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

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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

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As Reported by the Committee of Conference

129th General Assembly Regular Session 2011-2012

Am. Sub. H. B. No. 386

Representative Blessing 

Cosponsors: Representatives Gerberry, Combs, Letson, Barnes, Boyd, Mallory, O'Brien, Weddington, Williams, Yuko 

Senators Coley, Eklund, Niehaus, Seitz 

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A BILL

To amend sections 122.014, 173.121, 718.03, 2915.01,

1

2915.02, 2915.06, 2915.08, 2915.09, 2915.091,

2

2915.092, 2915.093, 2915.094, 2915.10, 2915.101,

3

2915.12, 2923.31, 2933.51, 3301.0714, 3769.08,

4

3769.087, 3769.089, 3769.0810, 3770.02, 3770.05,

5

3770.07, 3770.071, 3770.072, 3770.073, 3770.21,

6

3772.01, 3772.03, 3772.032, 3772.04, 3772.07,

7

3772.091, 3772.10, 3772.13, 3772.16, 3772.17,

8

3772.28, 3772.99, 4301.03, 4303.17, 5703.21,

9

5747.062, 5747.063, 5747.08, 5747.12, 5747.98, and

10

5753.03, to enact sections 121.421, 3769.041,

11

3769.0812, 3770.22, 3772.35, 5747.064, and

12

5753.11, to repeal section 3772.14 of the Revised

13

Code, to amend Section 3 of Sub. H.B. 277 of the

14

129th General Assembly, and to repeal Section 4 of

15

Sub. H.B. 277 of the 129th General Assembly to

16

make changes to the law regarding video lottery

17

terminals, casino gaming, bingo and instant bingo,

18

and horse racing, to establish a moratorium on new

19

establishments conducting sweepstakes by

20

sweepstakes terminal devices, to make

21

appropriations, and to declare an emergency.

22

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

Section 1.  That sections 122.014, 173.121, 718.03, 2915.01,	23
2915.02, 2915.06, 2915.08, 2915.09, 2915.091, 2915.092, 2915.093,	24
2915.094, 2915.10, 2915.101, 2915.12, 2923.31, 2933.51, 3301.0714,	25
3769.08, 3769.087, 3769.089, 3769.0810, 3770.02, 3770.05, 3770.07,	26
3770.071, 3770.072, 3770.073, 3770.21, 3772.01, 3772.03, 3772.032,	27
3772.04, 3772.07, 3772.091, 3772.10, 3772.13, 3772.16, 3772.17,	28
3772.28, 3772.99, 4301.03, 4303.17, 5703.21, 5747.062, 5747.063,	29
5747.08, 5747.12, 5747.98, and 5753.03 be amended and sections	30
121.421, 3769.041, 3769.0812, 3770.22, 3772.35, 5747.064, and	31
5753.11 of the Revised Code be enacted to read as follows:	32

Sec. 121.421.  (A) Notwithstanding division (D)(3) of section	33
121.41 of the Revised Code, in order to determine whether wrongful	34
acts or omissions have been committed or are being committed by	35
present or former employees, the inspector general shall	36
investigate employees of the office of the attorney general who	37
are contractually vested with duties to enforce Chapter 3772. of	38
the Revised Code, including any designated bureau of criminal	39
identification and investigation support staff that are necessary	40
to fulfill the investigatory and law enforcement functions of the	41
Ohio casino control commission. The inspector general and any	42
deputy inspector general may administer oaths, examine witnesses	43
under oath, and issue subpoenas and subpoenas duces tecum to	44
employees of the office of the attorney general to compel the	45
attendance of witnesses and the production of all kinds of books,	46
records, papers, and tangible things deemed necessary in the	47
course of any such investigation.	48

(B) The inspector general may enter into any contracts that	49
are necessary to complete an investigation. The contracts may	50
include contracts for the services of persons who are experts in a	51
particular field and whose expertise is necessary for successful	52
completion of the investigation.	53

(C) If the authority of the attorney general terminates or	54
expires, the authority vested in the inspector general by this	55
section terminates upon the conclusion of ongoing investigations	56
or upon issuance of the final report of the investigations.	57

Sec. 122.014.  (A) As used in this section, "gaming	58
activities" means activities conducted in connection with or that	59
include any of the following:	60

(1) Casino gaming, as authorized and defined in Section 6(C)	61
of Article XV, Ohio Constitution;	62

(2) Casino gaming, as defined in division (D)(E) of section	63
3772.01 of the Revised Code; or	64

(3) The pari-mutuel system of wagering as authorized and	65
described in Chapter 3769. of the Revised Code.	66

(B) The department of development or any other entity that	67
administers any program or development project established under	68
Chapter 122., 166., or 184. of the Revised Code or in sections	69
149.311, 5709.87, or 5709.88 of the Revised Code shall not provide	70
any financial assistance, including loans, tax credits, and	71
grants, staffing assistance, technical support, or other	72
assistance to businesses conducting gaming activities or for	73
project sites on which gaming activities are or will be conducted.	74

Sec. 173.121.  (A) As used in this section, "bingo," "bingo	75
game operator," and "participant" have the same meanings as in	76
section 2915.01 of the Revised Code.	77

(B) Notwithstanding sections 2915.07 to 2915.13 of the	78
Revised Code, a multipurpose senior center may conduct bingo games	79
described in division (S)(O)(1) of section 2915.01 of the Revised	80
Code, but only if it complies with all of the following	81
requirements:	82

(1) All bingo games are conducted only on the premises of the	83
facility.	84

(2) All participants are sixtytwenty-one years of age or	85
older.	86

(3) All bingo game operators are sixty years of age or older	87
and receive no compensation for serving as operators.	88

(4) No participant is charged an admission fee, and no	89
participant is charged more than twenty-five cents to purchase a	90
bingo card or sheet.	91

(5) All proceeds from games are used only for any of the	92
following:	93

(a) To pay winners monetary or nonmonetary prizes;

94

(b) To provide refreshments;

95

(c) To defray any costs directly related to conducting the	96
games;	97

(d) To defray costs of services the facility provides in	98
accordance with section 173.12 of the Revised Code.	99

Sec. 718.03. (A) As used in this section:

100

(1) "Other payer" means any person, other than an	101
individual's employer or the employer's agent, that pays an	102
individual any amount included in the federal gross income of the	103
individual.	104

(2) "Qualifying wages" means wages, as defined in section	105
3121(a) of the Internal Revenue Code, without regard to any wage	106
limitations, adjusted as follows:	107

(a) Deduct the following amounts:

108

(i) Any amount included in wages if the amount constitutes	109
compensation attributable to a plan or program described in	110
section 125 of the Internal Revenue Code;	111

(ii) For purposes of division (B) of this section, any amount	112
included in wages if the amount constitutes payment on account of	113
sickness or accident disability.	114

(b) Add the following amounts:

115

(i) Any amount not included in wages solely because the	116
employee was employed by the employer prior to April 1, 1986;	117

(ii) Any amount not included in wages because the amount	118
arises from the sale, exchange, or other disposition of a stock	119
option, the exercise of a stock option, or the sale, exchange, or	120
other disposition of stock purchased under a stock option and the	121
municipal corporation has not, by resolution or ordinance,	122
exempted the amount from withholding and tax. Division	123
(A)(2)(b)(ii) of this section applies only to those amounts	124
constituting ordinary income.	125

(iii) Any amount not included in wages if the amount is an	126
amount described in section 401(k) or 457 of the Internal Revenue	127
Code. Division (A)(2)(b)(iii) of this section applies only to	128
employee contributions and employee deferrals.	129

(iv) Any amount that is supplemental unemployment	130
compensation benefits described in section 3402(o)(2) of the	131
Internal Revenue Code and not included in wages.	132

(c) Deduct any amount attributable to a nonqualified deferred	133
compensation plan or program described in section 3121(v)(2)(C) of	134
the Internal Revenue Code if the compensation is included in wages	135
and has, by resolution or ordinance, been exempted from taxation	136
by the municipal corporation.	137

(d) Deduct any amount included in wages if the amount arises	138
from the sale, exchange, or other disposition of a stock option,	139
the exercise of a stock option, or the sale, exchange, or other	140
disposition of stock purchased under a stock option and the	141
municipal corporation has, by resolution or ordinance, exempted	142
the amount from withholding and tax.	143

(B) ForExcept as provided in division (F) of this section,	144
for taxable years beginning after 2003, no municipal corporation	145
shall require any employer or any agent of any employer or any	146
other payer, to withhold tax with respect to any amount other than	147
qualifying wages. Nothing in this section prohibits an employer	148
from withholding tax on a basis greater than qualifying wages.	149

(C) An employer is not required to make any withholding with	150
respect to an individual's disqualifying disposition of an	151
incentive stock option if, at the time of the disqualifying	152
disposition, the individual is not an employee of the corporation	153
with respect to whose stock the option has been issued.	154

(D)(1) An employee is not relieved from liability for a tax	155
by the failure of the employer to withhold the tax as required by	156
a municipal corporation or by the employer's exemption from the	157
requirement to withhold the tax.	158

(2) The failure of an employer to remit to the municipal	159
corporation the tax withheld relieves the employee from liability	160
for that tax unless the employee colluded with the employer in	161
connection with the failure to remit the tax withheld.	162

(E) Compensation deferred before June 26, 2003, is not	163
subject to any municipal corporation income tax or municipal	164
income tax withholding requirement to the extent the deferred	165
compensation does not constitute qualifying wages at the time the	166
deferred compensation is paid or distributed.	167

(F) A municipal corporation may require a casino facility or	168
a casino operator, as defined in Section 6(C)(9) of Article XV,	169
Ohio Constitution, and section 3772.01 of the Revised Code,	170
respectively, or a lottery sales agent conducting video lottery	171
terminals on behalf of the state to withhold and remit tax with	172
respect to amounts other than qualifying wages.	173

Sec. 2915.01.  As used in this chapter:

174

(A) "Bookmaking" means the business of receiving or paying	175
off bets.	176

(B) "Bet" means the hazarding of anything of value upon the	177
result of an event, undertaking, or contingency, but does not	178
include a bona fide business risk.	179

(C) "Scheme of chance" means a slot machine, lottery, numbers	180
game, pool conducted for profit, or other scheme in which a	181
participant gives a valuable consideration for a chance to win a	182
prize, but does not include bingo, a skill-based amusement	183
machine, or a pool not conducted for profit.	184

(D) "Game of chance" means poker, craps, roulette, or other	185
game in which a player gives anything of value in the hope of	186
gain, the outcome of which is determined largely by chance, but	187
does not include bingo.	188

(E) "Game of chance conducted for profit" means any game of	189
chance designed to produce income for the person who conducts or	190
operates the game of chance, but does not include bingo.	191

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

192

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

193

(2) A ticket, token, or other device representing a chance,	194
share, or interest in a scheme of chance or evidencing a bet;	195

(3) A deck of cards, dice, gaming table, roulette wheel, slot	196
machine, or other apparatus designed for use in connection with a	197
game of chance;	198

(4) Any equipment, device, apparatus, or paraphernalia	199
specially designed for gambling purposes;	200

(5) Bingo supplies sold or otherwise provided, or used, in	201
violation of this chapter.	202

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

203

(1) A violation of section 2915.02, 2915.03, 2915.04,	204
2915.05, 2915.06, 2915.07, 2915.08, 2915.081, 2915.082, 2915.09,	205
2915.091, 2915.092, 2915.10, or 2915.11 of the Revised Code;	206

(2) A violation of an existing or former municipal ordinance	207
or law of this or any other state or the United States	208
substantially equivalent to any section listed in division (G)(1)	209
of this section or a violation of section 2915.06 of the Revised	210
Code as it existed prior to July 1, 1996;	211

(3) An offense under an existing or former municipal	212
ordinance or law of this or any other state or the United States,	213
of which gambling is an element;	214

(4) A conspiracy or attempt to commit, or complicity in	215
committing, any offense under division (G)(1), (2), or (3) of this	216
section.	217

(H) Except as otherwise provided in this chapter, "charitable	218
organization" means any tax exempt religious, educational,	219
veteran's, fraternal, sporting, service, nonprofit medical,	220
volunteer rescue service, volunteer firefighter's, senior	221
citizen's, historic railroad educational, youth athletic, amateur	222
athletic, or youth athletic park organization. An organization is	223
tax exempt if the organization iseither of the following:	224

(1) An organization that is, and has received from the	225
internal revenue service a determination letter that currently is	226
in effect stating that the organization is, exempt from federal	227
income taxation under subsection 501(a) and described in	228
subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or	229
501(c)(19) of the Internal Revenue Code, or if the organization is	230
a;	231

(2) A volunteer rescue service organization, volunteer	232
firefighter's organization, veteran's organization, fraternal	233
organization, or sporting organization that is exempt from federal	234
income taxation under subsection 501(a) and is described in	235
subsection 501(c)(4), (c)(7), (c)(8), (c)(10), or (c)(19) of the	236
Internal Revenue Code. To	237

To qualify as a "charitable organization," an organization,	238
except a volunteer rescue service or volunteer firefighter's	239
organization, shall have been in continuous existence as such in	240
this state for a period of two years immediately preceding either	241
the making of an application for a bingo license under section	242
2915.08 of the Revised Code or the conducting of any game of	243
chance as provided in division (D) of section 2915.02 of the	244
Revised Code. A charitable organization that is exempt from	245
federal income taxation under subsection 501(a) and described in	246
subsection 501(c)(3) of the Internal Revenue Code and that is	247
created by a veteran's organization, a fraternal organization, or	248
a sporting organization does not have to have been in continuous	249
existence as such in this state for a period of two years	250
immediately preceding either the making of an application for a	251
bingo license under section 2915.08 of the Revised Code or the	252
conducting of any game of chance as provided in division (D) of	253
section 2915.02 of the Revised Code.	254

(I) "Religious organization" means any church, body of	255
communicants, or group that is not organized or operated for	256
profit and that gathers in common membership for regular worship	257
and religious observances.	258

(J) "Educational organization" means any organization within	259
this state that is not organized for profit, the primary purpose	260
of which is to educate and develop the capabilities of individuals	261
through instruction by means of operating or contributing to the	262
support of a school, academy, college, or university.	263

(K) "Veteran's organization" means any individual post or	264
state headquarters of a national veteran's association or an	265
auxiliary unit of any individual post of a national veteran's	266
association, which post, state headquarters, or auxiliary unit is	267
incorporated as a nonprofit corporation and either has received a	268
letter from the state headquarters of the national veteran's	269
association indicating that the individual post or auxiliary unit	270
is in good standing with the national veteran's association or has	271
received a letter from the national veteran's association	272
indicating that the state headquarters is in good standing with	273
the national veteran's association. As used in this division,	274
"national veteran's association" means any veteran's association	275
that has been in continuous existence as such for a period of at	276
least five years and either is incorporated by an act of the	277
United States congress or has a national dues-paying membership of	278
at least five thousand persons.	279

(L)(K) "Volunteer firefighter's organization" means any	280
organization of volunteer firefighters, as defined in section	281
146.01 of the Revised Code, that is organized and operated	282
exclusively to provide financial support for a volunteer fire	283
department or a volunteer fire company and that is recognized or	284
ratified by a county, municipal corporation, or township.	285

(M)(L) "Fraternal organization" means any society, order,	286
state headquarters, or association within this state, except a	287
college or high school fraternity, that is not organized for	288
profit, that is a branch, lodge, or chapter of a national or state	289
organization, that exists exclusively for the common business or	290
sodality of its members.	291

(N)(M) "Volunteer rescue service organization" means any	292
organization of volunteers organized to function as an emergency	293
medical service organization, as defined in section 4765.01 of the	294
Revised Code.	295

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

296

(1) Any organization, not organized for profit, that is	297
organized and operated exclusively to provide, or to contribute to	298
the support of organizations or institutions organized and	299
operated exclusively to provide, medical and therapeutic services	300
for persons who are crippled, born with birth defects, or have any	301
other mental or physical defect or those organized and operated	302
exclusively to protect, or to contribute to the support of	303
organizations or institutions organized and operated exclusively	304
to protect, animals from inhumane treatment or provide immediate	305
shelter to victims of domestic violence;	306

(2) Any organization that is described in subsection	307
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code	308
and is either a governmental unit or an organization that is tax	309
exempt under subsection 501(a) and described in subsection	310
501(c)(3) of the Internal Revenue Code and that is an	311
organization, not organized for profit, that is organized and	312
operated primarily to provide, or to contribute to the support of	313
organizations or institutions organized and operated primarily to	314
provide, medical and therapeutic services for persons who are	315
crippled, born with birth defects, or have any other mental or	316
physical defect.	317

(P) "Nonprofit medical organization" means either of the	318
following:	319

(1) Any organization that has been incorporated as a	320
nonprofit corporation for at least five years and that has	321
continuously operated and will be operated exclusively to provide,	322
or to contribute to the support of organizations or institutions	323
organized and operated exclusively to provide, hospital, medical,	324
research, or therapeutic services for the public;	325

(2) Any organization that is described and qualified under	326
subsection 501(c)(3) of the Internal Revenue Code, that has been	327
incorporated as a nonprofit corporation for at least five years,	328
and that has continuously operated and will be operated primarily	329
to provide, or to contribute to the support of organizations or	330
institutions organized and operated primarily to provide,	331
hospital, medical, research, or therapeutic services for the	332
public.	333

(Q) "Senior citizen's organization" means any private	334
organization, not organized for profit, that is organized and	335
operated exclusively to provide recreational or social services	336
for persons who are fifty-five years of age or older and that is	337
described and qualified under subsection 501(c)(3) of the Internal	338
Revenue Code.	339

(R)(N) "Charitable bingo game" means any bingo game described	340
in division (S)(O)(1) or (2) of this section that is conducted by	341
a charitable organization that has obtained a license pursuant to	342
section 2915.08 of the Revised Code and the proceeds of which are	343
used for a charitable purpose.	344

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

345

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

346

(a) The participants use bingo cards or sheets, including	347
paper formats and electronic representation or image formats, that	348
are divided into twenty-five spaces arranged in five horizontal	349
and five vertical rows of spaces, with each space, except the	350
central space, being designated by a combination of a letter and a	351
number and with the central space being designated as a free	352
space.	353

(b) The participants cover the spaces on the bingo cards or	354
sheets that correspond to combinations of letters and numbers that	355
are announced by a bingo game operator.	356

(c) A bingo game operator announces combinations of letters	357
and numbers that appear on objects that a bingo game operator	358
selects by chance, either manually or mechanically, from a	359
receptacle that contains seventy-five objects at the beginning of	360
each game, each object marked by a different combination of a	361
letter and a number that corresponds to one of the seventy-five	362
possible combinations of a letter and a number that can appear on	363
the bingo cards or sheets.	364

(d) The winner of the bingo game includes any participant who	365
properly announces during the interval between the announcements	366
of letters and numbers as described in division (S)(O)(1)(c) of	367
this section, that a predetermined and preannounced pattern of	368
spaces has been covered on a bingo card or sheet being used by the	369
participant.	370

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

371

(T)(P) "Conduct" means to back, promote, organize, manage,	372
carry on, sponsor, or prepare for the operation of bingo or a game	373
of chance.	374

(U)(Q) "Bingo game operator" means any person, except	375
security personnel, who performs work or labor at the site of	376
bingo, including, but not limited to, collecting money from	377
participants, handing out bingo cards or sheets or objects to	378
cover spaces on bingo cards or sheets, selecting from a receptacle	379
the objects that contain the combination of letters and numbers	380
that appear on bingo cards or sheets, calling out the combinations	381
of letters and numbers, distributing prizes, selling or redeeming	382
instant bingo tickets or cards, supervising the operation of a	383
punch board, selling raffle tickets, selecting raffle tickets from	384
a receptacle and announcing the winning numbers in a raffle, and	385
preparing, selling, and serving food or beverages.	386

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

387

(W)(S) "Bingo session" means a period that includes both of	388
the following:	389

(1) Not to exceed five continuous hours for the conduct of	390
one or more games described in division (S)(O)(1) of this section,	391
instant bingo, and seal cards;	392

(2) A period for the conduct of instant bingo and seal cards	393
for not more than two hours before and not more than two hours	394
after the period described in division (W)(S)(1) of this section.	395

(X)(T) "Gross receipts" means all money or assets, including	396
admission fees, that a person receives from bingo without the	397
deduction of any amounts for prizes paid out or for the expenses	398
of conducting bingo. "Gross receipts" does not include any money	399
directly taken in from the sale of food or beverages by a	400
charitable organization conducting bingo, or by a bona fide	401
auxiliary unit or society of a charitable organization conducting	402
bingo, provided all of the following apply:	403

(1) The auxiliary unit or society has been in existence as a	404
bona fide auxiliary unit or society of the charitable organization	405
for at least two years prior to conducting bingo.	406

(2) The person who purchases the food or beverage receives	407
nothing of value except the food or beverage and items customarily	408
received with the purchase of that food or beverage.	409

(3) The food and beverages are sold at customary and	410
reasonable prices.	411

(Y)(U) "Security personnel" includes any person who either is	412
a sheriff, deputy sheriff, marshal, deputy marshal, township	413
constable, or member of an organized police department of a	414
municipal corporation or has successfully completed a peace	415
officer's training course pursuant to sections 109.71 to 109.79 of	416
the Revised Code and who is hired to provide security for the	417
premises on which bingo is conducted.	418

(Z)(V) "Charitable purpose" means that the net profit of	419
bingo, other than instant bingo, is used by, or is given, donated,	420
or otherwise transferred to, any of the following:	421

(1) Any organization that is described in subsection	422
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code	423
and is either a governmental unit or an organization that is tax	424
exempt under subsection 501(a) and described in subsection	425
501(c)(3) of the Internal Revenue Code;	426

(2) A veteran's organization that is a post, chapter, or	427
organization of veterans, or an auxiliary unit or society of, or a	428
trust or foundation for, any such post, chapter, or organization	429
organized in the United States or any of its possessions, at least	430
seventy-five per cent of the members of which are veterans and	431
substantially all of the other members of which are individuals	432
who are spouses, widows, or widowers of veterans, or such	433
individuals, provided that no part of the net earnings of such	434
post, chapter, or organization inures to the benefit of any	435
private shareholder or individual, and further provided that the	436
net profit is used by the post, chapter, or organization for the	437
charitable purposes set forth in division (B)(12) of section	438
5739.02 of the Revised Code, is used for awarding scholarships to	439
or for attendance at an institution mentioned in division (B)(12)	440
of section 5739.02 of the Revised Code, is donated to a	441
governmental agency, or is used for nonprofit youth activities,	442
the purchase of United States or Ohio flags that are donated to	443
schools, youth groups, or other bona fide nonprofit organizations,	444
promotion of patriotism, or disaster relief;	445

(3) A fraternal organization that has been in continuous	446
existence in this state for fifteen years and that uses the net	447
profit exclusively for religious, charitable, scientific,	448
literary, or educational purposes, or for the prevention of	449
cruelty to children or animals, if contributions for such use	450
would qualify as a deductible charitable contribution under	451
subsection 170 of the Internal Revenue Code;	452

