bingo 2039
game operator for work or labor performed at the site of the bingo 2040
game.2041

       (d) The bingo game is not conducted either during or within 2042
ten hours of any of the following:2043

       (i) A bingo session during which a charitable bingo game is 2044
conducted pursuant to sections 2915.07 to 2915.11 of the Revised 2045
Code;2046

       (ii) A scheme or game of chance, or bingo described in 2047
division (S)(O)(2) of section 2915.01 of the Revised Code.2048

       (e) The number of players participating in the bingo game 2049
does not exceed fifty.2050

       (2)(a) The participants do not pay money or any other thing 2051
of value as an admission fee, and no participant is charged more 2052
than twenty-five cents to purchase a bingo card or sheet, objects 2053
to cover the spaces, or other devices used in playing bingo.2054

       (b) The total amount of money paid by all of the participants 2055
for bingo cards or sheets, objects to cover the spaces, or other 2056
devices used in playing bingo does not exceed one hundred dollars.2057

       (c) All of the money paid for bingo cards or sheets, objects 2058
to cover spaces, or other devices used in playing bingo is used 2059
only to pay winners monetary and nonmonetary prizes and to provide 2060
refreshments.2061

       (d) The total value of all prizes awarded during the game 2062
does not exceed one hundred dollars.2063

       (e) No commission, wages, salary, reward, tip, donation, 2064
gratuity, or other form of compensation, either directly or 2065
indirectly, and regardless of the source, is paid to any bingo 2066
game operator for work or labor performed at the site of the bingo 2067
game.2068

       (f) The bingo game is not conducted during or within ten 2069
hours of either of the following:2070

       (i) A bingo session during which a charitable bingo game is 2071
conducted pursuant to sections 2915.07 to 2915.11 of the Revised 2072
Code;2073

       (ii) A scheme of chance or game of chance, or bingo described 2074
in division (S)(O)(2) of section 2915.01 of the Revised Code.2075

       (g) All of the participants reside at the premises where the 2076
bingo game is conducted.2077

       (h) The bingo games are conducted on different days of the 2078
week and not more than twice in a calendar week.2079

       (B) The attorney general or any local law enforcement agency 2080
may investigate the conduct of a bingo game that purportedly is 2081
conducted for purposes of amusement only if there is reason to 2082
believe that the purported amusement bingo game does not comply 2083
with the requirements of either division (A)(1) or (2) of this 2084
section. A local law enforcement agency may proceed by action in 2085
the proper court to enforce this section if the local law 2086
enforcement agency gives written notice to the attorney general 2087
when commencing the action.2088

       Sec. 2915.18.  (A) The owner of a permitted location may 2089
establish a charity card room on the premises of the permitted 2090
location. The owner shall provide necessary game tables, chairs, 2091
surveillance, and other equipment in the charity card room.2092

       (B) A charitable organization may conduct games of chance in 2093
a charity card room for up to one hundred twenty-eight hours 2094
annually. Such hours need not be on consecutive days. More than 2095
one charitable organization may conduct games of chance in a 2096
charity card room simultaneously.2097

       (C)(1) The charitable organization shall pay rent to the 2098
owner of a permitted location in the amount of fifteen per cent of 2099
the revenue made from conducting the games of chance in the 2100
charity card room.2101

       (2) A charitable organization shall pay expenses for 2102
conducting games of chance in a charity card room, including 2103
expenses for the following: dealers, payroll administration, 2104
security, accounting, auditing, shuffle machine rental, insurance, 2105
marketing, advertising, utilities, cleanup, maintenance, and 2106
repair. A charitable organization may pay these expenses from its 2107
share of the revenue made from conducting games of chance in the 2108
charity card room.2109

       (3) Charitable organizations may pool revenue and expenses 2110
when applicable in a charity card room.2111

       (4) One hundred per cent of the net revenue in a charity card 2112
room remaining after payment of expenses and rent shall be paid to 2113
each charitable organization on a pro rata basis, based on 2114
volunteer hours of each charitable organization.2115

       (D) Notwithstanding division (D) of section 2915.02 of the 2116
Revised Code, a charitable organization may compensate dealers, 2117
dealer supervisors, human resource personnel, and other related 2118
personnel for operating games of chance in a charity card room. 2119
Dealers also may accept tips from games of chance players.2120

       (E) For the purposes of division (D)(1)(c) of section 2915.02 2121
of the Revised Code, a charitable organization may conduct games 2122
of chance at a permitted location and conducting those games of 2123
chance in a charity card room is considered a festival if the 2124
charitable organization provides a display booth about the 2125
charitable organization in the charity card room at all times when 2126
it is conducting games of chance.2127

       Sec. 2923.31.  As used in sections 2923.31 to 2923.36 of the 2128
Revised Code:2129

       (A) "Beneficial interest" means any of the following:2130

       (1) The interest of a person as a beneficiary under a trust 2131
in which the trustee holds title to personal or real property;2132

       (2) The interest of a person as a beneficiary under any other 2133
trust arrangement under which any other person holds title to 2134
personal or real property for the benefit of such person;2135

       (3) The interest of a person under any other form of express 2136
fiduciary arrangement under which any other person holds title to 2137
personal or real property for the benefit of such person.2138

       "Beneficial interest" does not include the interest of a 2139
stockholder in a corporation or the interest of a partner in 2140
either a general or limited partnership.2141

       (B) "Costs of investigation and prosecution" and "costs of 2142
investigation and litigation" mean all of the costs incurred by 2143
the state or a county or municipal corporation under sections 2144
2923.31 to 2923.36 of the Revised Code in the prosecution and 2145
investigation of any criminal action or in the litigation and 2146
investigation of any civil action, and includes, but is not 2147
limited to, the costs of resources and personnel.2148

       (C) "Enterprise" includes any individual, sole 2149
proprietorship, partnership, limited partnership, corporation, 2150
trust, union, government agency, or other legal entity, or any 2151
organization, association, or group of persons associated in fact 2152
although not a legal entity. "Enterprise" includes illicit as well 2153
as licit enterprises.2154

       (D) "Innocent person" includes any bona fide purchaser of 2155
property that is allegedly involved in a violation of section 2156
2923.32 of the Revised Code, including any person who establishes 2157
a valid claim to or interest in the property in accordance with 2158
division (E) of section 2981.04 of the Revised Code, and any 2159
victim of an alleged violation of that section or of any 2160
underlying offense involved in an alleged violation of that 2161
section.2162

       (E) "Pattern of corrupt activity" means two or more incidents 2163
of corrupt activity, whether or not there has been a prior 2164
conviction, that are related to the affairs of the same 2165
enterprise, are not isolated, and are not so closely related to 2166
each other and connected in time and place that they constitute a 2167
single event.2168

       At least one of the incidents forming the pattern shall occur 2169
on or after January 1, 1986. Unless any incident was an aggravated 2170
murder or murder, the last of the incidents forming the pattern 2171
shall occur within six years after the commission of any prior 2172
incident forming the pattern, excluding any period of imprisonment 2173
served by any person engaging in the corrupt activity.2174

       For the purposes of the criminal penalties that may be 2175
imposed pursuant to section 2923.32 of the Revised Code, at least 2176
one of the incidents forming the pattern shall constitute a felony 2177
under the laws of this state in existence at the time it was 2178
committed or, if committed in violation of the laws of the United 2179
States or of any other state, shall constitute a felony under the 2180
law of the United States or the other state and would be a 2181
criminal offense under the law of this state if committed in this 2182
state.2183

       (F) "Pecuniary value" means money, a negotiable instrument, a 2184
commercial interest, or anything of value, as defined in section 2185
1.03 of the Revised Code, or any other property or service that 2186
has a value in excess of one hundred dollars.2187

       (G) "Person" means any person, as defined in section 1.59 of 2188
the Revised Code, and any governmental officer, employee, or 2189
entity.2190

       (H) "Personal property" means any personal property, any 2191
interest in personal property, or any right, including, but not 2192
limited to, bank accounts, debts, corporate stocks, patents, or 2193
copyrights. Personal property and any beneficial interest in 2194
personal property are deemed to be located where the trustee of 2195
the property, the personal property, or the instrument evidencing 2196
the right is located.2197

       (I) "Corrupt activity" means engaging in, attempting to 2198
engage in, conspiring to engage in, or soliciting, coercing, or 2199
intimidating another person to engage in any of the following:2200

       (1) Conduct defined as "racketeering activity" under the 2201
"Organized Crime Control Act of 1970," 84 Stat. 941, 18 U.S.C. 2202
1961(1)(B), (1)(C), (1)(D), and (1)(E), as amended;2203

       (2) Conduct constituting any of the following:2204

       (a) A violation of section 1315.55, 1322.02, 2903.01, 2205
2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2905.01, 2905.02, 2206
2905.11, 2905.22, 2907.321, 2907.322, 2907.323, 2909.02, 2909.03, 2207
2909.22, 2909.23, 2909.24, 2909.26, 2909.27, 2909.28, 2909.29, 2208
2911.01, 2911.02, 2911.11, 2911.12, 2911.13, 2911.31, 2913.05, 2209
2913.06, 2921.02, 2921.03, 2921.04, 2921.11, 2921.12, 2921.32, 2210
2921.41, 2921.42, 2921.43, 2923.12, or 2923.17; division 2211
(F)(1)(a), (b), or (c) of section 1315.53; division (A)(1) or (2) 2212
of section 1707.042; division (B), (C)(4), (D), (E), or (F) of 2213
section 1707.44; division (A)(1) or (2) of section 2923.20; 2214
division (E) or (G) of section 3772.99; division (J)(1) of section 2215
4712.02; section 4719.02, 4719.05, or 4719.06; division (C), (D), 2216
or (E) of section 4719.07; section 4719.08; or division (A) of 2217
section 4719.09 of the Revised Code.2218

       (b) Any violation of section 3769.11, 3769.15, 3769.16, or 2219
3769.19 of the Revised Code as it existed prior to July 1, 1996, 2220
any violation of section 2915.02 of the Revised Code that occurs 2221
on or after July 1, 1996, and that, had it occurred prior to that 2222
date, would have been a violation of section 3769.11 of the 2223
Revised Code as it existed prior to that date, or any violation of 2224
section 2915.05 of the Revised Code that occurs on or after July 2225
1, 1996, and that, had it occurred prior to that date, would have 2226
been a violation of section 3769.15, 3769.16, or 3769.19 of the 2227
Revised Code as it existed prior to that date.2228

       (c) Any violation of section 2907.21, 2907.22, 2907.31, 2229
2913.02, 2913.11, 2913.21, 2913.31, 2913.32, 2913.34, 2913.42, 2230
2913.47, 2913.51, 2915.03, 2925.03, 2925.04, 2925.05, or 2925.37 2231
of the Revised Code, any violation of section 2925.11 of the 2232
Revised Code that is a felony of the first, second, third, or 2233
fourth degree and that occurs on or after July 1, 1996, any 2234
violation of section 2915.02 of the Revised Code that occurred 2235
prior to July 1, 1996, any violation of section 2915.02 of the 2236
Revised Code that occurs on or after July 1, 1996, and that, had 2237
it occurred prior to that date, would not have been a violation of 2238
section 3769.11 of the Revised Code as it existed prior to that 2239
date, any violation of section 2915.06 of the Revised Code as it 2240
existed prior to July 1, 1996, or any violation of division (B) of 2241
section 2915.05 of the Revised Code as it exists on and after July 2242
1, 1996, when the proceeds of the violation, the payments made in 2243
the violation, the amount of a claim for payment or for any other 2244
benefit that is false or deceptive and that is involved in the 2245
violation, or the value of the contraband or other property 2246
illegally possessed, sold, or purchased in the violation exceeds 2247
one thousand dollars, or any combination of violations described 2248
in division (I)(2)(c) of this section when the total proceeds of 2249
the combination of violations, payments made in the combination of 2250
violations, amount of the claims for payment or for other benefits 2251
that is false or deceptive and that is involved in the combination 2252
of violations, or value of the contraband or other property 2253
illegally possessed, sold, or purchased in the combination of 2254
violations exceeds one thousand dollars;2255

       (d) Any violation of section 5743.112 of the Revised Code 2256
when the amount of unpaid tax exceeds one hundred dollars;2257

       (e) Any violation or combination of violations of section 2258
2907.32 of the Revised Code involving any material or performance 2259
containing a display of bestiality or of sexual conduct, as 2260
defined in section 2907.01 of the Revised Code, that is explicit 2261
and depicted with clearly visible penetration of the genitals or 2262
clearly visible penetration by the penis of any orifice when the 2263
total proceeds of the violation or combination of violations, the 2264
payments made in the violation or combination of violations, or 2265
the value of the contraband or other property illegally possessed, 2266
sold, or purchased in the violation or combination of violations 2267
exceeds one thousand dollars;2268

       (f) Any combination of violations described in division 2269
(I)(2)(c) of this section and violations of section 2907.32 of the 2270
Revised Code involving any material or performance containing a 2271
display of bestiality or of sexual conduct, as defined in section 2272
2907.01 of the Revised Code, that is explicit and depicted with 2273
clearly visible penetration of the genitals or clearly visible 2274
penetration by the penis of any orifice when the total proceeds of 2275
the combination of violations, payments made in the combination of 2276
violations, amount of the claims for payment or for other benefits 2277
that is false or deceptive and that is involved in the combination 2278
of violations, or value of the contraband or other property 2279
illegally possessed, sold, or purchased in the combination of 2280
violations exceeds one thousand dollars;2281

       (g) Any violation of section 2905.32 of the Revised Code to 2282
the extent the violation is not based solely on the same conduct 2283
that constitutes corrupt activity pursuant to division (I)(2)(c) 2284
of this section due to the conduct being in violation of section 2285
2907.21 of the Revised Code.2286

       (3) Conduct constituting a violation of any law of any state 2287
other than this state that is substantially similar to the conduct 2288
described in division (I)(2) of this section, provided the 2289
defendant was convicted of the conduct in a criminal proceeding in 2290
the other state;2291

       (4) Animal or ecological terrorism;2292

       (5)(a) Conduct constituting any of the following:2293

       (i) Organized retail theft;2294

       (ii) Conduct that constitutes one or more violations of any 2295
law of any state other than this state, that is substantially 2296
similar to organized retail theft, and that if committed in this 2297
state would be organized retail theft, if the defendant was 2298
convicted of or pleaded guilty to the conduct in a criminal 2299
proceeding in the other state.2300

       (b) By enacting division (I)(5)(a) of this section, it is the 2301
intent of the general assembly to add organized retail theft and 2302
the conduct described in division (I)(5)(a)(ii) of this section as 2303
conduct constituting corrupt activity. The enactment of division 2304
(I)(5)(a) of this section and the addition by division (I)(5)(a) 2305
of this section of organized retail theft and the conduct 2306
described in division (I)(5)(a)(ii) of this section as conduct 2307
constituting corrupt activity does not limit or preclude, and 2308
shall not be construed as limiting or precluding, any prosecution 2309
for a violation of section 2923.32 of the Revised Code that is 2310
based on one or more violations of section 2913.02 or 2913.51 of 2311
the Revised Code, one or more similar offenses under the laws of 2312
this state or any other state, or any combination of any of those 2313
violations or similar offenses, even though the conduct 2314
constituting the basis for those violations or offenses could be 2315
construed as also constituting organized retail theft or conduct 2316
of the type described in division (I)(5)(a)(ii) of this section.2317

       (J) "Real property" means any real property or any interest 2318
in real property, including, but not limited to, any lease of, or 2319
mortgage upon, real property. Real property and any beneficial 2320
interest in it is deemed to be located where the real property is 2321
located.2322

       (K) "Trustee" means any of the following:2323

       (1) Any person acting as trustee under a trust in which the 2324
trustee holds title to personal or real property;2325

       (2) Any person who holds title to personal or real property 2326
for which any other person has a beneficial interest;2327

       (3) Any successor trustee.2328

       "Trustee" does not include an assignee or trustee for an 2329
insolvent debtor or an executor, administrator, administrator with 2330
the will annexed, testamentary trustee, guardian, or committee, 2331
appointed by, under the control of, or accountable to a court.2332

       (L) "Unlawful debt" means any money or other thing of value 2333
constituting principal or interest of a debt that is legally 2334
unenforceable in this state in whole or in part because the debt 2335
was incurred or contracted in violation of any federal or state 2336
law relating to the business of gambling activity or relating to 2337
the business of lending money at an usurious rate unless the 2338
creditor proves, by a preponderance of the evidence, that the 2339
usurious rate was not intentionally set and that it resulted from 2340
a good faith error by the creditor, notwithstanding the 2341
maintenance of procedures that were adopted by the creditor to 2342
avoid an error of that nature.2343

       (M) "Animal activity" means any activity that involves the 2344
use of animals or animal parts, including, but not limited to, 2345
hunting, fishing, trapping, traveling, camping, the production, 2346
preparation, or processing of food or food products, clothing or 2347
garment manufacturing, medical research, other research, 2348
entertainment, recreation, agriculture, biotechnology, or service 2349
activity that involves the use of animals or animal parts.2350

        (N) "Animal facility" means a vehicle, building, structure, 2351
nature preserve, or other premises in which an animal is lawfully 2352
kept, handled, housed, exhibited, bred, or offered for sale, 2353
including, but not limited to, a zoo, rodeo, circus, amusement 2354
park, hunting preserve, or premises in which a horse or dog event 2355
is held.2356

        (O) "Animal or ecological terrorism" means the commission of 2357
any felony that involves causing or creating a substantial risk of 2358
physical harm to any property of another, the use of a deadly 2359
weapon or dangerous ordnance, or purposely, knowingly, or 2360
recklessly causing serious physical harm to property and that 2361
involves an intent to obstruct, impede, or deter any person from 2362
participating in a lawful animal activity, from mining, foresting, 2363
harvesting, gathering, or processing natural resources, or from 2364
being lawfully present in or on an animal facility or research 2365
facility.2366

       (P) "Research facility" means a place, laboratory, 2367
institution, medical care facility, government facility, or public 2368
or private educational institution in which a scientific test, 2369
experiment, or investigation involving the use of animals or other 2370
living organisms is lawfully carried out, conducted, or attempted.2371

       (Q) "Organized retail theft" means the theft of retail 2372
property with a retail value of one thousand dollars or more from 2373
one or more retail establishments with the intent to sell, 2374
deliver, or transfer that property to a retail property fence.2375

       (R) "Retail property" means any tangible personal property 2376
displayed, held, stored, or offered for sale in or by a retail 2377
establishment.2378

       (S) "Retail property fence" means a person who possesses, 2379
procures, receives, or conceals retail property that was 2380
represented to the person as being stolen or that the person knows 2381
or believes to be stolen.2382

       (T) "Retail value" means the full retail value of the retail 2383
property. In determining whether the retail value of retail 2384
property equals or exceeds one thousand dollars, the value of all 2385
retail property stolen from the retail establishment or retail 2386
establishments by the same person or persons within any 2387
one-hundred-eighty-day period shall be aggregated.2388

       Sec. 2933.51.  As used in sections 2933.51 to 2933.66 of the 2389
Revised Code:2390

       (A) "Wire communication" means an aural transfer that is made 2391
in whole or in part through the use of facilities for the 2392
transmission of communications by the aid of wires or similar 2393
methods of connecting the point of origin of the communication and 2394
the point of reception of the communication, including the use of 2395
a method of connecting the point of origin and the point of 2396
reception of the communication in a switching station, if the 2397
facilities are furnished or operated by a person engaged in 2398
providing or operating the facilities for the transmission of 2399
communications. "Wire communication" includes an electronic 2400
storage of a wire communication.2401

       (B) "Oral communication" means an oral communication uttered 2402
by a person exhibiting an expectation that the communication is 2403
not subject to interception under circumstances justifying that 2404
expectation. "Oral communication" does not include an electronic 2405
communication.2406

       (C) "Intercept" means the aural or other acquisition of the 2407
contents of any wire, oral, or electronic communication through 2408
the use of an interception device.2409

       (D) "Interception device" means an electronic, mechanical, or 2410
other device or apparatus that can be used to intercept a wire, 2411
oral, or electronic communication. "Interception device" does not 2412
mean any of the following:2413

       (1) A telephone or telegraph instrument, equipment, or 2414
facility, or any of its components, if the instrument, equipment, 2415
facility, or component is any of the following:2416

       (a) Furnished to the subscriber or user by a provider of wire 2417
or electronic communication service in the ordinary course of its 2418
business and being used by the subscriber or user in the ordinary 2419
course of its business;2420

       (b) Furnished by a subscriber or user for connection to the 2421
facilities of a provider of wire or electronic communication 2422
service and used in the ordinary course of that subscriber's or 2423
user's business;2424

       (c) Being used by a provider of wire or electronic 2425
communication service in the ordinary course of its business or by 2426
an investigative or law enforcement officer in the ordinary course 2427
of the officer's duties that do not involve the interception of 2428
wire, oral, or electronic communications.2429

       (2) A hearing aid or similar device being used to correct 2430
subnormal hearing to not better than normal.2431

       (E) "Investigative officer" means any of the following:2432

       (1) An officer of this state or a political subdivision of 2433
this state, who is empowered by law to conduct investigations or 2434
to make arrests for a designated offense;2435

       (2) A person described in divisions (A)(11)(a) and (b) of 2436
section 2901.01 of the Revised Code;2437

       (3) An attorney authorized by law to prosecute or participate 2438
in the prosecution of a designated offense;2439

       (4) A secret service officer appointed pursuant to section 2440
309.07 of the Revised Code;2441

       (5) An officer of the United States, a state, or a political 2442
subdivision of a state who is authorized to conduct investigations 2443
pursuant to the "Electronic Communications Privacy Act of 1986," 2444
100 Stat. 1848-1857, 18 U.S.C. 2510-2521 (1986), as amended.2445

       (F) "Interception warrant" means a court order that 2446
authorizes the interception of wire, oral, or electronic 2447
communications and that is issued pursuant to sections 2933.53 to 2448
2933.56 of the Revised Code.2449

       (G) "Contents," when used with respect to a wire, oral, or 2450
electronic communication, includes any information concerning the 2451
substance, purport, or meaning of the communication.2452

       (H) "Communications common carrier" means a person who is 2453
engaged as a common carrier for hire in intrastate, interstate, or 2454
foreign communications by wire, radio, or radio transmission of 2455
energy. "Communications common carrier" does not include, to the 2456
extent that the person is engaged in radio broadcasting, a person 2457
engaged in radio broadcasting.2458

       (I) "Designated offense" means any of the following:2459

       (1) A felony violation of section 1315.53, 1315.55, 2903.01, 2460
2903.02, 2903.11, 2905.01, 2905.02, 2905.11, 2905.22, 2905.32, 2461
2907.02, 2907.21, 2907.22, 2909.02, 2909.03, 2909.04, 2909.22, 2462
2909.23, 2909.24, 2909.26, 2909.27, 2909.28, 2909.29, 2911.01, 2463
2911.02, 2911.11, 2911.12, 2913.02, 2913.04, 2913.42, 2913.51, 2464
2915.02, 2915.03, 2917.01, 2917.02, 2921.02, 2921.03, 2921.04, 2465
2921.32, 2921.34, 2923.20, 2923.32, 2925.03, 2925.04, 2925.05, or 2466
2925.06 or of division (B) of section 2915.05 or of division (E) 2467
or (G) of section 3772.99 of the Revised Code;2468

       (2) A violation of section 2919.23 of the Revised Code that, 2469
had it occurred prior to July 1, 1996, would have been a violation 2470
of section 2905.04 of the Revised Code as it existed prior to that 2471
date;2472

       (3) A felony violation of section 2925.11 of the Revised Code 2473
that is not a minor drug possession offense, as defined in section 2474
2925.01 of the Revised Code;2475

       (4) Complicity in the commission of a felony violation of a 2476
section listed in division (I)(1), (2), or (3) of this section;2477

       (5) An attempt to commit, or conspiracy in the commission of, 2478
a felony violation of a section listed in division (I)(1), (2), or 2479
(3) of this section, if the attempt or conspiracy is punishable by 2480
a term of imprisonment of more than one year.2481

       (J) "Aggrieved person" means a person who was a party to an 2482
intercepted wire, oral, or electronic communication or a person 2483
against whom the interception of the communication was directed.2484

       (K) "Person" means a person, as defined in section 1.59 of 2485
the Revised Code, or a governmental officer, employee, or entity.2486

       (L) "Special need" means a showing that a licensed physician, 2487
licensed practicing psychologist, attorney, practicing cleric, 2488
journalist, or either spouse is personally engaging in continuing 2489
criminal activity, was engaged in continuing criminal activity 2490
over a period of time, or is committing, has committed, or is 2491
about to commit, a designated offense, or a showing that specified 2492
public facilities are being regularly used by someone who is 2493
personally engaging in continuing criminal activity, was engaged 2494
in continuing criminal activity over a period of time, or is 2495
committing, has committed, or is about to commit, a designated 2496
offense.2497

       (M) "Journalist" means a person engaged in, connected with, 2498
or employed by, any news media, including a newspaper, magazine, 2499
press association, news agency, or wire service, a radio or 2500
television station, or a similar media, for the purpose of 2501
gathering, processing, transmitting, compiling, editing, or 2502
disseminating news for the general public.2503

       (N) "Electronic communication" means a transfer of a sign, 2504
signal, writing, image, sound, datum, or intelligence of any 2505
nature that is transmitted in whole or in part by a wire, radio, 2506
electromagnetic, photoelectronic, or photo-optical system. 2507
"Electronic communication" does not mean any of the following:2508

       (1) A wire or oral communication;2509

       (2) A communication made through a tone-only paging device;2510

       (3) A communication from an electronic or mechanical tracking 2511
device that permits the tracking of the movement of a person or 2512
object.2513

       (O) "User" means a person or entity that uses an electronic 2514
communication service and is duly authorized by the provider of 2515
the service to engage in the use of the electronic communication 2516
service.2517

       (P) "Electronic communications system" means a wire, radio, 2518
electromagnetic, photoelectronic, or photo-optical facility for 2519
the transmission of electronic communications, and a computer 2520
facility or related electronic equipment for the electronic 2521
storage of electronic communications.2522

       (Q) "Electronic communication service" means a service that 2523
provides to users of the service the ability to send or receive 2524
wire or electronic communications.2525

       (R) "Readily accessible to the general public" means, with 2526
respect to a radio communication, that the communication is none 2527
of the following:2528

       (1) Scrambled or encrypted;2529

       (2) Transmitted using a modulation technique, the essential 2530
parameters of which have been withheld from the public with the 2531
intention of preserving the privacy of the communication;2532

       (3) Carried on a subcarrier or other signal subsidiary to a 2533
radio transmission;2534

       (4) Transmitted over a communications system provided by a 2535
communications common carrier, unless the communication is a 2536
tone-only paging system communication;2537

       (5) Transmitted on a frequency allocated under part 25, 2538
subpart D, E, or F of part 74, or part 94 of the Rules of the 2539
Federal Communications Commission, as those provisions existed on 2540
July 1, 1996, unless, in the case of a communication transmitted 2541
on a frequency allocated under part 74 that is not exclusively 2542
allocated to broadcast auxiliary services, the communication is a 2543
two-way voice communication by radio.2544

       (S) "Electronic storage" means a temporary, intermediate 2545
storage of a wire or electronic communication that is incidental 2546
to the electronic transmission of the communication, and a storage 2547
of a wire or electronic communication by an electronic 2548
communication service for the purpose of backup protection of the 2549
communication.2550

       (T) "Aural transfer" means a transfer containing the human 2551
voice at a point between and including the point of origin and the 2552
point of reception.2553

       (U) "Pen register" means a device that records or decodes 2554
electronic impulses that identify the numbers dialed, pulsed, or 2555
otherwise transmitted on telephone lines to which the device is 2556
attached.2557

       (V) "Trap and trace device" means a device that captures the 2558
incoming electronic or other impulses that identify the 2559
originating number of an instrument or device from which a wire 2560
communication or electronic communication was transmitted but that 2561
does not intercept the contents of the wire communication or 2562
electronic communication.2563

       (W) "Judge of a court of common pleas" means a judge of that 2564
court who is elected or appointed as a judge of general 2565
jurisdiction or as a judge who exercises both general jurisdiction 2566
and probate, domestic relations, or juvenile jurisdiction. "Judge 2567
of a court of common pleas" does not mean a judge of that court 2568
who is elected or appointed specifically as a probate, domestic 2569
relations, or juvenile judge.2570

       Sec. 3301.0714.  (A) The state board of education shall adopt 2571
rules for a statewide education management information system. The 2572
rules shall require the state board to establish guidelines for 2573
the establishment and maintenance of the system in accordance with 2574
this section and the rules adopted under this section. The 2575
guidelines shall include:2576

       (1) Standards identifying and defining the types of data in 2577
the system in accordance with divisions (B) and (C) of this 2578
section;2579

       (2) Procedures for annually collecting and reporting the data 2580
to the state board in accordance with division (D) of this 2581
section;2582

       (3) Procedures for annually compiling the data in accordance 2583
with division (G) of this section;2584

       (4) Procedures for annually reporting the data to the public 2585
in accordance with division (H) of this section.2586

       (B) The guidelines adopted under this section shall require 2587
the data maintained in the education management information system 2588
to include at least the following:2589