(4) A volunteer firefighter's organization that uses the net	453
profit for the purposes set forth in division (L)(K) of this	454
section.	455

(AA)(W) "Internal Revenue Code" means the "Internal Revenue	456
Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter	457
amended.	458

(BB)(X) "Youth athletic organization" means any organization,	459
not organized for profit, that is organized and operated	460
exclusively to provide financial support to, or to operate,	461
athletic activities for persons who are twenty-one years of age or	462
younger by means of sponsoring, organizing, operating, or	463
contributing to the support of an athletic team, club, league, or	464
association.	465

(CC)(Y) "Youth athletic park organization" means any	466
organization, not organized for profit, that satisfies both of the	467
following:	468

(1) It owns, operates, and maintains playing fields that	469
satisfy both of the following:	470

(a) The playing fields are used at least one hundred days per	471
year for athletic activities by one or more organizations, not	472
organized for profit, each of which is organized and operated	473
exclusively to provide financial support to, or to operate,	474
athletic activities for persons who are eighteen years of age or	475
younger by means of sponsoring, organizing, operating, or	476
contributing to the support of an athletic team, club, league, or	477
association.	478

(b) The playing fields are not used for any profit-making	479
activity at any time during the year.	480

(2) It uses the proceeds of bingo it conducts exclusively for	481
the operation, maintenance, and improvement of its playing fields	482
of the type described in division (CC)(Y)(1) of this section.	483

(DD) "Amateur athletic organization" means any organization,	484
not organized for profit, that is organized and operated	485
exclusively to provide financial support to, or to operate,	486
athletic activities for persons who are training for amateur	487
athletic competition that is sanctioned by a national governing	488
body as defined in the "Amateur Sports Act of 1978," 90 Stat.	489
3045, 36 U.S.C.A. 373.	490

(EE)(Z) "Bingo supplies" means bingo cards or sheets; instant	491
bingo tickets or cards; electronic bingo aids; raffle tickets;	492
punch boards; seal cards; instant bingo ticket dispensers; and	493
devices for selecting or displaying the combination of bingo	494
letters and numbers or raffle tickets. Items that are "bingo	495
supplies" are not gambling devices if sold or otherwise provided,	496
and used, in accordance with this chapter. For purposes of this	497
chapter, "bingo supplies" are not to be considered equipment used	498
to conduct a bingo game.	499

(FF)(AA) "Instant bingo" means a form of bingo that uses	500
shall use folded or banded tickets or paper cards with perforated	501
break-open tabs, a face of which is covered or otherwise hidden	502
from view to conceal a number, letter, or symbol, or set of	503
numbers, letters, or symbols, some of which have been designated	504
in advance as prize winners. "Instant bingo" includes seal cards,	505
and may also include games in which some winners are determined by	506
the random selection of one or more bingo numbers by the use of a	507
seal card or bingo blower. In all "instant bingo" the prize amount	508
and structure shall be predetermined. "Instant bingo" does not	509
include any device that is activated by the insertion of a coin,	510
currency, token, or an equivalent, and that contains as one of its	511
components a video display monitor that is capable of displaying	512
numbers, letters, symbols, or characters in winning or losing	513
combinations.	514

(GG)(BB) "Seal card" means a form of instant bingo that uses	515
instant bingo tickets in conjunction with a board or placard that	516
contains one or more seals that, when removed or opened, reveal	517
predesignated winning numbers, letters, or symbols.	518

(HH)(CC) "Raffle" means a form of bingo in which the one or	519
more prizes are won by one or more persons who have purchased a	520
raffle ticket. The one or more winners of the raffle are	521
determined by drawing a ticket stub or other detachable section	522
from a receptacle containing ticket stubs or detachable sections	523
corresponding to all tickets sold for the raffle. "Raffle" does	524
not include the drawing of a ticket stub or other detachable	525
section of a ticket purchased to attend a professional sporting	526
event if both of the following apply:	527

(1) The ticket stub or other detachable section is used to	528
select the winner of a free prize given away at the professional	529
sporting event; and	530

(2) The cost of the ticket is the same as the cost of a	531
ticket to the professional sporting event on days when no free	532
prize is given away.	533

(II)(DD) "Punch board" means a board containing a number of	534
holes or receptacles of uniform size in which are placed,	535
mechanically and randomly, serially numbered slips of paper that	536
may be punched or drawn from the hole or receptacle when used in	537
conjunction with instant bingo. A player may punch or draw the	538
numbered slips of paper from the holes or receptacles and obtain	539
the prize established for the game if the number drawn corresponds	540
to a winning number or, if the punch board includes the use of a	541
seal card, a potential winning number.	542

(JJ)(EE) "Gross profit" means gross receipts minus the amount	543
actually expended for the payment of prize awards.	544

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

545

(LL)(GG) "Expenses" means the reasonable amount of gross	546
profit actually expended for all of the following:	547

(1) The purchase or lease of bingo supplies;

548

(2) The annual license fee required under section 2915.08 of	549
the Revised Code;	550

(3) Bank fees and service charges for a bingo session or game	551
account described in section 2915.10 of the Revised Code;	552

(4) Audits and accounting services;

553

(5) Safes;

554

(6) Cash registers;

555

(7) Hiring security personnel;

556

(8) Advertising bingo;

557

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

558

(10) Tables and chairs;

559

(11) Expenses for maintaining and operating a charitable	560
organization's facilities, including, but not limited to, a post	561
home, club house, lounge, tavern, or canteen and any grounds	562
attached to the post home, club house, lounge, tavern, or canteen;	563

(12) Payment of real property taxes and assessments that are	564
levied on a premises on which bingo is conducted;	565

(13) Any other product or service directly related to the	566
conduct of bingo that is authorized in rules adopted by the	567
attorney general under division (B)(1) of section 2915.08 of the	568
Revised Code.	569

(MM)(HH) "Person" has the same meaning as in section 1.59 of	570
the Revised Code and includes any firm or any other legal entity,	571
however organized.	572

(NN)(II) "Revoke" means to void permanently all rights and	573
privileges of the holder of a license issued under section	574
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	575
gaming license issued by another jurisdiction.	576

(OO)(JJ) "Suspend" means to interrupt temporarily all rights	577
and privileges of the holder of a license issued under section	578
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	579
gaming license issued by another jurisdiction.	580

(PP)(KK) "Distributor" means any person who purchases or	581
obtains bingo supplies and who does either of the following:	582

(1) Sells, offers for sale, or otherwise provides or offers	583
to provide the bingo supplies to another person for use in this	584
state;	585

(2) Modifies, converts, adds to, or removes parts from the	586
bingo supplies to further their promotion or sale for use in this	587
state.	588

(QQ)(LL) "Manufacturer" means any person who assembles	589
completed bingo supplies from raw materials, other items, or	590
subparts or who modifies, converts, adds to, or removes parts from	591
bingo supplies to further their promotion or sale.	592

(RR)(MM) "Gross annual revenues" means the annual gross	593
receipts derived from the conduct of bingo described in division	594
(S)(O)(1) of this section plus the annual net profit derived from	595
the conduct of bingo described in division (S)(O)(2) of this	596
section.	597

(SS)(NN) "Instant bingo ticket dispenser" means a mechanical	598
device that dispenses an instant bingo ticket or card as the sole	599
item of value dispensed and that has the following	600
characteristics:	601

(1) It is activated upon the insertion of United States	602
currency.	603

(2) It performs no gaming functions.

604

(3) It does not contain a video display monitor or generate	605
noise.	606

(4) It is not capable of displaying any numbers, letters,	607
symbols, or characters in winning or losing combinations.	608

(5) It does not simulate or display rolling or spinning	609
reels.	610

(6) It is incapable of determining whether a dispensed bingo	611
ticket or card is a winning or nonwinning ticket or card and	612
requires a winning ticket or card to be paid by a bingo game	613
operator.	614

(7) It may provide accounting and security features to aid in	615
accounting for the instant bingo tickets or cards it dispenses.	616

(8) It is not part of an electronic network and is not	617
interactive.	618

(TT)(OO)(1) "Electronic bingo aid" means an electronic device	619
used by a participant to monitor bingo cards or sheets purchased	620
at the time and place of a bingo session and that does all of the	621
following:	622

(a) It provides a means for a participant to input numbers	623
and letters announced by a bingo caller.	624

(b) It compares the numbers and letters entered by the	625
participant to the bingo faces previously stored in the memory of	626
the device.	627

(c) It identifies a winning bingo pattern.

628

(2) "Electronic bingo aid" does not include any device into	629
which a coin, currency, token, or an equivalent is inserted to	630
activate play.	631

(UU)(PP) "Deal of instant bingo tickets" means a single game	632
of instant bingo tickets all with the same serial number.	633

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

634

(a) Any mechanical, electronic, video, or digital device that	635
is capable of accepting anything of value, directly or indirectly,	636
from or on behalf of a player who gives the thing of value in the	637
hope of gain;	638

(b) Any mechanical, electronic, video, or digital device that	639
is capable of accepting anything of value, directly or indirectly,	640
from or on behalf of a player to conduct bingo or a scheme or game	641
of chance.	642

(2) "Slot machine" does not include a skill-based amusement	643
machine or an instant bingo ticket dispenser.	644

(WW)(RR) "Net profit from the proceeds of the sale of instant	645
bingo" means gross profit minus the ordinary, necessary, and	646
reasonable expense expended for the purchase of instant bingo	647
supplies, and, in the case of instant bingo conducted by a	648
veteran's, fraternal, or sporting organization, minus the payment	649
by that organization of real property taxes and assessments levied	650
on a premises on which instant bingo is conducted.	651

(XX)(SS) "Charitable instant bingo organization" means an	652
organization that is exempt from federal income taxation under	653
subsection 501(a) and described in subsection 501(c)(3) of the	654
Internal Revenue Code and is a charitable organization as defined	655
in this section. A "charitable instant bingo organization" does	656
not include a charitable organization that is exempt from federal	657
income taxation under subsection 501(a) and described in	658
subsection 501(c)(3) of the Internal Revenue Code and that is	659
created by a veteran's organization, a fraternal organization, or	660
a sporting organization in regards to bingo conducted or assisted	661
by a veteran's organization, a fraternal organization, or a	662
sporting organization pursuant to section 2915.13 of the Revised	663
Code.	664

(YY)(TT) "Game flare" means the board or placard that	665
accompanies each deal of instant bingo tickets and that has	666
printed on or affixed to it the following information for the	667
game:	668

(1) The name of the game;

669

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

670

(3) The form number;

671

(4) The ticket count;

672

(5) The prize structure, including the number of winning	673
instant bingo tickets by denomination and the respective winning	674
symbol or number combinations for the winning instant bingo	675
tickets;	676

(6) The cost per play;

677

(7) The serial number of the game.

678

(ZZ) "Historic railroad educational organization" means an	679
organization that is exempt from federal income taxation under	680
subsection 501(a) and described in subsection 501(c)(3) of the	681
Internal Revenue Code, that owns in fee simple the tracks and the	682
right-of-way of a historic railroad that the organization restores	683
or maintains and on which the organization provides excursions as	684
part of a program to promote tourism and educate visitors	685
regarding the role of railroad transportation in Ohio history, and	686
that received as donations from a charitable organization that	687
holds a license to conduct bingo under this chapter an amount	688
equal to at least fifty per cent of that licensed charitable	689
organization's net proceeds from the conduct of bingo during each	690
of the five years preceding June 30, 2003. "Historic railroad"	691
means all or a portion of the tracks and right-of-way of a	692
railroad that was owned and operated by a for-profit common	693
carrier in this state at any time prior to January 1, 1950.	694

(AAA)(UU)(1) "Skill-based amusement machine" means a	695
mechanical, video, digital, or electronic device that rewards the	696
player or players, if at all, only with merchandise prizes or with	697
redeemable vouchers redeemable only for merchandise prizes,	698
provided that with respect to rewards for playing the game all of	699
the following apply:	700

(a) The wholesale value of a merchandise prize awarded as a	701
result of the single play of a machine does not exceed ten	702
dollars;	703

(b) Redeemable vouchers awarded for any single play of a	704
machine are not redeemable for a merchandise prize with a	705
wholesale value of more than ten dollars;	706

(c) Redeemable vouchers are not redeemable for a merchandise	707
prize that has a wholesale value of more than ten dollars times	708
the fewest number of single plays necessary to accrue the	709
redeemable vouchers required to obtain that prize; and	710

(d) Any redeemable vouchers or merchandise prizes are	711
distributed at the site of the skill-based amusement machine at	712
the time of play.	713

A card for the purchase of gasoline is a redeemable voucher	714
for purposes of division (AAA)(UU)(1) of this section even if the	715
skill-based amusement machine for the play of which the card is	716
awarded is located at a place where gasoline may not be legally	717
distributed to the public or the card is not redeemable at the	718
location of, or at the time of playing, the skill-based amusement	719
machine.	720

(2) A device shall not be considered a skill-based amusement	721
machine and shall be considered a slot machine if it pays cash or	722
one or more of the following apply:	723

(a) The ability of a player to succeed at the game is	724
impacted by the number or ratio of prior wins to prior losses of	725
players playing the game.	726

(b) Any reward of redeemable vouchers is not based solely on	727
the player achieving the object of the game or the player's score;	728

(c) The outcome of the game, or the value of the redeemable	729
voucher or merchandise prize awarded for winning the game, can be	730
controlled by a source other than any player playing the game.	731

(d) The success of any player is or may be determined by a	732
chance event that cannot be altered by player actions.	733

(e) The ability of any player to succeed at the game is	734
determined by game features not visible or known to the player.	735

(f) The ability of the player to succeed at the game is	736
impacted by the exercise of a skill that no reasonable player	737
could exercise.	738

(3) All of the following apply to any machine that is	739
operated as described in division (AAA)(UU)(1) of this section:	740

(a) As used in division (UU) of this section, "game" and	741
"play" mean one event from the initial activation of the machine	742
until the results of play are determined without payment of	743
additional consideration. An individual utilizing a machine that	744
involves a single game, play, contest, competition, or tournament	745
may be awarded redeemable vouchers or merchandise prizes based on	746
the results of play.	747

(b) Advance play for a single game, play, contest,	748
competition, or tournament participation may be purchased. The	749
cost of the contest, competition, or tournament participation may	750
be greater than a single noncontest, competition, or tournament	751
play.	752

(c) To the extent that the machine is used in a contest,	753
competition, or tournament, that contest, competition, or	754
tournament has a defined starting and ending date and is open to	755
participants in competition for scoring and ranking results toward	756
the awarding of redeemable vouchers or merchandise prizes that are	757
stated prior to the start of the contest, competition, or	758
tournament.	759

(4) For purposes of division (AAA)(UU)(1) of this section,	760
the mere presence of a device, such as a pin-setting,	761
ball-releasing, or scoring mechanism, that does not contribute to	762
or affect the outcome of the play of the game does not make the	763
device a skill-based amusement machine.	764

(BBB)(VV) "Merchandise prize" means any item of value, but	765
shall not include any of the following:	766

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

767

(2) Plays on games of chance, state lottery tickets, bingo,	768
or instant bingo;	769

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

770

(4) A redeemable voucher that is redeemable for any of the	771
items listed in division (BBB)(VV)(1), (2), or (3) of this	772
section.	773

(CCC)(WW) "Redeemable voucher" means any ticket, token,	774
coupon, receipt, or other noncash representation of value.	775

(DDD)(XX) "Pool not conducted for profit" means a scheme in	776
which a participant gives a valuable consideration for a chance to	777
win a prize and the total amount of consideration wagered is	778
distributed to a participant or participants.	779

(EEE)(YY) "Sporting organization" means a hunting, fishing,	780
or trapping organization, other than a college or high school	781
fraternity or sorority, that is not organized for profit, that is	782
affiliated with a state or national sporting organization,	783
including but not limited to, the Ohio league of Ohio sportsmen,	784
and that has been in continuous existence in this state for a	785
period of three years.	786

(FFF)(ZZ) "Community action agency" has the same meaning as	787
in section 122.66 of the Revised Code.	788

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

789

(1) Engage in bookmaking, or knowingly engage in conduct that	790
facilitates bookmaking;	791

(2) Establish, promote, or operate or knowingly engage in	792
conduct that facilitates any game of chance conducted for profit	793
or any scheme of chance;	794

(3) Knowingly procure, transmit, exchange, or engage in	795
conduct that facilitates the procurement, transmission, or	796
exchange of information for use in establishing odds or	797
determining winners in connection with bookmaking or with any game	798
of chance conducted for profit or any scheme of chance;	799

(4) Engage in betting or in playing any scheme or game of	800
chance as a substantial source of income or livelihood;	801

(5) With purpose to violate division (A)(1), (2), (3), or (4)	802
of this section, acquire, possess, control, or operate any	803
gambling device.	804

(B) For purposes of division (A)(1) of this section, a person	805
facilitates bookmaking if the person in any way knowingly aids an	806
illegal bookmaking operation, including, without limitation,	807
placing a bet with a person engaged in or facilitating illegal	808
bookmaking. For purposes of division (A)(2) of this section, a	809
person facilitates a game of chance conducted for profit or a	810
scheme of chance if the person in any way knowingly aids in the	811
conduct or operation of any such game or scheme, including,	812
without limitation, playing any such game or scheme.	813

(C) This section does not prohibit conduct in connection with	814
gambling expressly permitted by law.	815

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

816

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

817

(a) The games of chance are not craps for money or roulette	818
for money.	819

(b) The games of chance are conducted by a charitable	820
organization that is, and has received from the internal revenue	821
service a determination letter that is currently in effect,	822
stating that the organization is, exempt from federal income	823
taxation under subsection 501(a) and described in subsection	824
501(c)(3) of the Internal Revenue Code.	825

(c) The games of chance are conducted at festivals of the	826
charitable organization that are conducted either for a period of	827
four consecutive days or less and not more than twice a year or	828
for a period ofa total of five consecutive days not more than	829
once a calendar year, and are conducted on premises owned by the	830
charitable organization for a period of no less than one year	831
immediately preceding the conducting of the games of chance, on	832
premises leased from a governmental unit, or on premises that are	833
leased from a veteran's or fraternal organization and that have	834
been owned by the lessor veteran's or fraternal organization for a	835
period of no less than one year immediately preceding the	836
conducting of the games of chance.	837

A charitable organization shall not lease premises from a	838
veteran's or fraternal organization to conduct a festival	839
described in division (D)(1)(c) of this section if the veteran's	840
or fraternal organization already has leased the premises twelve	841
times during the preceding year to charitable organizations for	842
that purpose. If a charitable organization leases premises from a	843
veteran's or fraternal organization to conduct a festival	844
described in division (D)(1)(c) of this section, the charitable	845
organization shall not pay a rental rate for the premises per day	846
of the festival that exceeds the rental rate per bingo session	847
that a charitable organization may pay under division (B)(1) of	848
section 2915.09 of the Revised Code when it leases premises from	849
another charitable organization to conduct bingo games.	850

(d) All of the money or assets received from the games of	851
chance after deduction only of prizes paid out during the conduct	852
of the games of chance are used by, or given, donated, or	853
otherwise transferred to, any organization that is described in	854
subsection 509(a)(1), 509(a)(2), or 509(a)(3) of the Internal	855
Revenue Code and is either a governmental unit or an organization	856
that is tax exempt under subsection 501(a) and described in	857
subsection 501(c)(3) of the Internal Revenue Code;	858

(e) The games of chance are not conducted during, or within	859
ten hours of, a bingo game conducted for amusement purposes only	860
pursuant to section 2915.12 of the Revised Code.	861

No person shall receive any commission, wage, salary, reward,	862
tip, donation, gratuity, or other form of compensation, directly	863
or indirectly, for operating or assisting in the operation of any	864
game of chance.	865

(2) Any tag fishing tournament operated under a permit issued	866
under section 1533.92 of the Revised Code, as "tag fishing	867
tournament" is defined in section 1531.01 of the Revised Code;	868

(3) Bingo conducted by a charitable organization that holds a	869
license issued under section 2915.08 of the Revised Code.	870

(E) Division (D) of this section shall not be construed to	871
authorize the sale, lease, or other temporary or permanent	872
transfer of the right to conduct games of chance, as granted by	873
that division, by any charitable organization that is granted that	874
right.	875

(F) Whoever violates this section is guilty of gambling, a	876
misdemeanor of the first degree. If the offender previously has	877
been convicted of any gambling offense, gambling is a felony of	878
the fifth degree.	879

Sec. 2915.06. (A) No person shall give to another person any	880
item described in division (BBB)(VV)(1), (2), (3), or (4) of	881
section 2915.01 of the Revised Code in exchange for a noncash	882
prize, toy, or novelty received as a reward for playing or	883
operating a skill-based amusement machine or for a free or	884
reduced-price game won on a skill-based amusement machine.	885

(B) Whoever violates division (A) of this section is guilty	886
of skill-based amusement machine prohibited conduct. A violation	887
of division (A) of this section is a misdemeanor of the first	888
degree for each redemption of a prize that is involved in the	889
violation. If the offender previously has been convicted of a	890
violation of division (A) of this section, a violation of that	891
division is a felony of the fifth degree for each redemption of a	892
prize that is involved in the violation. The maximum fine	893
authorized to be imposed for a felony of the fifth degree shall be	894
imposed upon the offender.	895

Sec. 2915.08.  (A)(1) Annually before the first day of	896
January, a charitable organization that desires to conduct bingo,	897
instant bingo at a bingo session, or instant bingo other than at a	898
bingo session shall make out, upon a form to be furnished by the	899
attorney general for that purpose, an application for a license to	900
conduct bingo, instant bingo at a bingo session, or instant bingo	901
other than at a bingo session and deliver that application to the	902
attorney general together with a license fee as follows:	903

(a) Except as otherwise provided in this division, for a	904
license for the conduct of bingo, two hundred dollars;	905

(b) For a license for the conduct of instant bingo at a bingo	906
session or instant bingo other than at a bingo session for a	907
charitable organization that previously has not been licensed	908
under this chapter to conduct instant bingo at a bingo session or	909
instant bingo other than at a bingo session, a license fee of five	910
hundred dollars, and for any other charitable organization, a	911
license fee that is based upon the gross profits received by the	912
charitable organization from the operation of instant bingo at a	913
bingo session or instant bingo other than at a bingo session,	914
during the one-year period ending on the thirty-first day of	915
October of the year immediately preceding the year for which the	916
license is sought, and that is one of the following:	917

(i) Five hundred dollars, if the total is fifty thousand	918
dollars or less;	919

(ii) One thousand two hundred fifty dollars plus one-fourth	920
per cent of the gross profit, if the total is more than fifty	921
thousand dollars but less than two hundred fifty thousand one	922
dollars;	923

(iii) Two thousand two hundred fifty dollars plus one-half	924
per cent of the gross profit, if the total is more than two	925
hundred fifty thousand dollars but less than five hundred thousand	926
one dollars;	927

(iv) Three thousand five hundred dollars plus one per cent of	928
the gross profit, if the total is more than five hundred thousand	929
dollars but less than one million one dollars;	930

(v) Five thousand dollars plus one per cent of the gross	931
profit, if the total is one million one dollars or more;	932

(c) A reduced license fee established by the attorney general	933
pursuant to division (G) of this section.	934

(d) For a license to conduct bingo for a charitable	935
organization that prior to the effective date of this amendment	936
July 1, 2003, has not been licensed under this chapter to conduct	937
bingo, instant bingo at a bingo session, or instant bingo other	938
than at a bingo session, a license fee established by rule by the	939
attorney general in accordance with division (H) of this section.	940

(2) The application shall be in the form prescribed by the	941
attorney general, shall be signed and sworn to by the applicant,	942
and shall contain all of the following:	943

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

944

(b) A statement that the applicant is a charitable	945
organization and that it has been in continuous existence as a	946
charitable organization in this state for two years immediately	947
preceding the making of the application or for five years in the	948
case of a fraternal organization or a nonprofit medical	949
organization;	950

(c) The location at which the organization will conduct	951
bingo, which location shall be within the county in which the	952
principal place of business of the applicant is located, the days	953
of the week and the times on each of those days when bingo will be	954
conducted, whether the organization owns, leases, or subleases the	955
premises, and a copy of the rental agreement if it leases or	956
subleases the premises;	957

(d) A statement of the applicant's previous history, record,	958
and association that is sufficient to establish that the applicant	959
is a charitable organization, and a copy of a determination letter	960
that is issued by the Internal Revenue Service and states that the	961
organization is tax exempt under subsection 501(a) and described	962
in subsection 501(c)(3), 501(c)(4), 501(c)(7), 501(c)(8),	963
501(c)(10), or 501(c)(19) of the Internal Revenue Code;	964

(e) A statement as to whether the applicant has ever had any	965
previous application refused, whether it previously has had a	966
license revoked or suspended, and the reason stated by the	967
attorney general for the refusal, revocation, or suspension;	968

(f) A statement of the charitable purposes for which the net	969
profit derived from bingo, other than instant bingo, will be used,	970
and a statement of how the net profit derived from instant bingo	971
will be distributed in accordance with section 2915.101 of the	972
Revised Code;	973

(g) Other necessary and reasonable information that the	974
attorney general may require by rule adopted pursuant to section	975
111.15 of the Revised Code;	976

(h) If the applicant is a charitable trust as defined in	977
section 109.23 of the Revised Code, a statement as to whether it	978
has registered with the attorney general pursuant to section	979
109.26 of the Revised Code or filed annual reports pursuant to	980
section 109.31 of the Revised Code, and, if it is not required to	981
do either, the exemption in section 109.26 or 109.31 of the	982
Revised Code that applies to it;	983

(i) If the applicant is a charitable organization as defined	984
in section 1716.01 of the Revised Code, a statement as to whether	985
it has filed with the attorney general a registration statement	986
pursuant to section 1716.02 of the Revised Code and a financial	987
report pursuant to section 1716.04 of the Revised Code, and, if it	988
is not required to do both, the exemption in section 1716.03 of	989
the Revised Code that applies to it;	990

(j) In the case of an applicant seeking to qualify as a youth	991
athletic park organization, a statement issued by a board or body	992
vested with authority under Chapter 755. of the Revised Code for	993
the supervision and maintenance of recreation facilities in the	994
territory in which the organization is located, certifying that	995
the playing fields owned by the organization were used for at	996
least one hundred days during the year in which the statement is	997
issued, and were open for use to all residents of that territory,	998
regardless of race, color, creed, religion, sex, or national	999
origin, for athletic activities by youth athletic organizations	1000
that do not discriminate on the basis of race, color, creed,	1001
religion, sex, or national origin, and that the fields were not	1002
used for any profit-making activity at any time during the year.	1003
That type of board or body is authorized to issue the statement	1004
upon request and shall issue the statement if it finds that the	1005
applicant's playing fields were so used.	1006

(3) The attorney general, within thirty days after receiving	1007
a timely filed application from a charitable organization that has	1008
been issued a license under this section that has not expired and	1009
has not been revoked or suspended, shall send a temporary permit	1010
to the applicant specifying the date on which the application was	1011
filed with the attorney general and stating that, pursuant to	1012
section 119.06 of the Revised Code, the applicant may continue to	1013
conduct bingo until a new license is granted or, if the	1014
application is rejected, until fifteen days after notice of the	1015
rejection is mailed to the applicant. The temporary permit does	1016
not affect the validity of the applicant's application and does	1017
not grant any rights to the applicant except those rights	1018
specifically granted in section 119.06 of the Revised Code. The	1019
issuance of a temporary permit by the attorney general pursuant to	1020
this division does not prohibit the attorney general from	1021
rejecting the applicant's application because of acts that the	1022
applicant committed, or actions that the applicant failed to take,	1023
before or after the issuance of the temporary permit.	1024

(4) Within thirty days after receiving an initial license	1025
application from a charitable organization to conduct bingo,	1026
instant bingo at a bingo session, or instant bingo other than at a	1027
bingo session, the attorney general shall conduct a preliminary	1028
review of the application and notify the applicant regarding any	1029
deficiencies. Once an application is deemed complete, or beginning	1030
on the thirtieth day after the application is filed, if the	1031
attorney general failed to notify the applicant of any	1032
deficiencies, the attorney general shall have an additional sixty	1033
days to conduct an investigation and either grant or deny the	1034
application based on findings established and communicated in	1035
accordance with divisions (B) and (E) of this section. As an	1036
option to granting or denying an initial license application, the	1037
attorney general may grant a temporary license and request	1038
additional time to conduct the investigation if the attorney	1039
general has cause to believe that additional time is necessary to	1040
complete the investigation and has notified the applicant in	1041
writing about the specific concerns raised during the	1042
investigation.	1043

(B)(1) The attorney general shall adopt rules to enforce	1044
sections 2915.01, 2915.02, and 2915.07 to 2915.13 of the Revised	1045
Code to ensure that bingo or instant bingo is conducted in	1046
accordance with those sections and to maintain proper control over	1047
the conduct of bingo or instant bingo. The rules, except rules	1048
adopted pursuant to divisions (A)(2)(g) and (G) of this section,	1049
shall be adopted pursuant to Chapter 119. of the Revised Code. The	1050
attorney general shall license charitable organizations to conduct	1051
bingo, instant bingo at a bingo session, or instant bingo other	1052
than at a bingo session in conformance with this chapter and with	1053
the licensing provisions of Chapter 119. of the Revised Code.	1054

(2) The attorney general may refuse to grant a license to any	1055
organization, or revoke or suspend the license of any	1056
organization, that does any of the following or to which any of	1057
the following applies:	1058

(a) Fails or has failed at any time to meet any requirement	1059
of section 109.26, 109.31, or 1716.02, or sections 2915.07 to	1060
2915.11 of the Revised Code, or violates or has violated any	1061
provision of sections 2915.02 or 2915.07 to 2915.13 of the Revised	1062
Code or any rule adopted by the attorney general pursuant to this	1063
section;	1064

(b) Makes or has made an incorrect or false statement that is	1065
material to the granting of the license in an application filed	1066
pursuant to division (A) of this section;	1067

(c) Submits or has submitted any incorrect or false	1068
information relating to an application if the information is	1069
material to the granting of the license;	1070

(d) Maintains or has maintained any incorrect or false	1071
information that is material to the granting of the license in the	1072
records required to be kept pursuant to divisions (A) and (C) of	1073
section 2915.10 of the Revised Code, if applicable;	1074

(e) The attorney general has good cause to believe that the	1075
organization will not conduct bingo, instant bingo at a bingo	1076
session, or instant bingo other than at a bingo session in	1077
accordance with sections 2915.07 to 2915.13 of the Revised Code or	1078
with any rule adopted by the attorney general pursuant to this	1079
section.	1080

(3) For the purposes of division (B) of this section, any	1081
action of an officer, trustee, agent, representative, or bingo	1082
game operator of an organization is an action of the organization.	1083

(C) The attorney general may grant licenses to charitable	1084
organizations that are branches, lodges, or chapters of national	1085
charitable organizations.	1086

(D) The attorney general shall send notice in writing to the	1087
prosecuting attorney and sheriff of the county in which the	1088
organization will conduct bingo, instant bingo at a bingo session,	1089
or instant bingo other than at a bingo session, as stated in its	1090
application for a license or amended license, and to any other law	1091
enforcement agency in that county that so requests, of all of the	1092
following:	1093

(1) The issuance of the license;

1094

(2) The issuance of the amended license;

1095

(3) The rejection of an application for and refusal to grant	1096
a license;	1097

(4) The revocation of any license previously issued;

1098

(5) The suspension of any license previously issued.

1099

(E) A license issued by the attorney general shall set forth	1100
the information contained on the application of the charitable	1101
organization that the attorney general determines is relevant,	1102
including, but not limited to, the location at which the	1103
organization will conduct bingo, instant bingo at a bingo session,	1104
or instant bingo other than at a bingo session and the days of the	1105
week and the times on each of those days when bingo will be	1106
conducted. If the attorney general refuses to grant or revokes or	1107
suspends a license, the attorney general shall notify the	1108
applicant in writing and specifically identify the reason for the	1109
refusal, revocation, or suspension in narrative form and, if	1110
applicable, by identifying the section of the Revised Code	1111
violated. The failure of the attorney general to give the written	1112
notice of the reasons for the refusal, revocation, or suspension	1113
or a mistake in the written notice does not affect the validity of	1114
the attorney general's refusal to grant, or the revocation or	1115
suspension of, a license. If the attorney general fails to give	1116
the written notice or if there is a mistake in the written notice,	1117
the applicant may bring an action to compel the attorney general	1118
to comply with this division or to correct the mistake, but the	1119
attorney general's order refusing to grant, or revoking or	1120
suspending, a license shall not be enjoined during the pendency of	1121
the action.	1122

(F) A charitable organization that has been issued a license	1123
pursuant to division (B) of this section but that cannot conduct	1124
bingo or instant bingo at the location, or on the day of the week	1125
or at the time, specified on the license due to circumstances that	1126
make it impractical to do so may apply in writing, together with	1127
an application fee of two hundred fifty dollars, to the attorney	1128
general, at least thirty days prior to a change in location, day	1129
of the week, or time, and request an amended license. The	1130
application shall describe the causes making it impractical for	1131
the organization to conduct bingo or instant bingo in conformity	1132
with its license and shall indicate the location, days of the	1133
week, and times on each of those days when it desires to conduct	1134
bingo or instant bingo. Except as otherwise provided in this	1135
division, the attorney general shall issue the amended license in	1136
accordance with division (E) of this section, and the organization	1137
shall surrender its original license to the attorney general. The	1138
attorney general may refuse to grant an amended license according	1139
to the terms of division (B) of this section.	1140

(G) The attorney general, by rule adopted pursuant to section	1141
111.15 of the Revised Code, shall establish a schedule of reduced	1142
license fees for charitable organizations that desire to conduct	1143
bingo or instant bingo during fewer than twenty-six weeks in any	1144
calendar year.	1145

(H) The attorney general, by rule adopted pursuant to section	1146
111.15 of the Revised Code, shall establish license fees for the	1147
conduct of bingo, instant bingo at a bingo session, or instant	1148
bingo other than at a bingo session for charitable organizations	1149
that prior to the effective date of this amendmentJuly 1, 2003,	1150
have not been licensed to conduct bingo, instant bingo at a bingo	1151
session, or instant bingo other than at a bingo session under this	1152
chapter.	1153

(I) The attorney general may enter into a written contract	1154
with any other state agency to delegate to that state agency the	1155
powers prescribed to the attorney general under Chapter 2915. of	1156
the Revised Code.	1157

(J) The attorney general, by rule adopted pursuant to section	1158
111.15 of the Revised Code, may adopt rules to determine the	1159
requirements for a charitable organization that is exempt from	1160
federal income taxation under subsection 501(a) and described in	1161
subsection 501(c)(3) of the Internal Revenue Code to be in good	1162
standing in the state.	1163

Sec. 2915.09.  (A) No charitable organization that conducts	1164
bingo shall fail to do any of the following:	1165

(1) Own all of the equipment used to conduct bingo or lease	1166
that equipment from a charitable organization that is licensed to	1167
conduct bingo, or from the landlord of a premises where bingo is	1168
conducted, for a rental rate that is not more than is customary	1169
and reasonable for that equipment;	1170

(2) Except as otherwise provided in division (A)(3) of this	1171
section, use all of the gross receipts from bingo for paying	1172
prizes, for reimbursement of expenses for or for renting premises	1173
in which to conduct a bingo session, for reimbursement of expenses	1174
for or for purchasing or leasing bingo supplies used in conducting	1175
bingo, for reimbursement of expenses for or for hiring security	1176
personnel, for reimbursement of expenses for or for advertising	1177
bingo, or for reimbursement of other expenses or for other	1178
expenses listed in division (LL)(GG) of section 2915.01 of the	1179
Revised Code, provided that the amount of the receipts so spent is	1180
not more than is customary and reasonable for a similar purchase,	1181
lease, hiring, advertising, or expense. If the building in which	1182
bingo is conducted is owned by the charitable organization	1183
conducting bingo and the bingo conducted includes a form of bingo	1184
described in division (S)(O)(1) of section 2915.01 of the Revised	1185
Code, the charitable organization may deduct from the total amount	1186
of the gross receipts from each session a sum equal to the lesser	1187
of six hundred dollars or forty-five per cent of the gross	1188
receipts from the bingo described in that division as	1189
consideration for the use of the premises.	1190

(3) Use, or give, donate, or otherwise transfer, all of the	1191
net profit derived from bingo, other than instant bingo, for a	1192
charitable purpose listed in its license application and described	1193
in division (Z)(V) of section 2915.01 of the Revised Code, or	1194
distribute all of the net profit from the proceeds of the sale of	1195
instant bingo as stated in its license application and in	1196
accordance with section 2915.101 of the Revised Code.	1197

(B) No charitable organization that conducts a bingo game	1198
described in division (S)(O)(1) of section 2915.01 of the Revised	1199
Code shall fail to do any of the following:	1200

(1) Conduct the bingo game on premises that are owned by the	1201
charitable organization, on premises that are owned by another	1202
charitable organization and leased from that charitable	1203
organization for a rental rate not in excess of the lesser of six	1204
hundred dollars per bingo session or forty-five per cent of the	1205
gross receipts of the bingo session, on premises that are leased	1206
from a person other than a charitable organization for a rental	1207
rate that is not more than is customary and reasonable for	1208
premises that are similar in location, size, and quality but not	1209
in excess of four hundred fifty dollars per bingo session, or on	1210
premises that are owned by a person other than a charitable	1211
organization, that are leased from that person by another	1212
charitable organization, and that are subleased from that other	1213
charitable organization by the charitable organization for a	1214
rental rate not in excess of four hundred fifty dollars per bingo	1215
session. No charitable organization is required to pay property	1216
taxes or assessments on premises that the charitable organization	1217
leases from another person to conduct bingo sessions. If the	1218
charitable organization leases from a person other than a	1219
charitable organization the premises on which it conducts bingo	1220
sessions, the lessor of the premises shall provide the premises to	1221
the organization and shall not provide the organization with bingo	1222
game operators, security personnel, concessions or concession	1223
operators, bingo supplies, or any other type of service. A	1224
charitable organization shall not lease or sublease premises that	1225
it owns or leases to more than onethree other charitable	1226
organizationorganizations per calendar week for the purpose of	1227
conducting bingo sessions on the premises. A person that is not a	1228
charitable organization shall not lease premises that it owns,	1229
leases, or otherwise is empowered to lease to more than three	1230
charitable organizations per calendar week for conducting bingo	1231
sessions on the premises. In no case shall more than nine bingo	1232
sessions be conducted on any premises in any calendar week.	1233

(2) Display its license conspicuously at the premises where	1234
the bingo session is conducted;	1235

(3) Conduct the bingo session in accordance with the	1236
definition of bingo set forth in division (S)(O)(1) of section	1237
2915.01 of the Revised Code.	1238

(C) No charitable organization that conducts a bingo game	1239
described in division (S)(O)(1) of section 2915.01 of the Revised	1240
Code shall do any of the following:	1241

(1) Pay any compensation to a bingo game operator for	1242
operating a bingo session that is conducted by the charitable	1243
organization or for preparing, selling, or serving food or	1244
beverages at the site of the bingo session, permit any auxiliary	1245
unit or society of the charitable organization to pay compensation	1246
to any bingo game operator who prepares, sells, or serves food or	1247
beverages at a bingo session conducted by the charitable	1248
organization, or permit any auxiliary unit or society of the	1249
charitable organization to prepare, sell, or serve food or	1250
beverages at a bingo session conducted by the charitable	1251
organization, if the auxiliary unit or society pays any	1252
compensation to the bingo game operators who prepare, sell, or	1253
serve the food or beverages;	1254

(2) Pay consulting fees to any person for any services	1255
performed in relation to the bingo session;	1256

(3) Pay concession fees to any person who provides	1257
refreshments to the participants in the bingo session;	1258

(4) Except as otherwise provided in division (C)(4) of this	1259
section, conduct more than three bingo sessions in any seven-day	1260
period. A volunteer firefighter's organization or a volunteer	1261
rescue service organization that conducts not more than five bingo	1262
sessions in a calendar year may conduct more than three bingo	1263
sessions in a seven-day period after notifying the attorney	1264
general when it will conduct the sessions.	1265

(5) Pay out more than six thousand dollars in prizes for	1266
bingo games described in division (S)(O)(1) of section 2915.01 of	1267
the Revised Code during any bingo session that is conducted by the	1268
charitable organization. "Prizes" does not include awards from the	1269
conduct of instant bingo.	1270

(6) Conduct a bingo session at any time during the ten-hour	1271
eight-hour period between midnighttwo a.m. and ten a.m., at any	1272
time during, or within ten hours of, a bingo game conducted for	1273
amusement only pursuant to section 2915.12 of the Revised Code, at	1274
any premises not specified on its license, or on any day of the	1275
week or during any time period not specified on its license.	1276
Division (A)(6) of this section does not prohibit the sale of	1277
instant bingo tickets beginning at nine a.m. for a bingo session	1278
that begins at ten a.m. If circumstances make it impractical for	1279
the charitable organization to conduct a bingo session at the	1280
premises, or on the day of the week or at the time, specified on	1281
its license, or if a charitable organization wants to conduct	1282
bingo sessions on a day of the week or at a time other than the	1283
day or time specified on its license, the charitable organization	1284
may apply in writing to the attorney general for an amended	1285
license pursuant to division (F) of section 2915.08 of the Revised	1286
Code. A charitable organization may apply twice in each calendar	1287
year for an amended license to conduct bingo sessions on a day of	1288
the week or at a time other than the day or time specified on its	1289
license. If the amended license is granted, the organization may	1290
conduct bingo sessions at the premises, on the day of the week,	1291
and at the time specified on its amended license.	1292

(7) Permit any person whom the charitable organization knows,	1293
or should have known, is under the age of eighteen to work as a	1294
bingo game operator;	1295

(8) Permit any person whom the charitable organization knows,	1296
or should have known, has been convicted of a felony or gambling	1297
offense in any jurisdiction to be a bingo game operator;	1298

(9) Permit the lessor of the premises on which the bingo	1299
session is conducted, if the lessor is not a charitable	1300
organization, to provide the charitable organization with bingo	1301
game operators, security personnel, concessions, bingo supplies,	1302
or any other type of service;	1303

(10) Purchase or lease bingo supplies from any person except	1304
a distributor issued a license under section 2915.081 of the	1305
Revised Code;	1306

(11)(a) Use or permit the use of electronic bingo aids except	1307
under the following circumstances:	1308

(i) For any single participant, not more than ninety bingo	1309
faces can be played using an electronic bingo aid or aids.	1310

(ii) The charitable organization shall provide a participant	1311
using an electronic bingo aid with corresponding paper bingo cards	1312
or sheets.	1313

(iii) The total price of bingo faces played with an	1314
electronic bingo aid shall be equal to the total price of the same	1315
number of bingo faces played with a paper bingo card or sheet sold	1316
at the same bingo session but without an electronic bingo aid.	1317

(iv) An electronic bingo aid cannot be part of an electronic	1318
network other than a network that includes only bingo aids and	1319
devices that are located on the premises at which the bingo is	1320
being conducted or be interactive with any device not located on	1321
the premises at which the bingo is being conducted.	1322

(v) An electronic bingo aid cannot be used to participate in	1323
bingo that is conducted at a location other than the location at	1324
which the bingo session is conducted and at which the electronic	1325
bingo aid is used.	1326

(vi) An electronic bingo aid cannot be used to provide for	1327
the input of numbers and letters announced by a bingo caller other	1328
than the bingo caller who physically calls the numbers and letters	1329
at the location at which the bingo session is conducted and at	1330
which the electronic bingo aid is used.	1331

(b) The attorney general may adopt rules in accordance with	1332
Chapter 119. of the Revised Code that govern the use of electronic	1333
bingo aids. The rules may include a requirement that an electronic	1334
bingo aid be capable of being audited by the attorney general to	1335
verify the number of bingo cards or sheets played during each	1336
bingo session.	1337

(12) Permit any person the charitable organization knows, or	1338
should have known, to be under eighteen years of age to play bingo	1339
described in division (S)(O)(1) of section 2915.01 of the Revised	1340
Code.	1341

(D)(1) Except as otherwise provided in division (D)(3) of	1342
this section, no charitable organization shall provide to a bingo	1343
game operator, and no bingo game operator shall receive or accept,	1344
any commission, wage, salary, reward, tip, donation, gratuity, or	1345
other form of compensation, directly or indirectly, regardless of	1346
the source, for conducting bingo or providing other work or labor	1347
at the site of bingo during a bingo session.	1348

(2) Except as otherwise provided in division (D)(3) of this	1349
section, no charitable organization shall provide to a bingo game	1350
operator any commission, wage, salary, reward, tip, donation,	1351
gratuity, or other form of compensation, directly or indirectly,	1352
regardless of the source, for conducting instant bingo other than	1353
at a bingo session at the site of instant bingo other than at a	1354
bingo session.	1355

(3) Nothing in division (D) of this section prohibits an	1356
employee of a fraternal organization, veteran's organization, or	1357
sporting organization from selling instant bingo tickets or cards	1358
to the organization's members or invited guests, as long as no	1359
portion of the employee's compensation is paid from any receipts	1360
of bingo.	1361

(E) Notwithstanding division (B)(1) of this section, a	1362
charitable organization that, prior to December 6, 1977, has	1363
entered into written agreements for the lease of premises it owns	1364
to another charitable organization or other charitable	1365
organizations for the conducting of bingo sessions so that more	1366
than two bingo sessions are conducted per calendar week on the	1367
premises, and a person that is not a charitable organization and	1368
that, prior to December 6, 1977, has entered into written	1369
agreements for the lease of premises it owns to charitable	1370
organizations for the conducting of more than two bingo sessions	1371
per calendar week on the premises, may continue to lease the	1372
premises to those charitable organizations, provided that no more	1373
than four sessions are conducted per calendar week, that the	1374
lessor organization or person has notified the attorney general in	1375
writing of the organizations that will conduct the sessions and	1376
the days of the week and the times of the day on which the	1377
sessions will be conducted, that the initial lease entered into	1378
with each organization that will conduct the sessions was filed	1379
with the attorney general prior to December 6, 1977, and that each	1380
organization that will conduct the sessions was issued a license	1381
to conduct bingo games by the attorney general prior to December	1382
6, 1977.	1383