       (1) Student participation and performance data, for each 2590
grade in each school district as a whole and for each grade in 2591
each school building in each school district, that includes:2592

       (a) The numbers of students receiving each category of 2593
instructional service offered by the school district, such as 2594
regular education instruction, vocational education instruction, 2595
specialized instruction programs or enrichment instruction that is 2596
part of the educational curriculum, instruction for gifted 2597
students, instruction for students with disabilities, and remedial 2598
instruction. The guidelines shall require instructional services 2599
under this division to be divided into discrete categories if an 2600
instructional service is limited to a specific subject, a specific 2601
type of student, or both, such as regular instructional services 2602
in mathematics, remedial reading instructional services, 2603
instructional services specifically for students gifted in 2604
mathematics or some other subject area, or instructional services 2605
for students with a specific type of disability. The categories of 2606
instructional services required by the guidelines under this 2607
division shall be the same as the categories of instructional 2608
services used in determining cost units pursuant to division 2609
(C)(3) of this section.2610

       (b) The numbers of students receiving support or 2611
extracurricular services for each of the support services or 2612
extracurricular programs offered by the school district, such as 2613
counseling services, health services, and extracurricular sports 2614
and fine arts programs. The categories of services required by the 2615
guidelines under this division shall be the same as the categories 2616
of services used in determining cost units pursuant to division 2617
(C)(4)(a) of this section.2618

       (c) Average student grades in each subject in grades nine 2619
through twelve;2620

       (d) Academic achievement levels as assessed under sections 2621
3301.0710, 3301.0711, and 3301.0712 of the Revised Code;2622

       (e) The number of students designated as having a disabling 2623
condition pursuant to division (C)(1) of section 3301.0711 of the 2624
Revised Code;2625

       (f) The numbers of students reported to the state board 2626
pursuant to division (C)(2) of section 3301.0711 of the Revised 2627
Code;2628

       (g) Attendance rates and the average daily attendance for the 2629
year. For purposes of this division, a student shall be counted as 2630
present for any field trip that is approved by the school 2631
administration.2632

       (h) Expulsion rates;2633

       (i) Suspension rates;2634

       (j) Dropout rates;2635

       (k) Rates of retention in grade;2636

       (l) For pupils in grades nine through twelve, the average 2637
number of carnegie units, as calculated in accordance with state 2638
board of education rules;2639

       (m) Graduation rates, to be calculated in a manner specified 2640
by the department of education that reflects the rate at which 2641
students who were in the ninth grade three years prior to the 2642
current year complete school and that is consistent with 2643
nationally accepted reporting requirements;2644

       (n) Results of diagnostic assessments administered to 2645
kindergarten students as required under section 3301.0715 of the 2646
Revised Code to permit a comparison of the academic readiness of 2647
kindergarten students. However, no district shall be required to 2648
report to the department the results of any diagnostic assessment 2649
administered to a kindergarten student if the parent of that 2650
student requests the district not to report those results.2651

       (2) Personnel and classroom enrollment data for each school 2652
district, including:2653

       (a) The total numbers of licensed employees and nonlicensed 2654
employees and the numbers of full-time equivalent licensed 2655
employees and nonlicensed employees providing each category of 2656
instructional service, instructional support service, and 2657
administrative support service used pursuant to division (C)(3) of 2658
this section. The guidelines adopted under this section shall 2659
require these categories of data to be maintained for the school 2660
district as a whole and, wherever applicable, for each grade in 2661
the school district as a whole, for each school building as a 2662
whole, and for each grade in each school building.2663

       (b) The total number of employees and the number of full-time 2664
equivalent employees providing each category of service used 2665
pursuant to divisions (C)(4)(a) and (b) of this section, and the 2666
total numbers of licensed employees and nonlicensed employees and 2667
the numbers of full-time equivalent licensed employees and 2668
nonlicensed employees providing each category used pursuant to 2669
division (C)(4)(c) of this section. The guidelines adopted under 2670
this section shall require these categories of data to be 2671
maintained for the school district as a whole and, wherever 2672
applicable, for each grade in the school district as a whole, for 2673
each school building as a whole, and for each grade in each school 2674
building.2675

       (c) The total number of regular classroom teachers teaching 2676
classes of regular education and the average number of pupils 2677
enrolled in each such class, in each of grades kindergarten 2678
through five in the district as a whole and in each school 2679
building in the school district.2680

       (d) The number of lead teachers employed by each school 2681
district and each school building.2682

       (3)(a) Student demographic data for each school district, 2683
including information regarding the gender ratio of the school 2684
district's pupils, the racial make-up of the school district's 2685
pupils, the number of limited English proficient students in the 2686
district, and an appropriate measure of the number of the school 2687
district's pupils who reside in economically disadvantaged 2688
households. The demographic data shall be collected in a manner to 2689
allow correlation with data collected under division (B)(1) of 2690
this section. Categories for data collected pursuant to division 2691
(B)(3) of this section shall conform, where appropriate, to 2692
standard practices of agencies of the federal government.2693

       (b) With respect to each student entering kindergarten, 2694
whether the student previously participated in a public preschool 2695
program, a private preschool program, or a head start program, and 2696
the number of years the student participated in each of these 2697
programs.2698

       (4) Any data required to be collected pursuant to federal 2699
law.2700

       (C) The education management information system shall include 2701
cost accounting data for each district as a whole and for each 2702
school building in each school district. The guidelines adopted 2703
under this section shall require the cost data for each school 2704
district to be maintained in a system of mutually exclusive cost 2705
units and shall require all of the costs of each school district 2706
to be divided among the cost units. The guidelines shall require 2707
the system of mutually exclusive cost units to include at least 2708
the following:2709

       (1) Administrative costs for the school district as a whole. 2710
The guidelines shall require the cost units under this division 2711
(C)(1) to be designed so that each of them may be compiled and 2712
reported in terms of average expenditure per pupil in formula ADM 2713
in the school district, as determined pursuant to section 3317.03 2714
of the Revised Code.2715

       (2) Administrative costs for each school building in the 2716
school district. The guidelines shall require the cost units under 2717
this division (C)(2) to be designed so that each of them may be 2718
compiled and reported in terms of average expenditure per 2719
full-time equivalent pupil receiving instructional or support 2720
services in each building.2721

       (3) Instructional services costs for each category of 2722
instructional service provided directly to students and required 2723
by guidelines adopted pursuant to division (B)(1)(a) of this 2724
section. The guidelines shall require the cost units under 2725
division (C)(3) of this section to be designed so that each of 2726
them may be compiled and reported in terms of average expenditure 2727
per pupil receiving the service in the school district as a whole 2728
and average expenditure per pupil receiving the service in each 2729
building in the school district and in terms of a total cost for 2730
each category of service and, as a breakdown of the total cost, a 2731
cost for each of the following components:2732

       (a) The cost of each instructional services category required 2733
by guidelines adopted under division (B)(1)(a) of this section 2734
that is provided directly to students by a classroom teacher;2735

       (b) The cost of the instructional support services, such as 2736
services provided by a speech-language pathologist, classroom 2737
aide, multimedia aide, or librarian, provided directly to students 2738
in conjunction with each instructional services category;2739

       (c) The cost of the administrative support services related 2740
to each instructional services category, such as the cost of 2741
personnel that develop the curriculum for the instructional 2742
services category and the cost of personnel supervising or 2743
coordinating the delivery of the instructional services category.2744

       (4) Support or extracurricular services costs for each 2745
category of service directly provided to students and required by 2746
guidelines adopted pursuant to division (B)(1)(b) of this section. 2747
The guidelines shall require the cost units under division (C)(4) 2748
of this section to be designed so that each of them may be 2749
compiled and reported in terms of average expenditure per pupil 2750
receiving the service in the school district as a whole and 2751
average expenditure per pupil receiving the service in each 2752
building in the school district and in terms of a total cost for 2753
each category of service and, as a breakdown of the total cost, a 2754
cost for each of the following components:2755

       (a) The cost of each support or extracurricular services 2756
category required by guidelines adopted under division (B)(1)(b) 2757
of this section that is provided directly to students by a 2758
licensed employee, such as services provided by a guidance 2759
counselor or any services provided by a licensed employee under a 2760
supplemental contract;2761

       (b) The cost of each such services category provided directly 2762
to students by a nonlicensed employee, such as janitorial 2763
services, cafeteria services, or services of a sports trainer;2764

       (c) The cost of the administrative services related to each 2765
services category in division (C)(4)(a) or (b) of this section, 2766
such as the cost of any licensed or nonlicensed employees that 2767
develop, supervise, coordinate, or otherwise are involved in 2768
administering or aiding the delivery of each services category.2769

       (D)(1) The guidelines adopted under this section shall 2770
require school districts to collect information about individual 2771
students, staff members, or both in connection with any data 2772
required by division (B) or (C) of this section or other reporting 2773
requirements established in the Revised Code. The guidelines may 2774
also require school districts to report information about 2775
individual staff members in connection with any data required by 2776
division (B) or (C) of this section or other reporting 2777
requirements established in the Revised Code. The guidelines shall 2778
not authorize school districts to request social security numbers 2779
of individual students. The guidelines shall prohibit the 2780
reporting under this section of a student's name, address, and 2781
social security number to the state board of education or the 2782
department of education. The guidelines shall also prohibit the 2783
reporting under this section of any personally identifiable 2784
information about any student, except for the purpose of assigning 2785
the data verification code required by division (D)(2) of this 2786
section, to any other person unless such person is employed by the 2787
school district or the information technology center operated 2788
under section 3301.075 of the Revised Code and is authorized by 2789
the district or technology center to have access to such 2790
information or is employed by an entity with which the department 2791
contracts for the scoring of assessments administered under 2792
section 3301.0711 of the Revised Code. The guidelines may require 2793
school districts to provide the social security numbers of 2794
individual staff members and the county of residence for a 2795
student. Nothing in this section prohibits the state board of 2796
education or department of education from providing a student's 2797
county of residence to the department of taxation to facilitate 2798
the distribution of tax revenue.2799

       (2) The guidelines shall provide for each school district or 2800
community school to assign a data verification code that is unique 2801
on a statewide basis over time to each student whose initial Ohio 2802
enrollment is in that district or school and to report all 2803
required individual student data for that student utilizing such 2804
code. The guidelines shall also provide for assigning data 2805
verification codes to all students enrolled in districts or 2806
community schools on the effective date of the guidelines 2807
established under this section.2808

       Individual student data shall be reported to the department 2809
through the information technology centers utilizing the code but, 2810
except as provided in sections 3310.11, 3310.42, 3310.63,2811
3313.978, 3310.63, and 3317.20 of the Revised Code, at no time 2812
shall the state board or the department have access to information 2813
that would enable any data verification code to be matched to 2814
personally identifiable student data.2815

       Each school district shall ensure that the data verification 2816
code is included in the student's records reported to any 2817
subsequent school district, community school, or state institution 2818
of higher education, as defined in section 3345.011 of the Revised 2819
Code, in which the student enrolls. Any such subsequent district 2820
or school shall utilize the same identifier in its reporting of 2821
data under this section.2822

       The director of health shall request and receive, pursuant to 2823
sections 3301.0723 and 3701.62 of the Revised Code, a data 2824
verification code for a child who is receiving services under 2825
division (A)(2) of section 3701.61 of the Revised Code. 2826

       (E) The guidelines adopted under this section may require 2827
school districts to collect and report data, information, or 2828
reports other than that described in divisions (A), (B), and (C) 2829
of this section for the purpose of complying with other reporting 2830
requirements established in the Revised Code. The other data, 2831
information, or reports may be maintained in the education 2832
management information system but are not required to be compiled 2833
as part of the profile formats required under division (G) of this 2834
section or the annual statewide report required under division (H) 2835
of this section.2836

       (F) Beginning with the school year that begins July 1, 1991, 2837
the board of education of each school district shall annually 2838
collect and report to the state board, in accordance with the 2839
guidelines established by the board, the data required pursuant to 2840
this section. A school district may collect and report these data 2841
notwithstanding section 2151.357 or 3319.321 of the Revised Code.2842

       (G) The state board shall, in accordance with the procedures 2843
it adopts, annually compile the data reported by each school 2844
district pursuant to division (D) of this section. The state board 2845
shall design formats for profiling each school district as a whole 2846
and each school building within each district and shall compile 2847
the data in accordance with these formats. These profile formats 2848
shall:2849

       (1) Include all of the data gathered under this section in a 2850
manner that facilitates comparison among school districts and 2851
among school buildings within each school district;2852

       (2) Present the data on academic achievement levels as 2853
assessed by the testing of student achievement maintained pursuant 2854
to division (B)(1)(d) of this section.2855

       (H)(1) The state board shall, in accordance with the 2856
procedures it adopts, annually prepare a statewide report for all 2857
school districts and the general public that includes the profile 2858
of each of the school districts developed pursuant to division (G) 2859
of this section. Copies of the report shall be sent to each school 2860
district.2861

       (2) The state board shall, in accordance with the procedures 2862
it adopts, annually prepare an individual report for each school 2863
district and the general public that includes the profiles of each 2864
of the school buildings in that school district developed pursuant 2865
to division (G) of this section. Copies of the report shall be 2866
sent to the superintendent of the district and to each member of 2867
the district board of education.2868

       (3) Copies of the reports received from the state board under 2869
divisions (H)(1) and (2) of this section shall be made available 2870
to the general public at each school district's offices. Each 2871
district board of education shall make copies of each report 2872
available to any person upon request and payment of a reasonable 2873
fee for the cost of reproducing the report. The board shall 2874
annually publish in a newspaper of general circulation in the 2875
school district, at least twice during the two weeks prior to the 2876
week in which the reports will first be available, a notice 2877
containing the address where the reports are available and the 2878
date on which the reports will be available.2879

       (I) Any data that is collected or maintained pursuant to this 2880
section and that identifies an individual pupil is not a public 2881
record for the purposes of section 149.43 of the Revised Code.2882

       (J) As used in this section:2883

       (1) "School district" means any city, local, exempted 2884
village, or joint vocational school district and, in accordance 2885
with section 3314.17 of the Revised Code, any community school. As 2886
used in division (L) of this section, "school district" also 2887
includes any educational service center or other educational 2888
entity required to submit data using the system established under 2889
this section.2890

       (2) "Cost" means any expenditure for operating expenses made 2891
by a school district excluding any expenditures for debt 2892
retirement except for payments made to any commercial lending 2893
institution for any loan approved pursuant to section 3313.483 of 2894
the Revised Code.2895

       (K) Any person who removes data from the information system 2896
established under this section for the purpose of releasing it to 2897
any person not entitled under law to have access to such 2898
information is subject to section 2913.42 of the Revised Code 2899
prohibiting tampering with data.2900

       (L)(1) In accordance with division (L)(2) of this section and 2901
the rules adopted under division (L)(10) of this section, the 2902
department of education may sanction any school district that 2903
reports incomplete or inaccurate data, reports data that does not 2904
conform to data requirements and descriptions published by the 2905
department, fails to report data in a timely manner, or otherwise 2906
does not make a good faith effort to report data as required by 2907
this section.2908

       (2) If the department decides to sanction a school district 2909
under this division, the department shall take the following 2910
sequential actions:2911

       (a) Notify the district in writing that the department has 2912
determined that data has not been reported as required under this 2913
section and require the district to review its data submission and 2914
submit corrected data by a deadline established by the department. 2915
The department also may require the district to develop a 2916
corrective action plan, which shall include provisions for the 2917
district to provide mandatory staff training on data reporting 2918
procedures.2919

       (b) Withhold up to ten per cent of the total amount of state 2920
funds due to the district for the current fiscal year and, if not 2921
previously required under division (L)(2)(a) of this section, 2922
require the district to develop a corrective action plan in 2923
accordance with that division;2924

       (c) Withhold an additional amount of up to twenty per cent of 2925
the total amount of state funds due to the district for the 2926
current fiscal year;2927

       (d) Direct department staff or an outside entity to 2928
investigate the district's data reporting practices and make 2929
recommendations for subsequent actions. The recommendations may 2930
include one or more of the following actions:2931

       (i) Arrange for an audit of the district's data reporting 2932
practices by department staff or an outside entity;2933

       (ii) Conduct a site visit and evaluation of the district;2934

       (iii) Withhold an additional amount of up to thirty per cent 2935
of the total amount of state funds due to the district for the 2936
current fiscal year;2937

       (iv) Continue monitoring the district's data reporting;2938

       (v) Assign department staff to supervise the district's data 2939
management system;2940

       (vi) Conduct an investigation to determine whether to suspend 2941
or revoke the license of any district employee in accordance with 2942
division (N) of this section;2943

       (vii) If the district is issued a report card under section 2944
3302.03 of the Revised Code, indicate on the report card that the 2945
district has been sanctioned for failing to report data as 2946
required by this section;2947

       (viii) If the district is issued a report card under section 2948
3302.03 of the Revised Code and incomplete or inaccurate data 2949
submitted by the district likely caused the district to receive a 2950
higher performance rating than it deserved under that section, 2951
issue a revised report card for the district;2952

       (ix) Any other action designed to correct the district's data 2953
reporting problems.2954

       (3) Any time the department takes an action against a school 2955
district under division (L)(2) of this section, the department 2956
shall make a report of the circumstances that prompted the action. 2957
The department shall send a copy of the report to the district 2958
superintendent or chief administrator and maintain a copy of the 2959
report in its files.2960

       (4) If any action taken under division (L)(2) of this section 2961
resolves a school district's data reporting problems to the 2962
department's satisfaction, the department shall not take any 2963
further actions described by that division. If the department 2964
withheld funds from the district under that division, the 2965
department may release those funds to the district, except that if 2966
the department withheld funding under division (L)(2)(c) of this 2967
section, the department shall not release the funds withheld under 2968
division (L)(2)(b) of this section and, if the department withheld 2969
funding under division (L)(2)(d) of this section, the department 2970
shall not release the funds withheld under division (L)(2)(b) or 2971
(c) of this section.2972

       (5) Notwithstanding anything in this section to the contrary, 2973
the department may use its own staff or an outside entity to 2974
conduct an audit of a school district's data reporting practices 2975
any time the department has reason to believe the district has not 2976
made a good faith effort to report data as required by this 2977
section. If any audit conducted by an outside entity under 2978
division (L)(2)(d)(i) or (5) of this section confirms that a 2979
district has not made a good faith effort to report data as 2980
required by this section, the district shall reimburse the 2981
department for the full cost of the audit. The department may 2982
withhold state funds due to the district for this purpose.2983

       (6) Prior to issuing a revised report card for a school 2984
district under division (L)(2)(d)(viii) of this section, the 2985
department may hold a hearing to provide the district with an 2986
opportunity to demonstrate that it made a good faith effort to 2987
report data as required by this section. The hearing shall be 2988
conducted by a referee appointed by the department. Based on the 2989
information provided in the hearing, the referee shall recommend 2990
whether the department should issue a revised report card for the 2991
district. If the referee affirms the department's contention that 2992
the district did not make a good faith effort to report data as 2993
required by this section, the district shall bear the full cost of 2994
conducting the hearing and of issuing any revised report card.2995

       (7) If the department determines that any inaccurate data 2996
reported under this section caused a school district to receive 2997
excess state funds in any fiscal year, the district shall 2998
reimburse the department an amount equal to the excess funds, in 2999
accordance with a payment schedule determined by the department. 3000
The department may withhold state funds due to the district for 3001
this purpose.3002

       (8) Any school district that has funds withheld under 3003
division (L)(2) of this section may appeal the withholding in 3004
accordance with Chapter 119. of the Revised Code.3005

       (9) In all cases of a disagreement between the department and 3006
a school district regarding the appropriateness of an action taken 3007
under division (L)(2) of this section, the burden of proof shall 3008
be on the district to demonstrate that it made a good faith effort 3009
to report data as required by this section.3010

       (10) The state board of education shall adopt rules under 3011
Chapter 119. of the Revised Code to implement division (L) of this 3012
section.3013

       (M) No information technology center or school district shall 3014
acquire, change, or update its student administration software 3015
package to manage and report data required to be reported to the 3016
department unless it converts to a student software package that 3017
is certified by the department.3018

       (N) The state board of education, in accordance with sections 3019
3319.31 and 3319.311 of the Revised Code, may suspend or revoke a 3020
license as defined under division (A) of section 3319.31 of the 3021
Revised Code that has been issued to any school district employee 3022
found to have willfully reported erroneous, inaccurate, or 3023
incomplete data to the education management information system.3024

       (O) No person shall release or maintain any information about 3025
any student in violation of this section. Whoever violates this 3026
division is guilty of a misdemeanor of the fourth degree.3027

       (P) The department shall disaggregate the data collected 3028
under division (B)(1)(n) of this section according to the race and 3029
socioeconomic status of the students assessed. No data collected 3030
under that division shall be included on the report cards required 3031
by section 3302.03 of the Revised Code.3032

       (Q) If the department cannot compile any of the information 3033
required by division (C)(5) of section 3302.03 of the Revised Code 3034
based upon the data collected under this section, the department 3035
shall develop a plan and a reasonable timeline for the collection 3036
of any data necessary to comply with that division.3037

       Sec. 3769.08.  (A) Any person holding a permit to conduct a 3038
horse-racing meeting may provide a place in the race meeting 3039
grounds or enclosure at which the permit holder may conduct and 3040
supervise the pari-mutuel system of wagering by patrons of legal 3041
age on the live racing programs and simulcast racing programs 3042
conducted by the permit holder.3043

       The pari-mutuel method of wagering upon the live racing 3044
programs and simulcast racing programs held at or conducted within 3045
such race track, and at the time of such horse-racing meeting, or 3046
at other times authorized by the state racing commission, shall 3047
not be unlawful. No other place, except that provided and 3048
designated by the permit holder and except as provided in section 3049
3769.26 of the Revised Code, nor any other method or system of 3050
betting or wagering, except the pari-mutuel system, shall be used 3051
or permitted by the permit holder; nor, except as provided in 3052
section 3769.089 or 3769.26 of the Revised Code, shall the 3053
pari-mutuel system of wagering be conducted by the permit holder 3054
on any races except the races at the race track, grounds, or 3055
enclosure for which the person holds a permit. Each permit holder 3056
may retain as a commission an amount not to exceed eighteen per 3057
cent of the total of all moneys wagered.3058

       The pari-mutuel wagering authorized by this section is 3059
subject to sections 3769.25 to 3769.28 of the Revised Code.3060

       (B)(1) At the close of each racing day, each permit holder 3061
authorized to conduct thoroughbred racing, out of the amount 3062
retained on that day by the permit holder, shall pay by check, 3063
draft, or money order to the tax commissioner, as a tax, a sum 3064
equal to the following percentages of the total of all moneys 3065
wagered on live racing programs on that day and shall separately 3066
compute and pay by check, draft, or money order to the tax 3067
commissioner, as a tax, a sum equal to the following percentages 3068
of the total of all money wagered on simulcast racing programs on 3069
that day:3070

       (1)(a) One per cent of the first two hundred thousand dollars 3071
wagered, or any part of that amount;3072

       (2)(b) Two per cent of the next one hundred thousand dollars 3073
wagered, or any part of that amount;3074

       (3)(c) Three per cent of the next one hundred thousand 3075
dollars wagered, or any part of that amount;3076

       (4)(d) Four per cent of all sums over four hundred thousand 3077
dollars wagered.3078

       (2) On and after January 1, 2013, in addition to the state 3079
tax levied under division (B)(1) of this section, on the first day 3080
of each month, each permit holder authorized to conduct 3081
thoroughbred racing, out of the amount retained during the prior 3082
month by the permit holder, shall compute and pay by check, draft, 3083
or money order to the legislative authority of the municipal 3084
corporation or the board of township trustees of the township in 3085
which the permit holder conducted thoroughbred racing, as a tax, a 3086
sum equal to one and one-half per cent of all moneys wagered on 3087
live racing programs during the prior month, and shall separately 3088
compute and pay by check, draft, or money order to that 3089
legislative authority or board of township trustees, as a tax, a 3090
sum equal to one and one-half per cent of all money wagered on 3091
simulcast racing programs during that prior month.3092

       (3) Except as otherwise provided in section 3769.089 of the 3093
Revised Code, each permit holder authorized to conduct 3094
thoroughbred racing shall use for purse money a sum equal to fifty 3095
per cent of the pari-mutuel revenues retained by the permit holder 3096
as a commission after payment of the state taxand local taxes 3097
under divisions (B)(1) and (2) of this section. This fifty per 3098
cent payment shall be in addition to the purse distribution from 3099
breakage specified in this section.3100

       (4) Subject to division (M) of this section, from the moneys 3101
paid to the tax commissioner by thoroughbred racing permit 3102
holders, one-half of one per cent of the total of all moneys so 3103
wagered on a racing day shall be paid into the Ohio fairs fund 3104
created by section 3769.082 of the Revised Code, one and 3105
one-eighth per cent of the total of all moneys so wagered on a 3106
racing day shall be paid into the Ohio thoroughbred race fund 3107
created by section 3769.083 of the Revised Code, and one-quarter 3108
of one per cent of the total of all moneys wagered on a racing day 3109
by each permit holder shall be paid into the state racing 3110
commission operating fund created by section 3769.03 of the 3111
Revised Code. The required payment to the state racing commission 3112
operating fund does not apply to county and independent fairs and 3113
agricultural societies. The remaining moneys may be retained by 3114
the permit holder, except as provided in this section with respect 3115
to the odd cents redistribution. Amounts paid into the nursing 3116
home franchise permit fee fund pursuant to this section and 3117
section 3769.26 of the Revised Code shall be used solely for the 3118
support of the PASSPORT program as determined in appropriations 3119
made by the general assembly. If the PASSPORT program is 3120
abolished, the amount that would have been paid to the nursing 3121
home franchise permit fee fund under this chapter shall be paid to 3122
the general revenue fund of the state. As used in this chapter, 3123
"PASSPORT program" means the PASSPORT program created under 3124
section 173.40 of the Revised Code.3125

       The total amount paid to the Ohio thoroughbred race fund 3126
under this section and division (A) of section 3769.087 of the 3127
Revised Code shall not exceed by more than six per cent the total 3128
amount paid to this fund under this section and that section 3129
during the immediately preceding calendar year.3130

       Each year, the total amount calculated for payment into the 3131
Ohio fairs fund under this division, division (C) of this section, 3132
and division (A) of section 3769.087 of the Revised Code shall be 3133
an amount calculated using the percentages specified in this 3134
division, division (C) of this section, and division (A) of 3135
section 3769.087 of the Revised Code.3136

       (5) A permit holder may contract with a thoroughbred 3137
horsemen's organization for the organization to act as a 3138
representative of all thoroughbred owners and trainers 3139
participating in a horse-racing meeting conducted by the permit 3140
holder. A "thoroughbred horsemen's organization" is any 3141
corporation or association that represents, through membership or 3142
otherwise, more than one-half of the aggregate of all thoroughbred 3143
owners and trainers who were licensed and actively participated in 3144
racing within this state during the preceding calendar year. 3145
Except as otherwise provided in this paragraph, any moneys 3146
received by a thoroughbred horsemen's organization shall be used 3147
exclusively for the benefit of thoroughbred owners and trainers 3148
racing in this state through the administrative purposes of the 3149
organization, benevolent activities on behalf of the horsemen, 3150
promotion of the horsemen's rights and interests, and promotion of 3151
equine research. A thoroughbred horsemen's organization may expend 3152
not more than an aggregate of five per cent of its annual gross 3153
receipts, or a larger amount as approved by the organization, for 3154
dues, assessments, and other payments to all other local, 3155
national, or international organizations having as their primary 3156
purposes the promotion of thoroughbred horse racing, thoroughbred 3157
horsemen's rights, and equine research.3158

       (C)(1) Except as otherwise provided in division (B) of this 3159
section, at the close of each racing day, each permit holder 3160
authorized to conduct harness or quarter horse racing, out of the 3161
amount retained that day by the permit holder, shall pay by check, 3162
draft, or money order to the tax commissioner, as a tax, a sum 3163
equal to the following percentages of the total of all moneys 3164
wagered on live racing programs and shall separately compute and 3165
pay by check, draft, or money order to the tax commissioner, as a 3166
tax, a sum equal to the following percentages of the total of all 3167
money wagered on simulcast racing programs on that day:3168

       (1)(a) One per cent of the first two hundred thousand dollars 3169
wagered, or any part of that amount;3170

       (2)(b) Two per cent of the next one hundred thousand dollars 3171
wagered, or any part of that amount;3172

       (3)(c) Three per cent of the next one hundred thousand 3173
dollars wagered, or any part of that amount;3174

       (4)(d) Four per cent of all sums over four hundred thousand 3175
dollars wagered.3176

       (2) On and after January 1, 2013, in addition to the state 3177
tax levied under division (C)(1) of this section, on the first day 3178
of each month, each permit holder authorized to conduct harness or 3179
quarter horse racing, out of the amount retained during the prior 3180
month by the permit holder, shall compute and pay by check, draft, 3181
or money order to the legislative authority of the municipal 3182
corporation or the board of township trustees of the township in 3183
which the permit holder conducted harness or quarter horse racing, 3184
as a tax, a sum equal to one and one-half per cent of all moneys 3185
wagered on live racing programs during the prior month, and shall 3186
separately compute and pay by check, draft, or money order to that 3187
legislative authority or board of township trustees, as a tax, a 3188
sum equal to one and one-half per cent of all money wagered on 3189
simulcast racing programs during that prior month.3190