(F) This section does not prohibit a bingo licensed	1384
charitable organization or a game operator from giving any person	1385
an instant bingo ticket as a prize.	1386

(G) Whoever violates division (A)(2) of this section is	1387
guilty of illegally conducting a bingo game, a felony of the	1388
fourth degree. Except as otherwise provided in this division,	1389
whoever violates division (A)(1) or (3), (B)(1), (2), or (3),	1390
(C)(1) to (12), or (D) of this section is guilty of a minor	1391
misdemeanor. If the offender previously has been convicted of a	1392
violation of division (A)(1) or (3), (B)(1), (2), or (3), (C)(1)	1393
to (11), or (D) of this section, a violation of division (A)(1) or	1394
(3), (B)(1), (2), or (3), (C), or (D) of this section is a	1395
misdemeanor of the first degree. Whoever violates division (C)(12)	1396
of this section is guilty of a misdemeanor of the first degree, if	1397
the offender previously has been convicted of a violation of	1398
division (C)(12) of this section, a felony of the fourth degree.	1399

Sec. 2915.091.  (A) No charitable organization that conducts	1400
instant bingo shall do any of the following:	1401

(1) Fail to comply with the requirements of divisions (A)(1),	1402
(2), and (3) of section 2915.09 of the Revised Code;	1403

(2) Conduct instant bingo unless either of the following	1404
applies:	1405

(a) That organization is, and has received from the internal	1406
revenue service a determination letter that is currently in effect	1407
stating that the organization is, exempt from federal income	1408
taxation under subsection 501(a), is described in subsection	1409
501(c)(3) of the Internal Revenue Code, is a charitable	1410
organization as defined in section 2915.01 of the Revised Code, is	1411
in good standing in the state pursuant to section 2915.08 of the	1412
Revised Code, and is in compliance with Chapter 1716. of the	1413
Revised Code;	1414

(b) That organization is, and has received from the internal	1415
revenue service a determination letter that is currently in effect	1416
stating that the organization is, exempt from federal income	1417
taxation under subsection 501(a), is described in subsection	1418
501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) or is a veteran's	1419
organization described in subsection 501(c)(4) of the Internal	1420
Revenue Code, and conducts instant bingo under section 2915.13 of	1421
the Revised Code.	1422

(3) Conduct instant bingo on any day, at any time, or at any	1423
premises not specified on the organization's license issued	1424
pursuant to section 2915.08 of the Revised Code;	1425

(4) Permit any person whom the organization knows or should	1426
have known has been convicted of a felony or gambling offense in	1427
any jurisdiction to be a bingo game operator in the conduct of	1428
instant bingo;	1429

(5) Purchase or lease supplies used to conduct instant bingo	1430
or punch board games from any person except a distributor licensed	1431
under section 2915.081 of the Revised Code;	1432

(6) Sell or provide any instant bingo ticket or card for a	1433
price different from the price printed on it by the manufacturer	1434
on either the instant bingo ticket or card or on the game flare;	1435

(7) Sell an instant bingo ticket or card to a person under	1436
eighteen years of age;	1437

(8) Fail to keep unsold instant bingo tickets or cards for	1438
less than three years;	1439

(9) Pay any compensation to a bingo game operator for	1440
conducting instant bingo that is conducted by the organization or	1441
for preparing, selling, or serving food or beverages at the site	1442
of the instant bingo game, permit any auxiliary unit or society of	1443
the organization to pay compensation to any bingo game operator	1444
who prepares, sells, or serves food or beverages at an instant	1445
bingo game conducted by the organization, or permit any auxiliary	1446
unit or society of the organization to prepare, sell, or serve	1447
food or beverages at an instant bingo game conducted by the	1448
organization, if the auxiliary unit or society pays any	1449
compensation to the bingo game operators who prepare, sell, or	1450
serve the food or beverages;	1451

(10) Pay fees to any person for any services performed in	1452
relation to an instant bingo game, except as provided in division	1453
(D) of section 2915.093 of the Revised Code;	1454

(11) Pay fees to any person who provides refreshments to the	1455
participants in an instant bingo game;	1456

(12)(a) Allow instant bingo tickets or cards to be sold to	1457
bingo game operators at a premises at which the organization sells	1458
instant bingo tickets or cards or to be sold to employees of a D	1459
permit holder who are working at a premises at which instant bingo	1460
tickets or cards are sold;	1461

(b) Division (A)(12)(a) of this section does not prohibit a	1462
licensed charitable organization or a bingo game operator from	1463
giving any person an instant bingo ticket as a prize in place of a	1464
cash prize won by a participant in an instant bingo game. In no	1465
case shall an instant bingo ticket or card be sold or provided for	1466
a price different from the price printed on it by the manufacturer	1467
on either the instant bingo ticket or card or on the game flare.	1468

(13) Fail to display its bingo license, and the serial	1469
numbers of the deal of instant bingo tickets or cards to be sold,	1470
conspicuously at each premises at which it sells instant bingo	1471
tickets or cards;	1472

(14) Possess a deal of instant bingo tickets or cards that	1473
was not purchased from a distributor licensed under section	1474
2915.081 of the Revised Code as reflected on an invoice issued by	1475
the distributor that contains all of the information required by	1476
division (E) of section 2915.10 of the Revised Code;	1477

(15) Fail, once it opens a deal of instant bingo tickets or	1478
cards, to continue to sell the tickets or cards in that deal until	1479
the tickets or cards with the top two highest tiers of prizes in	1480
that deal are sold;	1481

(16) Possess bingo supplies that were not obtained in	1482
accordance with sections 2915.01 to 2915.13 of the Revised Code.	1483

(B)(1) A charitable organization may conduct instant bingo	1484
other than at a bingo session at not more than five separate	1485
locations. A charitable organization that is exempt from federal	1486
taxation under subsection 501(a) and described in subsection	1487
501(c)(3) of the Internal Revenue Code and that is created by a	1488
veteran's organization or a fraternal organization is not limited	1489
in the number of separate locations the charitable organization	1490
may conduct instant bingo other than at a bingo session.	1491

(2) A charitable organization may purchase, lease, or use	1492
instant bingo ticket dispensers to sell instant bingo tickets or	1493
cards.	1494

(C) The attorney general may adopt rules in accordance with	1495
Chapter 119. of the Revised Code that govern the conduct of	1496
instant bingo by charitable organizations. Before those rules are	1497
adopted, the attorney general shall reference the recommended	1498
standards for opacity, randomization, minimum information, winner	1499
protection, color, and cutting for instant bingo tickets or cards,	1500
seal cards, and punch boards established by the North American	1501
gaming regulators association.	1502

(D) Whoever violates division (A) of this section or a rule	1503
adopted under division (C) of this section is guilty of illegal	1504
instant bingo conduct. Except as otherwise provided in this	1505
division, illegal instant bingo conduct is a misdemeanor of the	1506
first degree. If the offender previously has been convicted of a	1507
violation of division (A) of this section or of such a rule,	1508
illegal instant bingo conduct is a felony of the fifth degree.	1509

Sec. 2915.092.  (A)(1) Subject to division (A)(2) of this	1510
section, a charitable organization, a public school, a chartered	1511
nonpublic school, a community school, or a veteran's organization,	1512
fraternal organization, or sporting organization that is exempt	1513
from federal income taxation under subsection 501(a) and is	1514
described in subsection 501(c)(3), 501(c)(4), 501(c)(7),	1515
501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue Code	1516
may conduct a raffle to raise money for the organization or school	1517
and does not need a license to conduct bingo in order to conduct a	1518
raffle drawing that is not for profit.	1519

(2) If a charitable organization that is described in	1520
division (A)(1) of this section, but that is not also described in	1521
subsection 501(c)(3) of the Internal Revenue Code, conducts a	1522
raffle, the charitable organization shall distribute at least	1523
fifty per cent of the net profit from the raffle to a charitable	1524
purpose described in division (Z)(V) of section 2915.01 of the	1525
Revised Code or to a department or agency of the federal	1526
government, the state, or any political subdivision.	1527

(B) Except as provided in division (A) or (B) of this	1528
section, no person shall conduct a raffle drawing that is for	1529
profit or a raffle drawing that is not for profit.	1530

(C) Whoever violates division (B) of this section is guilty	1531
of illegal conduct of a raffle. Except as otherwise provided in	1532
this division, illegal conduct of a raffle is a misdemeanor of the	1533
first degree. If the offender previously has been convicted of a	1534
violation of division (B) of this section, illegal conduct of a	1535
raffle is a felony of the fifth degree.	1536

Sec. 2915.093. (A) As used in this section, "retail income	1537
from all commercial activity" means the income that a person	1538
receives from the provision of goods, services, or activities that	1539
are provided at the location where instant bingo other than at a	1540
bingo session is conducted, including the sale of instant bingo	1541
tickets. A religious organization that is exempt from federal	1542
income taxation under subsection 501(a) and described in	1543
subsection 501(c)(3) of the Internal Revenue Code, at not more	1544
than one location at which it conducts its charitable programs,	1545
may include donations from its members and guests as retail	1546
income.	1547

(B) A charitable instant bingo organization may conduct	1548
instant bingo other than at a bingo session at not more than five	1549
separate locations.	1550

(C)(1) If a charitable instant bingo organization conducts	1551
instant bingo other than at a bingo session, the charitable	1552
instant bingo organization shall enter into a written contract	1553
with the owner or lessor of the location at which the instant	1554
bingo is conducted to allow the owner or lessor to assist in the	1555
conduct of instant bingo other than at a bingo session, identify	1556
each location where the instant bingo other than at a bingo	1557
session is being conducted, and identify the owner or lessor of	1558
each location.	1559

(2) A charitable instant bingo organization that conducts	1560
instant bingo other than at a bingo session is not required to	1561
enter into a written contract with the owner or lessor of the	1562
location at which the instant bingo is conducted, provided that	1563
the owner or lessor is not assisting in the conduct of the instant	1564
bingo other than at a bingo session and provided that the conduct	1565
of the instant bingo other than at a bingo session at that	1566
location is not more than five days per calendar year and not more	1567
than ten hours per day.	1568

(D)(C) Except as provided in division (G)(F) of this section,	1569
no charitable instant bingo organization shall conduct instant	1570
bingo other than at a bingo session at a location where the	1571
primary source of retail income from all commercial activity at	1572
that location is the sale of instant bingo tickets.	1573

(E)(D) The owner or lessor of a location that enters into a	1574
contract pursuant to division (C)(B) of this section shall pay the	1575
full gross profit to the charitable instant bingo organization, in	1576
return for the deal of instant bingo tickets. The owner or lessor	1577
may retain the money that the owner or lessor receives for selling	1578
the instant bingo tickets, provided, however, that after the deal	1579
has been sold, the owner or lessor shall pay to the charitable	1580
instant bingo organization the value of any unredeemed instant	1581
bingo prizes remaining in the deal of instant bingo tickets.	1582

The charitable instant bingo organization shall pay six per	1583
cent of the total gross receipts of any deal of instant bingo	1584
tickets for the purpose of reimbursing the owner or lessor for	1585
expenses described in this division.	1586

As used in this division, "expenses" means those items	1587
provided for in divisions (GG)(4), (5), (6), (7), (8), (12), and	1588
(13) of section 2915.01 of the Revised Code and that percentage of	1589
the owner's or lessor's rent for the location where instant bingo	1590
is conducted. "Expenses," in the aggregate, shall not exceed six	1591
per cent of the total gross receipts of any deal of instant bingo	1592
tickets.	1593

As used in this division, "full gross profit" means the	1594
amount by which the total receipts of all instant bingo tickets,	1595
if the deal had been sold in full, exceeds the amount that would	1596
be paid out if all prizes were redeemed.	1597

(F)(E) A charitable instant bingo organization shall provide	1598
the attorney general with all of the following information:	1599

(1) That the charitable instant bingo organization has	1600
terminated a contract entered into pursuant to division (C)(B) of	1601
this section with an owner or lessor of a location;	1602

(2) That the charitable instant bingo organization has	1603
entered into a written contract pursuant to division (C)(B) of	1604
this section with a new owner or lessor of a location;	1605

(3) That the charitable instant bingo organization is aware	1606
of conduct by the owner or lessor of a location at which instant	1607
bingo is conducted that is in violation of this chapter.	1608

(G)(F) Division (D)(C) of this section does not apply to a	1609
volunteer firefighter's organization that is exempt from federal	1610
income taxation under subsection 501(a) and described in	1611
subsection 501(c)(3) of the Internal Revenue Code, that conducts	1612
instant bingo other than at a bingo session on the premises where	1613
the organization conducts firefighter training, that has conducted	1614
instant bingo continuously for at least five years prior to July	1615
1, 2003, and that, during each of those five years, had gross	1616
receipts of at least one million five hundred thousand dollars.	1617

Sec. 2915.094. (A) No owner or lessor of a location shall	1618
assist a charitable instant bingo organization in the conduct of	1619
instant bingo other than at a bingo session at that location	1620
unless the owner or lessor has entered into a written contract, as	1621
described in division (C) of section 2915.093 of the Revised Code,	1622
with the charitable instant bingo organization to assist in the	1623
conduct of instant bingo other than at a bingo session.	1624

(B) The location of the lessor or owner shall be designated	1625
as a location where the charitable instant bingo organization	1626
conducts instant bingo other than at a bingo session.	1627

(C) No owner or lessor of a location that enters into a	1628
written contract as prescribed in division (A) of this section	1629
shall violate any provision of Chapter 2915. of the Revised Code,	1630
or permit, aid, or abet any other person in violating any	1631
provision of Chapter 2915. of the Revised Code.	1632

(D) No owner or lessor of a location that enters into a	1633
written contract as prescribed in division (A) of this section	1634
shall violate the terms of the contract.	1635

(E)(1) Whoever violates division (C) or (D) of this section	1636
is guilty of illegal instant bingo conduct. Except as otherwise	1637
provided in this division, illegal instant bingo conduct is a	1638
misdemeanor of the first degree. If the offender previously has	1639
been convicted of a violation of division (C) or (D) of this	1640
section, illegal instant bingo conduct is a felony of the fifth	1641
degree.	1642

(2) If an owner or lessor of a location knowingly,	1643
intentionally, or recklessly violates division (C) or (D) of this	1644
section, any license that the owner or lessor holds for the retail	1645
sale of any goods on the owner's or lessor's premises that is	1646
issued by the state or a political subdivision is subject to	1647
suspension, revocation, or payment of a monetary penalty at the	1648
request of the attorney general.	1649

Sec. 2915.10.  (A) No charitable organization that conducts	1650
bingo or a game of chance pursuant to division (D) of section	1651
2915.02 of the Revised Code shall fail to maintain the following	1652
records for at least three years from the date on which the bingo	1653
or game of chance is conducted:	1654

(1) An itemized list of the gross receipts of each bingo	1655
session, each game of instant bingo by serial number, each raffle,	1656
each punch board game, and each game of chance, and an itemized	1657
list of the gross profits of each game of instant bingo by serial	1658
number;	1659

(2) An itemized list of all expenses, other than prizes, that	1660
are incurred in conducting bingo or instant bingo, the name of	1661
each person to whom the expenses are paid, and a receipt for all	1662
of the expenses;	1663

(3) A list of all prizes awarded during each bingo session,	1664
each raffle, each punch board game, and each game of chance	1665
conducted by the charitable organization, the total prizes awarded	1666
from each game of instant bingo by serial number, and the name,	1667
address, and social security number of all persons who are winners	1668
of prizes of six hundred dollars or more in value;	1669

(4) An itemized list of the recipients of the net profit of	1670
the bingo or game of chance, including the name and address of	1671
each recipient to whom the money is distributed, and if the	1672
organization uses the net profit of bingo, or the money or assets	1673
received from a game of chance, for any charitable or other	1674
purpose set forth in division (Z)(V) of section 2915.01, division	1675
(D) of section 2915.02, or section 2915.101 of the Revised Code, a	1676
list of each purpose and an itemized list of each expenditure for	1677
each purpose;	1678

(5) The number of persons who participate in any bingo	1679
session or game of chance that is conducted by the charitable	1680
organization;	1681

(6) A list of receipts from the sale of food and beverages by	1682
the charitable organization or one of its auxiliary units or	1683
societies, if the receipts were excluded from gross receipts under	1684
division (X)(T) of section 2915.01 of the Revised Code;	1685

(7) An itemized list of all expenses incurred at each bingo	1686
session, each raffle, each punch board game, or each game of	1687
instant bingo conducted by the charitable organization in the sale	1688
of food and beverages by the charitable organization or by an	1689
auxiliary unit or society of the charitable organization, the name	1690
of each person to whom the expenses are paid, and a receipt for	1691
all of the expenses.	1692

(B) A charitable organization shall keep the records that it	1693
is required to maintain pursuant to division (A) of this section	1694
at its principal place of business in this state or at its	1695
headquarters in this state and shall notify the attorney general	1696
of the location at which those records are kept.	1697

(C) The gross profit from each bingo session or game	1698
described in division (S)(O)(1) or (2) of section 2915.01 of the	1699
Revised Code shall be deposited into a checking account devoted	1700
exclusively to the bingo session or game. Payments for allowable	1701
expenses incurred in conducting the bingo session or game and	1702
payments to recipients of some or all of the net profit of the	1703
bingo session or game shall be made only by checks or electronic	1704
fund transfers drawn on the bingo session or game account.	1705

(D) Each charitable organization shall conduct and record an	1706
inventory of all of its bingo supplies as of the first day of	1707
November of each year.	1708

(E) The attorney general may adopt rules in accordance with	1709
Chapter 119. of the Revised Code that establish standards of	1710
accounting, record keeping, and reporting to ensure that gross	1711
receipts from bingo or games of chance are properly accounted for.	1712

(F) A distributor shall maintain, for a period of three years	1713
after the date of its sale or other provision, a record of each	1714
instance of its selling or otherwise providing to another person	1715
bingo supplies for use in this state. The record shall include all	1716
of the following for each instance:	1717

(1) The name of the manufacturer from which the distributor	1718
purchased the bingo supplies and the date of the purchase;	1719

(2) The name and address of the charitable organization or	1720
other distributor to which the bingo supplies were sold or	1721
otherwise provided;	1722

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

1723

(4) Invoices that include the nonrepeating serial numbers of	1724
all paper bingo cards and sheets and all instant bingo deals sold	1725
or otherwise provided to each charitable organization.	1726

(G) A manufacturer shall maintain, for a period of three	1727
years after the date of its sale or other provision, a record of	1728
each instance of its selling or otherwise providing bingo supplies	1729
for use in this state. The record shall include all of the	1730
following for each instance:	1731

(1) The name and address of the distributor to whom the bingo	1732
supplies were sold or otherwise provided;	1733

(2) A description that clearly identifies the bingo supplies,	1734
including serial numbers;	1735

(3) Invoices that include the nonrepeating serial numbers of	1736
all paper bingo cards and sheets and all instant bingo deals sold	1737
or otherwise provided to each distributor.	1738

(H) The attorney general or any law enforcement agency may do	1739
all of the following:	1740

(1) Investigate any charitable organization or any officer,	1741
agent, trustee, member, or employee of the organization;	1742

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

1743

(3) Conduct inspections, audits, and observations of bingo or	1744
games of chance;	1745

(4) Conduct inspections of the premises where bingo or games	1746
of chance are conducted;	1747

(5) Take any other necessary and reasonable action to	1748
determine if a violation of any provision of sections 2915.01 to	1749
2915.13 of the Revised Code has occurred and to determine whether	1750
section 2915.11 of the Revised Code has been complied with.	1751

If any law enforcement agency has reasonable grounds to	1752
believe that a charitable organization or an officer, agent,	1753
trustee, member, or employee of the organization has violated any	1754
provision of this chapter, the law enforcement agency may proceed	1755
by action in the proper court to enforce this chapter, provided	1756
that the law enforcement agency shall give written notice to the	1757
attorney general when commencing an action as described in this	1758
division.	1759

(I) No person shall destroy, alter, conceal, withhold, or	1760
deny access to any accounts or records of a charitable	1761
organization that have been requested for examination, or	1762
obstruct, impede, or interfere with any inspection, audit, or	1763
observation of bingo or a game of chance or premises where bingo	1764
or a game of chance is conducted, or refuse to comply with any	1765
reasonable request of, or obstruct, impede, or interfere with any	1766
other reasonable action undertaken by, the attorney general or a	1767
law enforcement agency pursuant to division (H) of this section.	1768

(J) Whoever violates division (A) or (I) of this section is	1769
guilty of a misdemeanor of the first degree.	1770

Sec. 2915.101. Except as otherwise provided by law, a	1771
charitable organization that conducts instant bingo shall	1772
distribute the net profit from the proceeds of the sale of instant	1773
bingo as follows:	1774

(A)(1) If a veteran's organization, a fraternal organization,	1775
or a sporting organization conducted the instant bingo, the	1776
organization shall distribute the net profit from the proceeds of	1777
the sale of instant bingo, as follows:	1778

(a) For the first two hundred fifty thousand dollars, or a	1779
greater amount prescribed by the attorney general to adjust for	1780
changes in prices as measured by the consumer price index as	1781
defined in section 325.18 of the Revised Code and other factors	1782
affecting the organization's expenses, as defined in division	1783
(LL)(GG) of section 2915.01 of the Revised Code, or less of net	1784
profit from the proceeds of the sale of instant bingo generated in	1785
a calendar year:	1786

(i) At least twenty-five per cent shall be distributed to an	1787
organization described in division (Z)(V)(1) of section 2915.01 of	1788
the Revised Code or to a department or agency of the federal	1789
government, the state, or any political subdivision.	1790

(ii) Not more than seventy-five per cent may be deducted and	1791
retained by the organization for reimbursement of or for the	1792
organization's expenses, as defined in division (LL)(GG) of	1793
section 2915.01 of the Revised Code, in conducting the instant	1794
bingo game.	1795

(b) For any net profit from the proceeds of the sale of	1796
instant bingo of more than two hundred fifty thousand dollars or	1797
an adjusted amount generated in a calendar year:	1798

(i) A minimum of fifty per cent shall be distributed to an	1799
organization described in division (Z)(V)(1) of section 2915.01 of	1800
the Revised Code or to a department or agency of the federal	1801
government, the state, or any political subdivision.	1802

(ii) Five per cent may be distributed for the organization's	1803
own charitable purposes or to a community action agency.	1804

(iii) Forty-five per cent may be deducted and retained by the	1805
organization for reimbursement of or for the organization's	1806
expenses, as defined in division (LL)(GG) of section 2915.01 of	1807
the Revised Code, in conducting the instant bingo game.	1808

(2) If a veteran's organization, a fraternal organization, or	1809
a sporting organization does not distribute the full percentages	1810
specified in divisions (A)(1)(a) and (b) of this section for the	1811
purposes specified in those divisions, the organization shall	1812
distribute the balance of the net profit from the proceeds of the	1813
sale of instant bingo not distributed or retained for those	1814
purposes to an organization described in division (Z)(V)(1) of	1815
section 2915.01 of the Revised Code.	1816