       (3) Except as otherwise provided in division (B) and subject 3191
to division (M) of this section, from the moneys paid to the tax 3192
commissioner by permit holders authorized to conduct harness or 3193
quarter horse racing, one-half of one per cent of all moneys 3194
wagered on that racing day shall be paid into the Ohio fairs fund; 3195
from the moneys paid to the tax commissioner by permit holders 3196
authorized to conduct harness racing, five-eighths of one per cent 3197
of all moneys wagered on that racing day shall be paid into the 3198
Ohio standardbred development fund; and from the moneys paid to 3199
the tax commissioner by permit holders authorized to conduct 3200
quarter horse racing, five-eighths of one per cent of all moneys 3201
wagered on that racing day shall be paid into the Ohio quarter 3202
horse development fund.3203

       (D) In addition, subject to division (M) of this section, 3204
beginning on January 1, 1996, from the money paid to the tax 3205
commissioner as a tax under this section and division (A) of 3206
section 3769.087 of the Revised Code by harness horse permit 3207
holders, one-half of one per cent of the amount wagered on a 3208
racing day shall be paid into the Ohio standardbred development 3209
fund. Beginning January 1, 1998, the payment to the Ohio 3210
standardbred development fund required under this division does 3211
not apply to county agricultural societies or independent 3212
agricultural societies.3213

       The total amount paid to the Ohio standardbred development 3214
fund under this division, division (C) of this section, and 3215
division (A) of section 3769.087 of the Revised Code and the total 3216
amount paid to the Ohio quarter horse development fund under this 3217
division and division (A) of that section shall not exceed by more 3218
than six per cent the total amount paid into the fund under this 3219
division, division (C) of this section, and division (A) of 3220
section 3769.087 of the Revised Code in the immediately preceding 3221
calendar year.3222

       (E) Subject to division (M) of this section, from the money 3223
paid as a tax under this chapter by harness and quarter horse 3224
permit holders, one-quarter of one per cent of the total of all 3225
moneys wagered on a racing day by each permit holder shall be paid 3226
into the state racing commission operating fund created by section 3227
3769.03 of the Revised Code. This division does not apply to 3228
county and independent fairs and agricultural societies.3229

       (F) Except as otherwise provided in section 3769.089 of the 3230
Revised Code, each permit holder authorized to conduct harness 3231
racing shall pay to the harness horsemen's purse pool a sum equal 3232
to fifty per cent of the pari-mutuel revenues retained by the 3233
permit holder as a commission after payment of the state taxand 3234
local taxes under divisions (C)(1) and (2) of this section. This 3235
fifty per cent payment is to be in addition to the purse 3236
distribution from breakage specified in this section.3237

       (G) In addition, each permit holder authorized to conduct 3238
harness racing shall be allowed to retain the odd cents of all 3239
redistribution to be made on all mutual contributions exceeding a 3240
sum equal to the next lowest multiple of ten.3241

       Forty per cent of that portion of that total sum of such odd 3242
cents shall be used by the permit holder for purse money for Ohio 3243
sired, bred, and owned colts, for purse money for Ohio bred 3244
horses, and for increased purse money for horse races. Upon the 3245
formation of the corporation described in section 3769.21 of the 3246
Revised Code to establish a harness horsemen's health and 3247
retirement fund, twenty-five per cent of that portion of that 3248
total sum of odd cents shall be paid at the close of each racing 3249
day by the permit holder to that corporation to establish and fund 3250
the health and retirement fund. Until that corporation is formed, 3251
that twenty-five per cent shall be paid at the close of each 3252
racing day by the permit holder to the tax commissioner or the tax 3253
commissioner's agent in the county seat of the county in which the 3254
permit holder operates race meetings. The remaining thirty-five 3255
per cent of that portion of that total sum of odd cents shall be 3256
retained by the permit holder.3257

       (H) In addition, each permit holder authorized to conduct 3258
thoroughbred racing shall be allowed to retain the odd cents of 3259
all redistribution to be made on all mutuel contributions 3260
exceeding a sum equal to the next lowest multiple of ten. Twenty 3261
per cent of that portion of that total sum of such odd cents shall 3262
be used by the permit holder for increased purse money for horse 3263
races. Upon the formation of the corporation described in section 3264
3769.21 of the Revised Code to establish a thoroughbred horsemen's 3265
health and retirement fund, forty-five per cent of that portion of 3266
that total sum of odd cents shall be paid at the close of each 3267
racing day by the permit holder to that corporation to establish 3268
and fund the health and retirement fund. Until that corporation is 3269
formed, that forty-five per cent shall be paid by the permit 3270
holder to the tax commissioner or the tax commissioner's agent in 3271
the county seat of the county in which the permit holder operates 3272
race meetings, at the close of each racing day. The remaining 3273
thirty-five per cent of that portion of that total sum of odd 3274
cents shall be retained by the permit holder.3275

       (I) In addition, each permit holder authorized to conduct 3276
quarter horse racing shall be allowed to retain the odd cents of 3277
all redistribution to be made on all mutuel contributions 3278
exceeding a sum equal to the next lowest multiple of ten, subject 3279
to a tax of twenty-five per cent on that portion of the total sum 3280
of such odd cents that is in excess of two thousand dollars during 3281
a calendar year, which tax shall be paid at the close of each 3282
racing day by the permit holder to the tax commissioner or the tax 3283
commissioner's agent in the county seat of the county within which 3284
the permit holder operates race meetings. Forty per cent of that 3285
portion of that total sum of such odd cents shall be used by the 3286
permit holder for increased purse money for horse races. The 3287
remaining thirty-five per cent of that portion of that total sum 3288
of odd cents shall be retained by the permit holder.3289

       (J)(1) To encourage the improvement of racing facilities for 3290
the benefit of the public, breeders, and horse owners, and to 3291
increase the revenue to the state from the increase in pari-mutuel 3292
wagering resulting from those improvements, the taxes paid by a 3293
permit holder to the state as provided for in this chapter shall 3294
be reduced by three-fourths of one per cent of the total amount 3295
wagered for those permit holders who make capital improvements to 3296
existing race tracks or construct new race tracks. The percentage 3297
of the reduction that may be taken each racing day shall equal 3298
seventy-five per cent of the taxes levied under divisions (B)(1)3299
and (C)(1) of this section and section 3769.087 of the Revised 3300
Code, and division (F)(2) of section 3769.26 of the Revised Code, 3301
as applicable, divided by the calculated amount each fund should 3302
receive under divisions (B) and (C) of this section and section 3303
3769.087 of the Revised Code, and division (F)(2) of section 3304
3769.26 of the Revised Code and the reduction provided for in this 3305
division. If the resulting percentage is less than one, that 3306
percentage shall be multiplied by the amount of the reduction 3307
provided for in this division. Otherwise, the permit holder shall 3308
receive the full reduction provided for in this division. The 3309
amount of the allowable reduction not received shall be carried 3310
forward and applied against future tax liability. After any 3311
reductions expire, any reduction carried forward shall be treated 3312
as a reduction as provided for in this division.3313

       If more than one permit holder is authorized to conduct 3314
racing at the facility that is being built or improved, the cost 3315
of the new race track or capital improvement shall be allocated 3316
between or among all the permit holders in the ratio that the 3317
permit holders' number of racing days bears to the total number of 3318
racing days conducted at the facility.3319

       A reduction for a new race track or a capital improvement 3320
shall start from the day racing is first conducted following the 3321
date actual construction of the new race track or each capital 3322
improvement is completed and the construction cost has been 3323
approved by the racing commission, unless otherwise provided in 3324
this section. A reduction for a new race track or a capital 3325
improvement shall continue for a period of twenty-five years for 3326
new race tracks and for fifteen years for capital improvements if 3327
the construction of the capital improvement or new race track 3328
commenced prior to March 29, 1988, and for a period of ten years 3329
for new race tracks or capital improvements if the construction of 3330
the capital improvement or new race track commenced on or after 3331
March 29, 1988, but before June 6, 2001, or until the total tax 3332
reduction reaches seventy per cent of the approved cost of the new 3333
race track or capital improvement, as allocated to each permit 3334
holder, whichever occurs first. A reduction for a new race track 3335
or a capital improvement approved after June 6, 2001, shall 3336
continue until the total tax reduction reaches one hundred per 3337
cent of the approved cost of the new race track or capital 3338
improvement, as allocated to each permit holder.3339

       A reduction granted for a new race track or a capital 3340
improvement, the application for which was approved by the racing 3341
commission after March 29, 1988, but before June 6, 2001, shall 3342
not commence nor shall the ten-year period begin to run until all 3343
prior tax reductions with respect to the same race track have 3344
ended. The total tax reduction because of capital improvements 3345
shall not during any one year exceed for all permit holders using 3346
any one track three-fourths of one per cent of the total amount 3347
wagered, regardless of the number of capital improvements made. 3348
Several capital improvements to a race track may be consolidated 3349
in an application if the racing commission approved the 3350
application prior to March 29, 1988. No permit holder may receive 3351
a tax reduction for a capital improvement approved by the racing 3352
commission on or after March 29, 1988, at a race track until all 3353
tax reductions have ended for all prior capital improvements 3354
approved by the racing commission under this section or section 3355
3769.20 of the Revised Code at that race track. If there are two 3356
or more permit holders operating meetings at the same track, they 3357
may consolidate their applications. The racing commission shall 3358
notify the tax commissioner when the reduction of tax begins and 3359
when it ends.3360

       Each fiscal year the racing commission shall submit a report 3361
to the tax commissioner, the office of budget and management, and 3362
the legislative service commission. The report shall identify each 3363
capital improvement project undertaken under this division and in 3364
progress at each race track, indicate the total cost of each 3365
project, state the tax reduction that resulted from each project 3366
during the immediately preceding fiscal year, estimate the tax 3367
reduction that will result from each project during the current 3368
fiscal year, state the total tax reduction that resulted from all 3369
such projects at all race tracks during the immediately preceding 3370
fiscal year, and estimate the total tax reduction that will result 3371
from all such projects at all race tracks during the current 3372
fiscal year.3373

       (2) In order to qualify for the reduction in tax, a permit 3374
holder shall apply to the racing commission in such form as the 3375
commission may require and shall provide full details of the new 3376
race track or capital improvement, including a schedule for its 3377
construction and completion, and set forth the costs and expenses 3378
incurred in connection with it. The racing commission shall not 3379
approve an application unless the permit holder shows that a 3380
contract for the new race track or capital improvement has been 3381
let under an unrestricted competitive bidding procedure, unless 3382
the contract is exempted by the controlling board because of its 3383
unusual nature. In determining whether to approve an application, 3384
the racing commission shall consider whether the new race track or 3385
capital improvement will promote the safety, convenience, and 3386
comfort of the racing public and horse owners and generally tend 3387
towards the improvement of racing in this state.3388

       (3) If a new race track or capital improvement is approved by 3389
the racing commission and construction has started, the tax 3390
reduction may be authorized by the commission upon presentation of 3391
copies of paid bills in excess of one hundred thousand dollars or 3392
ten per cent of the approved cost, whichever is greater. After the 3393
initial authorization, the permit holder shall present copies of 3394
paid bills. If the permit holder is in substantial compliance with 3395
the schedule for construction and completion of the new race track 3396
or capital improvement, the racing commission may authorize the 3397
continuation of the tax reduction upon the presentation of the 3398
additional paid bills. The total amount of the tax reduction 3399
authorized shall not exceed the percentage of the approved cost of 3400
the new race track or capital improvement specified in division 3401
(J)(1) of this section. The racing commission may terminate any 3402
tax reduction immediately if a permit holder fails to complete the 3403
new race track or capital improvement, or to substantially comply 3404
with the schedule for construction and completion of the new race 3405
track or capital improvement. If a permit holder fails to complete 3406
a new race track or capital improvement, the racing commission 3407
shall order the permit holder to repay to the state the total 3408
amount of tax reduced. The normal tax paid by the permit holder 3409
shall be increased by three-fourths of one per cent of the total 3410
amount wagered until the total amount of the additional tax 3411
collected equals the total amount of tax reduced.3412

       (4) As used in this section:3413

       (a) "Capital improvement" means an addition, replacement, or 3414
remodeling of a structural unit of a race track facility costing 3415
at least one hundred thousand dollars, including, but not limited 3416
to, the construction of barns used exclusively for the race track 3417
facility, backstretch facilities for horsemen, paddock facilities, 3418
new pari-mutuel and totalizator equipment and appurtenances to 3419
that equipment purchased by the track, new access roads, new 3420
parking areas, the complete reconstruction, reshaping, and 3421
leveling of the racing surface and appurtenances, the installation 3422
of permanent new heating or air conditioning, roof replacement or 3423
restoration, installations of a permanent nature forming a part of 3424
the track structure, and construction of buildings that are 3425
located on a permit holder's premises. "Capital improvement" does 3426
not include the cost of replacement of equipment that is not 3427
permanently installed, ordinary repairs, painting, and maintenance 3428
required to keep a race track facility in ordinary operating 3429
condition.3430

       (b) "New race track" includes the reconstruction of a race 3431
track damaged by fire or other cause that has been declared by the 3432
racing commission, as a result of the damage, to be an inadequate 3433
facility for the safe operation of horse racing.3434

       (c) "Approved cost" includes all debt service and interest 3435
costs that are associated with a capital improvement or new race 3436
track and that the racing commission approves for a tax reduction 3437
under division (J) of this section.3438

       (5) The racing commission shall not approve an application 3439
for a tax reduction under this section if it has reasonable cause 3440
to believe that the actions or negligence of the permit holder 3441
substantially contributed to the damage suffered by the track due 3442
to fire or other cause. The racing commission shall obtain any 3443
data or information available from a fire marshal, law enforcement 3444
official, or insurance company concerning any fire or other damage 3445
suffered by a track, prior to approving an application for a tax 3446
reduction.3447

       (6) The approved cost to which a tax reduction applies shall 3448
be determined by generally accepted accounting principles and 3449
verified by an audit of the permit holder's records upon 3450
completion of the project by the racing commission, or by an 3451
independent certified public accountant selected by the permit 3452
holder and approved by the commission.3453

       (K) No other license or excise tax or fee, except as provided 3454
in sections 3769.01 to 3769.14 of the Revised Code, shall be 3455
assessed or collected from such licensee by any county, township, 3456
district, municipal corporation, or other body having power to 3457
assess or collect a tax or fee. That portion of the tax paid under 3458
this section by permit holders for racing conducted at and during 3459
the course of an agricultural exposition or fair, and that portion 3460
of the tax that would have been paid by eligible permit holders 3461
into the nursing home franchise permit fee fund as a result of 3462
racing conducted at and during the course of an agricultural 3463
exposition or fair, shall be deposited into the state treasury to 3464
the credit of the horse racing tax fund, which is hereby created 3465
for the use of the agricultural societies of the several counties 3466
in which the taxes originate. The state racing commission shall 3467
determine eligible permit holders for purposes of the preceding 3468
sentence, taking into account the breed of horse, the racing 3469
dates, the geographic proximity to the fair, and the best 3470
interests of Ohio racing. On the first day of any month on which 3471
there is money in the fund, the tax commissioner shall provide for 3472
payment to the treasurer of each agricultural society the amount 3473
of the taxes collected under this section upon racing conducted at 3474
and during the course of any exposition or fair conducted by the 3475
society.3476

       (L) From the state tax paid under this section by harness 3477
track permit holders, the tax commissioner shall pay into the Ohio 3478
thoroughbred race fund a sum equal to a percentage of the amount 3479
wagered upon which the tax is paid. The percentage shall be 3480
determined by the tax commissioner and shall be rounded to the 3481
nearest one-hundredth. The percentage shall be such that, when 3482
multiplied by the amount wagered upon which state tax was paid by 3483
the harness track permit holders in the most recent year for which 3484
final figures are available, it results in a sum that 3485
substantially equals the same amount of state tax paid by the tax 3486
commissioner during that year into the Ohio fairs fund from taxes 3487
paid by thoroughbred permit holders. This division does not apply 3488
to county and independent fairs and agricultural societies.3489

       (M) Twenty-five per cent of the state taxes levied on 3490
thoroughbred racing permit holders, harness racing permit holders, 3491
and quarter horse racing permit holders under this section, 3492
division (A) of section 3769.087 of the Revised Code, and division 3493
(F)(2) of section 3769.26 of the Revised Code shall be paid into 3494
the nursing home franchise permit fee fund. The tax commissioner 3495
shall pay any money remaining, after the payment into the nursing 3496
home franchise permit fee fund and the reductions provided for in 3497
division (J) of this section and in section 3769.20 of the Revised 3498
Code, into the Ohio fairs fund, Ohio thoroughbred race fund, Ohio 3499
standardbred development fund, Ohio quarter horse fund, and state 3500
racing commission operating fund as prescribed in this section and 3501
division (A) of section 3769.087 of the Revised Code. The tax 3502
commissioner shall thereafter use and apply the balance of the 3503
money paid as a state tax by any permit holder to cover any 3504
shortage in the accounts of such funds resulting from an 3505
insufficient payment as a state tax by any other permit holder. 3506
The moneys received by the tax commissioner shall be deposited 3507
weekly and paid by the tax commissioner into the funds to cover 3508
the total aggregate amount due from all permit holders to the 3509
funds, as calculated under this section and division (A) of 3510
section 3769.087 of the Revised Code, as applicable. If, after the 3511
payment into the nursing home franchise permit fee fund, 3512
sufficient funds are not available from the state tax deposited by 3513
the tax commissioner to pay the required amounts into the Ohio 3514
fairs fund, Ohio standardbred development fund, Ohio thoroughbred 3515
race fund, Ohio quarter horse fund, and the state racing 3516
commission operating fund, the tax commissioner shall prorate on a 3517
proportional basis the amount paid to each of the funds. Any 3518
shortage to the funds as a result of a proration shall be applied 3519
against future deposits for the same calendar year when funds are 3520
available. After this application, the tax commissioner shall pay 3521
any remaining money paid as a state tax by all permit holders into 3522
the nursing home franchise permit fee fund. This division does not 3523
apply to permit holders conducting racing at the course of an 3524
agricultural exposition or fair as described in division (K) of 3525
this section.3526

       Sec. 3769.087.  (A) In addition to the commission of eighteen 3527
per cent retained by each permit holder as provided in section 3528
3769.08 of the Revised Code, each permit holder shall retain an 3529
additional amount equal to four per cent of the total of all 3530
moneys wagered on each racing day on all wagering pools other than 3531
win, place, and show, of which amount retained an amount equal to 3532
three per cent of the total of all moneys wagered on each racing 3533
day on those pools shall be paid by check, draft, or money order 3534
to the tax commissioner, as a tax. Subject to the restrictions 3535
contained in divisions (B), (C), and (M) of section 3769.08 of the 3536
Revised Code, from such additional moneys paid to the tax 3537
commissioner:3538

       (1) Four-sixths shall be allocated to fund distribution as 3539
provided in division (M) of section 3769.08 of the Revised Code.3540

       (2) One-twelfth shall be paid into the Ohio fairs fund 3541
created by section 3769.082 of the Revised Code.3542

       (3) One-twelfth of the additional moneys paid to the tax 3543
commissioner by thoroughbred racing permit holders shall be paid 3544
into the Ohio thoroughbred race fund created by section 3769.083 3545
of the Revised Code.3546

       (4) One-twelfth of the additional moneys paid to the tax 3547
commissioner by harness horse racing permit holders shall be paid 3548
to the Ohio standardbred development fund created by section 3549
3769.085 of the Revised Code.3550

       (5) One-twelfth of the additional moneys paid to the tax 3551
commissioner by quarter horse racing permit holders shall be paid 3552
to the Ohio quarter horse development fund created by section 3553
3769.086 of the Revised Code.3554

       (6) One-sixth shall be paid into the state racing commission 3555
operating fund created by section 3769.03 of the Revised Code.3556

       The remaining one per cent that is retained of the total of 3557
all moneys wagered on each racing day on all pools other than win, 3558
place, and show, shall be retained by racing permit holders, and, 3559
except as otherwise provided in section 3769.089 of the Revised 3560
Code, racing permit holders shall use one-half for purse money and 3561
retain one-half.3562

       (B) In addition to the commission of eighteen per cent 3563
retained by each permit holder as provided in section 3769.08 of 3564
the Revised Code and the additional amount retained by each permit 3565
holder as provided in division (A) of this section, each permit 3566
holder shall retain an additional amount equal to one-half of one 3567
per cent of the total of all moneys wagered on each racing day on 3568
all wagering pools other than win, place, and show. The additional 3569
amount retained under this division shall be paid by check, draft, 3570
or money order to the tax commissioner, as a tax. The tax 3571
commissioner shall pay the amount of the tax received under this 3572
division to the state racing commission operating fund created by 3573
section 3769.03 of the Revised Code.3574

       (C) Each permit holder authorized by the state lottery 3575
commission to conduct video lottery terminal gaming shall receive 3576
a commission of video lottery terminal income as set forth in rule 3577
3770:2-3-08 of the Administrative Code. A percentage of that 3578
commission may be paid to the state racing commission for the 3579
benefit of breeding and racing in this state. If so paid, the 3580
percentage paid to the state racing commission shall be based on 3581
rules promulgated by the state racing commission.3582

       Sec. 3769.089.  (A) As used in this chapter:3583

       (1) "Racing day" means any day authorized under a permit 3584
holder's permit on which, at a simulcast host, either a live 3585
racing program is conducted as authorized under section 3769.07 of 3586
the Revised Code or a simulcast racing program is conducted as 3587
authorized under this section.3588

       (2) "Live racing day" means a racing day on which a live 3589
racing program is conducted by the permit holder along with 3590
simulcasts of all other available racing programs from within this 3591
state and simulcast racing programs from outside this state as 3592
authorized under this section.3593

       (3) "Live racing program" means a racing program consisting 3594
of no fewer than seven live horse races at thoroughbred tracks and 3595
nine live races at standardbred tracks and additional horse races 3596
simulcast from other facilities located either inside or outside 3597
this state, in which not more than two horse races on which 3598
pari-mutuel wagering is conducted are simulcast from facilities 3599
located outside this state. If only one racing meeting of a 3600
particular breed of horse is being held, no fewer than nine live 3601
horse races shall be held on a live racing day. If, during the 3602
course of a racing meeting at a standardbred track, the racing 3603
secretary of the permit holder determines that there is an 3604
insufficient number of entries to have a full field of eight 3605
horses for each of nine races on a live racing program, then the 3606
racing secretary of the permit holder, after consultation with the 3607
Ohio harness horsemens association, may reduce the number of live 3608
races on that live racing program from nine to either eight or 3609
seven, as the racing secretary may determine. The racing secretary 3610
shall not reduce the live racing program to less than seven live 3611
races. If during the course of a meeting at a thoroughbred track, 3612
the racing secretary of a permit holder determines that there is 3613
an insufficient number of entries to have a full field of eight 3614
horses for each of nine races on a live racing program, then the 3615
racing secretary of the permit holder, with the consent of the 3616
thoroughbred horsemens association, may reduce the number of live 3617
races on that live racing program from nine to either eight or 3618
seven, as the racing secretary may determine. The racing secretary 3619
shall not reduce the live racing program to less than seven live 3620
races. No more than seventeen races on which pari-mutuel wagering 3621
is conducted, including both live races and races simulcast from 3622
other facilities located either inside or outside this state, 3623
shall be part of a live racing program.3624

       (4) "Simulcast host" means a track or enclosure in this state 3625
where, on a racing day, a permit holder is doing one or both of 3626
the following:3627

       (a) Conducting a live racing program and offering this 3628
program for simulcasting to one or more simulcast guests and 3629
satellite facilities in this state;3630

       (b) Receiving a simulcast racing program for simulcasting to 3631
one or more simulcast guests and satellite facilities in this 3632
state.3633

       (5) "Simulcast guest" means any track or enclosure that is 3634
receiving from a simulcast host, on a day other than a racing day, 3635
a live racing program or a simulcast racing program.3636

       (6) "Simulcast racing program" means all simulcasts of horse 3637
races to a simulcast host or simulcast guest on a racing day or on 3638
any other day on which pari-mutuel wagering is conducted, but does 3639
not include any simulcast horse races from inside or outside this 3640
state that are included in a simulcast host's live racing program.3641

       (7) "Satellite facility" has the same meaning as in section 3642
3769.25 of the Revised Code.3643

       (8) "Collection and settlement agent" has the same meaning as 3644
in section 3769.0810 of the Revised Code.3645

       (9) "Special racing event" means individual races in live 3646
racing programs or simulcast racing programs, and simulcast racing 3647
programs on special event days under division (C) of this section, 3648
conducted at facilities located outside this state for which the 3649
track, racing association, or state regulatory agency conducting 3650
such races charges a simulcast host a fee for the privilege of 3651
receiving a simulcast of such races into this state that is higher 3652
than the customary and regular fee charged for simulcast races 3653
because of the status or popularity of such races.3654

       (B)(1) The state racing commission shall, upon request by any 3655
permit holder, permit electronically televised simulcasts of horse 3656
races at the permit holder's track or enclosure on racing days 3657
authorized by the permit holder's permit. Except as provided in 3658
division (B) of this section, the commission shall not permit the 3659
simulcast of any simulcast racing program conducted at tracks or 3660
facilities located outside this state unless the out-of-state 3661
simulcast racing program is available to all permit holders, 3662
whether serving as simulcast hosts or simulcast guests, and all 3663
satellite facilities, in this state open and operating on that 3664
day. A permit holder or satellite facility may inform the 3665
commission that it waives the right to receive the simulcast of a 3666
simulcast racing program or a race in a simulcast racing program 3667
on that day and in this event the simulcast racing program or 3668
simulcast race shall be available to all other simulcast hosts, 3669
simulcast guests, and satellite facilities open and operating in 3670
this state on that day.3671

       In order for a permit holder to offer simulcasts of horse 3672
races conducted at facilities located outside this state, the 3673
permit holder shall have conducted live racing programs during the 3674
immediately preceding calendar year on a number of days that is 3675
not less than the number of regular live racing days it conducted 3676
in calendar year 1991, not including additional racing days 3677
conducted in calendar year 1991 by the permit holder at a 3678
winterized facility under a permit issued under section 3769.07 of 3679
the Revised Code, as certified by the commission. In satisfying 3680
the foregoing requirement for live racing days during the 3681
immediately preceding calendar year, a permit holder may include 3682
the number of days on which live racing programs were conducted 3683
under a permit issued under section 3769.07 of the Revised Code 3684
for additional racing days at a winterized facility. In addition, 3685
in order for a permit holder to offer simulcasts of horse races 3686
conducted at facilities located outside this state, the permit 3687
holder shall offer all simulcasts of horse races conducted in this 3688
state made available to it.3689

       In order for a permit holder to offer simulcasts of races 3690
conducted at race tracks located outside this state at the same 3691
time and during the hours in which the live races of a live racing 3692
program are being conducted at its track, a permit holder 3693
conducting a thoroughbred live racing program shall obtain the 3694
consent of the thoroughbred horsemens association and a permit 3695
holder conducting a harness live racing program shall obtain the 3696
consent of the Ohio harness horsemens association. The consent of 3697
the horsemen's organization shall not be unreasonably withheld, 3698
and shall be consistent with the interest of preserving live 3699
racing in this state. If a horsemen's organization withholds its 3700
consent, the permit holder may file an objection with the 3701
commission, which shall promptly consider the objection and 3702
determine whether the horsemen's organization's action in 3703
withholding consent is without substantial merit and, if the 3704
commission so determines, shall authorize the permit holder to 3705
simulcast the simulcast racing programs. The determination of the 3706
commission is final. A permit holder, as a simulcast host, may 3707
offer simulcast racing programs at its track or enclosure of races 3708
conducted at tracks and facilities located outside this state 3709
prior to the commencement of, and following the conclusion of, its 3710
live races without obtaining the consent of a horsemen's 3711
organization under this division.3712

       (2) Notwithstanding section 3769.07 of the Revised Code:3713

        (a) In calendar year 2013, the permit holder at each 3714
standardbred track shall conduct a minimum of seventy-five live 3715
racing days. In calendar year 2013, the permit holder at each 3716
thoroughbred track shall conduct a minimum of seventy-five live 3717
racing days or the number of live racing days that were conducted 3718
at that track in calendar year 2012, whichever is greater. The 3719
live racing days shall be selected by the permit holder, but are 3720
subject to the approval of the commission.3721

       (b) In calendar year 2014, the permit holder at each 3722
standardbred track shall conduct a minimum of one hundred live 3723
racing days. In calendar year 2014, the permit holder at each 3724
thoroughbred track shall conduct a minimum of one hundred live 3725
racing days or the number of live racing days that were conducted 3726
at that track in calendar year 2012, whichever is greater. The 3727
live racing days shall be selected by the permit holder, but are 3728
subject to the approval of the commission.3729

       (c) A permit holder shall conduct a minimum of one hundred 3730
twenty-five live racing days and a maximum of two hundred ten live 3731
racing days in calendar year 2015 and in each subsequent calendar 3732
year. The live racing days shall be selected by the permit holder, 3733
but are subject to the approval of the commission.3734

       (3) For the purposes of division (B)(2) of this section, for 3735
live racing conducted at a track with more than one permit, the 3736
minimum and maximum live racing days shall apply to those permits 3737
collectively and not as a single permit.3738

       (4) In addition to the required live racing days, a permit 3739
holder shall simulcast a simulcast racing program on a minimum of 3740
three hundred sixty days each calendar year. The permit holder 3741
shall simulcast all simulcast racing programs conducted in this 3742
state and made available to the permit holder and simulcast racing 3743
programs conducted outside this state.3744

       (5) The commission may make exception to the required minimum 3745
number of live racing days or simulcast racing program days in 3746
instances of natural disaster or other unexpected circumstances as 3747
defined by the commission, in its sole discretion. For any 3748
calendar year, the horsemen's association at each track may 3749
negotiate an agreement with the permit holder for that track to 3750
reduce the number of live racing days at that track to less than 3751
the minimum live racing days required by division (B)(2)(a), (b), 3752
or (c) of this section, as applicable, or to increase the number 3753
of live racing days at that track to a number that is greater than 3754
the maximum live racing days permitted by division (B)(2)(c) of 3755
this section, subject to the approval of the commission. These 3756
negotiations shall not reduce the number of live racing days to 3757
less than fifty days per calendar year.3758

       (6) To satisfy the requirement of live racing days, a permit 3759
holder may include the number of days on which live racing 3760
programs were conducted under a permit issued under section 3761
3769.07 of the Revised Code for racing days authorized at a 3762
winterized facility.3763

       (7) Notwithstanding any other provision related to simulcast 3764
racing programs, in order for a permit holder to offer simulcast 3765
racing programs of races conducted at tracks located outside this 3766
state at the same time and during the hours in which the live 3767
races of a live racing program are being conducted at its track, a 3768
permit holder conducting a thoroughbred live racing program shall 3769
obtain the consent of the thoroughbred horsemen's association and 3770
a permit holder conducting a harness live racing program shall 3771
obtain the consent of the Ohio harness horsemen's association. The 3772
consent of the applicable horsemen's association shall be 3773
consistent with the interest of preserving live racing in this 3774
state. A permit holder, as a simulcast host, may offer simulcast 3775
racing programs at its track or enclosure of races conducted at 3776
tracks and facilities located outside this state before the 3777
commencement of, and following the conclusion of, its live races 3778
without obtaining the consent of a horsemen's association under 3779
this division.3780

       (C) The commission shall allocate to each track one racing 3781
day for each permit holder during each calendar year for the 3782
conduct of a live racing program on which a permit holder may 3783
conduct as few as one live horse race, with the remainder of the 3784
horse races on that racing day on which pari-mutuel wagering is 3785
conducted as part of the live racing program being simulcast from 3786
other tracks and facilities located either inside or outside this 3787
state. In addition, the commission may allocate to each permit 3788
holder racing days on which it may as part of a live racing 3789
program simulcast more than two horse races from facilities 3790
located outside this state if the horse races involve a national 3791
wagering pool and pari-mutuel wagering is conducted on the 3792
national wagering pool, but on such a racing day there shall in no 3793
event be more than two horse races simulcast from facilities 3794
located outside this state included in a live racing program on 3795
which separate pari-mutuel wagering is conducted. As used in this 3796
division, "national wagering pool" means an interstate or 3797
intrastate common pari-mutuel wagering pool involving two or more 3798
selections covering two or more horse races conducted at tracks 3799
located inside or outside this state.3800

       In emergency situations, the commission may authorize a live 3801
racing day at a track in which all horse races on that racing day 3802
on which pari-mutuel wagering is conducted are simulcast from 3803
tracks and facilities located either inside or outside this state 3804
with the consent of the thoroughbred horsemens association for a 3805
track conducting a thoroughbred live racing program and with the 3806
consent of the Ohio harness horsemens association for a track 3807
conducting a harness live racing program. If a horsemen's 3808
organization withholds its consent, the permit holder may file an 3809
objection with the commission, which shall promptly consider the 3810
objection and determine whether the horsemen's organization's 3811
action in withholding consent is without substantial merit and, if 3812
the commission so determines, shall authorize the permit holder to 3813
simulcast the simulcast racing programs. The determination of the 3814
commission is final.3815

       (D) On any day that a racing day has been applied for at any 3816
track in this state, each track in this state may operate as 3817
either a simulcast host or a simulcast guest and may conduct, with 3818
the approval of the state racing commission, pari-mutuel wagering 3819
on all simulcasts of races conducted inside this state made 3820
available to it plus all simulcasts of races conducted at 3821
facilities located outside this state as determined by the 3822
simulcast hosts. Except as otherwise provided in this section, any 3823
simulcast host or simulcast guest may receive and conduct 3824
simulcast racing programs that feature any breed of horse at any 3825
time of day, as authorized by the commission. Those persons 3826
holding state fair, county fair, or other fair permits shall not 3827
receive a simulcast racing program on which pari-mutuel wagering 3828
is conducted, except that a holder of a permit issued under 3829
section 3769.07 of the Revised Code that has been authorized by 3830
the commission to conduct races of the state fair, a county fair, 3831
or other fair at a commercial track may receive and conduct 3832
simulcast racing programs as a simulcast host or simulcast guest 3833
at the same time in conjunction with the live racing program of 3834
the state fair, county fair, or other fair permit holder conducted 3835
at its track.3836

       The simulcast hosts, with the approval of the state racing 3837
commission, shall determine which simulcast racing programs 3838
offered by race tracks located outside this state will be 3839
simulcast at their tracks and at all simulcast hosts, simulcast 3840
guests, and satellite facilities in this state that are open and 3841
operating during the hours that the simulcast hosts are operating. 3842
Simulcast guests and satellite facilities shall receive all 3843
approved simulcast racing programs offered by simulcast hosts. In 3844
addition, a simulcast host and simulcast guest, with the approval 3845
of the commission, may also receive simulcast horse races and 3846
simulcast racing programs not agreed to by simulcast hosts.3847

       A simulcast host that normally operates during the day only 3848
may serve as a simulcast host for only day-simulcast racing 3849
programs, which include all simulcast racing programs that 3850
commence at a track located outside this state on or before four 3851
p.m. A simulcast host that normally operates during the evening 3852
only may serve as a simulcast host for only evening-simulcast 3853
racing programs, which include all simulcast racing programs that 3854
commence at a track located outside this state on or after three 3855
p.m. A simulcast host that normally operates during the evening, 3856
but that under its permit conducts live racing programs during the 3857
day, may serve as a simulcast host for day-simulcast racing 3858
programs. A permit holder that is offering at its track simulcast 3859
racing programs that commence at a track located outside this 3860
state on or before four p.m. and simulcast racing programs that 3861
commence at a track located outside this state on or after three 3862
p.m. may serve as a simulcast host for both the day-simulcast 3863
racing program and the evening-simulcast racing program only if no 3864
other permit holder is serving as a simulcast host for the other 3865
simulcast racing programs. The times listed in this and the 3866
immediately following paragraphs are standard time as described in 3867
section 1.04 of the Revised Code and in the "Uniform Time Act of 3868
1966," 80 Stat. 107, 15 U.S.C. 260 to 265.3869

       If a simulcast host is conducting a racing program that 3870
features thoroughbred or quarter horses on the same day that 3871
another simulcast host is conducting a live racing program that 3872
features harness horses at a track located in the same county as, 3873
or within twenty miles of, the track of the first simulcast host, 3874
the first simulcast host shall not conduct pari-mutuel wagering on 3875
simulcast racing programs that commence after four p.m. on that 3876
day and the second simulcast host shall not conduct wagering on 3877
simulcast racing programs that commence before three p.m. on that 3878
day.3879

       A simulcast host that is conducting a live racing program and 3880
is simulcasting that program to other simulcast hosts and 3881
simulcast guests in this state shall receive from each simulcast 3882
host and each simulcast guest receiving the simulcast an 3883
intrastate simulcast fee of one and three-eighths per cent of the 3884
amounts wagered on such simulcast racing program at its 3885
facilities. The simulcast hosts and simulcast guests receiving 3886
such simulcast racing program shall pay the intrastate simulcast 3887
fee to the collection and settlement agent, and the fee shall be 3888
disbursed by the agent, at the time and in the manner provided in 3889
section 3769.0810 of the Revised Code.3890

       (E)(1) The moneys wagered on simulcast racing programs on a 3891
racing day shall be separated from the moneys wagered on the live 3892
racing program on that racing day. From the moneys wagered on the 3893
simulcast races, each permit holder may retain as a commission the 3894
percentage of the amount wagered as specified in sections 3769.08 3895
and 3769.087 of the Revised Code, as applicable, and shall pay, by 3896
check, draft, or money order to the state tax commissioner, as a 3897
tax, the tax specified in sections 3769.08 and 3769.087 of the 3898
Revised Code, as applicable. From the tax collected, the tax 3899
commissioner shall make the distributions to the respective funds, 3900
and in the proper amounts, as required by sections 3769.08 and 3901
3769.087 of the Revised Code, as applicable. Except as provided in 3902
divisions (E)(2) and (3) of this section, from the amount 3903
remaining after the payment of state taxes on the moneys wagered 3904
on live racing programs and on the moneys wagered on simulcast 3905
racing programs, a permit holder shall retain an amount equal to 3906
two and three-eightsthree-eighths per cent of the amount wagered 3907
on live racing programs and on intrastate and interstate simulcast 3908
racing programs simulcast at its track and on the amount wagered 3909
on the live racing programs and simulcast racing programs at a 3910
satellite facility allocated to it under section 3769.26 of the 3911
Revised Code, as a fee to pay for those costs associated with the 3912
reception and transmission of simulcasts and the administrative 3913
cost of the conduct of live racing programs and simulcast racing 3914
programs. From the remaining balance, one-half shall be retained 3915
by the permit holder for purses. On a day when a permit holder 3916
conducts a live racing program, all purse money generated from 3917
wagering on live racing programs and on simulcast racing programs 3918
at its track shall be used for that permit holder's purse account. 3919
On a day when a permit holder operates as a simulcast host with no 3920
live racing program, or operates as a simulcast guest, all purse 3921
money generated from wagering on intrastate and interstate 3922
simulcast racing programs shall be paid to the state racing 3923
commission for deposit into the Ohio combined simulcast horse 3924
racing purse fund created under this section. In addition, on a 3925
day when a permit holder serves as a simulcast host for a 3926
satellite facility, all purse money generated from amounts wagered 3927
at the satellite facility allocated to the permit holder under 3928
section 3769.26 of the Revised Code shall be paid to the 3929
commission for deposit into the Ohio simulcast horse racing purse 3930
fund.3931

       (2) If there are not four satellite facilities in operation 3932
in this state within one year after the effective date of this 3933
sectionSeptember 19, 1996, or if there are not seven satellite 3934
facilities in operation in this state within two years after the 3935
effective date of this sectionSeptember 19, 1996, or if there are 3936
not ten satellite facilities in operation in this state within 3937
three years after the effective date of this sectionSeptember 19, 3938
1996, then in any such event the amount to be retained as a fee by 3939
the permit holder under division (E)(1) of this section shall be 3940
one and seven-eighths per cent until such time as the number of 3941
satellite facilities specified in division (E)(2) of this section 3942
are in operation. For good cause shown, the thoroughbred horsemens 3943
association and Ohio harness horsemens association may waive the 3944
requirements of division (E)(2) of this section or extend the date 3945
for compliance as to any year by filing a written notification 3946
with the state racing commission.3947

       (3) If a simulcast racing program simulcast by a simulcast 3948
host at its track or enclosure and to other simulcast hosts, 3949
simulcast guests, and satellite facilities in this state is a 3950
special racing event, the permit holder offering the special 3951
racing event and other simulcast hosts, simulcast guests, and 3952
satellite facilities receiving the special racing event shall not 3953
retain the fee provided under division (E)(1) or (2) of this 3954
section but shall retain from the moneys wagered on the special 3955
racing event an amount equal to the fee charged by the track, 3956
racing association, or state regulatory agency simulcasting the 3957
special racing event to the simulcast host. From the remaining 3958
balance, one-half shall be retained by the permit holder for 3959
purses in the manner provided in division (E)(1) of this section.3960

       A permit holder proposing to simulcast a special racing event 3961
as a simulcast host shall advise its horsemen's organization of 3962
the proposed schedule of the special racing event and obtain its 3963
consent to this schedule. The consent of the horsemen's 3964
organization shall not be unreasonably withheld and shall be 3965
consistent with the interest of preserving live racing in this 3966
state. If the horsemen's organization withholds its consent, the 3967
permit holder may file an objection with the state racing 3968
commission, which shall promptly consider the objection and 3969
determine whether the organization's action in withholding consent 3970
is without substantial merit and, if the commission so determines, 3971
shall authorize the permit holder to simulcast the special racing 3972
event. The determination of the commission is final.3973

       (F) There is hereby created in the state treasury the Ohio 3974
combined simulcast horse racing purse fund, to consist of moneys 3975
paid into it by permit holders pursuant to division (E) of this 3976
section and by satellite facilities pursuant to division (F) of 3977
section 3769.26 of the Revised Code. Moneys to the credit of the 3978
fund, including interest earned thereon, may be used by the 3979
commission for the costs of administering this division and the 3980
balance shall be distributed among permit holders no less 3981
frequently than monthly to each permit holder's purse account on 3982
order of the commission.3983

       For each calendar year, permit holders at each track shall 3984
receive a share of each distribution of the Ohio combined 3985
simulcast horse racing purse fund in the same percentage, rounded 3986
to the nearest one-hundredth of the amount of each distribution, 3987
as the average total amount wagered at the track on racing days at 3988
which live racing programs were conducted, including the amount 3989
allocated to the track under section 3769.26 of the Revised Code 3990
for live races, during the five calendar years immediately 3991
preceding the year for which the distribution is made bears to the 3992
average annual total amount wagered at all tracks in the state 3993
operating under permits issued by the state racing commission 3994
under section 3769.07, 3769.071, or 3769.072 of the Revised Code 3995
on all racing days at which live racing programs were conducted, 3996
including the amount allocated to the tracks under section 3769.26 3997
of the Revised Code for live races, during the five calendar years 3998
immediately preceding the year for which the distribution is made. 3999
By the thirty-first day of January of each year the commission 4000
shall calculate the share of the permit holders at each track for 4001
that year, shall enter the share percentages in its official 4002
records, and shall notify all permit holders of the share 4003
percentages of all tracks for that calendar year.4004

       The permit holders at each track, with the approval of the 4005
commission, shall allocate their share of the fund as distributed 4006
to the purse account of each permit holder for each race meeting.4007

       The commission shall cause to be kept accurate records of its 4008
administration of the fund, including all administrative expenses 4009
incurred by it and charged to the fund, and of distributions to 4010
permit holders. These records are public records available for 4011
inspection at any time during the regular business hours of the 4012
commission by any permit holder or horsemen's organization, by an 4013
authorized agent of the permit holder or horsemen's organization, 4014
or by any other person.4015

       (G) Upon the approval of the commission, a permit holder 4016
conducting live racing programs may transmit electronically 4017
televised simulcasts of horse races conducted at the permit 4018
holder's track to racing associations, tracks, and facilities 4019
located outside this state for the conduct of pari-mutuel wagering 4020
thereon, at the times, on the terms, and for the fee agreed upon 4021
by the permit holder and the receiving racing association, track, 4022
or facility. From the fees paid to the permit holder for such 4023
simulcasts, a permit holder shall retain for the costs of 4024
administration a fee in an amount equal to one per cent of the 4025
amount wagered on the races simulcast by the permit holder. From 4026
the remaining balance of the fee, one-half shall be retained by 4027
the permit holder for purses, except that notwithstanding the fee 4028
arrangement between the permit holder and the receiving racing 4029
association, track, or facility, the permit holder shall deposit 4030
into its purse account not less than an amount equal to 4031
three-fourths of one per cent of the amount wagered at racing 4032
associations, tracks, and facilities located outside the state on 4033
the races simulcast by the permit holder.4034

       All televised simulcasts of horse races conducted in this 4035
state to racing associations, tracks, and facilities located 4036
outside this state shall comply with the "Interstate Horse Racing 4037
Act of 1978," 92 Stat. 1811, 15 U.S.C.A. 3001 to 3007. The consent 4038
of the horsemen's organization at the track of the permit holder 4039
applying to the commission to simulcast horse races conducted at 4040
the permit holder's track to racing associations, tracks, and 4041
facilities located outside this state shall not be unreasonably 4042
withheld and shall be consistent with the interest of preserving 4043
live racing. If a horsemen's organization withholds its consent, 4044
the permit holder may file an objection with the commission, which 4045
shall promptly consider the objection and determine whether the 4046
horsemen's organization's action in withholding consent is without 4047
substantial merit and, if the commission so determines, shall 4048
authorize the permit holder to simulcast the races. The 4049
determination of the commission is final.4050

       (H)(1) The state racing commission may authorize any permit 4051
holder that is authorized to conduct live horse racing on racing 4052
days and that conducts pari-mutuel wagering on simulcasts of horse 4053
races under this section that are conducted at race tracks either 4054
inside or outside this state to conduct, supervise, and 4055
participate in interstate and intrastate common pari-mutuel 4056
wagering pools on those races in the manner provided in division 4057
(H) of this section. Except as otherwise expressly provided in 4058
division (H) of this section or in the rules of the state racing 4059
commission, the provisions of this chapter that govern pari-mutuel 4060
wagering apply to interstate or intrastate common pari-mutuel 4061
wagering pools.4062

       (2) Subject to the approval of the state racing commission, 4063
the types of wagering, calculation of the commission retained by 4064
the permit holder, tax rates, distribution of winnings, and rules 4065
of racing in effect for pari-mutuel wagering pools at the host 4066
track may govern wagers placed at a receiving track in this state 4067
and merged into an interstate or intrastate common pari-mutuel 4068
wagering pool. Breakage from interstate or intrastate common 4069
pari-mutuel wagering pools shall be calculated in accordance with 4070
the rules that govern the host track and shall be distributed 4071
among the tracks participating in the interstate or intrastate 4072
common wagering pool in a manner agreed to by the participating 4073
tracks and the host track. An interstate common pari-mutuel 4074
wagering pool formed under division (H)(3) of this section is 4075
subject to that division rather than to division (H)(2) of this 4076
section.4077

       (3) Subject to the approval of the state racing commission, 4078
an interstate common pari-mutuel wagering pool may be formed 4079
between a permit holder and one or more receiving tracks located 4080
in states other than the state in which the host track is located. 4081
The commission may approve types of wagering, calculation of the 4082
commission retained by the permit holder, tax rates, distribution 4083
of winnings, rules of racing, and calculation of breakage for such 4084
an interstate common pari-mutuel wagering pool that differ from 4085
those that would otherwise be applied in this state under this 4086
chapter but that are consistent for all tracks participating in 4087
the interstate common pari-mutuel wagering pool formed under 4088
division (H)(3) of this section.4089

       (4) As used in division (H) of this section:4090

       (a) "Host track" means a track where live horse races are 4091
conducted and offered for simulcasting to receiving tracks.4092

       (b) "Receiving track" means a track where simulcasts of races 4093
from a host track are displayed and wagered on.4094

       (I) Each permit holder is responsible for paying all costs 4095
associated with the up-link for, and reception of, simulcasts, and 4096
the conduct and operation of simulcast racing programs, for all 4097
fees and costs associated with serving as a simulcast host or 4098
simulcast guest, and for any required fees payable to the tracks, 4099
racing associations, or state regulatory agencies where simulcast 4100
racing is conducted at tracks located outside this state.4101

       (J) No license, fee, or excise tax, other than as specified 4102
in division (E) of this section, shall be assessed upon or 4103
collected from a permit holder or the owners of a permit holder in 4104
connection with, or pertaining to, the operation and conduct of 4105
simulcast racing programs in this state, by any county, township, 4106
municipal corporation, district, or other body having the 4107
authority to assess or collect a tax or fee.4108

       (K)(1) Permit holders operating tracks within the same county 4109
or adjacent counties that are conducting simulcast racing programs 4110
under this section may enter into agreements regarding the conduct 4111
of simulcast racing programs at their respective tracks and the 4112
sharing of the retained commissions therefrom, for such periods of 4113
time, upon such terms and conditions, and subject to such rights 4114
and obligations, as the contracting permit holders consider 4115
appropriate under the circumstances. Permit holders so contracting4116
shall notify the state racing commission of their entry into an 4117
agreement pursuant to this division, the names of the permit 4118
holders that are parties to the agreement, and the length of the 4119
term oftime the agreement shall be in effect.4120

       (2) Permit holders and the thoroughbred horsemens association 4121
and Ohio harness horsemens association may agree to do any of the 4122
following:4123

       (a) Increase or reduce the fees and amounts to be retained by 4124
the permit holders under this section;4125

       (b) Increase or reduce the fees and amounts to be allocated 4126
to the purse accounts orof permit holders under this section;4127

       (c) Increase or reduce the fees to be paid between and among 4128
simulcast hosts and simulcast guests under this section and under 4129
division (C) of section 3769.0810 of the Revised Code;4130

       (d) Modify, suspend, or waive the requirements set forth in 4131
division (B) of this section as to any permit holder or as to all 4132
permit holders.4133

       All permit holders and both horsemen's organizations shall 4134
approve such agreement. Any agreement entered into under division 4135
(K)(2) of this section shall set forth the effective date of any 4136
such increase or reduction, and the terms and provisions of the 4137
agreement, and a copy of the agreement shall be filed with the 4138
state racing commission.4139

       Sec. 3770.02.  (A) Subject to the advice and consent of the 4140
senate, the governor shall appoint a director of the state lottery 4141
commission who shall serve at the pleasure of the governor. The 4142
director shall devote full time to the duties of the office and 4143
shall hold no other office or employment. The director shall meet 4144
all requirements for appointment as a member of the commission and 4145
shall, by experience and training, possess management skills that 4146
equip the director to administer an enterprise of the nature of a 4147
state lottery. The director shall receive an annual salary in 4148
accordance with pay range 48 of section 124.152 of the Revised 4149
Code.4150

       (B)(1) The director shall attend all meetings of the 4151
commission and shall act as its secretary. The director shall keep 4152
a record of all commission proceedings and shall keep the 4153
commission's records, files, and documents at the commission's 4154
principal office. All records of the commission's meetings shall 4155
be available for inspection by any member of the public, upon a 4156
showing of good cause and prior notification to the director.4157

       (2) The director shall be the commission's executive officer 4158
and shall be responsible for keeping all commission records and 4159
supervising and administering the state lottery in accordance with 4160
this chapter, and carrying out all commission rules adopted under 4161
section 3770.03 of the Revised Code.4162

       (C)(1) The director shall appoint an assistant director, 4163
deputy directors of marketing, operations, sales, finance, public 4164
relations, security, and administration, and as many regional 4165
managers as are required. The director may also appoint necessary 4166
professional, technical, and clerical assistants. All such 4167
officers and employees shall be appointed and compensated pursuant 4168
to Chapter 124. of the Revised Code. Regional and assistant 4169
regional managers, sales representatives, and any lottery 4170
executive account representatives shall remain in the unclassified 4171
service.4172

       (2) The director, in consultation with the director of 4173
administrative services, may establish standards of proficiency 4174
and productivity for commission field representatives.4175

       (D) The director shall request the bureau of criminal 4176
identification and investigation, the department of public safety, 4177
or any other state, local, or federal agency to supply the 4178
director with the criminal records of any job applicant and may 4179
periodically request the criminal records of commission employees. 4180
At or prior to the time of making such a request, the director 4181
shall require a job applicant or commission employee to obtain 4182
fingerprint cards prescribed by the superintendent of the bureau 4183
of criminal identification and investigation at a qualified law 4184
enforcement agency, and the director shall cause these fingerprint 4185
cards to be forwarded to the bureau of criminal identification and 4186
investigation and the federal bureau of investigation. The 4187
commission shall assume the cost of obtaining the fingerprint 4188
cards and shall pay to each agency supplying criminal records for 4189
each investigation under this division a reasonable fee, as 4190
determined by the agency.4191

       (E) The director shall license lottery sales agents pursuant 4192
to section 3770.05 of the Revised Code and, when it is considered 4193
necessary, may revoke or suspend the license of any lottery sales 4194
agent. The director may license video lottery technology 4195
providers, independent testing laboratories, and gaming employees, 4196
and promulgate rules relating thereto. When the director considers 4197
it necessary, the director may suspend or revoke the license of a 4198
video lottery technology provider, independent testing laboratory, 4199
or gaming employee, including suspension or revocation without 4200
affording an opportunity for a prior hearing under section 119.07 4201
of the Revised Code when the public safety, convenience, or trust 4202
requires immediate action.4203

       (F) The director shall confer at least once each month with 4204
the commission, at which time the director shall advise it 4205
regarding the operation and administration of the lottery. The 4206
director shall make available at the request of the commission all 4207
documents, files, and other records pertaining to the operation 4208
and administration of the lottery. The director shall prepare and 4209
make available to the commission each month a complete and 4210
accurate accounting of lottery revenues, prize money disbursements 4211
and the cost of goods and services awarded as prizes, operating 4212
expenses, and all other relevant financial information, including 4213
an accounting of all transfers made from any lottery funds in the 4214
custody of the treasurer of state to benefit education.4215

       (G) The director may enter into contracts for the operation 4216
or promotion of the lottery pursuant to Chapter 125. of the 4217
Revised Code. 4218

       (H)(1) Pursuant to rules adopted by the commission under 4219
section 3770.03 of the Revised Code, the director shall require 4220
any lottery sales agents to either mail directly to the commission 4221
or deposit to the credit of the state lottery fund, in banking 4222
institutions designated by the treasurer of state, net proceeds 4223
due the commission as determined by the director, and to file with 4224
the director or the director's designee reports of their receipts 4225
and transactions in the sale of lottery tickets in the form 4226
required by the director.4227

       (2) Pursuant to rules adopted by the commission under Chapter 4228
119. of the Revised Code, the director may impose penalties for 4229
the failure of a sales agent to transfer funds to the commission 4230
in a timely manner. Penalties may include monetary penalties, 4231
immediate suspension or revocation of a license, or any other 4232
penalty the commission adopts by rule.4233

       (I) The director may arrange for any person, or any banking 4234
institution, to perform functions and services in connection with 4235
the operation of the lottery as the director may consider 4236
necessary to carry out this chapter.4237

       (J)(1) As used in this chapter, "statewide joint lottery 4238
game" means a lottery game that the commission sells solely within 4239
this state under an agreement with other lottery jurisdictions to 4240
sell the same lottery game solely within their statewide or other 4241
jurisdictional boundaries.4242

       (2) If the governor directs the director to do so, the 4243
director shall enter into an agreement with other lottery 4244
jurisdictions to conduct statewide joint lottery games. If the 4245
governor signs the agreement personally or by means of an 4246
authenticating officer pursuant to section 107.15 of the Revised 4247
Code, the director then may conduct statewide joint lottery games 4248
under the agreement.4249

       (3) The entire net proceeds from any statewide joint lottery 4250
games shall be used to fund elementary, secondary, vocational, and 4251
special education programs in this state.4252

       (4) The commission shall conduct any statewide joint lottery 4253
games in accordance with rules it adopts under division (B)(5) of 4254
section 3770.03 of the Revised Code.4255

       (K)(1) The director shall enter into an agreement with the 4256
department of alcohol and drug addiction services under which the 4257
department shall provide a program of gambling addiction services 4258
on behalf of the commission. The commission shall pay the costs of 4259
the program provided pursuant to the agreement.4260

        (2) As used in this section, "gambling addiction services" 4261
has the same meaning as in section 3793.01 of the Revised Code.4262

       Sec. 3770.03.  (A) The state lottery commission shall 4263
promulgate rules under which a statewide lottery may be conducted, 4264
which includes, and since the original enactment of this section 4265
has included, the authority for the commission to operate video 4266
lottery terminal games. Any reference in this chapter to tickets 4267
shall not be construed to in any way limit the authority of the 4268
commission to operate video lottery terminal games. Nothing in 4269
this chapter shall restrict the authority of the commission to 4270
promulgate rules related to the operation of games utilizing video 4271
lottery terminals as described in section 3770.21 of the Revised 4272
Code. The rules shall be promulgated pursuant to Chapter 119. of 4273
the Revised Code, except that instant game rules shall be 4274
promulgated pursuant to section 111.15 of the Revised Code but are 4275
not subject to division (D) of that section. Video lottery 4276
terminal games shall be approved by resolution of the commission. 4277
Subjects covered in these rules shall include, but need not be 4278
limited to, the following:4279

       (1) The type of lottery to be conducted;4280

       (2) The prices of tickets in the lottery;4281

       (3) The number, nature, and value of prize awards, the manner 4282
and frequency of prize drawings, and the manner in which prizes 4283
shall be awarded to holders of winning tickets.4284

       (B) The commission shall promulgate rules, in addition to 4285
those described in division (A) of this section, pursuant to 4286
Chapter 119. of the Revised Code under which a statewide lottery 4287
and statewide joint lottery games may be conducted. Subjects 4288
covered in these rules shall include, but not be limited to, the 4289
following:4290