(B) If a charitable organization other than a veteran's	1817
organization, a fraternal organization, or a sporting organization	1818
conducted the instant bingo, the organization shall distribute one	1819
hundred per cent of the net profit from the proceeds of the sale	1820
of instant bingo to an organization described in division	1821
(Z)(V)(1) of section 2915.01 of the Revised Code or to a	1822
department or agency of the federal government, the state, or any	1823
political subdivision.	1824

(C) Nothing in this section prohibits a veteran's	1825
organization, a fraternal organization, or a sporting organization	1826
from distributing any net profit from the proceeds of the sale of	1827
instant bingo to an organization that is described in subsection	1828
501(c)(3) of the Internal Revenue Code when the organization that	1829
is described in subsection 501(c)(3) of the Internal Revenue Code	1830
is one that makes donations to other organizations and permits	1831
donors to advise or direct such donations so long as the donations	1832
comply with requirements established in or pursuant to subsection	1833
501(c)(3) of the Internal Revenue Code.	1834

Sec. 2915.12. (A) Sections 2915.07 to 2915.11 of the Revised	1835
Code do not apply to bingo games that are conducted for the	1836
purpose of amusement only. A bingo game is conducted for the	1837
purpose of amusement only if it complies with all of the	1838
requirements specified in either division (A)(1) or (2) of this	1839
section:	1840

(1)(a) The participants do not pay any money or any other	1841
thing of value including an admission fee, or any fee for bingo	1842
cards or sheets, objects to cover the spaces, or other devices	1843
used in playing bingo, for the privilege of participating in the	1844
bingo game, or to defray any costs of the game, or pay tips or	1845
make donations during or immediately before or after the bingo	1846
game.	1847

(b) All prizes awarded during the course of the game are	1848
nonmonetary, and in the form of merchandise, goods, or	1849
entitlements to goods or services only, and the total value of all	1850
prizes awarded during the game is less than one hundred dollars.	1851

(c) No commission, wages, salary, reward, tip, donation,	1852
gratuity, or other form of compensation, either directly or	1853
indirectly, and regardless of the source, is paid to any bingo	1854
game operator for work or labor performed at the site of the bingo	1855
game.	1856

(d) The bingo game is not conducted either during or within	1857
ten hours of any of the following:	1858

(i) A bingo session during which a charitable bingo game is	1859
conducted pursuant to sections 2915.07 to 2915.11 of the Revised	1860
Code;	1861

(ii) A scheme or game of chance, or bingo described in	1862
division (S)(O)(2) of section 2915.01 of the Revised Code.	1863

(e) The number of players participating in the bingo game	1864
does not exceed fifty.	1865

(2)(a) The participants do not pay money or any other thing	1866
of value as an admission fee, and no participant is charged more	1867
than twenty-five cents to purchase a bingo card or sheet, objects	1868
to cover the spaces, or other devices used in playing bingo.	1869

(b) The total amount of money paid by all of the participants	1870
for bingo cards or sheets, objects to cover the spaces, or other	1871
devices used in playing bingo does not exceed one hundred dollars.	1872

(c) All of the money paid for bingo cards or sheets, objects	1873
to cover spaces, or other devices used in playing bingo is used	1874
only to pay winners monetary and nonmonetary prizes and to provide	1875
refreshments.	1876

(d) The total value of all prizes awarded during the game	1877
does not exceed one hundred dollars.	1878

(e) No commission, wages, salary, reward, tip, donation,	1879
gratuity, or other form of compensation, either directly or	1880
indirectly, and regardless of the source, is paid to any bingo	1881
game operator for work or labor performed at the site of the bingo	1882
game.	1883

(f) The bingo game is not conducted during or within ten	1884
hours of either of the following:	1885

(i) A bingo session during which a charitable bingo game is	1886
conducted pursuant to sections 2915.07 to 2915.11 of the Revised	1887
Code;	1888

(ii) A scheme of chance or game of chance, or bingo described	1889
in division (S)(O)(2) of section 2915.01 of the Revised Code.	1890

(g) All of the participants reside at the premises where the	1891
bingo game is conducted.	1892

(h) The bingo games are conducted on different days of the	1893
week and not more than twice in a calendar week.	1894

(B) The attorney general or any local law enforcement agency	1895
may investigate the conduct of a bingo game that purportedly is	1896
conducted for purposes of amusement only if there is reason to	1897
believe that the purported amusement bingo game does not comply	1898
with the requirements of either division (A)(1) or (2) of this	1899
section. A local law enforcement agency may proceed by action in	1900
the proper court to enforce this section if the local law	1901
enforcement agency gives written notice to the attorney general	1902
when commencing the action.	1903

Sec. 2923.31.  As used in sections 2923.31 to 2923.36 of the	1904
Revised Code:	1905

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

1906

(1) The interest of a person as a beneficiary under a trust	1907
in which the trustee holds title to personal or real property;	1908

(2) The interest of a person as a beneficiary under any other	1909
trust arrangement under which any other person holds title to	1910
personal or real property for the benefit of such person;	1911

(3) The interest of a person under any other form of express	1912
fiduciary arrangement under which any other person holds title to	1913
personal or real property for the benefit of such person.	1914

"Beneficial interest" does not include the interest of a	1915
stockholder in a corporation or the interest of a partner in	1916
either a general or limited partnership.	1917

(B) "Costs of investigation and prosecution" and "costs of	1918
investigation and litigation" mean all of the costs incurred by	1919
the state or a county or municipal corporation under sections	1920
2923.31 to 2923.36 of the Revised Code in the prosecution and	1921
investigation of any criminal action or in the litigation and	1922
investigation of any civil action, and includes, but is not	1923
limited to, the costs of resources and personnel.	1924

(C) "Enterprise" includes any individual, sole	1925
proprietorship, partnership, limited partnership, corporation,	1926
trust, union, government agency, or other legal entity, or any	1927
organization, association, or group of persons associated in fact	1928
although not a legal entity. "Enterprise" includes illicit as well	1929
as licit enterprises.	1930

(D) "Innocent person" includes any bona fide purchaser of	1931
property that is allegedly involved in a violation of section	1932
2923.32 of the Revised Code, including any person who establishes	1933
a valid claim to or interest in the property in accordance with	1934
division (E) of section 2981.04 of the Revised Code, and any	1935
victim of an alleged violation of that section or of any	1936
underlying offense involved in an alleged violation of that	1937
section.	1938

(E) "Pattern of corrupt activity" means two or more incidents	1939
of corrupt activity, whether or not there has been a prior	1940
conviction, that are related to the affairs of the same	1941
enterprise, are not isolated, and are not so closely related to	1942
each other and connected in time and place that they constitute a	1943
single event.	1944

At least one of the incidents forming the pattern shall occur	1945
on or after January 1, 1986. Unless any incident was an aggravated	1946
murder or murder, the last of the incidents forming the pattern	1947
shall occur within six years after the commission of any prior	1948
incident forming the pattern, excluding any period of imprisonment	1949
served by any person engaging in the corrupt activity.	1950

For the purposes of the criminal penalties that may be	1951
imposed pursuant to section 2923.32 of the Revised Code, at least	1952
one of the incidents forming the pattern shall constitute a felony	1953
under the laws of this state in existence at the time it was	1954
committed or, if committed in violation of the laws of the United	1955
States or of any other state, shall constitute a felony under the	1956
law of the United States or the other state and would be a	1957
criminal offense under the law of this state if committed in this	1958
state.	1959

(F) "Pecuniary value" means money, a negotiable instrument, a	1960
commercial interest, or anything of value, as defined in section	1961
1.03 of the Revised Code, or any other property or service that	1962
has a value in excess of one hundred dollars.	1963

(G) "Person" means any person, as defined in section 1.59 of	1964
the Revised Code, and any governmental officer, employee, or	1965
entity.	1966

(H) "Personal property" means any personal property, any	1967
interest in personal property, or any right, including, but not	1968
limited to, bank accounts, debts, corporate stocks, patents, or	1969
copyrights. Personal property and any beneficial interest in	1970
personal property are deemed to be located where the trustee of	1971
the property, the personal property, or the instrument evidencing	1972
the right is located.	1973

(I) "Corrupt activity" means engaging in, attempting to	1974
engage in, conspiring to engage in, or soliciting, coercing, or	1975
intimidating another person to engage in any of the following:	1976

(1) Conduct defined as "racketeering activity" under the	1977
"Organized Crime Control Act of 1970," 84 Stat. 941, 18 U.S.C.	1978
1961(1)(B), (1)(C), (1)(D), and (1)(E), as amended;	1979

(2) Conduct constituting any of the following:

1980

(a) A violation of section 1315.55, 1322.02, 2903.01,	1981
2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2905.01, 2905.02,	1982
2905.11, 2905.22, 2907.321, 2907.322, 2907.323, 2909.02, 2909.03,	1983
2909.22, 2909.23, 2909.24, 2909.26, 2909.27, 2909.28, 2909.29,	1984
2911.01, 2911.02, 2911.11, 2911.12, 2911.13, 2911.31, 2913.05,	1985
2913.06, 2921.02, 2921.03, 2921.04, 2921.11, 2921.12, 2921.32,	1986
2921.41, 2921.42, 2921.43, 2923.12, or 2923.17; division	1987
(F)(1)(a), (b), or (c) of section 1315.53; division (A)(1) or (2)	1988
of section 1707.042; division (B), (C)(4), (D), (E), or (F) of	1989
section 1707.44; division (A)(1) or (2) of section 2923.20;	1990
division (E) or (G) of section 3772.99; division (J)(1) of section	1991
4712.02; section 4719.02, 4719.05, or 4719.06; division (C), (D),	1992
or (E) of section 4719.07; section 4719.08; or division (A) of	1993
section 4719.09 of the Revised Code.	1994

(b) Any violation of section 3769.11, 3769.15, 3769.16, or	1995
3769.19 of the Revised Code as it existed prior to July 1, 1996,	1996
any violation of section 2915.02 of the Revised Code that occurs	1997
on or after July 1, 1996, and that, had it occurred prior to that	1998
date, would have been a violation of section 3769.11 of the	1999
Revised Code as it existed prior to that date, or any violation of	2000
section 2915.05 of the Revised Code that occurs on or after July	2001
1, 1996, and that, had it occurred prior to that date, would have	2002
been a violation of section 3769.15, 3769.16, or 3769.19 of the	2003
Revised Code as it existed prior to that date.	2004

(c) Any violation of section 2907.21, 2907.22, 2907.31,	2005
2913.02, 2913.11, 2913.21, 2913.31, 2913.32, 2913.34, 2913.42,	2006
2913.47, 2913.51, 2915.03, 2925.03, 2925.04, 2925.05, or 2925.37	2007
of the Revised Code, any violation of section 2925.11 of the	2008
Revised Code that is a felony of the first, second, third, or	2009
fourth degree and that occurs on or after July 1, 1996, any	2010
violation of section 2915.02 of the Revised Code that occurred	2011
prior to July 1, 1996, any violation of section 2915.02 of the	2012
Revised Code that occurs on or after July 1, 1996, and that, had	2013
it occurred prior to that date, would not have been a violation of	2014
section 3769.11 of the Revised Code as it existed prior to that	2015
date, any violation of section 2915.06 of the Revised Code as it	2016
existed prior to July 1, 1996, or any violation of division (B) of	2017
section 2915.05 of the Revised Code as it exists on and after July	2018
1, 1996, when the proceeds of the violation, the payments made in	2019
the violation, the amount of a claim for payment or for any other	2020
benefit that is false or deceptive and that is involved in the	2021
violation, or the value of the contraband or other property	2022
illegally possessed, sold, or purchased in the violation exceeds	2023
one thousand dollars, or any combination of violations described	2024
in division (I)(2)(c) of this section when the total proceeds of	2025
the combination of violations, payments made in the combination of	2026
violations, amount of the claims for payment or for other benefits	2027
that is false or deceptive and that is involved in the combination	2028
of violations, or value of the contraband or other property	2029
illegally possessed, sold, or purchased in the combination of	2030
violations exceeds one thousand dollars;	2031

(d) Any violation of section 5743.112 of the Revised Code	2032
when the amount of unpaid tax exceeds one hundred dollars;	2033

(e) Any violation or combination of violations of section	2034
2907.32 of the Revised Code involving any material or performance	2035
containing a display of bestiality or of sexual conduct, as	2036
defined in section 2907.01 of the Revised Code, that is explicit	2037
and depicted with clearly visible penetration of the genitals or	2038
clearly visible penetration by the penis of any orifice when the	2039
total proceeds of the violation or combination of violations, the	2040
payments made in the violation or combination of violations, or	2041
the value of the contraband or other property illegally possessed,	2042
sold, or purchased in the violation or combination of violations	2043
exceeds one thousand dollars;	2044

(f) Any combination of violations described in division	2045
(I)(2)(c) of this section and violations of section 2907.32 of the	2046
Revised Code involving any material or performance containing a	2047
display of bestiality or of sexual conduct, as defined in section	2048
2907.01 of the Revised Code, that is explicit and depicted with	2049
clearly visible penetration of the genitals or clearly visible	2050
penetration by the penis of any orifice when the total proceeds of	2051
the combination of violations, payments made in the combination of	2052
violations, amount of the claims for payment or for other benefits	2053
that is false or deceptive and that is involved in the combination	2054
of violations, or value of the contraband or other property	2055
illegally possessed, sold, or purchased in the combination of	2056
violations exceeds one thousand dollars;	2057

(g) Any violation of section 2905.32 of the Revised Code to	2058
the extent the violation is not based solely on the same conduct	2059
that constitutes corrupt activity pursuant to division (I)(2)(c)	2060
of this section due to the conduct being in violation of section	2061
2907.21 of the Revised Code.	2062

(3) Conduct constituting a violation of any law of any state	2063
other than this state that is substantially similar to the conduct	2064
described in division (I)(2) of this section, provided the	2065
defendant was convicted of the conduct in a criminal proceeding in	2066
the other state;	2067

(4) Animal or ecological terrorism;

2068

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

2069

(i) Organized retail theft;

2070

(ii) Conduct that constitutes one or more violations of any	2071
law of any state other than this state, that is substantially	2072
similar to organized retail theft, and that if committed in this	2073
state would be organized retail theft, if the defendant was	2074
convicted of or pleaded guilty to the conduct in a criminal	2075
proceeding in the other state.	2076

(b) By enacting division (I)(5)(a) of this section, it is the	2077
intent of the general assembly to add organized retail theft and	2078
the conduct described in division (I)(5)(a)(ii) of this section as	2079
conduct constituting corrupt activity. The enactment of division	2080
(I)(5)(a) of this section and the addition by division (I)(5)(a)	2081
of this section of organized retail theft and the conduct	2082
described in division (I)(5)(a)(ii) of this section as conduct	2083
constituting corrupt activity does not limit or preclude, and	2084
shall not be construed as limiting or precluding, any prosecution	2085
for a violation of section 2923.32 of the Revised Code that is	2086
based on one or more violations of section 2913.02 or 2913.51 of	2087
the Revised Code, one or more similar offenses under the laws of	2088
this state or any other state, or any combination of any of those	2089
violations or similar offenses, even though the conduct	2090
constituting the basis for those violations or offenses could be	2091
construed as also constituting organized retail theft or conduct	2092
of the type described in division (I)(5)(a)(ii) of this section.	2093

(J) "Real property" means any real property or any interest	2094
in real property, including, but not limited to, any lease of, or	2095
mortgage upon, real property. Real property and any beneficial	2096
interest in it is deemed to be located where the real property is	2097
located.	2098

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

2099

(1) Any person acting as trustee under a trust in which the	2100
trustee holds title to personal or real property;	2101

(2) Any person who holds title to personal or real property	2102
for which any other person has a beneficial interest;	2103

(3) Any successor trustee.

2104

"Trustee" does not include an assignee or trustee for an	2105
insolvent debtor or an executor, administrator, administrator with	2106
the will annexed, testamentary trustee, guardian, or committee,	2107
appointed by, under the control of, or accountable to a court.	2108

(L) "Unlawful debt" means any money or other thing of value	2109
constituting principal or interest of a debt that is legally	2110
unenforceable in this state in whole or in part because the debt	2111
was incurred or contracted in violation of any federal or state	2112
law relating to the business of gambling activity or relating to	2113
the business of lending money at an usurious rate unless the	2114
creditor proves, by a preponderance of the evidence, that the	2115
usurious rate was not intentionally set and that it resulted from	2116
a good faith error by the creditor, notwithstanding the	2117
maintenance of procedures that were adopted by the creditor to	2118
avoid an error of that nature.	2119

(M) "Animal activity" means any activity that involves the	2120
use of animals or animal parts, including, but not limited to,	2121
hunting, fishing, trapping, traveling, camping, the production,	2122
preparation, or processing of food or food products, clothing or	2123
garment manufacturing, medical research, other research,	2124
entertainment, recreation, agriculture, biotechnology, or service	2125
activity that involves the use of animals or animal parts.	2126

(N) "Animal facility" means a vehicle, building, structure,	2127
nature preserve, or other premises in which an animal is lawfully	2128
kept, handled, housed, exhibited, bred, or offered for sale,	2129
including, but not limited to, a zoo, rodeo, circus, amusement	2130
park, hunting preserve, or premises in which a horse or dog event	2131
is held.	2132

(O) "Animal or ecological terrorism" means the commission of	2133
any felony that involves causing or creating a substantial risk of	2134
physical harm to any property of another, the use of a deadly	2135
weapon or dangerous ordnance, or purposely, knowingly, or	2136
recklessly causing serious physical harm to property and that	2137
involves an intent to obstruct, impede, or deter any person from	2138
participating in a lawful animal activity, from mining, foresting,	2139
harvesting, gathering, or processing natural resources, or from	2140
being lawfully present in or on an animal facility or research	2141
facility.	2142

(P) "Research facility" means a place, laboratory,	2143
institution, medical care facility, government facility, or public	2144
or private educational institution in which a scientific test,	2145
experiment, or investigation involving the use of animals or other	2146
living organisms is lawfully carried out, conducted, or attempted.	2147

(Q) "Organized retail theft" means the theft of retail	2148
property with a retail value of one thousand dollars or more from	2149
one or more retail establishments with the intent to sell,	2150
deliver, or transfer that property to a retail property fence.	2151

(R) "Retail property" means any tangible personal property	2152
displayed, held, stored, or offered for sale in or by a retail	2153
establishment.	2154

(S) "Retail property fence" means a person who possesses,	2155
procures, receives, or conceals retail property that was	2156
represented to the person as being stolen or that the person knows	2157
or believes to be stolen.	2158

(T) "Retail value" means the full retail value of the retail	2159
property. In determining whether the retail value of retail	2160
property equals or exceeds one thousand dollars, the value of all	2161
retail property stolen from the retail establishment or retail	2162
establishments by the same person or persons within any	2163
one-hundred-eighty-day period shall be aggregated.	2164

Sec. 2933.51.  As used in sections 2933.51 to 2933.66 of the	2165
Revised Code:	2166

(A) "Wire communication" means an aural transfer that is made	2167
in whole or in part through the use of facilities for the	2168
transmission of communications by the aid of wires or similar	2169
methods of connecting the point of origin of the communication and	2170
the point of reception of the communication, including the use of	2171
a method of connecting the point of origin and the point of	2172
reception of the communication in a switching station, if the	2173
facilities are furnished or operated by a person engaged in	2174
providing or operating the facilities for the transmission of	2175
communications. "Wire communication" includes an electronic	2176
storage of a wire communication.	2177

(B) "Oral communication" means an oral communication uttered	2178
by a person exhibiting an expectation that the communication is	2179
not subject to interception under circumstances justifying that	2180
expectation. "Oral communication" does not include an electronic	2181
communication.	2182

(C) "Intercept" means the aural or other acquisition of the	2183
contents of any wire, oral, or electronic communication through	2184
the use of an interception device.	2185

(D) "Interception device" means an electronic, mechanical, or	2186
other device or apparatus that can be used to intercept a wire,	2187
oral, or electronic communication. "Interception device" does not	2188
mean any of the following:	2189

(1) A telephone or telegraph instrument, equipment, or	2190
facility, or any of its components, if the instrument, equipment,	2191
facility, or component is any of the following:	2192

(a) Furnished to the subscriber or user by a provider of wire	2193
or electronic communication service in the ordinary course of its	2194
business and being used by the subscriber or user in the ordinary	2195
course of its business;	2196

(b) Furnished by a subscriber or user for connection to the	2197
facilities of a provider of wire or electronic communication	2198
service and used in the ordinary course of that subscriber's or	2199
user's business;	2200

(c) Being used by a provider of wire or electronic	2201
communication service in the ordinary course of its business or by	2202
an investigative or law enforcement officer in the ordinary course	2203
of the officer's duties that do not involve the interception of	2204
wire, oral, or electronic communications.	2205

(2) A hearing aid or similar device being used to correct	2206
subnormal hearing to not better than normal.	2207

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

2208

(1) An officer of this state or a political subdivision of	2209
this state, who is empowered by law to conduct investigations or	2210
to make arrests for a designated offense;	2211

(2) A person described in divisions (A)(11)(a) and (b) of	2212
section 2901.01 of the Revised Code;	2213

(3) An attorney authorized by law to prosecute or participate	2214
in the prosecution of a designated offense;	2215

(4) A secret service officer appointed pursuant to section	2216
309.07 of the Revised Code;	2217

(5) An officer of the United States, a state, or a political	2218
subdivision of a state who is authorized to conduct investigations	2219
pursuant to the "Electronic Communications Privacy Act of 1986,"	2220
100 Stat. 1848-1857, 18 U.S.C. 2510-2521 (1986), as amended.	2221

(F) "Interception warrant" means a court order that	2222
authorizes the interception of wire, oral, or electronic	2223
communications and that is issued pursuant to sections 2933.53 to	2224
2933.56 of the Revised Code.	2225

(G) "Contents," when used with respect to a wire, oral, or	2226
electronic communication, includes any information concerning the	2227
substance, purport, or meaning of the communication.	2228

(H) "Communications common carrier" means a person who is	2229
engaged as a common carrier for hire in intrastate, interstate, or	2230
foreign communications by wire, radio, or radio transmission of	2231
energy. "Communications common carrier" does not include, to the	2232
extent that the person is engaged in radio broadcasting, a person	2233
engaged in radio broadcasting.	2234

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

2235

(1) A felony violation of section 1315.53, 1315.55, 2903.01,	2236
2903.02, 2903.11, 2905.01, 2905.02, 2905.11, 2905.22, 2905.32,	2237
2907.02, 2907.21, 2907.22, 2909.02, 2909.03, 2909.04, 2909.22,	2238
2909.23, 2909.24, 2909.26, 2909.27, 2909.28, 2909.29, 2911.01,	2239
2911.02, 2911.11, 2911.12, 2913.02, 2913.04, 2913.42, 2913.51,	2240
2915.02, 2915.03, 2917.01, 2917.02, 2921.02, 2921.03, 2921.04,	2241
2921.32, 2921.34, 2923.20, 2923.32, 2925.03, 2925.04, 2925.05, or	2242
2925.06 or of division (B) of section 2915.05 or of division (E)	2243
or (G) of section 3772.99 of the Revised Code;	2244