       (1) The locations at which lottery tickets may be sold and 4291
the manner in which they are to be sold. These rules may authorize 4292
the sale of lottery tickets by commission personnel or other 4293
licensed individuals from traveling show wagons at the state fair, 4294
and at any other expositions the director of the commission 4295
considers acceptable. These rules shall prohibit commission 4296
personnel or other licensed individuals from soliciting from an 4297
exposition the right to sell lottery tickets at that exposition, 4298
but shall allow commission personnel or other licensed individuals 4299
to sell lottery tickets at an exposition if the exposition 4300
requests commission personnel or licensed individuals to do so. 4301
These rules may also address the accessibility of sales agent 4302
locations to commission products in accordance with the "Americans 4303
with Disabilities Act of 1990," 104 Stat. 327, 42 U.S.C.A. 12101 4304
et seq.4305

       (2) The manner in which lottery sales revenues are to be 4306
collected, including authorization for the director to impose 4307
penalties for failure by lottery sales agents to transfer revenues 4308
to the commission in a timely manner;4309

       (3) The amount of compensation to be paid licensed lottery 4310
sales agents;4311

       (4) The substantive criteria for the licensing of lottery 4312
sales agents consistent with section 3770.05 of the Revised Code, 4313
and procedures for revoking or suspending their licenses 4314
consistent with Chapter 119. of the Revised Code. If 4315
circumstances, such as the nonpayment of funds owed by a lottery 4316
sales agent, or other circumstances related to the public safety, 4317
convenience, or trust, require immediate action, the director may 4318
suspend a license without affording an opportunity for a prior 4319
hearing under section 119.07 of the Revised Code.4320

       (5) Special game rules to implement any agreements signed by 4321
the governor that the director enters into with other lottery 4322
jurisdictions under division (J) of section 3770.02 of the Revised 4323
Code to conduct statewide joint lottery games. The rules shall 4324
require that the entire net proceeds of those games that remain, 4325
after associated operating expenses, prize disbursements, lottery 4326
sales agent bonuses, commissions, and reimbursements, and any 4327
other expenses necessary to comply with the agreements or the 4328
rules are deducted from the gross proceeds of those games, be 4329
transferred to the lottery profits education fund under division 4330
(B) of section 3770.06 of the Revised Code.4331

       (6) Any other subjects the commission determines are 4332
necessary for the operation of video lottery terminal games, 4333
including the establishment of any fees, fines, or payment 4334
schedules.4335

       (C) Chapter 2915. of the Revised Code does not apply to, 4336
affect, or prohibit lotteries conducted pursuant to this chapter.4337

       (D) The commission may promulgate rules, in addition to those 4338
described in divisions (A) and (B) of this section, that establish 4339
standards governing the display of advertising and celebrity 4340
images on lottery tickets and on other items that are used in the 4341
conduct of, or to promote, the statewide lottery and statewide 4342
joint lottery games. Any revenue derived from the sale of 4343
advertising displayed on lottery tickets and on those other items 4344
shall be considered, for purposes of section 3770.06 of the 4345
Revised Code, to be related proceeds in connection with the 4346
statewide lottery or gross proceeds from statewide joint lottery 4347
games, as applicable.4348

       (E)(1) The commission shall meet with the director at least 4349
once each month and shall convene other meetings at the request of 4350
the chairperson or any five of the members. No action taken by the 4351
commission shall be binding unless at least five of the members 4352
present vote in favor of the action. A written record shall be 4353
made of the proceedings of each meeting and shall be transmitted 4354
forthwith to the governor, the president of the senate, the senate 4355
minority leader, the speaker of the house of representatives, and 4356
the house minority leader.4357

       (2) The director shall present to the commission a report 4358
each month, showing the total revenues, prize disbursements, and 4359
operating expenses of the state lottery for the preceding month. 4360
As soon as practicable after the end of each fiscal year, the 4361
commission shall prepare and transmit to the governor and the 4362
general assembly a report of lottery revenues, prize 4363
disbursements, and operating expenses for the preceding fiscal 4364
year and any recommendations for legislation considered necessary 4365
by the commission.4366

       Sec. 3770.05.  (A) As used in this section, "person" means 4367
any person, association, corporation, partnership, club, trust, 4368
estate, society, receiver, trustee, person acting in a fiduciary 4369
or representative capacity, instrumentality of the state or any of 4370
its political subdivisions, or any other combination of 4371
individuals meeting the requirements set forth in this section or 4372
established by rule or order of the state lottery commission.4373

       (B) The director of the state lottery commission may license 4374
any person as a lottery sales agent. No license shall be issued to 4375
any person or group of persons to engage in the sale of lottery 4376
tickets as the person's or group's sole occupation or business.4377

       Before issuing any license to a lottery sales agent, the 4378
director shall consider all of the following:4379

       (1) The financial responsibility and security of the 4380
applicant and the applicant's business or activity;4381

       (2) The accessibility of the applicant's place of business or 4382
activity to the public;4383

       (3) The sufficiency of existing licensed agents to serve the 4384
public interest;4385

       (4) The volume of expected sales by the applicant;4386

       (5) Any other factors pertaining to the public interest, 4387
convenience, or trust.4388

       (C) Except as otherwise provided in division (F) of this 4389
section, the director of the state lottery commission shall refuse 4390
to grant, or shall suspend or revoke, a license if the applicant 4391
or licensee:4392

       (1) Has been convicted of a felony or has been convicted of a 4393
crime involving moral turpitude;4394

       (2) Has been convicted of an offense that involves illegal 4395
gambling;4396

       (3) Has been found guilty of fraud or misrepresentation in 4397
any connection;4398

       (4) Has been found to have violated any rule or order of the 4399
commission; or4400

       (5) Has been convicted of illegal trafficking in supplemental 4401
nutrition assistance program benefits.4402

       (D) Except as otherwise provided in division (F) of this 4403
section, the director of the state lottery commission shall refuse 4404
to grant, or shall suspend or revoke, a license if the applicant 4405
or licensee is a corporation and any of the following applies:4406

       (1) Any of the corporation's directors, officers, or 4407
controlling shareholders has been found guilty of any of the 4408
activities specified in divisions (C)(1) to (5) of this section;4409

       (2) It appears to the director of the state lottery 4410
commission that, due to the experience, character, or general 4411
fitness of any director, officer, or controlling shareholder of 4412
the corporation, the granting of a license as a lottery sales 4413
agent would be inconsistent with the public interest, convenience, 4414
or trust;4415

       (3) The corporation is not the owner or lessee of the 4416
business at which it would conduct a lottery sales agency pursuant 4417
to the license applied for;4418

       (4) Any person, firm, association, or corporation other than 4419
the applicant or licensee shares or will share in the profits of 4420
the applicant or licensee, other than receiving dividends or 4421
distributions as a shareholder, or participates or will 4422
participate in the management of the affairs of the applicant or 4423
licensee.4424

       (E)(1) The director of the state lottery commission shall 4425
refuse to grant a license to an applicant for a lottery sales 4426
agent license and shall revoke a lottery sales agent license if 4427
the applicant or licensee is or has been convicted of a violation 4428
of division (A) or (C)(1) of section 2913.46 of the Revised Code.4429

       (2) The director shall refuse to grant a license to an 4430
applicant for a lottery sales agent license that is a corporation 4431
and shall revoke the lottery sales agent license of a corporation 4432
if the corporation is or has been convicted of a violation of 4433
division (A) or (C)(1) of section 2913.46 of the Revised Code.4434

       (F) The director of the state lottery commission shall 4435
request the bureau of criminal identification and investigation, 4436
the department of public safety, or any other state, local, or 4437
federal agency to supply the director with the criminal records of 4438
any applicant for a lottery sales agent license, and may 4439
periodically request the criminal records of any person to whom a 4440
lottery sales agent license has been issued. At or prior to the 4441
time of making such a request, the director shall require an 4442
applicant or licensee to obtain fingerprint impressions on 4443
fingerprint cards prescribed by the superintendent of the bureau 4444
of criminal identification and investigation at a qualified law 4445
enforcement agency, and the director shall cause those fingerprint 4446
cards to be forwarded to the bureau of criminal identification and 4447
investigation, to the federal bureau of investigation, or to both 4448
bureaus. The commission shall assume the cost of obtaining the 4449
fingerprint cards. 4450

       The director shall pay to each agency supplying criminal 4451
records for each investigation a reasonable fee, as determined by 4452
the agency. 4453

       The commission may adopt uniform rules specifying time 4454
periods after which the persons described in divisions (C)(1) to 4455
(5) and (D)(1) to (4) of this section may be issued a license and 4456
establishing requirements for those persons to seek a court order 4457
to have records sealed in accordance with law.4458

       (G)(1) Each applicant for a lottery sales agent license shall 4459
do both of the following:4460

       (a) Pay fees to the state lottery commission, if required by 4461
rule adopted by the director under Chapter 119. of the Revised 4462
Code and the controlling board approves the fees;4463

       (b) Prior to approval of the application, obtain a surety 4464
bond in an amount the director determines by rule adopted under 4465
Chapter 119. of the Revised Code or, alternatively, with the 4466
director's approval, deposit the same amount into a dedicated 4467
account for the benefit of the state lottery. The director also 4468
may approve the obtaining of a surety bond to cover part of the 4469
amount required, together with a dedicated account deposit to 4470
cover the remainder of the amount required. The director also may 4471
establish an alternative program or policy, with the approval of 4472
the commission by rule adopted under Chapter 119. of the Revised 4473
Code, that otherwise ensures the lottery's financial interests are 4474
adequately protected. If such an alternative program or policy is 4475
established, an applicant or lottery sales agent, subject to the 4476
director's approval, may be permitted to participate in the 4477
program or proceed under that policy in lieu of providing a surety 4478
bond or dedicated amount.4479

       A surety bond may be with any company that complies with the 4480
bonding and surety laws of this state and the requirements 4481
established by rules of the commission pursuant to this chapter. A 4482
dedicated account deposit shall be conducted in accordance with 4483
policies and procedures the director establishes.4484

       A surety bond, dedicated account, other established program 4485
or policy, or bothany combination of these resources, as 4486
applicable, may be used to pay for the lottery sales agent's 4487
failure to make prompt and accurate payments for lottery ticket 4488
sales, for missing or stolen lottery tickets, for damage to 4489
equipment or materials issued to the lottery sales agent, or to 4490
pay for expenses the commission incurs in connection with the 4491
lottery sales agent's license.4492

       (2) A lottery sales agent license is effective for at least4493
one year, but not more than three years.4494

       A licensed lottery sales agent, on or before the date 4495
established by the director, shall renew the agent's license and 4496
provide at that time evidence to the director that the surety 4497
bond, dedicated account deposit, or both, required under division 4498
(G)(1)(b) of this section has been renewed or is active, whichever 4499
applies. 4500

        Before the commission renews a lottery sales agent license, 4501
the lottery sales agent shall submit a renewal fee to the 4502
commission, if one is required by rule adopted by the director 4503
under Chapter 119. of the Revised Code and the controlling board 4504
approves the renewal fee. The renewal fee shall not exceed the 4505
actual cost of administering the license renewal and processing 4506
changes reflected in the renewal application. The renewal of the 4507
license is effective for up toat least one year, but not more 4508
than three years.4509

       (3) A lottery sales agent license shall be complete, 4510
accurate, and current at all times during the term of the license. 4511
Any changes to an original license application or a renewal 4512
application may subject the applicant or lottery sales agent, as 4513
applicable, to paying an administrative fee that shall be in an 4514
amount that the director determines by rule adopted under Chapter 4515
119. of the Revised Code, that the controlling board approves, and 4516
that shall not exceed the actual cost of administering and 4517
processing the changes to an application.4518

       (4) The relationship between the commission and a lottery 4519
sales agent is one of trust. A lottery sales agent collects funds 4520
on behalf of the commission through the sale of lottery tickets 4521
for which the agent receives a compensation.4522

       (H) Pending a final resolution of any question arising under 4523
this section, the director of the state lottery commission may 4524
issue a temporary lottery sales agent license, subject to the 4525
terms and conditions the director considers appropriate.4526

       (I) If a lottery sales agent's rental payments for the 4527
lottery sales agent's premises are determined, in whole or in 4528
part, by the amount of retail sales the lottery sales agent makes, 4529
and if the rental agreement does not expressly provide that the 4530
amount of those retail sales includes the amounts the lottery 4531
sales agent receives from lottery ticket sales, only the amounts 4532
the lottery sales agent receives as compensation from the state 4533
lottery commission for selling lottery tickets shall be considered 4534
to be amounts the lottery sales agent receives from the retail 4535
sales the lottery sales agent makes, for the purpose of computing 4536
the lottery sales agent's rental payments.4537

       Sec. 3770.07.  (A)(1) Except as provided in division (A)(2) 4538
of this section, lottery prize awards shall be claimed by the 4539
holder of the winning lottery ticketproduct, or by the executor 4540
or administrator, or the trustee of a trust, of the estate of a 4541
deceased holder of a winning lottery ticketproduct, in a manner 4542
to be determined by the state lottery commission, within one 4543
hundred eighty days after the date on which the prize award was 4544
announced if the lottery game is an online game, and within one 4545
hundred eighty days after the close of the game if the lottery 4546
game is an instant game.4547

       NoAny lottery prize award with a value that meets or exceeds 4548
five hundred ninety-nine dollarsthe reportable winnings amounts 4549
set by 26 U.S.C. 6041, or a subsequent analogous section of the 4550
Internal Revenue Code, shall not be claimed by or paid to any 4551
person, as defined in section 1.59 of the Revised Code or as 4552
defined by rule or order of the state lottery commission, until 4553
the name, address, and social security number of each beneficial 4554
owner of the prize award are disclosed todocumented for the 4555
commission. Except when a beneficial owner otherwise consents in 4556
writing, in the case of a claim for a lottery prize award made by 4557
one or more beneficial owners using a trust, the name, address, 4558
and social security number of each such beneficial owner in the 4559
commission's records as a result of such a disclosure are 4560
confidential and shall not be subject to inspection or copying 4561
under section 149.43 of the Revised Code as a public record.4562

        Except as otherwise provided in division (A)(1) of this 4563
section or as otherwise provided by law, the name and address of 4564
any individual claiming a lottery prize award are subject to 4565
inspection or copying under section 149.43 of the Revised Code as 4566
a public record.4567

       (2) An eligible person serving on active military duty in any 4568
branch of the United States armed forces during a war or national 4569
emergency declared in accordance with federal law may submit a 4570
delayed claim for a lottery prize award. The eligible person shall 4571
do so by notifying the state lottery commission about the claim 4572
not later than the five hundred fortieth day after the date on 4573
which the prize award was announced if the lottery game is an 4574
online game or after the date on which the lottery game closed if 4575
the lottery game is an instant game.4576

       (3) If no valid claim to a lottery prize award is made within 4577
the prescribed period, the prize money, the cost of goods and 4578
services awarded as prizes, or, if goods or services awarded as 4579
prizes are resold by the state lottery commission, the proceeds 4580
from their sale shall be returned to the state lottery fund and 4581
distributed in accordance with section 3770.06 of the Revised 4582
Code.4583

       (4) The state lottery commission may share with other 4584
governmental agencies the name, address, and social security 4585
number of a beneficial owner disclosed to the commission under 4586
division (A)(1) of this section, as authorized under sections 4587
3770.071 and 3770.073 of the Revised Code. Any shared information 4588
as disclosed pursuant to those sections that is made confidential 4589
by division (A)(1) of this section remains confidential and shall 4590
not be subject to inspection or copying under section 149.43 of 4591
the Revised Code as a public record unless the applicable 4592
beneficial owner otherwise provides written consent.4593

       (5) As used in this division:4594

       (a) "Eligible person" means a person who is entitled to a 4595
lottery prize award and who falls into either of the following 4596
categories:4597

       (i) While on active military duty in this state, the person, 4598
as the result of a war or national emergency declared in 4599
accordance with federal law, is transferred out of this state 4600
before the one hundred eightieth day after the date on which the 4601
winner of the lottery prize award is selected.4602

       (ii) While serving in the reserve forces in this state, the 4603
person, as the result of a war or national emergency declared in 4604
accordance with federal law, is placed on active military duty and 4605
is transferred out of this state before the expiration of the one 4606
hundred eightieth day after the date on which the prize drawing 4607
occurs for an online game or before the expiration of the one 4608
hundred eightieth day following the close of an instant game as 4609
determined by the commission.4610

       (b) "Active military duty" means that a person is covered by 4611
the "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 50 4612
U.S.C. 501 et seq., as amended, or the "Uniformed Services 4613
Employment and Reemployment Rights Act of 1994," 108 Stat. 3149, 4614
38 U.S.C. 4301 et seq., as amended.4615

       (c) "Each beneficial owner" means the ultimate recipient or, 4616
if there is more than one, each ultimate recipient of a lottery 4617
prize award.4618

       (B) If a prize winner, as defined in section 3770.10 of the 4619
Revised Code, is under eighteen years of age, or is under some 4620
other legal disability, and the prize money or the cost of goods 4621
or services awarded as a prize exceeds one thousand dollars, the 4622
director of the state lottery commission shall order that payment 4623
be made to the order of the legal guardian of that prize winner. 4624
If the amount of the prize money or the cost of goods or services 4625
awarded as a prize is one thousand dollars or less, the director 4626
may order that payment be made to the order of the adult member, 4627
if any, of that prize winner's family legally responsible for the 4628
care of that prize winner.4629

       (C) No right of any prize winner, as defined in section 4630
3770.10 of the Revised Code, to a prize award shall be the subject 4631
of a security interest or used as collateral.4632

       (D)(1) No right of any prize winner, as defined in section 4633
3770.10 of the Revised Code, to a prize award shall be assignable 4634
except as follows: when the payment is to be made to the executor 4635
or administrator, or the trustee of a trust, of the estate of a 4636
winning ticket holderprize winner; when the award of a prize is 4637
disputed, any person may be awarded a prize award to which another 4638
has claimed title, pursuant to the order of a court of competent 4639
jurisdiction; when a person is awarded a prize award to which 4640
another has claimed title, pursuant to the order of a federal 4641
bankruptcy court under Title 11 of the United States Code; or as 4642
provided in sections 3770.10 to 3770.14 of the Revised Code.4643

       (2)(a) No right of any prize winner, as defined in section 4644
3770.10 of the Revised Code, to a prize award with a remaining 4645
unpaid balance of less than one hundred thousand dollars shall be 4646
subject to garnishment, attachment, execution, withholding, or 4647
deduction except as provided in sections 3119.80, 3119.81, 4648
3121.02, 3121.03, and 3123.06 of the Revised Code or when the 4649
director is to make a payment pursuant to section 3770.071 or 4650
3770.073 of the Revised Code.4651

        (b) No right of any prize winner, as defined in section 4652
3770.10 of the Revised Code, to a prize award with an unpaid 4653
balance of one hundred thousand dollars or more shall be subject 4654
to garnishment, attachment, execution, withholding, or deduction 4655
except as follows: as provided in sections 3119.80, 3119.81, 4656
3121.02, 3121.03, and 3123.06 of the Revised Code; when the 4657
director is to make a payment pursuant to section 3770.071 or 4658
3770.073 of the Revised Code; or pursuant to the order of a court 4659
of competent jurisdiction located in this state in a proceeding in 4660
which the state lottery commission is a named party, in which case 4661
the garnishment, attachment, execution, withholding, or deduction 4662
pursuant to the order shall be subordinate to any payments to be 4663
made pursuant to section 3119.80, 3119.81, 3121.02, 3121.03, 4664
3123.06, 3770.071, or 3770.073 of the Revised Code.4665

       (3) The state lottery commission may adopt and amend rules 4666
pursuant to Chapter 119. of the Revised Code as necessary to 4667
implement division (D) of this section, to provide for payments 4668
from prize awards subject to garnishment, attachment, execution, 4669
withholding, or deduction, and to comply with any applicable 4670
requirements of federal law.4671

        (4) Upon making payments from a prize award as required by 4672
division (D) of this section, the director and the state lottery 4673
commission are discharged from all further liability for those 4674
payments, whether they are made to an executor, administrator, 4675
trustee, judgment creditor, or another person, or to the prize 4676
winner, as defined in section 3770.10 of the Revised Code.4677

       (5) The state lottery commission shall adopt rules pursuant 4678
to section 3770.03 of the Revised Code concerning the payment of 4679
prize awards upon the death of a prize winner, as defined in 4680
section 3770.10 of the Revised Code. Upon the death of a prize 4681
winner, the remainder of the prize winner's prize award, to the 4682
extent it is not subject to a transfer agreement under sections 4683
3770.10 to 3770.14 of the Revised Code, may be paid to the 4684
executor, administrator, or trustee in the form of a discounted 4685
lump sum cash settlement.4686

       (E) No lottery prize award shall be awarded to or for any 4687
officer or employee of the state lottery commission, any officer 4688
or employee of the auditor of state actively auditing,4689
coordinating and, or certifying commission drawings, or any blood 4690
relative or spouse of such an officer or employee of the 4691
commission or auditor of state living as a member of the officer's 4692
or employee's household, nor shall any such officer, employee, 4693
blood relative, or spouse attempt to claim a lottery prize award.4694

       (F) The director may prohibit vendors to the state lottery 4695
commission and their employees from being awarded a lottery prize 4696
award.4697

       (G) Upon the payment of prize awards pursuant to a provision 4698
of this section, other than a provision of division (D) of this 4699
section, the director and the state lottery commission are 4700
discharged from all further liability for their payment. 4701
Installment payments of lottery prize awards shall be paid by 4702
official check or warrant, and they shall be sent by mail delivery 4703
to the prize winner's address within the United States or by 4704
electronic funds transfer to an established bank account located 4705
within the United States, or the prize winner may pick them up at 4706
an office of the commission.4707

       Sec. 3770.071.  (A)(1) If the amount of the prize money or 4708
the cost of goods or services awarded as a lottery prize award is 4709
six hundred dollars or moremeets or exceeds the reportable 4710
winnings amounts set by 26 U.S.C. 6041, or a subsequent analogous 4711
section of the Internal Revenue Code, the director of the state 4712
lottery commission or the director's designee shall require the 4713
person entitled to the prize award to affirm in writing, under 4714
oath, or by electronic means, whether or not the person is in 4715
default under a support order. The director or the director's 4716
designee also may take any additional appropriate steps to 4717
determine if the person entitled to the prize award is in default 4718
under a support order. If the person entitled to the prize award 4719
affirms that the person is in default under a support order, or if 4720
the director or the director's designee determines that the person 4721
is in default under a support order, the director or the 4722
director's designee shall temporarily withhold payment of the 4723
prize award and notify the child support enforcement agency that 4724
administers the support order that the person is entitled to a 4725
prize award, of the amount of the prize award, and, if the prize 4726
award is to be paid in annual installments, of the number of 4727
installments.4728

        (2) Upon receipt of the notice from the director or the 4729
director's designee, the child support enforcement agency shall 4730
conduct an investigation to determine whether the person entitled 4731
to the lottery prize award is subject to a final and enforceable 4732
determination of default made under sections 3123.01 to 3123.07 of 4733
the Revised Code. If the agency determines that the person is so 4734
subject, it shall issue an intercept directive as described in 4735
section 3123.89 of the Revised Code to the director at lottery 4736
commission headquarters requiring the director or the director's 4737
designee to deduct from any unpaid prize award or any annual 4738
installment payment of an unpaid prize award, a specified amount 4739
for support in satisfaction of the support order under which the 4740
person is in default. To the extent possible, the amount specified 4741
to be deducted under the intercept directive shall satisfy the 4742
amount ordered for support in the support order under which the 4743
person is in default.4744

       A child support enforcement agency shall issue an intercept 4745
directive within thirty days from the date the director or the 4746
director's designee notifies the agency under division (A)(1) of 4747
this section. Within thirty days after the date on which the 4748
agency issues the intercept directive, the director or the 4749
director's designee shall pay the amount specified in the 4750
intercept directive to the office of child support in the 4751
department of job and family services. But, if the prize award is 4752
to be paid in annual installments, the director or the director's 4753
designee, on the date the next installment payment is due, shall 4754
deduct the amount specified in the intercept directive from that 4755
installment and, if necessary, any subsequent annual installments, 4756
at the time those installments become due and owing to the prize 4757
winner, and pay the amount to the office of child support.4758

       (B) As used in this section:4759

       (1) "Support order" has the same meaning as in section 4760
3119.01 of the Revised Code.4761

       (2) "Default" has the same meaning as in section 3121.01 of 4762
the Revised Code.4763

       (C) No person shall knowingly make a false affirmation or 4764
oath required by division (A) of this section.4765

       Sec. 3770.21. (A) As used in this section:4766

       (1) "Video lottery terminal" means any electronic device 4767
approved by the state lottery commission that provides immediate 4768
prize determinations for participants on an electronic display.4769

       (2) "Video lottery terminal promotional gaming credit" means 4770
a video lottery terminal game credit, discount, or other similar 4771
item issued to a patron to enable the placement of, or increase 4772
in, a wager at a video lottery terminal.4773

       (3) "Video lottery terminal income" means credits played 4774
minus video lottery terminal promotional gaming credits and the 4775
value of video lottery terminal promotional gaming credits awarded 4776
that can be redeemed for cash or other designated prizes as a 4777
result of a video lottery winning game outcome.4778

       (B) The state lottery commission shall include, in 4779
conjunction with the state racing commission, in any rules adopted 4780
concerning video lottery terminals, the level of minimum 4781
investments that must be made by video lottery terminal licensees 4782
in the buildings, fixtures, equipment, facilities-related 4783
preparation, and grounds at the facilities, including temporary 4784
facilities, in which the terminals will be located, along with any 4785
standards and timetables for such investments.4786

       (C) Racetrack operators and management companies that are a 4787
licensed lottery sales agent may provide video lottery terminal 4788
promotional gaming credits to patrons for video lottery terminal 4789
gaming. Video lottery terminal promotional gaming credits shall be 4790
subject to oversight by the commission. The commission shall adopt 4791
rules for video lottery terminal promotional gaming credits. The 4792
rules shall exclude video lottery terminal promotional gaming 4793
credits in the calculation of video lottery terminal income or any 4794
payments or amounts due to the state or to the state lottery 4795
commission.4796

       (D) No license or excise tax or fee not in effect on the 4797
effective date of this section shall be assessed upon or collected 4798
from a video lottery terminal licensee by any county, township, 4799
municipal corporation, school district, or other political 4800
subdivision of the state that has authority to assess or collect a 4801
tax or fee by reason of the video lottery terminal related conduct 4802
authorized by section 3770.03 of the Revised Code. This division 4803
does not prohibit the imposition of taxes under Chapter 718. or 4804
3769. of the Revised Code.4805

       (D) The supreme court shall have exclusive, original 4806
jurisdiction over any claim(E) Any action asserting that this 4807
section or section 3770.03 of the Revised Code or any portion of 4808
those sections or any rule adopted under those sections violates 4809
any provision of the Ohio Constitution, any claim asserting that 4810
any action taken by the governor or the lottery commission 4811
pursuant to those sections violates any provision of the Ohio 4812
Constitution or any provision of the Revised Code, or any claim 4813
asserting that any portion of this section violates any provision 4814
of the Ohio Constitution. If any claim over which the supreme 4815
court is granted exclusive, original jurisdiction by this division 4816
is filed in any lower court, the claim shall be dismissed by the 4817
court on the ground that the court lacks jurisdiction to review it4818
shall be brought in the court of common pleas of Franklin county.4819

       (E)(F) Should any portion of this section or of section 4820
3770.03 of the Revised Code be found to be unenforceable or 4821
invalid, it shall be severed and the remaining portions remain in 4822
full force and effect.4823

       Sec. 3770.22.  (A) Any information concerning the following 4824
that is submitted, collected, or gathered as part of an 4825
application to the state lottery commission for a video lottery 4826
related license under this chapter is confidential and not subject 4827
to disclosure by a state agency or political subdivision as a 4828
public record under section 149.43 of the Revised Code:4829

       (1) A dependent of an applicant;4830

       (2) The social security number, passport number, or federal 4831
tax identification number of an applicant or the spouse of an 4832
applicant;4833

       (3) The home address and telephone number of an applicant or 4834
the spouse or dependent of an applicant;4835

       (4) An applicant's birth certificate;4836

       (5) The driver's license number of an applicant or the 4837
applicant's spouse;4838

       (6) The name or address of a previous spouse of the 4839
applicant;4840

       (7) The date of birth of the applicant and the spouse of an 4841
applicant;4842

       (8) The place of birth of the applicant and the spouse of an 4843
applicant;4844

       (9) The personal financial information and records of an 4845
applicant or of an employee or the spouse or dependent of an 4846
applicant, including tax returns and information, and records of 4847
criminal proceedings;4848

       (10) Any information concerning a victim of domestic 4849
violence, sexual assault, or stalking;4850

       (11) The electronic mail address of the spouse or family 4851
member of the applicant;4852

       (12) Any trade secret, medical records, and patents or 4853
exclusive licenses;4854

       (13) Security information, including risk prevention plans, 4855
detection and countermeasures, location of count rooms or other 4856
money storage areas, emergency management plans, security and 4857
surveillance plans, equipment and usage protocols, and theft and 4858
fraud prevention plans and countermeasures.4859