(2) A violation of section 2919.23 of the Revised Code that,	2245
had it occurred prior to July 1, 1996, would have been a violation	2246
of section 2905.04 of the Revised Code as it existed prior to that	2247
date;	2248

(3) A felony violation of section 2925.11 of the Revised Code	2249
that is not a minor drug possession offense, as defined in section	2250
2925.01 of the Revised Code;	2251

(4) Complicity in the commission of a felony violation of a	2252
section listed in division (I)(1), (2), or (3) of this section;	2253

(5) An attempt to commit, or conspiracy in the commission of,	2254
a felony violation of a section listed in division (I)(1), (2), or	2255
(3) of this section, if the attempt or conspiracy is punishable by	2256
a term of imprisonment of more than one year.	2257

(J) "Aggrieved person" means a person who was a party to an	2258
intercepted wire, oral, or electronic communication or a person	2259
against whom the interception of the communication was directed.	2260

(K) "Person" means a person, as defined in section 1.59 of	2261
the Revised Code, or a governmental officer, employee, or entity.	2262

(L) "Special need" means a showing that a licensed physician,	2263
licensed practicing psychologist, attorney, practicing cleric,	2264
journalist, or either spouse is personally engaging in continuing	2265
criminal activity, was engaged in continuing criminal activity	2266
over a period of time, or is committing, has committed, or is	2267
about to commit, a designated offense, or a showing that specified	2268
public facilities are being regularly used by someone who is	2269
personally engaging in continuing criminal activity, was engaged	2270
in continuing criminal activity over a period of time, or is	2271
committing, has committed, or is about to commit, a designated	2272
offense.	2273

(M) "Journalist" means a person engaged in, connected with,	2274
or employed by, any news media, including a newspaper, magazine,	2275
press association, news agency, or wire service, a radio or	2276
television station, or a similar media, for the purpose of	2277
gathering, processing, transmitting, compiling, editing, or	2278
disseminating news for the general public.	2279

(N) "Electronic communication" means a transfer of a sign,	2280
signal, writing, image, sound, datum, or intelligence of any	2281
nature that is transmitted in whole or in part by a wire, radio,	2282
electromagnetic, photoelectronic, or photo-optical system.	2283
"Electronic communication" does not mean any of the following:	2284

(1) A wire or oral communication;

2285

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

2286

(3) A communication from an electronic or mechanical tracking	2287
device that permits the tracking of the movement of a person or	2288
object.	2289

(O) "User" means a person or entity that uses an electronic	2290
communication service and is duly authorized by the provider of	2291
the service to engage in the use of the electronic communication	2292
service.	2293

(P) "Electronic communications system" means a wire, radio,	2294
electromagnetic, photoelectronic, or photo-optical facility for	2295
the transmission of electronic communications, and a computer	2296
facility or related electronic equipment for the electronic	2297
storage of electronic communications.	2298

(Q) "Electronic communication service" means a service that	2299
provides to users of the service the ability to send or receive	2300
wire or electronic communications.	2301

(R) "Readily accessible to the general public" means, with	2302
respect to a radio communication, that the communication is none	2303
of the following:	2304

(1) Scrambled or encrypted;

2305

(2) Transmitted using a modulation technique, the essential	2306
parameters of which have been withheld from the public with the	2307
intention of preserving the privacy of the communication;	2308

(3) Carried on a subcarrier or other signal subsidiary to a	2309
radio transmission;	2310

(4) Transmitted over a communications system provided by a	2311
communications common carrier, unless the communication is a	2312
tone-only paging system communication;	2313

(5) Transmitted on a frequency allocated under part 25,	2314
subpart D, E, or F of part 74, or part 94 of the Rules of the	2315
Federal Communications Commission, as those provisions existed on	2316
July 1, 1996, unless, in the case of a communication transmitted	2317
on a frequency allocated under part 74 that is not exclusively	2318
allocated to broadcast auxiliary services, the communication is a	2319
two-way voice communication by radio.	2320

(S) "Electronic storage" means a temporary, intermediate	2321
storage of a wire or electronic communication that is incidental	2322
to the electronic transmission of the communication, and a storage	2323
of a wire or electronic communication by an electronic	2324
communication service for the purpose of backup protection of the	2325
communication.	2326

(T) "Aural transfer" means a transfer containing the human	2327
voice at a point between and including the point of origin and the	2328
point of reception.	2329

(U) "Pen register" means a device that records or decodes	2330
electronic impulses that identify the numbers dialed, pulsed, or	2331
otherwise transmitted on telephone lines to which the device is	2332
attached.	2333

(V) "Trap and trace device" means a device that captures the	2334
incoming electronic or other impulses that identify the	2335
originating number of an instrument or device from which a wire	2336
communication or electronic communication was transmitted but that	2337
does not intercept the contents of the wire communication or	2338
electronic communication.	2339

(W) "Judge of a court of common pleas" means a judge of that	2340
court who is elected or appointed as a judge of general	2341
jurisdiction or as a judge who exercises both general jurisdiction	2342
and probate, domestic relations, or juvenile jurisdiction. "Judge	2343
of a court of common pleas" does not mean a judge of that court	2344
who is elected or appointed specifically as a probate, domestic	2345
relations, or juvenile judge.	2346

Sec. 3301.0714.  (A) The state board of education shall adopt	2347
rules for a statewide education management information system. The	2348
rules shall require the state board to establish guidelines for	2349
the establishment and maintenance of the system in accordance with	2350
this section and the rules adopted under this section. The	2351
guidelines shall include:	2352

(1) Standards identifying and defining the types of data in	2353
the system in accordance with divisions (B) and (C) of this	2354
section;	2355

(2) Procedures for annually collecting and reporting the data	2356
to the state board in accordance with division (D) of this	2357
section;	2358

(3) Procedures for annually compiling the data in accordance	2359
with division (G) of this section;	2360

(4) Procedures for annually reporting the data to the public	2361
in accordance with division (H) of this section.	2362

(B) The guidelines adopted under this section shall require	2363
the data maintained in the education management information system	2364
to include at least the following:	2365

(1) Student participation and performance data, for each	2366
grade in each school district as a whole and for each grade in	2367
each school building in each school district, that includes:	2368

(a) The numbers of students receiving each category of	2369
instructional service offered by the school district, such as	2370
regular education instruction, vocational education instruction,	2371
specialized instruction programs or enrichment instruction that is	2372
part of the educational curriculum, instruction for gifted	2373
students, instruction for students with disabilities, and remedial	2374
instruction. The guidelines shall require instructional services	2375
under this division to be divided into discrete categories if an	2376
instructional service is limited to a specific subject, a specific	2377
type of student, or both, such as regular instructional services	2378
in mathematics, remedial reading instructional services,	2379
instructional services specifically for students gifted in	2380
mathematics or some other subject area, or instructional services	2381
for students with a specific type of disability. The categories of	2382
instructional services required by the guidelines under this	2383
division shall be the same as the categories of instructional	2384
services used in determining cost units pursuant to division	2385
(C)(3) of this section.	2386

(b) The numbers of students receiving support or	2387
extracurricular services for each of the support services or	2388
extracurricular programs offered by the school district, such as	2389
counseling services, health services, and extracurricular sports	2390
and fine arts programs. The categories of services required by the	2391
guidelines under this division shall be the same as the categories	2392
of services used in determining cost units pursuant to division	2393
(C)(4)(a) of this section.	2394

(c) Average student grades in each subject in grades nine	2395
through twelve;	2396

(d) Academic achievement levels as assessed under sections	2397
3301.0710, 3301.0711, and 3301.0712 of the Revised Code;	2398

(e) The number of students designated as having a disabling	2399
condition pursuant to division (C)(1) of section 3301.0711 of the	2400
Revised Code;	2401

(f) The numbers of students reported to the state board	2402
pursuant to division (C)(2) of section 3301.0711 of the Revised	2403
Code;	2404

(g) Attendance rates and the average daily attendance for the	2405
year. For purposes of this division, a student shall be counted as	2406
present for any field trip that is approved by the school	2407
administration.	2408

(h) Expulsion rates;

2409

(i) Suspension rates;

2410

(j) Dropout rates;

2411

(k) Rates of retention in grade;

2412

(l) For pupils in grades nine through twelve, the average	2413
number of carnegie units, as calculated in accordance with state	2414
board of education rules;	2415

(m) Graduation rates, to be calculated in a manner specified	2416
by the department of education that reflects the rate at which	2417
students who were in the ninth grade three years prior to the	2418
current year complete school and that is consistent with	2419
nationally accepted reporting requirements;	2420

(n) Results of diagnostic assessments administered to	2421
kindergarten students as required under section 3301.0715 of the	2422
Revised Code to permit a comparison of the academic readiness of	2423
kindergarten students. However, no district shall be required to	2424
report to the department the results of any diagnostic assessment	2425
administered to a kindergarten student if the parent of that	2426
student requests the district not to report those results.	2427

(2) Personnel and classroom enrollment data for each school	2428
district, including:	2429

(a) The total numbers of licensed employees and nonlicensed	2430
employees and the numbers of full-time equivalent licensed	2431
employees and nonlicensed employees providing each category of	2432
instructional service, instructional support service, and	2433
administrative support service used pursuant to division (C)(3) of	2434
this section. The guidelines adopted under this section shall	2435
require these categories of data to be maintained for the school	2436
district as a whole and, wherever applicable, for each grade in	2437
the school district as a whole, for each school building as a	2438
whole, and for each grade in each school building.	2439

(b) The total number of employees and the number of full-time	2440
equivalent employees providing each category of service used	2441
pursuant to divisions (C)(4)(a) and (b) of this section, and the	2442
total numbers of licensed employees and nonlicensed employees and	2443
the numbers of full-time equivalent licensed employees and	2444
nonlicensed employees providing each category used pursuant to	2445
division (C)(4)(c) of this section. The guidelines adopted under	2446
this section shall require these categories of data to be	2447
maintained for the school district as a whole and, wherever	2448
applicable, for each grade in the school district as a whole, for	2449
each school building as a whole, and for each grade in each school	2450
building.	2451

(c) The total number of regular classroom teachers teaching	2452
classes of regular education and the average number of pupils	2453
enrolled in each such class, in each of grades kindergarten	2454
through five in the district as a whole and in each school	2455
building in the school district.	2456

(d) The number of lead teachers employed by each school	2457
district and each school building.	2458

(3)(a) Student demographic data for each school district,	2459
including information regarding the gender ratio of the school	2460
district's pupils, the racial make-up of the school district's	2461
pupils, the number of limited English proficient students in the	2462
district, and an appropriate measure of the number of the school	2463
district's pupils who reside in economically disadvantaged	2464
households. The demographic data shall be collected in a manner to	2465
allow correlation with data collected under division (B)(1) of	2466
this section. Categories for data collected pursuant to division	2467
(B)(3) of this section shall conform, where appropriate, to	2468
standard practices of agencies of the federal government.	2469

(b) With respect to each student entering kindergarten,	2470
whether the student previously participated in a public preschool	2471
program, a private preschool program, or a head start program, and	2472
the number of years the student participated in each of these	2473
programs.	2474

(4) Any data required to be collected pursuant to federal	2475
law.	2476

(C) The education management information system shall include	2477
cost accounting data for each district as a whole and for each	2478
school building in each school district. The guidelines adopted	2479
under this section shall require the cost data for each school	2480
district to be maintained in a system of mutually exclusive cost	2481
units and shall require all of the costs of each school district	2482
to be divided among the cost units. The guidelines shall require	2483
the system of mutually exclusive cost units to include at least	2484
the following:	2485

(1) Administrative costs for the school district as a whole.	2486
The guidelines shall require the cost units under this division	2487
(C)(1) to be designed so that each of them may be compiled and	2488
reported in terms of average expenditure per pupil in formula ADM	2489
in the school district, as determined pursuant to section 3317.03	2490
of the Revised Code.	2491

(2) Administrative costs for each school building in the	2492
school district. The guidelines shall require the cost units under	2493
this division (C)(2) to be designed so that each of them may be	2494
compiled and reported in terms of average expenditure per	2495
full-time equivalent pupil receiving instructional or support	2496
services in each building.	2497

(3) Instructional services costs for each category of	2498
instructional service provided directly to students and required	2499
by guidelines adopted pursuant to division (B)(1)(a) of this	2500
section. The guidelines shall require the cost units under	2501
division (C)(3) of this section to be designed so that each of	2502
them may be compiled and reported in terms of average expenditure	2503
per pupil receiving the service in the school district as a whole	2504
and average expenditure per pupil receiving the service in each	2505
building in the school district and in terms of a total cost for	2506
each category of service and, as a breakdown of the total cost, a	2507
cost for each of the following components:	2508

(a) The cost of each instructional services category required	2509
by guidelines adopted under division (B)(1)(a) of this section	2510
that is provided directly to students by a classroom teacher;	2511

(b) The cost of the instructional support services, such as	2512
services provided by a speech-language pathologist, classroom	2513
aide, multimedia aide, or librarian, provided directly to students	2514
in conjunction with each instructional services category;	2515

(c) The cost of the administrative support services related	2516
to each instructional services category, such as the cost of	2517
personnel that develop the curriculum for the instructional	2518
services category and the cost of personnel supervising or	2519
coordinating the delivery of the instructional services category.	2520

(4) Support or extracurricular services costs for each	2521
category of service directly provided to students and required by	2522
guidelines adopted pursuant to division (B)(1)(b) of this section.	2523
The guidelines shall require the cost units under division (C)(4)	2524
of this section to be designed so that each of them may be	2525
compiled and reported in terms of average expenditure per pupil	2526
receiving the service in the school district as a whole and	2527
average expenditure per pupil receiving the service in each	2528
building in the school district and in terms of a total cost for	2529
each category of service and, as a breakdown of the total cost, a	2530
cost for each of the following components:	2531

(a) The cost of each support or extracurricular services	2532
category required by guidelines adopted under division (B)(1)(b)	2533
of this section that is provided directly to students by a	2534
licensed employee, such as services provided by a guidance	2535
counselor or any services provided by a licensed employee under a	2536
supplemental contract;	2537

(b) The cost of each such services category provided directly	2538
to students by a nonlicensed employee, such as janitorial	2539
services, cafeteria services, or services of a sports trainer;	2540

(c) The cost of the administrative services related to each	2541
services category in division (C)(4)(a) or (b) of this section,	2542
such as the cost of any licensed or nonlicensed employees that	2543
develop, supervise, coordinate, or otherwise are involved in	2544
administering or aiding the delivery of each services category.	2545

(D)(1) The guidelines adopted under this section shall	2546
require school districts to collect information about individual	2547
students, staff members, or both in connection with any data	2548
required by division (B) or (C) of this section or other reporting	2549
requirements established in the Revised Code. The guidelines may	2550
also require school districts to report information about	2551
individual staff members in connection with any data required by	2552
division (B) or (C) of this section or other reporting	2553
requirements established in the Revised Code. The guidelines shall	2554
not authorize school districts to request social security numbers	2555
of individual students. The guidelines shall prohibit the	2556
reporting under this section of a student's name, address, and	2557
social security number to the state board of education or the	2558
department of education. The guidelines shall also prohibit the	2559
reporting under this section of any personally identifiable	2560
information about any student, except for the purpose of assigning	2561
the data verification code required by division (D)(2) of this	2562
section, to any other person unless such person is employed by the	2563
school district or the information technology center operated	2564
under section 3301.075 of the Revised Code and is authorized by	2565
the district or technology center to have access to such	2566
information or is employed by an entity with which the department	2567
contracts for the scoring of assessments administered under	2568
section 3301.0711 of the Revised Code. The guidelines may require	2569
school districts to provide the social security numbers of	2570
individual staff members and the county of residence for a	2571
student. Nothing in this section prohibits the state board of	2572
education or department of education from providing a student's	2573
county of residence to the department of taxation to facilitate	2574
the distribution of tax revenue.	2575

(2) The guidelines shall provide for each school district or	2576
community school to assign a data verification code that is unique	2577
on a statewide basis over time to each student whose initial Ohio	2578
enrollment is in that district or school and to report all	2579
required individual student data for that student utilizing such	2580
code. The guidelines shall also provide for assigning data	2581
verification codes to all students enrolled in districts or	2582
community schools on the effective date of the guidelines	2583
established under this section.	2584

Individual student data shall be reported to the department	2585
through the information technology centers utilizing the code but,	2586
except as provided in sections 3310.11, 3310.42, 3310.63,	2587
3313.978, 3310.63, and 3317.20 of the Revised Code, at no time	2588
shall the state board or the department have access to information	2589
that would enable any data verification code to be matched to	2590
personally identifiable student data.	2591

Each school district shall ensure that the data verification	2592
code is included in the student's records reported to any	2593
subsequent school district, community school, or state institution	2594
of higher education, as defined in section 3345.011 of the Revised	2595
Code, in which the student enrolls. Any such subsequent district	2596
or school shall utilize the same identifier in its reporting of	2597
data under this section.	2598

The director of health shall request and receive, pursuant to	2599
sections 3301.0723 and 3701.62 of the Revised Code, a data	2600
verification code for a child who is receiving services under	2601
division (A)(2) of section 3701.61 of the Revised Code.	2602

(E) The guidelines adopted under this section may require	2603
school districts to collect and report data, information, or	2604
reports other than that described in divisions (A), (B), and (C)	2605
of this section for the purpose of complying with other reporting	2606
requirements established in the Revised Code. The other data,	2607
information, or reports may be maintained in the education	2608
management information system but are not required to be compiled	2609
as part of the profile formats required under division (G) of this	2610
section or the annual statewide report required under division (H)	2611
of this section.	2612

(F) Beginning with the school year that begins July 1, 1991,	2613
the board of education of each school district shall annually	2614
collect and report to the state board, in accordance with the	2615
guidelines established by the board, the data required pursuant to	2616
this section. A school district may collect and report these data	2617
notwithstanding section 2151.357 or 3319.321 of the Revised Code.	2618

(G) The state board shall, in accordance with the procedures	2619
it adopts, annually compile the data reported by each school	2620
district pursuant to division (D) of this section. The state board	2621
shall design formats for profiling each school district as a whole	2622
and each school building within each district and shall compile	2623
the data in accordance with these formats. These profile formats	2624
shall:	2625

(1) Include all of the data gathered under this section in a	2626
manner that facilitates comparison among school districts and	2627
among school buildings within each school district;	2628

(2) Present the data on academic achievement levels as	2629
assessed by the testing of student achievement maintained pursuant	2630
to division (B)(1)(d) of this section.	2631

(H)(1) The state board shall, in accordance with the	2632
procedures it adopts, annually prepare a statewide report for all	2633
school districts and the general public that includes the profile	2634
of each of the school districts developed pursuant to division (G)	2635
of this section. Copies of the report shall be sent to each school	2636
district.	2637

(2) The state board shall, in accordance with the procedures	2638
it adopts, annually prepare an individual report for each school	2639
district and the general public that includes the profiles of each	2640
of the school buildings in that school district developed pursuant	2641
to division (G) of this section. Copies of the report shall be	2642
sent to the superintendent of the district and to each member of	2643
the district board of education.	2644

(3) Copies of the reports received from the state board under	2645
divisions (H)(1) and (2) of this section shall be made available	2646
to the general public at each school district's offices. Each	2647
district board of education shall make copies of each report	2648
available to any person upon request and payment of a reasonable	2649
fee for the cost of reproducing the report. The board shall	2650
annually publish in a newspaper of general circulation in the	2651
school district, at least twice during the two weeks prior to the	2652
week in which the reports will first be available, a notice	2653
containing the address where the reports are available and the	2654
date on which the reports will be available.	2655

(I) Any data that is collected or maintained pursuant to this	2656
section and that identifies an individual pupil is not a public	2657
record for the purposes of section 149.43 of the Revised Code.	2658

(J) As used in this section:

2659

(1) "School district" means any city, local, exempted	2660
village, or joint vocational school district and, in accordance	2661
with section 3314.17 of the Revised Code, any community school. As	2662
used in division (L) of this section, "school district" also	2663
includes any educational service center or other educational	2664
entity required to submit data using the system established under	2665
this section.	2666

(2) "Cost" means any expenditure for operating expenses made	2667
by a school district excluding any expenditures for debt	2668
retirement except for payments made to any commercial lending	2669
institution for any loan approved pursuant to section 3313.483 of	2670
the Revised Code.	2671

(K) Any person who removes data from the information system	2672
established under this section for the purpose of releasing it to	2673
any person not entitled under law to have access to such	2674
information is subject to section 2913.42 of the Revised Code	2675
prohibiting tampering with data.	2676

(L)(1) In accordance with division (L)(2) of this section and	2677
the rules adopted under division (L)(10) of this section, the	2678
department of education may sanction any school district that	2679
reports incomplete or inaccurate data, reports data that does not	2680
conform to data requirements and descriptions published by the	2681
department, fails to report data in a timely manner, or otherwise	2682
does not make a good faith effort to report data as required by	2683
this section.	2684

(2) If the department decides to sanction a school district	2685
under this division, the department shall take the following	2686
sequential actions:	2687

(a) Notify the district in writing that the department has	2688
determined that data has not been reported as required under this	2689
section and require the district to review its data submission and	2690
submit corrected data by a deadline established by the department.	2691
The department also may require the district to develop a	2692
corrective action plan, which shall include provisions for the	2693
district to provide mandatory staff training on data reporting	2694
procedures.	2695

(b) Withhold up to ten per cent of the total amount of state	2696
funds due to the district for the current fiscal year and, if not	2697
previously required under division (L)(2)(a) of this section,	2698
require the district to develop a corrective action plan in	2699
accordance with that division;	2700

(c) Withhold an additional amount of up to twenty per cent of	2701
the total amount of state funds due to the district for the	2702
current fiscal year;	2703

(d) Direct department staff or an outside entity to	2704
investigate the district's data reporting practices and make	2705
recommendations for subsequent actions. The recommendations may	2706
include one or more of the following actions:	2707

(i) Arrange for an audit of the district's data reporting	2708
practices by department staff or an outside entity;	2709

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

2710

(iii) Withhold an additional amount of up to thirty per cent	2711
of the total amount of state funds due to the district for the	2712
current fiscal year;	2713

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

2714

(v) Assign department staff to supervise the district's data	2715
management system;	2716

(vi) Conduct an investigation to determine whether to suspend	2717
or revoke the license of any district employee in accordance with	2718
division (N) of this section;	2719

(vii) If the district is issued a report card under section	2720
3302.03 of the Revised Code, indicate on the report card that the	2721
district has been sanctioned for failing to report data as	2722
required by this section;	2723

(viii) If the district is issued a report card under section	2724
3302.03 of the Revised Code and incomplete or inaccurate data	2725
submitted by the district likely caused the district to receive a	2726
higher performance rating than it deserved under that section,	2727
issue a revised report card for the district;	2728

(ix) Any other action designed to correct the district's data	2729
reporting problems.	2730