       (B) The individual's name, the individual's place of 4860
employment, the individual's job title, and the individual's 4861
gaming experience that is provided for an individual who holds, 4862
held, or has applied for a video lottery related license under 4863
this chapter is not confidential. The reason for denial or 4864
revocation of a video lottery related license or for disciplinary 4865
action against the individual is not confidential.4866

       (C) An individual who holds, held, or has applied for a video 4867
lottery related license under this chapter may waive the 4868
confidentiality requirements of division (A) of this section.4869

       (D) Confidential information received by the commission from 4870
another jurisdiction relating to a person who holds, held, or has 4871
applied for a license under this chapter is confidential and not 4872
subject to disclosure as a public record under section 149.43 of 4873
the Revised Code. The commission may share the information 4874
referenced in this division with, or disclose the information to, 4875
the inspector general, any appropriate prosecuting authority, any 4876
law enforcement agency, or any other appropriate governmental or 4877
licensing agency, if the agency that receives the information 4878
complies with the same requirements regarding confidentiality as 4879
those with which the commission must comply.4880

       Sec. 3772.01. As used in this chapter:4881

       (A) "Applicant" means any person who applies to the 4882
commission for a license under this chapter.4883

       (B) "Casino control commission fund" means the casino control 4884
commission fund described in Section 6(C)(3)(d) of Article XV, 4885
Ohio Constitution, the money in which shall be used to fund the 4886
commission and its related affairs.4887

       (C) "Casino facility" means a casino facility as defined in 4888
Section 6(C)(9) of Article XV, Ohio Constitution.4889

       (D) "Casino game" means any slot machine or table game as 4890
defined in this chapter.4891

       (E) "Casino gaming" means any type of slot machine or table 4892
game wagering, using money, casino credit, or any representative 4893
of value, authorized in any of the states of Indiana, Michigan, 4894
Pennsylvania, and West Virginia as of January 1, 2009, and 4895
includes slot machine and table game wagering subsequently 4896
authorized by, but shall not be limited by, subsequent 4897
restrictions placed on such wagering in such states. "Casino 4898
gaming" does not include bingo, as authorized in Section 6 of 4899
Article XV, Ohio Constitution and conducted as of January 1, 2009, 4900
or horse racing where the pari-mutuel system of wagering is 4901
conducted, as authorized under the laws of this state as of 4902
January 1, 2009.4903

       (E)(F) "Casino gaming employee" means any employee of a 4904
casino operator or management company, but not a key employee, and 4905
as further defined in section 3772.131 of the Revised Code.4906

       (F)(G) "Casino operator" means any person, trust, 4907
corporation, partnership, limited partnership, association, 4908
limited liability company, or other business enterprise that 4909
directly or indirectly holds an ownership or leasehold interest in 4910
a casino facility. "Casino operator" does not include an agency of 4911
the state, any political subdivision of the state, any person, 4912
trust, corporation, partnership, limited partnership, association, 4913
limited liability company, or other business enterprise that may 4914
have an interest in a casino facility, but who is legally or 4915
contractually restricted from conducting casino gaming.4916

       (G)(H) "Central system" means a computer system that provides 4917
the following functions related to casino gaming equipment used in 4918
connection with casino gaming authorized under this chapter: 4919
security, auditing, data and information retrieval, and other 4920
purposes deemed necessary and authorized by the commission.4921

       (H)(I) "Cheat" means to alter the result of a casino game, 4922
the element of chance, the operation of a machine used in a casino 4923
game, or the method of selection of criteria that determines (a) 4924
the result of the casino game, (b) the amount or frequency of 4925
payment in a casino game, (c) the value of a wagering instrument, 4926
or (d) the value of a wagering credit.4927

       (J) "Commission" means the Ohio casino control commission.4928

       (I)(K) "Gaming agent" means a peace officer employed by the 4929
commission that is vested with duties to enforce this chapter and 4930
conduct other investigations into the conduct of the casino gaming 4931
and the maintenance of the equipment that the commission considers 4932
necessary and proper and is in compliance with section 109.77 of 4933
the Revised Code.4934

       (J)(L) "Gaming-related vendor" means any individual, 4935
partnership, corporation, association, trust, or any other group 4936
of individuals, however organized, who supplies gaming-related 4937
equipment, goods, or services to a casino operator or management 4938
company, that are directly related to or affect casino gaming 4939
authorized under this chapter, including, but not limited to, the 4940
manufacture, sale, distribution, or repair of slot machines and 4941
table game equipment.4942

       (K)(M) "Holding company" means any corporation, firm, 4943
partnership, limited partnership, limited liability company, 4944
trust, or other form of business organization not a natural person 4945
which directly or indirectly owns, hasdoes any of the following:4946

       (1) Has the power or right to control, or holds with power to 4947
vote, any part of an applicant,a casino operator, management 4948
company, or gaming-related vendor license applicant or licensee;4949

       (2) Holds an ownership interest of five per cent or more, as 4950
determined by the commission, in a casino operator, management 4951
company, or gaming-related vendor license applicant or licensee; 4952

       (3) Holds voting rights with the power to vote five per cent 4953
or more of the outstanding voting rights of a casino operator, 4954
management company, or gaming-related vendor applicant or 4955
licensee.4956

       (L)(N) "Initial investment" includes costs related to 4957
demolition, engineering, architecture, design, site preparation, 4958
construction, infrastructure improvements, land acquisition, 4959
fixtures and equipment, insurance related to construction, and 4960
leasehold improvements.4961

       (M)(O) "Institutional investor" means any of the following 4962
entities owning onemore than five per cent or less, or a 4963
percentage between one and ten per cent as approved by the 4964
commission through a waiver on a case-by-case basis, but less than 4965
fifteen per cent, of an ownership interest in a casino facility, 4966
casino operator, management company, or holding company: a 4967
corporation, bank, insurance company, pension fund or pension fund 4968
trust, retirement fund, including funds administered by a public 4969
agency, employees' profit-sharing fund or employees' 4970
profit-sharing trust, any association engaged, as a substantial 4971
part of its business or operations, in purchasing or holding 4972
securities, including a hedge fund, mutual fund, or private equity 4973
fund, or any trust in respect of which a bank is trustee or 4974
cotrustee, investment company registered under the "Investment 4975
Company Act of 1940," 15 U.S.C. 80a-1 et seq., collective 4976
investment trust organized by banks under Part Nine of the Rules 4977
of the Comptroller of the Currency, closed-end investment trust, 4978
chartered or licensed life insurance company or property and 4979
casualty insurance company, investment advisor registered under 4980
the "Investment Advisors Act of 1940," 15 U.S.C. 80 b-1 et seq., 4981
and such other persons as the commission may reasonably determine 4982
to qualify as an institutional investor for reasons consistent 4983
with this chapter, and that does not exercise control over the 4984
affairs of a licensee and its ownership interest in a licensee is 4985
for investment purposes only, as set forth in division (E) of 4986
section 3772.10 of the Revised Code.4987

       (N)(P) "Key employee" means any executive, employee, or agent 4988
of a casino operator or management company licensee having the 4989
power to exercise significant influence over decisions concerning 4990
any part of the operation of such licensee, including:4991

       (1) An officer, director, trustee, or partner of a person 4992
that has applied for or holds a casino operator, management 4993
company, or gaming-related vendor license or of a holding company 4994
that has control of a person that has applied for or holds a 4995
casino operator, management company, or gaming-related vendor 4996
license;4997

       (2) A person that holds a direct or indirect ownership 4998
interest of more than one per cent in a person that has applied 4999
for or holds a casino operator, management company, or 5000
gaming-related vendor license or holding company that has control 5001
of a person that has applied for or holds a casino operator, 5002
management company, or gaming-related vendor license;5003

       (3) A managerial employee of a person that has applied for or 5004
holds a casino operator or gaming-related vendor license in Ohio, 5005
or a managerial employee of a holding company that has control of 5006
a person that has applied for or holds a casino operator or 5007
gaming-related vendor license in Ohio, who performs the function 5008
of principal executive officer, principal operating officer, 5009
principal accounting officer, or an equivalent officer or other 5010
person the commission determines to have the power to exercise 5011
significant influence over decisions concerning any part of the 5012
operation of such licensee.5013

       The commission shall determine whether an individual whose 5014
duties or status varies from those described in this division also 5015
is considered a key employee.5016

       (O)(Q) "Licensed casino operator" means a casino operator 5017
that has been issued a license by the commission and that has been 5018
certified annually by the commission to have paid all applicable 5019
fees, taxes, and debts to the state.5020

       (P)(R) "Majority ownership interest" in a license or in a 5021
casino facility, as the case may be, means ownership of more than 5022
fifty per cent of such license or casino facility, as the case may 5023
be. For purposes of the foregoing, whether a majority ownership 5024
interest is held in a license or in a casino facility, as the case 5025
may be, shall be determined under the rules for constructive 5026
ownership of stock provided in Treas. Reg. 1.409A-3(i)(5)(iii) as 5027
in effect on January 1, 2009.5028

       (Q)(S) "Management company" means an organization retained by 5029
a casino operator to manage a casino facility and provide services 5030
such as accounting, general administration, maintenance, 5031
recruitment, and other operational services.5032

       (R)(T) "Ohio law enforcement training fund" means the state 5033
law enforcement training fund described in Section 6(C)(3)(f) of 5034
Article XV, Ohio Constitution, the money in which shall be used to 5035
enhance public safety by providing additional training 5036
opportunities to the law enforcement community.5037

       (S)(U) "Person" includes, but is not limited to, an 5038
individual or a combination of individuals; a sole proprietorship, 5039
a firm, a company, a joint venture, a partnership of any type, a 5040
joint-stock company, a corporation of any type, a corporate 5041
subsidiary of any type, a limited liability company, a business 5042
trust, or any other business entity or organization; an assignee; 5043
a receiver; a trustee in bankruptcy; an unincorporated 5044
association, club, society, or other unincorporated entity or 5045
organization; entities that are disregarded for federal income tax 5046
purposes; and any other nongovernmental, artificial, legal entity 5047
that is capable of engaging in business.5048

       (T)(V) "Problem casino gambling and addictions fund" means 5049
the state problem gambling and addictions fund described in 5050
Section 6(C)(3)(g) of Article XV, Ohio Constitution, the money in 5051
which shall be used for treatment of problem gambling and 5052
substance abuse, and for related research.5053

       (U)(W) "Promotional gaming credit" means a slot machine or 5054
table game credit, discount, or other similar item issued to a 5055
patron to enable the placement of, or increase in, a wager at a 5056
slot machine or table game.5057

       (V)(X) "Slot machine" means any mechanical, electrical, or 5058
other device or machine which, upon insertion of a coin, token, 5059
ticket, or similar object, or upon payment of any consideration, 5060
is available to play or operate, the play or operation of which, 5061
whether by reason of the skill of the operator or application of 5062
the element of chance, or both, makes individual prize 5063
determinations for individual participants in cash, premiums, 5064
merchandise, tokens, or any thing of value, whether the payoff is 5065
made automatically from the machine or in any other manner, but 5066
does not include any device that is a skill-based amusement 5067
machine, as defined in section 2915.01 of the Revised Code.5068

       (W)(Y) "Table game" means any game played with cards, dice, 5069
or any mechanical, electromechanical, or electronic device or 5070
machine for money, casino credit, or any representative of value. 5071
"Table game" does not include slot machines.5072

       (X)(Z) "Upfront license" means the first plenary license 5073
issued to a casino operator.5074

       (Y)(AA) "Voluntary exclusion program" means a program 5075
provided by the commission that allows persons to voluntarily 5076
exclude themselves from the gaming areas of facilities under the 5077
jurisdiction of the commission by placing their name on a 5078
voluntary exclusion list and following the procedures set forth by 5079
the commission.5080

       Sec. 3772.03. (A) To ensure the integrity of casino gaming, 5081
the commission shall have authority to complete the functions of 5082
licensing, regulating, investigating, and penalizing casino 5083
operators, management companies, holding companies, key employees, 5084
casino gaming employees, and gaming-related vendors. The 5085
commission also shall have jurisdiction over all persons 5086
participating in casino gaming authorized by Section 6(C) of 5087
Article XV, Ohio Constitution, and this chapter.5088

       (B) All rules adopted by the commission under this chapter 5089
shall be adopted under procedures established in Chapter 119. of 5090
the Revised Code. The commission may contract for the services of 5091
experts and consultants to assist the commission in carrying out 5092
its duties under this section.5093

       (C) Within six months of the effective date of this section5094
September 10, 2010, the commission shall adopt initial rules as 5095
are necessary for completing the functions stated in division (A) 5096
of this section and for addressing the subjects enumerated in 5097
division (D) of this section.5098

       (D) The commission shall adopt, and as advisable and 5099
necessary shall amend or repeal, rules that include all of the 5100
following:5101

       (1) The prevention of practices detrimental to the public 5102
interest;5103

       (2) Prescribing the method of applying, and the form of 5104
application, that an applicant for a license under this chapter 5105
must follow as otherwise described in this chapter;5106

       (3) Prescribing the information to be furnished by an 5107
applicant or licensee as described in section 3772.11 of the 5108
Revised Code;5109

       (4) Describing the certification standards and duties of an 5110
independent testing laboratory certified under section 3772.31 of 5111
the Revised Code and the relationship between the commission, the 5112
laboratory, the gaming-related vendor, and the casino operator;5113

        (5) The minimum amount of insurance that must be maintained 5114
by a casino operator, management company, holding company, or 5115
gaming-related vendor;5116

       (6) The approval process for a significant change in 5117
ownership or transfer of control of a licensee as provided in 5118
section 3772.091 of the Revised Code;5119

       (7) The design of gaming supplies, devices, and equipment to 5120
be distributed by gaming-related vendors;5121

       (8) Identifying the casino gaming that is permitted, 5122
identifying the gaming supplies, devices, and equipment, that are 5123
permitted, defining the area in which the permitted casino gaming 5124
may be conducted, and specifying the method of operation according 5125
to which the permitted casino gaming is to be conducted as 5126
provided in section 3772.20 of the Revised Code, and requiring 5127
gaming devices and equipment to meet the standards of this state;5128

       (9) Tournament play in any casino facility;5129

       (10) Establishing and implementing a voluntary exclusion 5130
program that provides all of the following:5131

       (a) Except as provided by commission rule, a person who 5132
participates in the program shall agree to refrain from entering a 5133
casino facility.5134

       (b) The name of a person participating in the program shall 5135
be included on a list of persons excluded from all casino 5136
facilities.5137

       (c) Except as provided by commission rule, no person who 5138
participates in the program shall petition the commission for 5139
admittance into a casino facility.5140

       (d) The list of persons participating in the program and the 5141
personal information of those persons shall be confidential and 5142
shall only be disseminated by the commission to a casino operator 5143
and the agents and employees of the casino operator for purposes 5144
of enforcement and to other entities, upon request of the 5145
participant and agreement by the commission.5146

       (e) A casino operator shall make all reasonable attempts as 5147
determined by the commission to cease all direct marketing efforts 5148
to a person participating in the program.5149

       (f) A casino operator shall not cash the check of a person 5150
participating in the program or extend credit to the person in any 5151
manner. However, the program shall not exclude a casino operator 5152
from seeking the payment of a debt accrued by a person before 5153
participating in the program.5154

       (g) Any and all locations at which a person may register as a 5155
participant in the program shall be published.5156

       (11) Requiring the commission to adopt standards regarding 5157
the marketing materials of a licensed casino operator, including 5158
allowing the commission to prohibit marketing materials that are 5159
contrary to the adopted standards;5160

       (12) Requiring that the records, including financial 5161
statements, of any casino operator, management company, holding 5162
company, and gaming-related vendor be maintained in the manner 5163
prescribed by the commission and made available for inspection 5164
upon demand by the commission, but shall be subject to section 5165
3772.16 of the Revised Code;5166

       (13) Permitting a licensed casino operator, management 5167
company, key employee, or casino gaming employee to question a 5168
person suspected of violating this chapter;5169

       (14) The chips, tokens, tickets, electronic cards, or similar 5170
objects that may be purchased by means of an agreement under which 5171
credit is extended to a wagerer by a casino operator;5172

       (15) Establishing standards for provisional key employee 5173
licenses for a person who is required to be licensed as a key 5174
employee and is in exigent circumstances and standards for 5175
provisional licenses for casino gaming employees who submit 5176
complete applications and are compliant under an instant 5177
background check. A provisional license shall be valid not longer 5178
than three months. A provisional license may be renewed one time, 5179
at the commission's discretion, for an additional three months. In 5180
establishing standards with regard to instant background checks 5181
the commission shall take notice of criminal records checks as 5182
they are conducted under section 311.41 of the Revised Code using 5183
electronic fingerprint reading devices.5184

       (16) Establishing approval procedures for third-party 5185
engineering or accounting firms, as described in section 3772.09 5186
of the Revised Code;5187

       (17) Prescribing the manner in which winnings, compensation 5188
from casino gaming, and gross revenue must be computed and 5189
reported by a licensee as described in Chapter 5753. of the 5190
Revised Code;5191

       (18) Prescribing conditions under which a licensee's license 5192
may be suspended or revoked as described in section 3772.04 of the 5193
Revised Code;5194

       (19) Prescribing the manner and procedure of all hearings to 5195
be conducted by the commission or by any hearing examiner;5196

       (20) Prescribing technical standards and requirements that 5197
are to be met by security and surveillance equipment that is used 5198
at and standards and requirements to be met by personnel who are 5199
employed at casino facilities, and standards and requirements for 5200
the provision of security at and surveillance of casino 5201
facilities;5202

       (21) Prescribing requirements for a casino operator to 5203
provide unarmed security services at a casino facility by licensed 5204
casino employees, and the training that shall be completed by 5205
these employees;5206

       (22) Prescribing standards according to which casino 5207
operators shall keep accounts and standards according to which 5208
casino accounts shall be audited, and establish means of assisting 5209
the tax commissioner in levying and collecting the gross casino 5210
revenue tax levied under section 5753.02 of the Revised Code;5211

       (23) Defining penalties for violation of commission rules and 5212
a process for imposing such penalties subject to the review of the 5213
joint committee on gaming and wagering;5214

       (24) Establishing standards for decertifying contractors that 5215
violate statutes or rules of this state or the federal government;5216

       (25) Establishing standards for the repair of casino gaming 5217
equipment;5218

       (26) Establishing procedures to ensure that casino operators, 5219
management companies, and holding companies are compliant with the 5220
compulsive and problem gambling plan submitted under section 5221
3772.18 of the Revised Code;5222

       (27) Providing for any other thing necessary and proper for 5223
successful and efficient regulation of casino gaming under this 5224
chapter.5225

       (E) The commission shall employ and assign gaming agents as 5226
necessary to assist the commission in carrying out the duties of 5227
this chapter. In order to maintain employment as a gaming agent, 5228
the gaming agent shall successfully complete all continuing 5229
training programs required by the commission and shall not have 5230
been convicted of or pleaded guilty or no contest to a 5231
disqualifying offense as defined in section 3772.07 of the Revised 5232
Code.5233

       (F) The commission, as a law enforcement agency, and its 5234
gaming agents, as law enforcement officers as defined in section 5235
2901.01 of the Revised Code, shall have authority with regard to 5236
the detection and investigation of, the seizure of evidence 5237
allegedly relating to, and the apprehension and arrest of persons 5238
allegedly committing gaming offenses, and shall have access to 5239
casino facilities to carry out the requirements of this chapter.5240

       (G) The commission may eject or exclude or authorize the 5241
ejection or exclusion of and a gaming agent may eject a person 5242
from a casino facility for any of the following reasons:5243

       (1) The person's name is on the list of persons voluntarily 5244
excluding themselves from all casinos in a program established 5245
according to rules adopted by the commission;5246

       (2) The person violates or conspires to violate this chapter 5247
or a rule adopted thereunder; or5248

       (3) The commission determines that the person's conduct or 5249
reputation is such that the person's presence within a casino 5250
facility may call into question the honesty and integrity of the 5251
casino gaming operations or interfere with the orderly conduct of 5252
the casino gaming operations.5253

       (H) A person, other than a person participating in a 5254
voluntary exclusion program, may petition the commission for a 5255
public hearing on the person's ejection or exclusion under this 5256
chapter.5257

       (I) A casino operator or management company shall have the 5258
same authority to eject or exclude a person from the management 5259
company's casino facilities as authorized in division (G) of this 5260
section. The licensee shall immediately notify the commission of 5261
an ejection or exclusion.5262

       (J) The commission shall submit a written annual report with 5263
the governor, president and minority leader of the senate, speaker 5264
and minority leader of the house of representatives, and joint 5265
committee on gaming and wagering before the first day of September 5266
each year. The annual report shall include a statement describing 5267
the receipts and disbursements of the commission, relevant 5268
financial data regarding casino gaming, including gross revenues 5269
and disbursements made under this chapter, actions taken by the 5270
commission, an update on casino operators', management companies', 5271
and holding companies' compulsive and problem gambling plans and 5272
the voluntary exclusion program and list, and any additional 5273
information that the commission considers useful or that the 5274
governor, president or minority leader of the senate, speaker or 5275
minority leader of the house of representatives, or joint 5276
committee on gaming and wagering requests.5277

        (K) Notwithstanding any law to the contrary, beginning on 5278
July 1, 2011, the commission shall assume jurisdiction over and 5279
oversee the regulation of skill-based amusement machines as is 5280
provided in the law of this state.5281

       Sec. 3772.04. (A)(1) If, as the result of an investigation,5282
the commission concludes that a license or finding required by 5283
this chapter should be limited, conditioned, or restricted, or5284
suspended,or revoked, denied, or not renewed, the commission shall 5285
conductmay, and if so requested by a licensee or applicant, 5286
shall, conduct a hearing in an adjudication under Chapter 119. of 5287
the Revised Code. After notice and opportunity for a hearing, the 5288
commission may limit, condition, restrict, suspend, revoke, deny, 5289
or not renew a license under rules adopted by the commission. The 5290
commission may reopen a licensing adjudication at any time.5291

       (2) The commission shall appoint a hearing examiner to 5292
conduct the hearing in the adjudication. A party to the 5293
adjudication may file written objections to the hearing examiner's 5294
report and recommendations not later than the thirtieth day after 5295
they are served upon the party or the party's attorney or other 5296
representative of record. The commission shall not take up the 5297
hearing examiner's report and recommendations earlier than the 5298
thirtieth day after the hearing examiner's report and 5299
recommendations were submitted to the commission.5300

       (3) If the commission finds that a person fails or has failed 5301
to meet any requirement under this chapter or a rule adopted 5302
thereunder, or violates or has violated this chapter or a rule 5303
adopted thereunder, the commission may issue an order:5304

       (a) Limiting, conditioning, or restricting, or suspending or,5305
revoking, denying, or not renewing, a license issued under this 5306
chapter;5307

       (b) Limiting, conditioning, or restricting, or suspending or 5308
revoking, a finding made under this chapter;5309

       (c) Requiring a casino facility to exclude a licensee from 5310
the casino facility or requiring a casino facility not to pay to 5311
the licensee any remuneration for services or any share of 5312
profits, income, or accruals on the licensee's investment in the 5313
casino facility; or5314

       (d)(c) Fining a licensee or other person according to the 5315
penalties adopted by the commission.5316

       (4) An order may be judicially reviewed under section 119.12 5317
of the Revised Code.5318

       (B) Without in any manner limiting the authority of the 5319
commission to impose the level and type of discipline the 5320
commission considers appropriate, the commission may take into 5321
consideration the following:5322

       (1) If the licensee knew or reasonably should have known that 5323
the action complained of was a violation of any law, rule, or 5324
condition on the licensee's license;5325

       (2) If the licensee has previously been disciplined by the 5326
commission;5327

       (3) If the licensee has previously been subject to discipline 5328
by the commission concerning the violation of any law, rule, or 5329
condition of the licensee's license;5330

       (4) If the licensee reasonably relied upon professional 5331
advice from a lawyer, doctor, accountant, or other recognized 5332
professional that was relevant to the action resulting in the 5333
violation;5334

       (5) If the licensee or the licensee's employer had a 5335
reasonably constituted and functioning compliance program;5336

       (6) If the imposition of a condition requiring the licensee 5337
to establish and implement a written self-enforcement and 5338
compliance program would assist in ensuring the licensee's future 5339
compliance with all statutes, rules, and conditions of the 5340
license;5341

       (7) If the licensee realized a pecuniary gain from the 5342
violation;5343

       (8) If the amount of any fine or other penalty imposed would 5344
result in disgorgement of any gains unlawfully realized by the 5345
licensee;5346

       (9) If the violation was caused by an officer or employee of 5347
the licensee, the level of authority of the individual who caused 5348
the violation;5349

       (10) If the individual who caused the violation acted within 5350
the scope of the individual's authority as granted by the 5351
licensee;5352

       (11) The adequacy of any training programs offered by the 5353
licensee or the licensee's employer that were relevant to the 5354
activity that resulted in the violation;5355

       (12) If the licensee's action substantially deviated from 5356
industry standards and customs;5357

       (13) The extent to which the licensee cooperated with the 5358
commission during the investigation of the violation;5359

       (14) If the licensee has initiated remedial measures to 5360
prevent similar violations;5361

       (15) The magnitude of penalties imposed on other licensees 5362
for similar violations;5363

       (16) The proportionality of the penalty in relation to the 5364
misconduct;5365

       (17) The extent to which the amount of any fine imposed would 5366
punish the licensee for the conduct and deter future violations;5367

       (18) Any mitigating factors offered by the licensee; and5368

       (19) Any other factors the commission considers relevant.5369

       (C) For the purpose of conducting any study or investigation, 5370
the commission may direct that public hearings be held at a time 5371
and place, prescribed by the commission, in accordance with 5372
section 121.22 of the Revised Code. The commission shall give 5373
notice of all public hearings in such manner as will give actual 5374
notice to all interested parties.5375

       (C) In(D)(1) For the purpose of conducting the hearing in an 5376
adjudication under division (A) of this section, or in the 5377
discharge of any duties imposed by this chapter, the commission 5378
may require that testimony be given under oath and administer such 5379
oath, issue subpoenas compelling the attendance of witnesses and 5380
the production of any papers, books, and accounts, directed to the 5381
sheriffs of the counties where such witnesses or papers, books, 5382
and accounts are found and cause the deposition of any witness. In5383
The subpoenas shall be served and returned in the same manner as 5384
subpoenas in criminal cases are served and returned. The fees of 5385
sheriffs shall be the same as those allowed by the court of common 5386
pleas in criminal cases.5387

        (2) In the event of the refusal of any person without good 5388
cause to comply with the terms of a subpoena issued by the 5389
commission or refusal to testify on matters about which the person 5390
may lawfully be questioned, the prosecuting attorney of the county 5391
in which such person resides, upon the petition of the commission, 5392
may bring a proceeding for contempt against such person in the 5393
court of common pleas of that county.5394

       (3) Witnesses shall be paid the fees and mileage provided for 5395
in section 119.094 of the Revised Code.5396

        (4) All fees and mileage expenses incurred at the request of 5397
a party shall be paid in advance by the party.5398

       (D)(E) When conducting a public hearing, the commission shall 5399
not limit the number of speakers who may testify. However, the 5400
commission may set reasonable time limits on the length of an 5401
individual's testimony or the total amount of time allotted to 5402
proponents and opponents of an issue before the commission.5403

       (E) An administrative law judge appointed by the commission 5404
may conduct a hearing under this chapter and recommend findings of 5405
fact and decisions to the commission.5406

       (F) The commission may rely, in whole or in part, upon 5407
investigations, conclusions, or findings of other casino gaming 5408
commissions or other government regulatory bodies in connection 5409
with licensing, investigations, or other matters relating to an 5410
applicant or licensee under this chapter.5411

       Sec. 3772.091. (A) NoA casino operator license issued under 5412
this chapter is transferable subject to approval by the 5413
commission. New majority ownership interest orAny change or 5414
transfer of control of a casino operator shall require a new 5415
licensecommission approval. The commission may reopen a licensing 5416
investigation at any time. A significantAny change in or transfer 5417
of control of a casino operator, as determined by the commission, 5418
shall require the filing of an application for a newtransferring 5419
the casino operator license and submission of a licensean 5420
application fee with the commission before any such change or 5421
transfer of control ismay be approved. A change in or transfer of 5422
control to an immediate family member is not considered a 5423
significant change under this sectionAdditionally, the commission 5424
may assess an applicant a reasonable fee in the amount necessary 5425
to review the application for the transfer of a casino operator 5426
license to the applicant. In determining whether to approve the 5427
transfer of a casino operator license to the applicant, the 5428
commission shall consider all the factors established in Chapter 5429
3772. of the Revised Code that pertain to the granting of a casino 5430
operator license. The commission may reopen a licensing 5431
investigation at any time.5432

       (B) As used in this section, "control" means either of the 5433
following:5434

       (1) Either:5435

       (a) Holding fiftythirty per cent or more of the outstanding 5436
voting securities of a licensee; or5437

       (b) For an unincorporated licensee, having the right to fifty5438
thirty per cent or more of the profits of the licensee, or having 5439
the right in the event of dissolution to fiftythirty per cent or 5440
more of the assets of the licensee.5441

       (2) Having the contractual power presently to designate fifty5442
thirty per cent or more of the directors of a for-profit or 5443
not-for-profit corporation, or in the case of trusts described in 5444
paragraphs (c)(3) to (5) of 16 C.F.R. 801.1, the trustees of such 5445
a trust.5446