(3) Any time the department takes an action against a school	2731
district under division (L)(2) of this section, the department	2732
shall make a report of the circumstances that prompted the action.	2733
The department shall send a copy of the report to the district	2734
superintendent or chief administrator and maintain a copy of the	2735
report in its files.	2736

(4) If any action taken under division (L)(2) of this section	2737
resolves a school district's data reporting problems to the	2738
department's satisfaction, the department shall not take any	2739
further actions described by that division. If the department	2740
withheld funds from the district under that division, the	2741
department may release those funds to the district, except that if	2742
the department withheld funding under division (L)(2)(c) of this	2743
section, the department shall not release the funds withheld under	2744
division (L)(2)(b) of this section and, if the department withheld	2745
funding under division (L)(2)(d) of this section, the department	2746
shall not release the funds withheld under division (L)(2)(b) or	2747
(c) of this section.	2748

(5) Notwithstanding anything in this section to the contrary,	2749
the department may use its own staff or an outside entity to	2750
conduct an audit of a school district's data reporting practices	2751
any time the department has reason to believe the district has not	2752
made a good faith effort to report data as required by this	2753
section. If any audit conducted by an outside entity under	2754
division (L)(2)(d)(i) or (5) of this section confirms that a	2755
district has not made a good faith effort to report data as	2756
required by this section, the district shall reimburse the	2757
department for the full cost of the audit. The department may	2758
withhold state funds due to the district for this purpose.	2759

(6) Prior to issuing a revised report card for a school	2760
district under division (L)(2)(d)(viii) of this section, the	2761
department may hold a hearing to provide the district with an	2762
opportunity to demonstrate that it made a good faith effort to	2763
report data as required by this section. The hearing shall be	2764
conducted by a referee appointed by the department. Based on the	2765
information provided in the hearing, the referee shall recommend	2766
whether the department should issue a revised report card for the	2767
district. If the referee affirms the department's contention that	2768
the district did not make a good faith effort to report data as	2769
required by this section, the district shall bear the full cost of	2770
conducting the hearing and of issuing any revised report card.	2771

(7) If the department determines that any inaccurate data	2772
reported under this section caused a school district to receive	2773
excess state funds in any fiscal year, the district shall	2774
reimburse the department an amount equal to the excess funds, in	2775
accordance with a payment schedule determined by the department.	2776
The department may withhold state funds due to the district for	2777
this purpose.	2778

(8) Any school district that has funds withheld under	2779
division (L)(2) of this section may appeal the withholding in	2780
accordance with Chapter 119. of the Revised Code.	2781

(9) In all cases of a disagreement between the department and	2782
a school district regarding the appropriateness of an action taken	2783
under division (L)(2) of this section, the burden of proof shall	2784
be on the district to demonstrate that it made a good faith effort	2785
to report data as required by this section.	2786

(10) The state board of education shall adopt rules under	2787
Chapter 119. of the Revised Code to implement division (L) of this	2788
section.	2789

(M) No information technology center or school district shall	2790
acquire, change, or update its student administration software	2791
package to manage and report data required to be reported to the	2792
department unless it converts to a student software package that	2793
is certified by the department.	2794

(N) The state board of education, in accordance with sections	2795
3319.31 and 3319.311 of the Revised Code, may suspend or revoke a	2796
license as defined under division (A) of section 3319.31 of the	2797
Revised Code that has been issued to any school district employee	2798
found to have willfully reported erroneous, inaccurate, or	2799
incomplete data to the education management information system.	2800

(O) No person shall release or maintain any information about	2801
any student in violation of this section. Whoever violates this	2802
division is guilty of a misdemeanor of the fourth degree.	2803

(P) The department shall disaggregate the data collected	2804
under division (B)(1)(n) of this section according to the race and	2805
socioeconomic status of the students assessed. No data collected	2806
under that division shall be included on the report cards required	2807
by section 3302.03 of the Revised Code.	2808

(Q) If the department cannot compile any of the information	2809
required by division (C)(5) of section 3302.03 of the Revised Code	2810
based upon the data collected under this section, the department	2811
shall develop a plan and a reasonable timeline for the collection	2812
of any data necessary to comply with that division.	2813

Sec. 3769.041.  (A) Any information concerning the following	2814
that is submitted, collected, or gathered as part of an	2815
application to the state racing commission for a license or permit	2816
under this chapter is confidential and not subject to disclosure	2817
by a state agency or political subdivision as a public record	2818
under section 149.43 of the Revised Code:	2819

(1) A minor child of an applicant;

2820

(2) The social security number, passport number, or federal	2821
tax identification number of an applicant or of the spouse of an	2822
applicant;	2823

(3) The home address and telephone number of an applicant or	2824
of the spouse or dependent of an applicant;	2825

(4) An applicant's birth certificate;

2826

(5) The driver's license number of an applicant or of the	2827
applicant's spouse;	2828

(6) The name or address of a previous spouse of the	2829
applicant;	2830

(7) The date of birth of the applicant and of the spouse of	2831
an applicant;	2832

(8) The place of birth of the applicant and of the spouse of	2833
an applicant;	2834

(9) The personal financial information and records of an	2835
applicant or of an employee or the spouse or dependent of an	2836
applicant, including tax returns and information, and records of	2837
criminal proceedings;	2838

(10) Any information concerning a victim of domestic	2839
violence, sexual assault, or stalking;	2840

(11) The electronic mail address of the spouse or family	2841
member of the applicant;	2842

(12) Any trade secret, medical records, and patents or	2843
exclusive licenses;	2844

(13) Security information, including risk prevention plans,	2845
detection and countermeasures, location of count rooms or other	2846
money storage areas, emergency management plans, security and	2847
surveillance plans, equipment and usage protocols, and theft and	2848
fraud prevention plans and countermeasures;	2849

(14) Information provided in a multijurisdictional personal	2850
history disclosure form, including the Ohio supplement, exhibits,	2851
attachments, and updates.	2852

(B) Notwithstanding any other law to the contrary, upon	2853
written request from a person, the commission shall provide the	2854
following information to the person, except as provided in this	2855
chapter:	2856

(1) The information provided under this chapter concerning a	2857
licensee, permit holder, or an applicant;	2858

(2) A copy of a letter providing the reasons for the denial	2859
of an applicant's license or permit and a copy of a letter	2860
providing the reasons for the commission's refusal to allow an	2861
applicant to withdraw the applicant's application, but with	2862
confidential information redacted if that information is the	2863
reason for the denial or refusal to withdraw.	2864

(C) The individual's name, the individual's place of	2865
employment, the individual's job title, and the individual's	2866
gaming experience that is provided for an individual who holds,	2867
held, or has applied for a license or permit under this chapter is	2868
not confidential. The reason for denial or revocation of a license	2869
or permit or for disciplinary action against the individual is not	2870
confidential. The cover sheet completed by an applicant for a key	2871
employee license is not confidential.	2872

(D) A person who holds, held, or has applied for a license or	2873
permit under this chapter may waive the confidentiality	2874
requirements of division (A) of this section.	2875

(E) Confidential information received by the commission from	2876
another jurisdiction relating to a person who holds, held, or has	2877
applied for a license or permit under this chapter is confidential	2878
and not subject to disclosure as a public record under section	2879
149.43 of the Revised Code. The commission may share the	2880
information referenced in this division with, or disclose the	2881
information to, the inspector general, any appropriate prosecuting	2882
authority, any law enforcement agency, or any other appropriate	2883
governmental or licensing agency, if the agency that receives the	2884
information complies with the same requirements regarding	2885
confidentiality as those with which the commission must comply.	2886

Sec. 3769.08.  (A) Any person holding a permit to conduct a	2887
horse-racing meeting may provide a place in the race meeting	2888
grounds or enclosure at which the permit holder may conduct and	2889
supervise the pari-mutuel system of wagering by patrons of legal	2890
age on the live racing programs and simulcast racing programs	2891
conducted by the permit holder.	2892

The pari-mutuel method of wagering upon the live racing	2893
programs and simulcast racing programs held at or conducted within	2894
such race track, and at the time of such horse-racing meeting, or	2895
at other times authorized by the state racing commission, shall	2896
not be unlawful. No other place, except that provided and	2897
designated by the permit holder and except as provided in section	2898
3769.26 of the Revised Code, nor any other method or system of	2899
betting or wagering on live racing programs and simulcast racing	2900
programs, except the pari-mutuel system, shall be used or	2901
permitted by the permit holder; nor, except as provided in section	2902
3769.089 or 3769.26 of the Revised Code, shall the pari-mutuel	2903
system of wagering be conducted by the permit holder on any races	2904
except the races at the race track, grounds, or enclosure for	2905
which the person holds a permit. Each permit holder may retain as	2906
a commission an amount not to exceed eighteen per cent of the	2907
total of all moneys wagered on live racing programs and simulcast	2908
racing programs.	2909

The pari-mutuel wagering authorized by this section is	2910
subject to sections 3769.25 to 3769.28 of the Revised Code.	2911

(B) At the close of each racing day, each permit holder	2912
authorized to conduct thoroughbred racing, out of the amount	2913
retained on that day by the permit holder, shall pay by check,	2914
draft, or money order to the tax commissioner, as a tax, a sum	2915
equal to the following percentages of the total of all moneys	2916
wagered on live racing programs on that day and shall separately	2917
compute and pay by check, draft, or money order to the tax	2918
commissioner, as a tax, a sum equal to the following percentages	2919
of the total of all money wagered on simulcast racing programs on	2920
that day:	2921

(1) One per cent of the first two hundred thousand dollars	2922
wagered, or any part of that amount;	2923

(2) Two per cent of the next one hundred thousand dollars	2924
wagered, or any part of that amount;	2925

(3) Three per cent of the next one hundred thousand dollars	2926
wagered, or any part of that amount;	2927

(4) Four per cent of all sums over four hundred thousand	2928
dollars wagered.	2929

Except as otherwise provided in section 3769.089 of the	2930
Revised Code, each permit holder authorized to conduct	2931
thoroughbred racing shall use for purse money a sum equal to fifty	2932
per cent of the pari-mutuel revenues retained by the permit holder	2933
as a commission after payment of the state tax. This fifty per	2934
cent payment shall be in addition to the purse distribution from	2935
breakage specified in this section.	2936

Subject to division (M) of this section, from the moneys paid	2937
to the tax commissioner by thoroughbred racing permit holders,	2938
one-half of one per cent of the total of all moneys so wagered on	2939
a racing day shall be paid into the Ohio fairs fund created by	2940
section 3769.082 of the Revised Code, one and one-eighth per cent	2941
of the total of all moneys so wagered on a racing day shall be	2942
paid into the Ohio thoroughbred race fund created by section	2943
3769.083 of the Revised Code, and one-quarter of one per cent of	2944
the total of all moneys wagered on a racing day by each permit	2945
holder shall be paid into the state racing commission operating	2946
fund created by section 3769.03 of the Revised Code. The required	2947
payment to the state racing commission operating fund does not	2948
apply to county and independent fairs and agricultural societies.	2949
The remaining moneys may be retained by the permit holder, except	2950
as provided in this section with respect to the odd cents	2951
redistribution. Amounts paid into the nursing home franchise	2952
permit fee fund pursuant to this section and section 3769.26 of	2953
the Revised Code shall be used solely for the support of the	2954
PASSPORT program as determined in appropriations made by the	2955
general assembly. If the PASSPORT program is abolished, the amount	2956
that would have been paid to the nursing home franchise permit fee	2957
fund under this chapter shall be paid to the general revenue fund	2958
of the state. As used in this chapter, "PASSPORT program" means	2959
the PASSPORT program created under section 173.40 of the Revised	2960
Code.	2961

The total amount paid to the Ohio thoroughbred race fund	2962
under this section and division (A) of section 3769.087 of the	2963
Revised Code shall not exceed by more than six per cent the total	2964
amount paid to this fund under this section and division (A) of	2965
that section during the immediately preceding calendar year.	2966

Each year, the total amount calculated for payment into the	2967
Ohio fairs fund under this division, division (C) of this section,	2968
and division (A) of section 3769.087 of the Revised Code shall be	2969
an amount calculated using the percentages specified in this	2970
division, division (C) of this section, and division (A) of	2971
section 3769.087 of the Revised Code.	2972

A permit holder may contract with a thoroughbred horsemen's	2973
organization for the organization to act as a representative of	2974
all thoroughbred owners and trainers participating in a	2975
horse-racing meeting conducted by the permit holder. A	2976
"thoroughbred horsemen's organization" is any corporation or	2977
association that represents, through membership or otherwise, more	2978
than one-half of the aggregate of all thoroughbred owners and	2979
trainers who were licensed and actively participated in racing	2980
within this state during the preceding calendar year. Except as	2981
otherwise provided in this paragraph, any moneys received by a	2982
thoroughbred horsemen's organization shall be used exclusively for	2983
the benefit of thoroughbred owners and trainers racing in this	2984
state through the administrative purposes of the organization,	2985
benevolent activities on behalf of the horsemen, promotion of the	2986
horsemen's rights and interests, and promotion of equine research.	2987
A thoroughbred horsemen's organization may expend not more than an	2988
aggregate of five per cent of its annual gross receipts, or a	2989
larger amount as approved by the organization, for dues,	2990
assessments, and other payments to all other local, national, or	2991
international organizations having as their primary purposes the	2992
promotion of thoroughbred horse racing, thoroughbred horsemen's	2993
rights, and equine research.	2994

(C) Except as otherwise provided in division (B) of this	2995
section, at the close of each racing day, each permit holder	2996
authorized to conduct harness or quarter horse racing, out of the	2997
amount retained that day by the permit holder, shall pay by check,	2998
draft, or money order to the tax commissioner, as a tax, a sum	2999
equal to the following percentages of the total of all moneys	3000
wagered on live racing programs and shall separately compute and	3001
pay by check, draft, or money order to the tax commissioner, as a	3002
tax, a sum equal to the following percentages of the total of all	3003
money wagered on simulcast racing programs on that day:	3004

(1) One per cent of the first two hundred thousand dollars	3005
wagered, or any part of that amount;	3006

(2) Two per cent of the next one hundred thousand dollars	3007
wagered, or any part of that amount;	3008

(3) Three per cent of the next one hundred thousand dollars	3009
wagered, or any part of that amount;	3010

(4) Four per cent of all sums over four hundred thousand	3011
dollars wagered.	3012

Except as otherwise provided in division (B) and subject to	3013
division (M) of this section, from the moneys paid to the tax	3014
commissioner by permit holders authorized to conduct harness or	3015
quarter horse racing, one-half of one per cent of all moneys	3016
wagered on that racing day shall be paid into the Ohio fairs fund;	3017
from the moneys paid to the tax commissioner by permit holders	3018
authorized to conduct harness racing, five-eighths of one per cent	3019
of all moneys wagered on that racing day shall be paid into the	3020
Ohio standardbred development fund; and from the moneys paid to	3021
the tax commissioner by permit holders authorized to conduct	3022
quarter horse racing, five-eighths of one per cent of all moneys	3023
wagered on that racing day shall be paid into the Ohio quarter	3024
horse development fund.	3025

(D) In addition, subject to division (M) of this section,	3026
beginning on January 1, 1996, from the money paid to the tax	3027
commissioner as a tax under this section and division (A) of	3028
section 3769.087 of the Revised Code by harness horse permit	3029
holders, one-half of one per cent of the amount wagered on a	3030
racing day shall be paid into the Ohio standardbred development	3031
fund. Beginning January 1, 1998, the payment to the Ohio	3032
standardbred development fund required under this division does	3033
not apply to county agricultural societies or independent	3034
agricultural societies.	3035

The total amount paid to the Ohio standardbred development	3036
fund under this division, division (C) of this section, and	3037
division (A) of section 3769.087 of the Revised Code and the total	3038
amount paid to the Ohio quarter horse development fund under this	3039
division and division (A) of that section shall not exceed by more	3040
than six per cent the total amount paid into the fund under this	3041
division, division (C) of this section, and division (A) of	3042
section 3769.087 of the Revised Code in the immediately preceding	3043
calendar year.	3044

(E) Subject to division (M) of this section, from the money	3045
paid as a tax under this chapter by harness and quarter horse	3046
permit holders, one-quarter of one per cent of the total of all	3047
moneys wagered on a racing day by each permit holder shall be paid	3048
into the state racing commission operating fund created by section	3049
3769.03 of the Revised Code. This division does not apply to	3050
county and independent fairs and agricultural societies.	3051

(F) Except as otherwise provided in section 3769.089 of the	3052
Revised Code, each permit holder authorized to conduct harness	3053
racing shall pay to the harness horsemen's purse pool a sum equal	3054
to fifty per cent of the pari-mutuel revenues retained by the	3055
permit holder as a commission after payment of the state tax. This	3056
fifty per cent payment is to be in addition to the purse	3057
distribution from breakage specified in this section.	3058

(G) In addition, each permit holder authorized to conduct	3059
harness racing shall be allowed to retain the odd cents of all	3060
redistribution to be made on all mutual contributions exceeding a	3061
sum equal to the next lowest multiple of ten.	3062

Forty per cent of that portion of that total sum of such odd	3063
cents shall be used by the permit holder for purse money for Ohio	3064
sired, bred, and owned colts, for purse money for Ohio bred	3065
horses, and for increased purse money for horse races. Upon the	3066
formation of the corporation described in section 3769.21 of the	3067
Revised Code to establish a harness horsemen's health and	3068
retirement fund, twenty-five per cent of that portion of that	3069
total sum of odd cents shall be paid at the close of each racing	3070
day by the permit holder to that corporation to establish and fund	3071
the health and retirement fund. Until that corporation is formed,	3072
that twenty-five per cent shall be paid at the close of each	3073
racing day by the permit holder to the tax commissioner or the tax	3074
commissioner's agent in the county seat of the county in which the	3075
permit holder operates race meetings. The remaining thirty-five	3076
per cent of that portion of that total sum of odd cents shall be	3077
retained by the permit holder.	3078

(H) In addition, each permit holder authorized to conduct	3079
thoroughbred racing shall be allowed to retain the odd cents of	3080
all redistribution to be made on all mutuel contributions	3081
exceeding a sum equal to the next lowest multiple of ten. Twenty	3082
per cent of that portion of that total sum of such odd cents shall	3083
be used by the permit holder for increased purse money for horse	3084
races. Upon the formation of the corporation described in section	3085
3769.21 of the Revised Code to establish a thoroughbred horsemen's	3086
health and retirement fund, forty-five per cent of that portion of	3087
that total sum of odd cents shall be paid at the close of each	3088
racing day by the permit holder to that corporation to establish	3089
and fund the health and retirement fund. Until that corporation is	3090
formed, that forty-five per cent shall be paid by the permit	3091
holder to the tax commissioner or the tax commissioner's agent in	3092
the county seat of the county in which the permit holder operates	3093
race meetings, at the close of each racing day. The remaining	3094
thirty-five per cent of that portion of that total sum of odd	3095
cents shall be retained by the permit holder.	3096

(I) In addition, each permit holder authorized to conduct	3097
quarter horse racing shall be allowed to retain the odd cents of	3098
all redistribution to be made on all mutuel contributions	3099
exceeding a sum equal to the next lowest multiple of ten, subject	3100
to a tax of twenty-five per cent on that portion of the total sum	3101
of such odd cents that is in excess of two thousand dollars during	3102
a calendar year, which tax shall be paid at the close of each	3103
racing day by the permit holder to the tax commissioner or the tax	3104
commissioner's agent in the county seat of the county within which	3105
the permit holder operates race meetings. Forty per cent of that	3106
portion of that total sum of such odd cents shall be used by the	3107
permit holder for increased purse money for horse races. The	3108
remaining thirty-five per cent of that portion of that total sum	3109
of odd cents shall be retained by the permit holder.	3110

(J)(1) To encourage the improvement of racing facilities for	3111
the benefit of the public, breeders, and horse owners, and to	3112
increase the revenue to the state from the increase in pari-mutuel	3113
wagering resulting from those improvements, the taxes paid by a	3114
permit holder to the state as provided for in this chapter shall	3115
be reduced by three-fourths of one per cent of the total amount	3116
wagered for those permit holders who make capital improvements to	3117
existing race tracks or construct new race tracks. The percentage	3118
of the reduction that may be taken each racing day shall equal	3119
seventy-five per cent of the taxes levied under divisions (B) and	3120
(C) of this section and section 3769.087 of the Revised Code, and	3121
division (F)(2) of section 3769.26 of the Revised Code, as	3122
applicable, divided by the calculated amount each fund should	3123
receive under divisions (B) and (C) of this section and section	3124
3769.087 of the Revised Code, and division (F)(2) of section	3125
3769.26 of the Revised Code and the reduction provided for in this	3126
division. If the resulting percentage is less than one, that	3127
percentage shall be multiplied by the amount of the reduction	3128
provided for in this division. Otherwise, the permit holder shall	3129
receive the full reduction provided for in this division. The	3130
amount of the allowable reduction not received shall be carried	3131
forward and applied against future tax liability. After any	3132
reductions expire, any reduction carried forward shall be treated	3133
as a reduction as provided for in this division.	3134

If more than one permit holder is authorized to conduct	3135
racing at the facility that is being built or improved, the cost	3136
of the new race track or capital improvement shall be allocated	3137
between or among all the permit holders in the ratio that the	3138
permit holders' number of racing days bears to the total number of	3139
racing days conducted at the facility.	3140

A reduction for a new race track or a capital improvement	3141
shall start from the day racing is first conducted following the	3142
date actual construction of the new race track or each capital	3143
improvement is completed and the construction cost has been	3144
approved by the racing commission, unless otherwise provided in	3145
this section. A reduction for a new race track or a capital	3146
improvement shall continue for a period of twenty-five years for	3147
new race tracks and for fifteen years for capital improvements if	3148
the construction of the capital improvement or new race track	3149
commenced prior to March 29, 1988, and for a period of ten years	3150
for new race tracks or capital improvements if the construction of	3151
the capital improvement or new race track commenced on or after	3152
March 29, 1988, but before June 6, 2001, or until the total tax	3153
reduction reaches seventy per cent of the approved cost of the new	3154
race track or capital improvement, as allocated to each permit	3155
holder, whichever occurs first. A reduction for a new race track	3156
or a capital improvement approved after June 6, 2001, shall	3157
continue until the total tax reduction reaches one hundred per	3158
cent of the approved cost of the new race track or capital	3159
improvement, as allocated to each permit holder.	3160

A reduction granted for a new race track or a capital	3161
improvement, the application for which was approved by the racing	3162
commission after March 29, 1988, but before June 6, 2001, shall	3163
not commence nor shall the ten-year period begin to run until all	3164
prior tax reductions with respect to the same race track have	3165
ended. The total tax reduction because of capital improvements	3166
shall not during any one year exceed for all permit holders using	3167
any one track three-fourths of one per cent of the total amount	3168
wagered, regardless of the number of capital improvements made.	3169
Several capital improvements to a race track may be consolidated	3170
in an application if the racing commission approved the	3171
application prior to March 29, 1988. No permit holder may receive	3172
a tax reduction for a capital improvement approved by the racing	3173
commission on or after March 29, 1988, at a race track until all	3174
tax reductions have ended for all prior capital improvements	3175
approved by the racing commission under this section or section	3176
3769.20 of the Revised Code at that race track. If there are two	3177
or more permit holders operating meetings at the same track, they	3178
may consolidate their applications. The racing commission shall	3179
notify the tax commissioner when the reduction of tax begins and	3180
when it ends.	3181