       Sec. 3772.10. (A) In determining whether to grant or maintain 5447
the privilege of a casino operator, management company, holding 5448
company, key employee, casino gaming employee, or gaming-related 5449
vendor license, the Ohio casino control commission shall consider 5450
all of the following, as applicable:5451

       (1) The reputation, experience, and financial integrity of 5452
the applicant, its holding company, if applicable, and any other 5453
person that directly or indirectly controls the applicant;5454

       (2) The financial ability of the applicant to purchase and 5455
maintain adequate liability and casualty insurance and to provide 5456
an adequate surety bond;5457

       (3) The past and present compliance of the applicant and its 5458
affiliates or affiliated companies with casino-related licensing 5459
requirements in this state or any other jurisdiction, including 5460
whether the applicant has a history of noncompliance with the 5461
casino licensing requirements of any jurisdiction;5462

       (4) If the applicant has been indicted, convicted, pleaded 5463
guilty or no contest, or forfeited bail concerning any criminal 5464
offense under the laws of any jurisdiction, either felony or 5465
misdemeanor, not including traffic violations;5466

       (5) If the applicant has filed, or had filed against it a 5467
proceeding for bankruptcy or has ever been involved in any formal 5468
process to adjust, defer, suspend, or otherwise work out the 5469
payment of any debt;5470

       (6) If the applicant has been served with a complaint or 5471
other notice filed with any public body regarding a payment of any 5472
tax required under federal, state, or local law that has been 5473
delinquent for one or more years;5474

       (7) If the applicant is or has been a defendant in litigation 5475
involving its business practices;5476

       (8) If awarding a license would undermine the public's 5477
confidence in the casino gaming industry in this state;5478

       (9) If the applicant meets other standards for the issuance 5479
of a license that the commission adopts by rule, which shall not 5480
be arbitrary, capricious, or contradictory to the expressed 5481
provisions of this chapter.5482

       (B) All applicants for a license under this chapter shall 5483
establish their suitability for a license by clear and convincing 5484
evidence. If the commission determines that a person is eligible 5485
under this chapter to be issued a license as a casino operator, 5486
management company, holding company, key employee, casino gaming 5487
employee, or gaming-related vendor, the commission shall issue 5488
such license for not more than three years, as determined by 5489
commission rule, if all other requirements of this chapter have 5490
been satisfied.5491

       (C) The commission shall not issue a casino operator, 5492
management company, holding company, key employee, casino gaming 5493
employee, or gaming-related vendor license under this chapter to 5494
an applicant if:5495

       (1) The applicant has been convicted of a disqualifying 5496
offense, as defined in section 3772.07 of the Revised Code.5497

       (2) The applicant has submitted an application for license 5498
under this chapter that contains false information.5499

       (3) The applicant is a commission member.5500

       (4) The applicant owns an ownership interest that is unlawful 5501
under this chapter, unless waived by the commission.5502

       (5) The applicant violates specific rules adopted by the 5503
commission related to denial of licensure.5504

       (6) The applicant is a member of or employed by a gaming 5505
regulatory body of a governmental unit in this state, another 5506
state, or the federal government, or is employed by a governmental 5507
unit of this state. This division does not prohibit a casino 5508
operator from hiring special duty law enforcement officers if the 5509
officers are not specifically involved in gaming-related 5510
regulatory functions.5511

       (7) The commission otherwise determines the applicant is 5512
ineligible for the license.5513

       (D)(1) The commission shall investigate the qualifications of 5514
each applicant under this chapter before any license is issued and 5515
before any finding with regard to acts or transactions for which 5516
commission approval is required is made. The commission shall 5517
continue to observe the conduct of all licensees and all other 5518
persons having a material involvement directly or indirectly with 5519
a casino operator, management company, or holding company to 5520
ensure that licenses are not issued to or held by, or that there 5521
is not any material involvement with a casino operator, management 5522
company, or holding company by, an unqualified, disqualified, or 5523
unsuitable person or a person whose operations are conducted in an 5524
unsuitable manner or in unsuitable or prohibited places or 5525
locations.5526

       (2) The executive director may recommend to the commission 5527
that it deny any application, or limit, condition, or restrict, or 5528
suspend or revoke, any license or finding, or impose any fine upon 5529
any licensee or other person according to this chapter and the 5530
rules adopted thereunder.5531

       (3) A license issued under this chapter is a revocable 5532
privilege. No licensee has a vested right in or under any license 5533
issued under this chapter. The initial determination of the 5534
commission to deny, or to limit, condition, or restrict, a license 5535
may be appealed under section 2505.03 of the Revised Code.5536

       (E)(1) An institutional investor otherwise required tomay be 5537
found to be suitable or qualified by the commission under this 5538
chapter and the rules adopted under this chapter. An institutional 5539
investor shall be presumed suitable or qualified upon submitting 5540
documentation sufficient to establish qualifications as an 5541
institutional investor and upon certifying all of the following:5542

       (a) The institutional investor owns, holds, or controls 5543
publicly traded securities issued by a licensee or holding, 5544
intermediate, or parent company of a licensee or in the ordinary 5545
course of business for investment purposes only.5546

       (b) The institutional investor does not exercise influence 5547
over the affairs of the issuer of such securities nor over any 5548
licensed subsidiary of the issuer of such securities.5549

       (c) The institutional investor does not intend to exercise 5550
influence over the affairs of the issuer of such securities, nor 5551
over any licensed subsidiary of the issuer of such securities, in 5552
the future, and that it agrees to notify the commission in writing 5553
within thirty days if such intent changes.5554

       (2) The exercise of voting privileges with regard to publicly 5555
traded securities shall not be deemed to constitute the exercise 5556
of influence over the affairs of a licensee.5557

       (3) The commission shall rescind the presumption of 5558
suitability for an institutional investor at any time if the 5559
institutional investor exercises or intends to exercise influence 5560
or control over the affairs of the licensee.5561

       (4) This division shall not be construed to preclude the 5562
commission from requesting information from or investigating the 5563
suitability or qualifications of an institutional investor if the:5564

       (a) The commission becomes aware of facts or information that 5565
may result in the institutional investor being found unsuitable or 5566
disqualified; or5567

       (b) The commission has any other reason to seek information 5568
from the investor to determine whether it qualifies as an 5569
institutional investor.5570

       (5) If the commission finds an institutional investor to be 5571
unsuitable or unqualified, the commission shall so notify the 5572
investor and the casino operator, holding company, management 5573
company, or gaming-related vendor licensee in which the investor 5574
invested. The commission shall allow the investor and the licensee 5575
a reasonable amount of time, as specified by the commission on a 5576
case-by-case basis, to cure the conditions that caused the 5577
commission to find the investor unsuitable or unqualified. If 5578
during the specified period of time the investor or the licensee 5579
does not or cannot cure the conditions that caused the commission 5580
to find the investor unsuitable or unqualified, the commission may 5581
allow the investor or licensee more time to cure the conditions or 5582
the commission may begin proceedings to deny, suspend, or revoke 5583
the license of the casino operator, holding company, management 5584
company, or gaming-related vendor in which the investor invested 5585
or to deny any of the same the renewal of any such license.5586

       (6) A private licensee or holding company shall provide the 5587
same information to the commission as a public company would 5588
provide in a form 13d or form 13g filing to the securities and 5589
exchange commission.5590

       (F) Information provided on the application shall be used as 5591
a basis for a thorough background investigation of each applicant. 5592
A false or incomplete application is cause for denial of a license 5593
by the commission. All applicants and licensees shall consent to 5594
inspections, searches, and seizures and to the disclosure to the 5595
commission and its agents of confidential records, including tax 5596
records, held by any federal, state, or local agency, credit 5597
bureau, or financial institution and to provide handwriting 5598
exemplars, photographs, fingerprints, and information as 5599
authorized in this chapter and in rules adopted by the commission.5600

       Sec. 3772.13. (A) No person may be employed as a key employee 5601
of a casino operator, management company, or holding company5602
unless the person is the holder of a valid key employee license 5603
issued by the commission.5604

       (B) No person may be employed as a key employee of a 5605
gaming-related vendor unless that person is either the holder of a 5606
valid key employee license issued by the commission, or the 5607
person, at least five business days prior to the first day of 5608
employment as a key employee, has filed a notification of 5609
employment with the commission and subsequently files a completed 5610
application for a key employee license within the first thirty 5611
days of employment as a key employee.5612

       (C) Each applicant shall, before the issuance of any key 5613
employee license, produce information, documentation, and 5614
assurances as are required by this chapter and rules adopted 5615
thereunder. In addition, each applicant shall, in writing, 5616
authorize the examination of all bank accounts and records as may 5617
be deemed necessary by the commission.5618

       (C)(D) To be eligible for a key employee license, the 5619
applicant shall be at least twenty-one years of age and shall meet 5620
the criteria set forth by rule by the commission.5621

       (D)(E) Each application for a key employee license shall be 5622
on a form prescribed by the commission and shall contain all 5623
information required by the commission. The applicant shall set 5624
forth in the application if the applicant has been issued prior 5625
gambling-related licenses; if the applicant has been licensed in 5626
any other state under any other name, and, if so, the name under 5627
which the license was issued and the applicant's age at the time 5628
the license was issued; any criminal conviction the applicant has 5629
had; and if a permit or license issued to the applicant in any 5630
other state has been suspended, restricted, or revoked, and, if 5631
so, the cause and the duration of each action. The applicant also 5632
shall complete a cover sheet for the application on which the 5633
applicant shall disclose the applicant's name, the business 5634
address of the casino operator, management company, or holding 5635
company employing the applicant, the business address and 5636
telephone number of such employer, and the county, state, and 5637
country in which the applicant's residence is located.5638

       (E)(F) Each applicant shall submit with each application, on 5639
a form provided by the commission, two sets of fingerprints and a 5640
photograph. The commission shall charge each applicant an 5641
application fee set by the commission to cover all actual costs 5642
generated by each licensee and all background checks under this 5643
section and section 3772.07 of the Revised Code.5644

       (F)(G)(1) The casino operator, management company, or holding 5645
company by whom a person is employed as a key employee shall 5646
terminate the person's employment in any capacity requiring a 5647
license under this chapter and shall not in any manner permit the 5648
person to exercise a significant influence over the operation of a 5649
casino facility if:5650

       (a) The person does not apply for and receive a key employee 5651
license within three months of being issued a provisional license, 5652
as established under commission rule.5653

       (b) The person's application for a key employee license is 5654
denied by the commission.5655

       (c) The person's key employee license is revoked by the 5656
commission.5657

       The commission shall notify the casino operator, management 5658
company, or holding company who employs such a person by certified 5659
mail of any such finding, denial, or revocation.5660

       (2) A casino operator, management company, or holding company 5661
shall not pay to a person whose employment is terminated under 5662
division (F)(G)(1) of this section, any remuneration for any 5663
services performed in any capacity in which the person is required 5664
to be licensed, except for amounts due for services rendered 5665
before notice was received under that division. A contract or 5666
other agreement for personal services or for the conduct of any 5667
casino gaming at a casino facility between a casino operator, 5668
management company, or holding company and a person whose 5669
employment is terminated under division (F)(G)(1) of this section 5670
may be terminated by the casino operator, management company, or 5671
holding company without further liability on the part of the 5672
casino operator, management company, or holding company. Any such 5673
contract or other agreement is deemed to include a term 5674
authorizing its termination without further liability on the part 5675
of the casino operator, management company, or holding company 5676
upon receiving notice under division (F)(G)(1) of this section. 5677
That a contract or other agreement does not expressly include such 5678
a term is not a defense in any action brought to terminate the 5679
contract or other agreement, and is not grounds for relief in any 5680
action brought questioning termination of the contract or other 5681
agreement.5682

       (3) A casino operator, management company, or holding 5683
company, without having obtained the prior approval of the 5684
commission, shall not enter into any contract or other agreement 5685
with a person who has been found unsuitable, who has been denied a 5686
license, or whose license has been revoked under division 5687
(F)(G)(1) of this section, or with any business enterprise under 5688
the control of such a person, after the date on which the casino 5689
operator, management company, or holding company receives notice 5690
under that division.5691

       Sec. 3772.16. (A) Any information concerning the following 5692
submitted, collected, or gathered as part of an application to the 5693
commission for a license under this chapter is confidential and 5694
not subject to disclosure by any state agency or political 5695
subdivision as a record under section 149.43 of the Revised Code:5696

       (1) A minor child of an applicant;5697

       (2) The social security number, passport number, or federal 5698
tax identification number of an applicant or the spouse of an 5699
applicant;5700

       (3) The home address and telephone number of an applicant or 5701
the spouse or childrendependent of an applicant;5702

       (4) An applicant's birth certificate;5703

       (5) The driver's license number of an applicant or the 5704
applicant's spouse;5705

       (6) The name or address of a previous spouse of the 5706
applicant;5707

       (7) The date of birth of the applicant and the spouse of an 5708
applicant;5709

       (8) The place of birth of the applicant and the spouse of an 5710
applicant;5711

       (9) The personal financial information and records of an 5712
applicant or of an employee or the spouse or minor childdependent5713
of an applicant, including tax returns and information, and 5714
records of criminal proceedings;5715

       (10) Any information concerning a victim of domestic 5716
violence, sexual assault, or stalking;5717

       (11) The electronic mail address of the spouse or family 5718
member of the applicant;5719

       (12) An applicant's home addresses; and5720

       (13) Any trade secret, medical records, and patents or 5721
exclusive licenses;5722

       (13) Security information, including risk prevention plans, 5723
detection and countermeasures, location of count rooms or other 5724
money storage areas, emergency management plans, security and 5725
surveillance plans, equipment and usage protocols, and theft and 5726
fraud prevention plans and countermeasures;5727

       (14) Information provided in a multijurisdictional personal 5728
history disclosure form, including the Ohio supplement, exhibits, 5729
attachments, and updates.5730

       (B) Notwithstanding any other law, upon written request from 5731
a person, the commission shall provide the following information 5732
to the person except as provided in this chapter:5733

       (1) The information provided under this chapter concerning a 5734
licensee or an applicant;5735

       (2) The amount of the wagering tax and admission tax paid 5736
daily to the state by a licensed applicant or an operating agent; 5737
and5738

       (3) A copy of a letter providing the reasons for the denial 5739
of an applicant's license or an operating agent's contract and a 5740
copy of a letter providing the reasons for the commission's 5741
refusal to allow an applicant to withdraw the applicant's 5742
application, but with confidential information redacted if that 5743
information is the reason for the denial or refusal to withdraw.5744

       (C) In addition to information that is confidential under 5745
division (A) of this section, medical records, trade secrets, 5746
patents or exclusive licenses, and marketing materials maintained 5747
by the commission concerning a person who holds, held, or has 5748
applied for a license under this chapter is confidential and not 5749
subject to section 149.43 of the Revised Code.5750

       (D) The individual's name, the individual's place of 5751
employment, the individual's job title, and the individual's 5752
gaming experience that is provided for an individual who holds, 5753
held, or has applied for a license under this chapter is not 5754
confidential. The reason for denial or revocation of a license or 5755
for disciplinary action against the individual and information 5756
submitted by the individual for a felony waiver request is not 5757
confidential. The cover sheet completed by an applicant for a key 5758
employee license under section 3772.13 of the Revised Code is not 5759
confidential.5760

       (E)(D) An individual who holds, held, or has applied for a 5761
license under this chapter may waive the confidentiality 5762
requirements of division (A) of this section.5763

       (E) Confidential information received by the commission from 5764
another jurisdiction relating to a person who holds, held, or has 5765
applied for a license under this chapter is confidential and not 5766
subject to disclosure as a public record under section 149.43 of 5767
the Revised Code. The commission may share the information 5768
referenced in this division with, or disclose the information to, 5769
the inspector general, any appropriate prosecuting authority, any 5770
law enforcement agency, or any other appropriate governmental or 5771
licensing agency, if the agency that receives the information 5772
complies with the same requirements regarding confidentiality as 5773
those with which the commission must comply.5774

       Sec. 3772.17. (A) The upfront license fee to obtain a license 5775
as a casino operator shall be fifty million dollars per casino 5776
facility, whichand shall be paid upon each initial casino 5777
operator's filing of its casino operator license application with 5778
the commission. The upfront license fee, once paid to the 5779
commission, shall be deposited into the economic development 5780
programs fund, which is created in the state treasury. New casino 5781
operator, management company, and holding company license and 5782
renewal license fees shall be set by rule, subject to the review 5783
of the joint committee on gaming and wagering. The upfront license 5784
fee charged by this division shall not be assessed on the transfer 5785
of a casino operator license to a new casino operator if approved 5786
by the commission as set forth in section 3772.091 of the Revised 5787
Code.5788

       (B) The fee to obtain an application for a casino operator, 5789
management company, or holding company license shall be one 5790
million five hundred thousand dollars per application. The fee 5791
charged by this division shall apply to the application to 5792
transfer a casino operator license to a new casino operator as set 5793
forth in section 3772.091 of the Revised Code. The application fee 5794
shall be deposited into the casino control commission fund. The 5795
application fee is nonrefundable.5796

       (C) The license fees for a gaming-related vendor shall be set 5797
by rule, subject to the review of the joint committee on gaming 5798
and wagering. Additionally, the commission may assess an applicant 5799
a reasonable fee in the amount necessary to process a 5800
gaming-related vendor license application.5801

       (D) The license fees for a key employee shall be set by rule, 5802
subject to the review of the joint committee on gaming and 5803
wagering. Additionally, the commission may assess an applicant a 5804
reasonable fee in the amount necessary to process a key employee 5805
license application. If the license is being sought at the request 5806
of a casino operator, such fees shall be paid by the casino 5807
operator.5808

       (E) The license fees for a casino gaming employee shall be 5809
set by rule, subject to the review of the joint committee on 5810
gaming and wagering. If the license is being sought at the request 5811
of a casino operator, the fee shall be paid by the casino 5812
operator.5813

       Sec. 3772.28. (A) A licensed casino operator shall not enter 5814
into a debt transaction without the approval of the commission. 5815
The licensed casino operator shall submit, in writing, a request 5816
for approval of a debt transaction that contains at least the 5817
following information:5818

       (1) The names and addresses of all parties to the debt 5819
transaction;5820

       (2) The amount of the funds involved;5821

       (3) The type of debt transaction;5822

       (4) The source of the funds to be obtained;5823

       (5) All sources of collateral;5824

       (6) The purpose of the debt transaction;5825

       (7) The terms of the debt transaction;5826

       (8) Any other information deemed necessary by the commission.5827

       (B) As used in this section, "debt transaction" means a 5828
transaction by a licensed casino operator concerning a casino 5829
facility totaling five hundred thousand dollars or more in which a 5830
licensed casino operator acquires debt, including bank financing, 5831
private debt offerings, and any other transaction that results in 5832
the encumbrance of assets.5833

       (C) Notwithstanding divisions (A) and (B) of this section, a 5834
licensed casino operator may enter into one or more debt 5835
transactions with affiliated companies provided the aggregate 5836
amount of all such debt transactions at any one time does not 5837
exceed ten million dollars. When a licensed casino operator 5838
intends to enter into such a debt transaction with an affiliated 5839
company, the licensed casino operator shall provide immediate 5840
notification, in writing, to the commission. The commission is 5841
entitled to require prior approval of the debt transaction if the 5842
commission provides notice to the licensed casino operator within 5843
seven days after receiving the notification. In determining 5844
whether to approve such a debt transaction, the commission may 5845
require the licensed casino operator to submit the information 5846
specified in division (A) of this section. The commission may 5847
adopt rules governing its review and approval of such debt 5848
transactions. For the purposes of this division, "affiliated 5849
companies" means any holding company or institutional investor or 5850
any individual, partnership, corporation, association, trust, or 5851
any other group of individuals, however organized, which directly 5852
or indirectly owns, has the power or right to control, or holds 5853
with the power to vote, an ownership interest in a licensed casino 5854
operator.5855

       Sec. 3772.99.  (A) The commission shall levy and collect 5856
penalties for noncriminal violations of this chapter. Moneys 5857
collected from such penalty levies shall be credited to the 5858
general revenue fund.5859

       (B) If a licensed casino operator, management company, 5860
holding company, gaming-related vendor, or key employee violates 5861
this chapter or engages in a fraudulent act, the commission may 5862
suspend or revoke the license and may do either or both of the 5863
following:5864

       (1) Suspend, revoke, or restrict the casino gaming operations 5865
of a casino operator;5866

       (2) Require the removal of a management company, key 5867
employee, or discontinuance of services from a gaming-related 5868
vendor.5869

       (C) The commission shall impose civil penalties against a 5870
person who violates this chapter under the penalties adopted by 5871
commission rule and reviewed by the joint committee on gaming and 5872
wagering.5873

       (D) A person who knowingly or intentionally does any of the 5874
following commits a misdemeanor of the first degree on the first 5875
offense and a felony of the fifth degree for a subsequent offense:5876

       (1) Makes a false statement on an application submitted under 5877
this chapter;5878

       (2) Permits a person less than twenty-one years of age to 5879
make a wager;5880

       (3) Aids, induces, or causes a person less than twenty-one 5881
years of age who is not an employee of the casino gaming operation 5882
to enter or attempt to enter a casino facility;5883

       (4) Enters or attempts to enter a casino facility while under 5884
twenty-one years of age, unless the person enters a designated 5885
area as described in section 3772.24 of the Revised Code;5886

       (5) Wagers or accepts a wager at a location other than a 5887
casino facility;5888

       (6) Is a casino operator or employee and participates in 5889
casino gaming other than as part of operation or employment.5890

       (E) A person who knowingly or intentionally does any of the 5891
following commits a felony of the fifth degree on a first offense 5892
and a felony of the fourth degree for a subsequent offense. If the 5893
person is a licensee under this chapter, the commission shall 5894
revoke the person's license after the first offense.5895

       (1) Offers, promises, or gives anything of value or benefit 5896
to a person who is connected with the casino operator, management 5897
company, holding company, or gaming-related vendor, including 5898
their officers and employees, under an agreement to influence or 5899
with the intent to influence the actions of the person to whom the 5900
offer, promise, or gift was made in order to affect or attempt to 5901
affect the outcome of a casino game or an official action of a 5902
commission member;5903

       (2) Solicits, accepts, or receives a promise of anything of 5904
value or benefit while the person is connected with a casino, 5905
including an officer or employee of a casino operator, management 5906
company, or gaming-related vendor, under an agreement to influence 5907
or with the intent to influence the actions of the person to 5908
affect or attempt to affect the outcome of a casino game or an 5909
official action of a commission member;5910

       (3) Uses or possesses with the intent to use a device to 5911
assist in projecting the outcome of the casino game, keeping track 5912
of the cards played, analyzing the probability of the occurrence 5913
of an event relating to the casino game, or analyzing the strategy 5914
for playing or betting to be used in the casino game, except as 5915
permitted by the commission;5916

       (4)(2) Cheats at a casino game;5917

       (5)(3) Manufactures, sells, or distributes any cards, chips, 5918
dice, game, or device that is intended to be used to violate this 5919
chapter;5920

       (6)(4) Alters or misrepresents the outcome of a casino game 5921
on which wagers have been made after the outcome is made sure but 5922
before the outcome is revealed to the players;5923

       (7)(5) Places, increases, or decreases a wager on the outcome 5924
of a casino game after acquiring knowledge that is not available 5925
to all players and concerns the outcome of the casino game that is 5926
the subject of the wager;5927

       (8)(6) Aids a person in acquiring the knowledge described in 5928
division (E)(7)(5) of this section for the purpose of placing, 5929
increasing, or decreasing a wager contingent on the outcome of a 5930
casino game;5931

       (9)(7) Claims, collects, takes, or attempts to claim, 5932
collect, or take money or anything of value in or from a casino 5933
game with the intent to defraud or without having made a wager 5934
contingent on winning a casino game;5935

       (10)(8) Claims, collects, or takes an amount of money or 5936
thing of value of greater value than the amount won in a casino 5937
game;5938

       (11)(9) Uses or possesses counterfeit chips or, tokens, or 5939
cashless wagering instruments in or for use in a casino game;5940

       (12)(10) Possesses a key or device designed for opening, 5941
entering, or affecting the operation of a casino game, drop box, 5942
or an electronic or a mechanical device connected with the casino 5943
game or removing coins, tokens, chips, or other contents of a 5944
casino game. This division does not apply to a casino operator, 5945
management company, or gaming-related vendor or their agents and 5946
employees in the course of agency or employment.5947

       (13)(11) Possesses materials used to manufacture a slug or5948
device intended to be used in a manner that violates this chapter;5949

       (14)(12) Operates a casino gaming operation in which wagering 5950
is conducted or is to be conducted in a manner other than the 5951
manner required under this chapter.5952

       (F) The possession of more than one of the devices described 5953
in division (E)(11)(9), (12)(10), or (13)(11) of this section 5954
creates a rebuttable presumption that the possessor intended to 5955
use the devices for cheating.5956

       (G) A person who knowingly or intentionally does any of the 5957
following commits a felony of the third degree. If the person is a 5958
licensee under this chapter, the commission shall revoke the 5959
person's license after the first offense. A public servant or 5960
party official who is convicted under this division is forever 5961
disqualified from holding any public office, employment, or 5962
position of trust in this state.5963

       (1) Offers, promises, or gives anything of value or benefit 5964
to a person who is connected with the casino operator, management 5965
company, holding company, or gaming-related vendor, including 5966
their officers and employees, under an agreement to influence or 5967
with the intent to influence the actions of the person to whom the 5968
offer, promise, or gift was made in order to affect or attempt to 5969
affect the outcome of a casino game or an official action of a 5970
commission member, agent, or employee;5971

       (2) Solicits, accepts, or receives a promise of anything of 5972
value or benefit while the person is connected with a casino, 5973
including an officer or employee of a casino operator, management 5974
company, or gaming-related vendor, under an agreement to influence 5975
or with the intent to influence the actions of the person to 5976
affect or attempt to affect the outcome of a casino game or an 5977
official action of a commission member, agent, or employee;5978

       (H) A person who is convicted of a felony described in this 5979
chapter may be barred for life from entering a casino facility by 5980
the commission.5981

       Sec. 4301.03.  The liquor control commission may adopt and 5982
promulgate, repeal, rescind, and amend, in the manner required by 5983
this section, rules, standards, requirements, and orders necessary 5984
to carry out this chapter and Chapter 4303. of the Revised Code, 5985
but all rules of the board of liquor control that were in effect 5986
immediately prior to April 17, 1963, shall remain in full force 5987
and effect as rules of the liquor control commission until and 5988
unless amended or repealed by the liquor control commission. The 5989
rules of the commission may include the following:5990

       (A) Rules with reference to applications for and the issuance 5991
of permits for the manufacture, distribution, transportation, and 5992
sale of beer and intoxicating liquor, and the sale of alcohol; and 5993
rules governing the procedure of the division of liquor control in 5994
the suspension, revocation, and cancellation of those permits;5995

       (B) Rules and orders providing in detail for the conduct of 5996
any retail business authorized under permits issued pursuant to 5997
this chapter and Chapter 4303. of the Revised Code, with a view to 5998
ensuring compliance with those chapters and laws relative to them, 5999
and the maintenance of public decency, sobriety, and good order in 6000
any place licensed under the permits. No rule or order shall 6001
prohibit the operation of video lottery terminal games at a 6002
commercial race track where live horse racing and simulcasting are 6003
conducted in accordance with Chapter 3769. of the Revised Code or6004
the sale of lottery tickets issued pursuant to Chapter 3770. of 6005
the Revised Code by any retail business authorized under permits 6006
issued pursuant to that chapter.6007

       No rule or order shall prohibit pari-mutuel wagering on 6008
simulcast horse races at a satellite facility that has been issued 6009
a D liquor permit under Chapter 4303. of the Revised Code. No rule 6010
or order shall prohibit a charitable organization that holds a D-4 6011
permit from selling or serving beer or intoxicating liquor under 6012
its permit in a portion of its premises merely because that 6013
portion of its premises is used at other times for the conduct of 6014
a bingo game, as described in division (S)(O) of section 2915.01 6015
of the Revised Code. However, such an organization shall not sell 6016
or serve beer or intoxicating liquor or permit beer or 6017
intoxicating liquor to be consumed or seen in the same location in 6018
its premises where a bingo game, as described in division 6019
(S)(O)(1) of section 2915.01 of the Revised Code, is being 6020
conducted while the game is being conducted. As used in this 6021
division, "charitable organization" has the same meaning as in 6022
division (H) of section 2915.01 of the Revised Code. No rule or 6023
order pertaining to visibility into the premises of a permit 6024
holder after the legal hours of sale shall be adopted or 6025
maintained by the commission.6026

       (C) Standards, not in conflict with those prescribed by any 6027
law of this state or the United States, to secure the use of 6028
proper ingredients and methods in the manufacture of beer, mixed 6029
beverages, and wine to be sold within this state;6030

       (D) Rules determining the nature, form, and capacity of all 6031
packages and bottles to be used for containing beer or 6032
intoxicating liquor, except for spirituous liquor to be kept or 6033
sold, governing the form of all seals and labels to be used on 6034
those packages and bottles, and requiring the label on every 6035
package, bottle, and container to state the ingredients in the 6036
contents and, except on beer, the terms of weight, volume, or 6037
proof spirits, and whether the same is beer, wine, alcohol, or any 6038
intoxicating liquor except for spirituous liquor;6039

       (E) Uniform rules governing all advertising with reference to 6040
the sale of beer and intoxicating liquor throughout the state and 6041
advertising upon and in the premises licensed for the sale of beer 6042
or intoxicating liquor;6043

       (F) Rules restricting and placing conditions upon the 6044
transfer of permits;6045

       (G) Rules and orders limiting the number of permits of any 6046
class within the state or within any political subdivision of the 6047
state; and, for that purpose, adopting reasonable classifications 6048
of persons or establishments to which any authorized class of 6049
permits may be issued within any political subdivision;6050

       (H) Rules and orders with reference to sales of beer and 6051
intoxicating liquor on Sundays and holidays and with reference to 6052
the hours of the day during which and the persons to whom 6053
intoxicating liquor of any class may be sold, and rules with 6054
reference to the manner of sale;6055

       (I) Rules requiring permit holders buying beer to pay and 6056
permit holders selling beer to collect minimum cash deposits for 6057
kegs, cases, bottles, or other returnable containers of the beer; 6058
requiring the repayment, or credit, of the minimum cash deposit 6059
charges upon the return of the empty containers; and requiring the 6060
posting of such form of indemnity or such other conditions with 6061
respect to the charging, collection, and repayment of minimum cash 6062
deposit charges for returnable containers of beer as are necessary 6063
to ensure the return of the empty containers or the repayment upon 6064
that return of the minimum cash deposits paid;6065

       (J) Rules establishing the method by which alcohol products 6066
may be imported for sale by wholesale distributors and the method 6067
by which manufacturers and suppliers may sell alcohol products to 6068
wholesale distributors.6069

       Every rule, standard, requirement, or order of the commission 6070
and every repeal, amendment, or rescission of them shall be posted 6071
for public inspection in the principal office of the commission 6072
and the principal office of the division of liquor control, and a 6073
certified copy of them shall be filed in the office of the 6074
secretary of state. An order applying only to persons named in it 6075
shall be served on the persons affected by personal delivery of a 6076
certified copy, or by mailing a certified copy to each person 6077
affected by it or, in the case of a corporation, to any officer or 6078
agent of the corporation upon whom a service of summons may be 6079
served in a civil action. The posting and filing required by this 6080
section constitutes sufficient notice to all persons affected by 6081
such rule or order which is not required to be served. General 6082
rules of the commission promulgated pursuant to this section shall 6083
be published in the manner the commission determines.6084

       Sec. 4303.17. (A)(1) Permit D-4 may be issued to a club that 6085
has been in existence for three years or more prior to the 6086
issuance of the permit to sell beer and any intoxicating liquor to 6087
its members only, in glass or container, for consumption on the 6088
premises where sold. The fee for this permit is four hundred 6089
sixty-nine dollars.6090

       No D-4 permit shall be granted or retained until all elected 6091
officers of the organization controlling the club have filed with 6092
the division of liquor control a statement, signed under oath, 6093
certifying that the club is operated in the interest of the 6094
membership of a reputable organization, which is maintained by a 6095
dues paying membership, and setting forth the amount of initiation 6096
fee and yearly dues.6097

       The roster of membership of a D-4 permit holder shall be 6098
submitted under oath on the request of the superintendent of 6099
liquor control. Any information acquired by the superintendent or 6100
the division with respect to that membership shall not be open to 6101
public inspection or examination and may be divulged by the 6102
superintendent and the division only in hearings before the liquor 6103
control commission or in a court action in which the division or 6104
the superintendent is named a party.6105

       (2) The requirement that a club shall have been in existence 6106
for three years in order to qualify for a D-4 permit does not 6107
apply to units of organizations chartered by congress or to a 6108
subsidiary unit of a national fraternal organization if the parent 6109
organization has been in existence for three years or more at the 6110
time application for a permit is made by that unit.6111

       (B) No rule or order of the division or commission shall 6112
prohibit a charitable organization that holds a D-4 permit from 6113
selling or serving beer or intoxicating liquor under its permit in 6114
a portion of its premises merely because that portion of its 6115
premises is used at other times for the conduct of a bingo game as 6116
described in division (S)(O)(1) of section 2915.01 of the Revised 6117
Code. However, such an organization shall not sell or serve beer 6118
or intoxicating liquor or permit beer or intoxicating liquor to be 6119
consumed or seen in the same location in its premises where a 6120
bingo game as described in division (S)(O)(1) of section 2915.01 6121
of the Revised Code is being conducted while the game is being 6122
conducted. As used in this division, "charitable organization" has 6123
the same meaning as in division (H) of section 2915.01 of the 6124
Revised Code.6125

       (C) Notwithstanding any contrary provision of sections 6126
4301.32 to 4301.41, division (C)(1) of section 4303.29, and 6127
section 4305.14 of the Revised Code, the holder of a D-4 permit 6128
may transfer the location of the permit and sell beer and wine at 6129
the new location if that location is in an election precinct in 6130
which the sale of beer and wine, but not spirituous liquor, 6131
otherwise is permitted by law.6132

       Sec. 5753.01.  As used in Chapter 5753. of the Revised Code 6133
and for no other purpose under Title LVII of the Revised Code:6134

       (A) "Casino facility" has the same meaning as in section 6135
3772.01 of the Revised Code.6136

       (B) "Casino gaming" has the same meaning as in section 6137
3772.01 of the Revised Code.6138

       (C) "Casino operator" has the same meaning as in section 6139
3772.01 of the Revised Code.6140

       (D) "Gross casino revenue" means the total amount of money 6141
exchanged for the purchase of chips, tokens, tickets, electronic 6142
cards, or similar objects by casino patrons, less winnings paid to 6143
wagerers. "Gross casino revenue" does not include the:6144

       (1) The issuance to casino patrons or wagering by casino 6145
patrons of any promotional gaming credit as defined in section 6146
3772.01 of the Revised Code. When issuance of the promotional 6147
gaming credit requires money exchanged as a match from the patron, 6148
the excludible portion of the promotional gaming credit does not 6149
include the portion of the wager purchased by the patron.6150

       (2) Bad debts from receipts on the basis of which the tax 6151
imposed by this chapter was paid in a prior tax period to the 6152
extent not previously excluded. For the purpose of this division, 6153
"bad debts" means any debts that have become worthless or 6154
uncollectible in a prior tax period, have been uncollected for at 6155
least six months, and that may be claimed as a deduction under 6156
section 166 of the Internal Revenue Code and the regulations 6157
adopted under that section, or that could be claimed as such if 6158
the taxpayer kept its accounts on the accrual basis. "Bad debts" 6159
does not include repossessed property, uncollectible amounts on 6160
property that remains in the possession of the casino operator 6161
until the full purchase price is paid, or expenses in attempting 6162
to collect any account receivable or for any portion of the debt 6163
recovered.6164

       (E) "Person" has the same meaning as in section 3772.01 of 6165
the Revised Code.6166

       (F) "Slot machine" has the same meaning as in section 3772.01 6167
of the Revised Code.6168

       (G) "Table game" has the same meaning as in section 3772.01 6169
of the Revised Code.6170

       (H) "Tax period" means one twenty-four-hour period with 6171
regard to which a casino operator is required to pay the tax 6172
levied by this chapter.6173

       Sec. 5753.03.  (A) For the purpose of receiving and 6174
distributing, and accounting for, revenue received from the tax 6175
levied by section 5753.02 of the Revised Code, the following funds 6176
are created in the state treasury:6177

       (1) The casino tax revenue fund;6178

       (2) The gross casino revenue county fund;6179

       (3) The gross casino revenue county student fund;6180

       (4) The gross casino revenue host city fund;6181

       (5) The Ohio state racing commission fund;6182

       (6) The Ohio law enforcement training fund;6183

       (7) The problem casino gambling and addictions fund;6184

       (8) The casino control commission fund;6185

       (9) The casino tax administration fund.6186

       (B) All moneys collected from the tax levied under this 6187
chapter shall be deposited into the casino tax revenue fund.6188

       (C) From the casino tax revenue fund the director of budget 6189
and management shall transfer as needed to the tax refund fund 6190
amounts equal to the refunds certified by the tax commissioner 6191
under section 5753.06 of the Revised Code.6192

       (D) After making any transfers required by division (C) of 6193
this section, but not later than the fifteenth day of the month 6194
following the end of each calendar quarter, the director of budget 6195
and management shall transfer amounts to each fund as follows:6196

       (1) Fifty-one per cent to the gross casino revenue county 6197
fund to make payments as required by Section 6(C)(3)(a) of Article 6198
XV, Ohio Constitution;6199

       (2) Thirty-four per cent to the gross casino revenue county 6200
student fund to make payments as required by Section 6(C)(3)(b) of 6201
Article XV, Ohio Constitution;6202

       (3) Five per cent to the gross casino revenue host city fund 6203
for the benefit of the cities in which casino facilities are 6204
located;6205

       (4) Three per cent to the Ohio state racing commission fund 6206
to support horse racing in this state at which the pari-mutuel 6207
system of wagering is conducted;6208

       (5) Two per cent to the Ohio law enforcement training fund to 6209
support law enforcement functions in the state;6210

       (6) Two per cent to the problem casino gambling and 6211
addictions fund to support efforts to alleviate problem gambling 6212
and substance abuse and related research in the state;6213

       (7) Three per cent to the casino control commission fund to 6214
support the operations of the Ohio casino control commission and 6215
to defray the cost of administering the tax levied under section 6216
5753.02 of the Revised Code.6217

       Payments under divisions (D)(1), (2), and (3) of this section 6218
shall be made by the end of the month following the end of the 6219
quarterly period. The tax commissioner shall make the data 6220
available to the director of budget and management for this 6221
purpose.6222

       Of the money credited to the Ohio law enforcement training 6223
fund, the director of budget and management shall distribute 6224
eighty-five per cent of the money to the Ohio peace officer 6225
training academy and fifteen per cent of the money to the division 6226
of criminal justice services.6227

       (E)(1) The tax commissioner shall serve as an agent of the 6228
counties of this state only for the purposes of this division and 6229
solely to make payments directly to municipal corporations and 6230
school districts, as applicable, on the counties' behalf.6231

       (2) On or before the thirtieth day of the month following the 6232
end of each calendar quarter, the tax commissioner shall provide 6233
for payment from the funds referenced in divisions (D)(1), (2), 6234
and (3) of this section to each county, municipal corporation, and 6235
school district as prescribed in those divisions.6236

       (F) A county shall allocate each payment received pursuant to 6237
division (D)(1) of this section as follows:6238

       (1) If, on or before the effective date of the amendment of 6239
this section by Sub. H.B. 386 of the 129th general assembly, the 6240
board of county commissioners has entered into a contract or 6241
similar agreement pledging any portion of the payment to a 6242
specific entity or for a specific purpose, the county shall 6243
allocate the amount necessary to fulfill the pledge to such entity 6244
or for such purpose.6245

        (2) The payment amount remaining after subtraction for the 6246
amount allocated pursuant to division (F)(1) of this section shall 6247
be allocated as follows:6248

       (a) Fifty per cent to the general funds of the county and of 6249
any municipal corporations or townships having territory within 6250
the county, in such proportions as are determined by the board of 6251
county commissioners, for the support of police, fire, emergency 6252
medical service, or other public safety services provided by those 6253
subdivisions within the county;6254

        (b) Fifty per cent to the county's general fund or a special 6255
fund to be used for any county purpose.6256

        (G) The director of budget and management shall transfer one 6257
per cent of the money credited to the casino control commission 6258
fund to the casino tax administration fund. The tax commissioner 6259
shall use the casino tax administration fund to defray the costs 6260
incurred in administering the tax levied by this chapter.6261

       Section 2.  That existing sections 111.15, 122.014, 173.121, 6262
2505.09, 2505.12, 2915.01, 2915.02, 2915.06, 2915.08, 2915.09, 6263
2915.091, 2915.092, 2915.093, 2915.094, 2915.10, 2915.101, 6264
2915.12, 2923.31, 2933.51, 3301.0714, 3769.08, 3769.087, 3769.089, 6265
3770.02, 3770.03, 3770.05, 3770.07, 3770.071, 3770.21, 3772.01, 6266
3772.03, 3772.04, 3772.091, 3772.10, 3772.13, 3772.16, 3772.17, 6267
3772.28, 3772.99, 4301.03, 4303.17, 5753.01, and 5753.03, and 6268
section 3772.14 of the Revised Code are hereby repealed.6269

       Section 3. That Section 261.20.90 of Am. Sub. H.B. 153 of the 6270
129th General Assembly be amended to read as follows:6271

       Sec. 261.20.90. OHIO INCUMBENT WORKFORCE TRAINING VOUCHERS6272

       (A) On July 1, 2011, or as soon as possible thereafter, the 6273
Director of Budget and Management shall transfer up to $20,000,000 6274
from the Economic Development Programs Fund (Fund 5JC0) used by 6275
the Board of Regents to the Ohio Incumbent Workforce Job Training 6276
Fund (Fund 5HR0) used by the Department of Development.6277

        On July 1, 2012, or as soon as possible thereafter, the 6278
Director of Budget and Management shall transfer up to $30,000,000 6279
from the Economic Development Programs Fund (Fund 5JC0) used by 6280
the Board of Regents to the Ohio Incumbent Workforce Job Training 6281
Fund (Fund 5HR0) used by the Department of Development.6282

        (B) Of the foregoing appropriation item 195526, Ohio 6283
Workforce Job Training, up to $20,000,000 in fiscal year 2012 and 6284
up to $30,000,000 in fiscal year 2013 shall be used to support the 6285
Ohio Incumbent Workforce Training Voucher Program. Any unexpended 6286
and unencumbered portion of the appropriation item remaining at 6287
the end of fiscal year 2012 is hereby appropriated for the same 6288
purpose in fiscal year 2013. The Director of Development and the 6289
Chief Investment Officer of JobsOhio may enter into an agreement 6290
to operate the program pursuant to the contract between the 6291
Department of Development and JobsOhio under section 187.04 of the 6292
Revised Code. The agreement may include a provision for granting, 6293
loaning, or transferring funds from appropriation item 195526, 6294
Ohio Incumbent Workforce Job Training, to JobsOhio to provide 6295
training for incumbent workers.6296

        (C) Regardless of any agreement between the Director and the 6297
Chief Investment Officer under division (B) of this section, the 6298
Ohio Incumbent Workforce Training Voucher Program shall conform to 6299
guidelines for the operation of the program, including, but not 6300
limited to, the following:6301

        (1) A requirement that a training voucher under the program 6302
shall not exceed $6,000 per worker per year;6303

       (2) A provision for an employer of an eligible employee to 6304
apply for a voucher on behalf of the eligible employee;6305

        (3) A provision for an eligible employee to apply directly 6306
for a training voucher with the pre-approval of the employee's 6307
employer; and6308

        (4) A requirement that an employee participating in the 6309
program, or the employee's employer, shall pay for not less than 6310
thirty-three per cent of the training costs under the program.6311

       DEFENSE DEVELOPMENT ASSISTANCE6312

       On July 1 of each fiscal year, or as soon as possible 6313
thereafter, the Director of Budget and Management shall transfer 6314
$5,000,000 in cash from the Economic Development Projects Fund 6315
(Fund 5JC0) used by the Board of Regents to the Ohio Incumbent 6316
Workforce Job Training Fund (Fund 5HR0) used by the Department of 6317
Development. The transferred funds are hereby appropriated in 6318
appropriation item 195622, Defense Development Assistance.6319

       The foregoing appropriation item 195622, Defense Development 6320
Assistance, shall be used for economic development programs and 6321
the creation of new jobs to leverage and support mission gains at 6322
Department of Defense facilities in Ohio by working with future 6323
base realignment and closure activities and ongoing Department of 6324
Defense efficiency initiatives, assisting efforts to secure 6325
Department of Defense support contracts for Ohio companies, 6326
assessing and supporting regional job training and workforce 6327
development needs generated by the Department of Defense and the 6328
Ohio aerospace industry, and for expanding job training and 6329
economic development programs in human performance related 6330
initiatives. These funds shall be matched by private industry 6331
partners or the Department of Defense in an aggregate amount of 6332
$6,000,000 over the FY 2012-FY 2013 biennium.6333

       Section 4. That existing Section 261.20.90 of Am. Sub. H.B. 6334
153 of the 129th General Assembly is hereby repealed.6335

       Section 5.  That Section 3 of Sub. H.B. 277 of the 129th 6336
General Assembly be amended to read as follows:6337

       Sec. 3. (A) Notwithstanding sections 3769.04 and 3769.13 of 6338
the Revised Code, for a period of two years after the effective 6339
date of this section, a permit holder who is eligible to become a 6340
video lottery sales agent may apply to the State Racing Commission 6341
to move its track to another location using the following approval 6342
procedure:6343

       (1) The permit holder shall submit, for the consideration of 6344
the State Racing Commission in its determination on whether to 6345
approve the transfer, its proposal to the State Racing Commission 6346
and shall specify the location of the new track and the 6347
incremental economic benefits the permit holder is willing to 6348
provide to the state.6349

       (2) The State Racing Commission shall approve or deny the 6350
transfer.6351

       (3) The permit holder may apply to the State Lottery 6352
Commission for a video lottery sales agent license at the new 6353
track location.6354

       (B) The State Racing Commission, subject to division (D) of 6355
this section, shall give preference to transfer proposals 6356
involving moves to locations in which neither horse-racing 6357
meetings nor casino gaming have been authorized before July 1, 6358
2011. A permit holder that is authorized to transfer its track 6359
under this section and that is a video lottery sales agent may 6360
operate at a temporary facility at its new location while 6361
constructing or otherwise preparing its new track at that 6362
location. A permit holder that is not transferring its track and 6363
is remaining at its permitted location and that is a video lottery 6364
sales agent may operate a temporary facility at its permitted 6365
location while constructing or otherwise preparing its permanent 6366
video lottery terminal facility at its track. A temporary 6367
facility, either at a new track location or an existing track 6368
location of a track that does not transfer its track, shall meet 6369
any minimal capital investment and structure requirements 6370
established by rule by the State Racing Commission in conjunction 6371
with the State Lottery Commission.6372

       (C) The state may discuss and negotiate with parties 6373
regarding the transferring of racing permits to new track 6374
locations and may, in its discretion, enter into agreements 6375
regarding the transfer of permits to new locations in advance of 6376
the process set forth in this section.6377

       (D) A permit holder who is located on property owned by a 6378
political subdivision may move its track to a new location within 6379
twenty miles of its current location. Such a permit holder shall 6380
not be charged any fee by the state in exchange for applying for a 6381
move, for having its move approved, or for moving its existing 6382
track as specified under this division. The State Racing 6383
Commission shall give a preference greater than the preference 6384
given under division (B) of this section to such a permit holder 6385
as part of the approval procedure.6386

       (E) Chapter 2915. of the Revised Code does not apply to, 6387
affect, or prohibit lotteries or video lotteries conducted under 6388
this section and Chapter 3770. of the Revised Code. The State 6389
Racing Commission may not adopt rules regarding the operation of 6390
lotteries or video lotteries conducted under Chapter 3770. of the 6391
Revised Code.6392

       (F) The State Racing Commission may adopt rules under Chapter 6393
119. of the Revised Code to effectuate this section and to 6394
establish fees to relocate tracks for applicants under this 6395
section.6396

       (G) As used in this section:6397

       (1) "Permit holder" means a person that has been authorized 6398
by the State Racing Commission to conduct one or more horse-racing 6399
meetings under Chapter 3769. of the Revised Code. 6400

       (2) "Track" means any place, track, or enclosure where a 6401
permit holder conducts live horse racing for profit at a racing 6402
meeting. "Track" includes facilities or premises contiguous or 6403
adjacent to those places, tracks, or enclosures. 6404

       (3) "Video lottery sales agent" means a person who is a 6405
permit holder and holds a current license issued by the State 6406
Lottery Commission to assist the Commission in conducting video 6407
lotteries through the use of video lottery terminals at a track.6408

       Section 6.  That existing Section 3 of Sub. H.B. 277 of the 6409
129th General Assembly is hereby repealed.6410

       Section 7.  That Section 4 of Sub. H.B. 277 of the 129th 6411
General Assembly is hereby repealed.6412

       Section 8.  (A) The Governor is authorized to execute a deed 6413
in the name of the state conveying to Lebanon Trotting Club, Inc., 6414
and Miami Valley Trotting, Inc., the holders of pari-mutuel racing 6415
permits issued by the State Racing Commission, or to their 6416
respective successors and assigns (hereinafter collectively 6417
referred to as the "grantee"), all of the state's right, title, 6418
and interest in the following described real estate:6419

       Situated in Turtlecreek Township, City of Lebanon, County of 6420
Warren, State of Ohio and being part of Warren County Parcel Nos. 6421
11064000140 and 12363000030, which land is situated at the 6422
northeast corner of the intersection of State Route 63 and Union 6423
Road, and is bounded to the west by Union Road, to the south by 6424
Route 63, and to the east by a private roadway used by the 6425
Department of Rehabilitation and Correction for ingress and egress 6426
from Route 63 to the Lebanon Correctional Institution's dairy 6427
barn. The northerly boundary shall be established by a survey 6428
designed to ensure that the land to be conveyed does not exceed 6429
one hundred twenty acres.6430

       In preparing the deed, the Auditor of State, with the 6431
assistance of the Attorney General, may modify the foregoing 6432
description insofar as necessary to bring it into conformity with 6433
the actual bounds of the real estate being described.6434

       (B) Consideration for conveyance of the real estate is four 6435
million five hundred thousand dollars.6436

       (C) The net proceeds of the sale of the real estate shall be 6437
deposited in the state treasury to the credit of the Department of 6438
Rehabilitation and Correction, Fund 2000, appropriation item 6439
501607, Ohio Penal Industries, which contains funds for 6440
expenditures on farm and agricultural uses, for which these 6441
proceeds shall be used.6442

       (D) The grantee, following the conveyance of the real estate, 6443
and in accordance with the terms of the purchase contract, shall 6444
do all of the following:6445

       (1) Permit the state and its successors and assigns perpetual 6446
ingress and egress rights to the culvert and roadway located along 6447
the easterly line of the real estate, which culvert and roadway 6448
are presently used by the state to access the Lebanon Correctional 6449
Institution's dairy barn. The grantee shall be responsible for all 6450
costs related to the continued maintenance of the culvert and 6451
roadway in their current condition.6452

       (2) Create and maintain, at the grantee's sole cost, a 6453
landscape buffer zone along the perimeter of the real estate. The 6454
design, location, and materials used in the landscape buffer zone 6455
shall be approved by the state.6456

       (3) Coordinate with the appropriate state and local 6457
authorities to improve State Route 63 with new signage and 6458
adequate turning lanes.6459

       (E) The grantee shall not use, develop, or sell the premises 6460
such that it will interfere with the quiet enjoyment of the 6461
neighboring state-owned land.6462

       (F) The real estate shall be sold as an entire tract and not 6463
in parcels.6464

       (G) The grantee shall pay all costs associated with the 6465
purchase and conveyance of the real estate, which costs shall 6466
include, but are not limited to, the following: surveying costs; 6467
title costs; preparation of metes and bounds property 6468
descriptions; appraisals; environmental studies, assessments, and 6469
remediation; and deed recordation costs.6470

       (H) The Auditor of State, with the assistance of the Attorney 6471
General, shall prepare a deed to the real estate. The deed shall 6472
state the consideration and the conditions. The deed shall be 6473
executed by the Governor in the name of the state, countersigned 6474
by the Secretary of State, sealed with the Great Seal of the 6475
State, presented in the Office of the Auditor of State for 6476
recording, and delivered to the grantee. The grantee shall present 6477
the deed for recording in the Office of the Warren County 6478
Recorder.6479

       (I) This section expires two years after its effective date.6480

       Section 9.  (A) As used in this section:6481

       (1) "Permit holder" means a person that has been authorized 6482
by the State Racing Commission to conduct one or more horse-racing 6483
meetings under Chapter 3769. of the Revised Code.6484

       (2) "Track" means any place, track, or enclosure where a 6485
permit holder conducts live horse racing for profit at a racing 6486
meeting. "Track" includes facilities or premises contiguous or 6487
adjacent to those places, tracks, or enclosures.6488

       (B) There is hereby created in the state treasury the 6489
Racetrack Relocation Fund. The fund shall receive any money paid 6490
to the state by horse-racing permit holders for the privilege to 6491
relocate to a new facility in accordance with Section 3 of Sub. 6492
H.B. 277 of the 129th General Assembly, as amended by this act. 6493
Upon the allocation of all the money in the fund in accordance 6494
with this section, the fund shall cease to exist.6495

       (C) There is hereby created in the state treasury the 6496
Racetrack Facility Community Economic Redevelopment Fund into 6497
which shall be deposited moneys as specified by this section and 6498
rules promulgated by the State Racing Commission. The fund shall 6499
be used for repurposing or demolishing of an abandoned 6500
horse-racing facility or reinvestment in the area, neighborhood, 6501
and community near an abandoned facility. Any remaining funds 6502
shall be transferred to the General Revenue Fund. Upon the 6503
allocation of all the money in the fund in accordance with this 6504
section, the fund shall cease to exist.6505

       (D) The Director of Development or any successor department 6506
or agency shall oversee and administer the Racetrack Facility 6507
Community Economic Redevelopment Fund for the purpose of the 6508
repurposing or demolishing of an abandoned horse-racing facility 6509
or reinvestment in the area, neighborhood, and community near an 6510
abandoned facility through loans and grants. The Director shall 6511
provide guidelines for racetrack facility community economic 6512
development projects in the state. Projects may include, but are 6513
not limited to, site planning, site certification, structure 6514
demolition, physical site redevelopment, relocation of utilities, 6515
or construction. Projects shall not incorporate acquisition and 6516
related expense. Moneys in the fund may be used to pay reasonable 6517
costs incurred by the Director in administering this section.6518

       (E) The moneys in the Racetrack Relocation Fund shall be 6519
allocated to the following funds in the following amounts:6520

       (1) Five hundred thousand dollars to the Problem Casino 6521
Gambling and Addictions Fund described in Section 6(C)(3)(g) of 6522
Article XV, Ohio Constitution, to be used for research and data 6523
collection on gambling addiction issues;6524

       (2) Not more than three million dollars to the previous 6525
community of each moved track, which shall be deposited in the 6526
Racetrack Facility Community Economic Redevelopment Fund;6527

       (3) The remainder to the General Revenue Fund.6528

       (F) Communities whose permit holders did not pay to move its 6529
track to a new location are not eligible for funds in the 6530
Racetrack Facility Community Economic Redevelopment Fund. 6531

       Section 10.  Except as otherwise provided in this act, all 6532
appropriation items in this act are appropriated out of any moneys 6533
in the state treasury to the credit of the designated fund that 6534
are not otherwise appropriated. For all appropriations made in 6535
this act, the amounts in the first column are for fiscal year 2012 6536
and the amounts in the second column are for fiscal year 2013.6537

DEV DEPARTMENT OF DEVELOPMENT
6538

XXXX 195XXX Racetrack Facility Community Economic Redevelopment Fund $ 12,000,000 $ 0 6539

       The foregoing appropriation item 195XXX, Racetrack Facility 6540
Community Economic Redevelopment Fund, shall be used for the 6541
purpose of the repurposing or demolishing of an abandoned 6542
horse-racing facility or reinvestment in the area, neighborhood, 6543
and community near an abandoned facility. Any unexpended and 6544
unencumbered portion of this appropriation item at the end of 6545
fiscal year 2012 is hereby reappropriated for the same purpose in 6546
fiscal year 2013. Revenue in the fund may be used to pay 6547
reasonable costs incurred by the Director of Development in 6548
administering the program.6549

       Section 11.  Notwithstanding any provision in law to the 6550
contrary, the Director of Alcohol and Drug Addiction Services 6551
shall complete a study to identify the current status of gaming 6552
addiction problems within the state. In fiscal year 2013, the 6553
Director may certify to the Director of Budget and Management the 6554
cost, not exceeding two hundred fifty thousand dollars, incurred 6555
by the Department of Alcohol and Drug Addiction Services in 6556
conducting the gaming addiction study. In response to receiving 6557
this certification, the Director of Budget and Management may 6558
transfer the cost of the study in cash to the Problem Casino and 6559
Gambling Addictions Fund (Fund 5JL0) to reimburse the fund for 6560
costs incurred in conducting the study.6561

       Section 12.  The items of law contained in this act, and 6562
their applications, are severable. If any item of law contained in 6563
this act, or if any application of any item of law contained in 6564
this act, is held invalid, the invalidity does not affect other 6565
items of law contained in this act and their applications that can 6566
be given effect without the invalid item of law or application.6567

       Section 13.  The amendment by this act of sections 3770.02 6568
and 5753.03 of the Revised Code are an emergency measure necessary 6569
for the immediate preservation of the public peace, health, and 6570
safety. The reason for such necessity is the importance of not 6571
delaying licensing procedures and money distribution. Therefore, 6572
the amendment by this act of sections 3770.02 and 5753.03 of the 6573
Revised Code goes into immediate effect. 6574

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