Each fiscal year the racing commission shall submit a report	3182
to the tax commissioner, the office of budget and management, and	3183
the legislative service commission. The report shall identify each	3184
capital improvement project undertaken under this division and in	3185
progress at each race track, indicate the total cost of each	3186
project, state the tax reduction that resulted from each project	3187
during the immediately preceding fiscal year, estimate the tax	3188
reduction that will result from each project during the current	3189
fiscal year, state the total tax reduction that resulted from all	3190
such projects at all race tracks during the immediately preceding	3191
fiscal year, and estimate the total tax reduction that will result	3192
from all such projects at all race tracks during the current	3193
fiscal year.	3194

(2) In order to qualify for the reduction in tax, a permit	3195
holder shall apply to the racing commission in such form as the	3196
commission may require and shall provide full details of the new	3197
race track or capital improvement, including a schedule for its	3198
construction and completion, and set forth the costs and expenses	3199
incurred in connection with it. The racing commission shall not	3200
approve an application unless the permit holder shows that a	3201
contract for the new race track or capital improvement has been	3202
let under an unrestricted competitive bidding procedure, unless	3203
the contract is exempted by the controlling board because of its	3204
unusual nature. In determining whether to approve an application,	3205
the racing commission shall consider whether the new race track or	3206
capital improvement will promote the safety, convenience, and	3207
comfort of the racing public and horse owners and generally tend	3208
towards the improvement of racing in this state.	3209

(3) If a new race track or capital improvement is approved by	3210
the racing commission and construction has started, the tax	3211
reduction may be authorized by the commission upon presentation of	3212
copies of paid bills in excess of one hundred thousand dollars or	3213
ten per cent of the approved cost, whichever is greater. After the	3214
initial authorization, the permit holder shall present copies of	3215
paid bills. If the permit holder is in substantial compliance with	3216
the schedule for construction and completion of the new race track	3217
or capital improvement, the racing commission may authorize the	3218
continuation of the tax reduction upon the presentation of the	3219
additional paid bills. The total amount of the tax reduction	3220
authorized shall not exceed the percentage of the approved cost of	3221
the new race track or capital improvement specified in division	3222
(J)(1) of this section. The racing commission may terminate any	3223
tax reduction immediately if a permit holder fails to complete the	3224
new race track or capital improvement, or to substantially comply	3225
with the schedule for construction and completion of the new race	3226
track or capital improvement. If a permit holder fails to complete	3227
a new race track or capital improvement, the racing commission	3228
shall order the permit holder to repay to the state the total	3229
amount of tax reduced. The normal tax paid by the permit holder	3230
shall be increased by three-fourths of one per cent of the total	3231
amount wagered until the total amount of the additional tax	3232
collected equals the total amount of tax reduced.	3233

(4) As used in this section:

3234

(a) "Capital improvement" means an addition, replacement, or	3235
remodeling of a structural unit of a race track facility costing	3236
at least one hundred thousand dollars, including, but not limited	3237
to, the construction of barns used exclusively for the race track	3238
facility, backstretch facilities for horsemen, paddock facilities,	3239
new pari-mutuel and totalizator equipment and appurtenances to	3240
that equipment purchased by the track, new access roads, new	3241
parking areas, the complete reconstruction, reshaping, and	3242
leveling of the racing surface and appurtenances, the installation	3243
of permanent new heating or air conditioning, roof replacement or	3244
restoration, installations of a permanent nature forming a part of	3245
the track structure, and construction of buildings that are	3246
located on a permit holder's premises. "Capital improvement" does	3247
not include the cost of replacement of equipment that is not	3248
permanently installed, ordinary repairs, painting, and maintenance	3249
required to keep a race track facility in ordinary operating	3250
condition.	3251

(b) "New race track" includes the reconstruction of a race	3252
track damaged by fire or other cause that has been declared by the	3253
racing commission, as a result of the damage, to be an inadequate	3254
facility for the safe operation of horse racing.	3255

(c) "Approved cost" includes all debt service and interest	3256
costs that are associated with a capital improvement or new race	3257
track and that the racing commission approves for a tax reduction	3258
under division (J) of this section.	3259

(5) The racing commission shall not approve an application	3260
for a tax reduction under this section if it has reasonable cause	3261
to believe that the actions or negligence of the permit holder	3262
substantially contributed to the damage suffered by the track due	3263
to fire or other cause. The racing commission shall obtain any	3264
data or information available from a fire marshal, law enforcement	3265
official, or insurance company concerning any fire or other damage	3266
suffered by a track, prior to approving an application for a tax	3267
reduction.	3268

(6) The approved cost to which a tax reduction applies shall	3269
be determined by generally accepted accounting principles and	3270
verified by an audit of the permit holder's records upon	3271
completion of the project by the racing commission, or by an	3272
independent certified public accountant selected by the permit	3273
holder and approved by the commission.	3274

(K) No other license or excise tax or fee, except as provided	3275
in sections 3769.01 to 3769.14 of the Revised Code, shall be	3276
assessed or collected from such licensee by any county, township,	3277
district, municipal corporation, or other body having power to	3278
assess or collect a tax or fee. That portion of the tax paid under	3279
this section by permit holders for racing conducted at and during	3280
the course of an agricultural exposition or fair, and that portion	3281
of the tax that would have been paid by eligible permit holders	3282
into the nursing home franchise permit fee fund as a result of	3283
racing conducted at and during the course of an agricultural	3284
exposition or fair, shall be deposited into the state treasury to	3285
the credit of the horse racing tax fund, which is hereby created	3286
for the use of the agricultural societies of the several counties	3287
in which the taxes originate. The state racing commission shall	3288
determine eligible permit holders for purposes of the preceding	3289
sentence, taking into account the breed of horse, the racing	3290
dates, the geographic proximity to the fair, and the best	3291
interests of Ohio racing. On the first day of any month on which	3292
there is money in the fund, the tax commissioner shall provide for	3293
payment to the treasurer of each agricultural society the amount	3294
of the taxes collected under this section upon racing conducted at	3295
and during the course of any exposition or fair conducted by the	3296
society.	3297

(L) From the tax paid under this section by harness track	3298
permit holders, the tax commissioner shall pay into the Ohio	3299
thoroughbred race fund a sum equal to a percentage of the amount	3300
wagered upon which the tax is paid. The percentage shall be	3301
determined by the tax commissioner and shall be rounded to the	3302
nearest one-hundredth. The percentage shall be such that, when	3303
multiplied by the amount wagered upon which tax was paid by the	3304
harness track permit holders in the most recent year for which	3305
final figures are available, it results in a sum that	3306
substantially equals the same amount of tax paid by the tax	3307
commissioner during that year into the Ohio fairs fund from taxes	3308
paid by thoroughbred permit holders. This division does not apply	3309
to county and independent fairs and agricultural societies.	3310

(M) Twenty-five per cent of the taxes levied on thoroughbred	3311
racing permit holders, harness racing permit holders, and quarter	3312
horse racing permit holders under this section, division (A) of	3313
section 3769.087 of the Revised Code, and division (F)(2) of	3314
section 3769.26 of the Revised Code shall be paid into the nursing	3315
home franchise permit fee fund. The tax commissioner shall pay any	3316
money remaining, after the payment into the nursing home franchise	3317
permit fee fund and the reductions provided for in division (J) of	3318
this section and in section 3769.20 of the Revised Code, into the	3319
Ohio fairs fund, Ohio thoroughbred race fund, Ohio standardbred	3320
development fund, Ohio quarter horse fund, and state racing	3321
commission operating fund as prescribed in this section and	3322
division (A) of section 3769.087 of the Revised Code. The tax	3323
commissioner shall thereafter use and apply the balance of the	3324
money paid as a tax by any permit holder to cover any shortage in	3325
the accounts of such funds resulting from an insufficient payment	3326
as a tax by any other permit holder. The moneys received by the	3327
tax commissioner shall be deposited weekly and paid by the tax	3328
commissioner into the funds to cover the total aggregate amount	3329
due from all permit holders to the funds, as calculated under this	3330
section and division (A) of section 3769.087 of the Revised Code,	3331
as applicable. If, after the payment into the nursing home	3332
franchise permit fee fund, sufficient funds are not available from	3333
the tax deposited by the tax commissioner to pay the required	3334
amounts into the Ohio fairs fund, Ohio standardbred development	3335
fund, Ohio thoroughbred race fund, Ohio quarter horse fund, and	3336
the state racing commission operating fund, the tax commissioner	3337
shall prorate on a proportional basis the amount paid to each of	3338
the funds. Any shortage to the funds as a result of a proration	3339
shall be applied against future deposits for the same calendar	3340
year when funds are available. After this application, the tax	3341
commissioner shall pay any remaining money paid as a tax by all	3342
permit holders into the nursing home franchise permit fee fund.	3343
This division does not apply to permit holders conducting racing	3344
at the course of an agricultural exposition or fair as described	3345
in division (K) of this section.	3346

Sec. 3769.087.  (A) In addition to the commission of eighteen	3347
per cent retained by each permit holder as provided in section	3348
3769.08 of the Revised Code, each permit holder shall retain an	3349
additional amount equal to four per cent of the total of all	3350
moneys wagered on each racing day on all wagering pools other than	3351
win, place, and show, of which amount retained an amount equal to	3352
three per cent of the total of all moneys wagered on each racing	3353
day on those pools shall be paid by check, draft, or money order	3354
to the tax commissioner, as a tax. Subject to the restrictions	3355
contained in divisions (B), (C), and (M) of section 3769.08 of the	3356
Revised Code, from such additional moneys paid to the tax	3357
commissioner:	3358

(1) Four-sixths shall be allocated to fund distribution as	3359
provided in division (M) of section 3769.08 of the Revised Code.	3360

(2) One-twelfth shall be paid into the Ohio fairs fund	3361
created by section 3769.082 of the Revised Code.	3362

(3) One-twelfth of the additional moneys paid to the tax	3363
commissioner by thoroughbred racing permit holders shall be paid	3364
into the Ohio thoroughbred race fund created by section 3769.083	3365
of the Revised Code.	3366

(4) One-twelfth of the additional moneys paid to the tax	3367
commissioner by harness horse racing permit holders shall be paid	3368
to the Ohio standardbred development fund created by section	3369
3769.085 of the Revised Code.	3370

(5) One-twelfth of the additional moneys paid to the tax	3371
commissioner by quarter horse racing permit holders shall be paid	3372
to the Ohio quarter horse development fund created by section	3373
3769.086 of the Revised Code.	3374

(6) One-sixth shall be paid into the state racing commission	3375
operating fund created by section 3769.03 of the Revised Code.	3376

The remaining one per cent that is retained of the total of	3377
all moneys wagered on each racing day on all pools other than win,	3378
place, and show, shall be retained by racing permit holders, and,	3379
except as otherwise provided in section 3769.089 of the Revised	3380
Code, racing permit holders shall use one-half for purse money and	3381
retain one-half.	3382

(B) In addition to the commission of eighteen per cent	3383
retained by each permit holder as provided in section 3769.08 of	3384
the Revised Code and the additional amount retained by each permit	3385
holder as provided in division (A) of this section, each permit	3386
holder shall retain an additional amount equal to one-half of one	3387
per cent of the total of all moneys wagered on each racing day on	3388
all wagering pools other than win, place, and show. The additional	3389
amount retained under this division shall be paid by check, draft,	3390
or money order to the tax commissioner, as a tax. The tax	3391
commissioner shall pay the amount of the tax received under this	3392
division to the state racing commission operating fund created by	3393
section 3769.03 of the Revised Code.	3394

(C) Unless otherwise agreed to by the video lottery sales	3395
agent and the applicable horsemen's association recognized by the	3396
state racing commission to represent such persons, the state	3397
racing commission may direct through rule that a percentage of the	3398
lottery sales agent's commission as determined by the state	3399
lottery commission for conducting video lottery terminal gaming on	3400
behalf of the state be paid to the state racing commission for the	3401
benefit of breeding and racing in this state. The percentage so	3402
determined shall not be less than nine per cent or more than	3403
eleven per cent of the video lottery terminal income. The	3404
aggregate of one hundred per cent of video lottery terminal income	3405
minus the lottery sales agent's commission percentage as	3406
determined by the state lottery commission plus the percentage of	3407
the lottery sale agent's commission, as determined by the state	3408
racing commission or otherwise agreed to by the video lottery	3409
sales agent and the applicable horsemen's association recognized	3410
by the state racing commission to represent such persons, for the	3411
benefit of breeding and racing in this state shall not exceed	3412
forty-five per cent of the video lottery terminal income. In	3413
addition, beginning July 1, 2013, the state lottery commission	3414
shall adopt a rule to require the lottery sales agent conducting	3415
video lottery terminal gaming on behalf of the state to disperse	3416
to the state lottery commission one-half of one per cent of such a	3417
lottery sales agent's commission for the purpose of providing	3418
funding support to appropriate state agencies for programs that	3419
provide for gambling addiction and other related addiction	3420
services. The state lottery commission's rule also may require the	3421
lottery sales agent conducting video lottery terminal gaming on	3422
behalf of the state to disperse to the state lottery commission an	3423
additional amount up to one-half of one per cent of such a lottery	3424
sales agent's commission for that purpose.	3425

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

3426

(1) "Racing day" means any day authorized under a permit	3427
holder's permit on which, at a simulcast host, either a live	3428
racing program is conducted as authorized under section 3769.07 of	3429
the Revised Code or a simulcast racing program is conducted as	3430
authorized under this section.	3431

(2) "Live racing day" means a racing day on which a live	3432
racing program is conducted by the permit holder along with	3433
simulcasts of all other available racing programs from within this	3434
state and simulcast racing programs from outside this state as	3435
authorized under this section.	3436

(3) "Live racing program" means a racing program consisting	3437
of no fewer than seven live horse races at thoroughbred tracks and	3438
nine live races at standardbred tracks and additional horse races	3439
simulcast from other facilities located either inside or outside	3440
this state, in which not more than two horse races on which	3441
pari-mutuel wagering is conducted are simulcast from facilities	3442
located outside this state. If only one racing meeting of a	3443
particular breed of horse is being held, no fewer than nine live	3444
horse races shall be held on a live racing day. If, during the	3445
course of a racing meeting at a standardbred track, the racing	3446
secretary of the permit holder determines that there is an	3447
insufficient number of entries to have a full field of eight	3448
horses for each of nine races on a live racing program, then the	3449
racing secretary of the permit holder, after consultation with the	3450
Ohio harness horsemens association, may reduce the number of live	3451
races on that live racing program from nine to either eight or	3452
seven, as the racing secretary may determine. The racing secretary	3453
shall not reduce the live racing program to less than seven live	3454
races. If during the course of a meeting at a thoroughbred track,	3455
the racing secretary of a permit holder determines that there is	3456
an insufficient number of entries to have a full field of eight	3457
horses for each of nine races on a live racing program, then the	3458
racing secretary of the permit holder, with the consent of the	3459
thoroughbred horsemens association, may reduce the number of live	3460
races on that live racing program from nine to either eight or	3461
seven, as the racing secretary may determine. The racing secretary	3462
shall not reduce the live racing program to less than seven live	3463
races. No more than seventeen races on which pari-mutuel wagering	3464
is conducted, including both live races and races simulcast from	3465
other facilities located either inside or outside this state,	3466
shall be part of a live racing program.	3467

(4) "Simulcast host" means a track or enclosure in this state	3468
where, on a racing day, a permit holder is doing one or both of	3469
the following:	3470

(a) Conducting a live racing program and offering this	3471
program for simulcasting to one or more simulcast guests and	3472
satellite facilities in this state;	3473

(b) Receiving a simulcast racing program for simulcasting to	3474
one or more simulcast guests and satellite facilities in this	3475
state.	3476

(5) "Simulcast guest" means any track or enclosure that is	3477
receiving from a simulcast host, on a day other than a racing day,	3478
a live racing program or a simulcast racing program.	3479

(6) "Simulcast racing program" means all simulcasts of horse	3480
races to a simulcast host or simulcast guest on a racing day or on	3481
any other day on which pari-mutuel wagering is conducted, but does	3482
not include any simulcast horse races from inside or outside this	3483
state that are included in a simulcast host's live racing program.	3484

(7) "Satellite facility" has the same meaning as in section	3485
3769.25 of the Revised Code.	3486

(8) "Collection and settlement agent" has the same meaning as	3487
in section 3769.0810 of the Revised Code.	3488

(9) "Special racing event" means individual races in live	3489
racing programs or simulcast racing programs, and simulcast racing	3490
programs on special event days under division (C) of this section,	3491
conducted at facilities located outside this state for which the	3492
track, racing association, or state regulatory agency conducting	3493
such races charges a simulcast host a fee for the privilege of	3494
receiving a simulcast of such races into this state that is higher	3495
than the customary and regular fee charged for simulcast races	3496
because of the status or popularity of such races.	3497

(B)(1)(a) The state racing commission shall, upon request by	3498
any permit holder, permit electronically televised simulcasts of	3499
horse races at the permit holder's track or enclosure on racing	3500
days authorized by the permit holder's permit. Except as provided	3501
in division (B) of this section, the commission shall not permit	3502
the simulcast of any simulcast racing program conducted at tracks	3503
or facilities located outside this state unless the out-of-state	3504
simulcast racing program is available at the same signal rate to	3505
all permit holders, whether serving as simulcast hosts or	3506
simulcast guests, and all satellite facilities, in this state open	3507
and operating on that day. A permit holder or satellite facility	3508
may inform the commission that it waives the right to receive the	3509
simulcast of a simulcast racing program or a race in a simulcast	3510
racing program on that day and in this event the simulcast racing	3511
program or simulcast race shall be available to all other	3512
simulcast hosts, simulcast guests, and satellite facilities open	3513
and operating in this state on that day.	3514

(b) In order for a permit holder to offer simulcasts of horse	3515
races conducted at facilities located outside this state, the	3516
permit holder shall have conducted live racing programs during the	3517
immediately preceding calendar year on a number of days that is	3518
not less than the number of regular live racing days it conducted	3519
in calendar year 1991, not including additional racing days	3520
conducted in calendar year 1991 by the permit holder at a	3521
winterized facility under a permit issued under section 3769.07 of	3522
the Revised Code, as certified by the commission. In satisfying	3523
the foregoing requirement for live racing days during the	3524
immediately preceding calendar year, a permit holder may include	3525
the number of days on which live racing programs were conducted	3526
under a permit issued under section 3769.07 of the Revised Code	3527
for additional racing days at a winterized facility. In addition,	3528
in order for a permit holder to offer simulcasts of horse races	3529
conducted at facilities located outside this state, the permit	3530
holder shall offer all simulcasts of horse races conducted in this	3531
state made available to it.	3532

In order for a permit holder to offer simulcasts of races	3533
conducted at race tracks located outside this state at the same	3534
time and during the hours in which the live races of a live racing	3535
program are being conducted at its track, a permit holder	3536
conducting a thoroughbred live racing program shall obtain the	3537
consent of the thoroughbred horsemens association and a permit	3538
holder conducting a harness live racing program shall obtain the	3539
consent of the Ohio harness horsemens association. The consent of	3540
the horsemen's organization shall not be unreasonably withheld,	3541
and shall be consistent with the interest of preserving live	3542
racing in this state. If a horsemen's organization withholds its	3543
consent, the permit holder may file an objection with the	3544
commission, which shall promptly consider the objection and	3545
determine whether the horsemen's organization's action in	3546
withholding consent is without substantial merit and, if the	3547
commission so determines, shall authorize the permit holder to	3548
simulcast the simulcast racing programs. The determination of the	3549
commission is final. A permit holder, as a simulcast host, may	3550
offer simulcast racing programs at its track or enclosure of races	3551
conducted at tracks and facilities located outside this state	3552
prior to the commencement of, and following the conclusion of, its	3553
live races without obtaining the consent of a horsemen's	3554
organization under this division.	3555

(c) Division (B)(1)(b) of this section remains in effect for	3556
each permit holder until the calendar year after that permit	3557
holder first receives a commission as a lottery sales agent for	3558
conducting video lottery terminal gaming on behalf of the state.	3559

(2) Notwithstanding section 3769.07 of the Revised Code and	3560
unless otherwise agreed to by the applicable horsemen's	3561
association and the permit holder, beginning in the calendar year	3562
after the permit holder first receives video lottery terminal	3563
income, one of the following applies as determined on a yearly	3564
basis:	3565

(a) If eleven per cent of the gross gaming revenue from video	3566
lottery terminals at the permit holder's facilities (either	3567
existing or relocated) in the previous calendar year exceeds	3568
fifteen million dollars, a permit holder shall conduct a minimum	3569
of one hundred twenty-five live racing days.	3570

(b) If eleven per cent of the gross gaming revenue from video	3571
lottery terminals at the permit holder's facilities (either	3572
existing or relocated) in the previous calendar year exceeds	3573
eleven million dollars, but is less than or equal to fifteen	3574
million dollars, a permit holder shall conduct a minimum of one	3575
hundred live racing days or the number of racing days applied for	3576
by the permit holder in calendar year 2012, whichever is greater.	3577

(c) If eleven per cent of the gross gaming revenue from video	3578
lottery terminals at the permit holder's facilities (either	3579
existing or relocated) in the previous calendar year is less than	3580
or equal to eleven million dollars, a permit holder shall conduct	3581
a minimum of seventy-five racing days or the number of racing days	3582
applied for by the permit holder for calendar year 2012, whichever	3583
is greater.	3584

In no case shall the minimum number of racing days for any	3585
permit holder exceed one hundred twenty-five racing days or the	3586
maximum number of racing days for any permit holder exceed two	3587
hundred ten racing days.	3588

(3) For the purposes of division (B)(2) of this section, for	3589
live racing conducted at a track with more than one permit, the	3590
minimum and maximum live racing days shall apply to those permits	3591
collectively and not as a single permit.	3592

(4) In addition to the required live racing days, a permit	3593
holder shall simulcast a simulcast racing program on a minimum of	3594
three hundred sixty days each calendar year. The permit holder	3595
shall simulcast all simulcast racing programs conducted in this	3596
state and made available to the permit holder and simulcast racing	3597
programs conducted outside this state.	3598

(5) The commission may make exception to the required minimum	3599
number of live racing days or simulcast racing program days in	3600
instances of natural disaster or other unexpected circumstances as	3601
defined by the commission, in its sole discretion. For any	3602
calendar year, the horsemen's association at each track may	3603
negotiate an agreement with the permit holder for that track to	3604
reduce the number of live racing days at that track to less than	3605
the minimum live racing days required by division (B)(2)(a), (b),	3606
or (c) of this section, as applicable, or to increase the number	3607
of live racing days at that track to a number that is greater than	3608
the maximum live racing days permitted by division (B)(2)(c) of	3609
this section, subject to the approval of the commission. These	3610
negotiations shall not reduce the number of live racing days to	3611
less than fifty days per calendar year.	3612

(6) To satisfy the requirement of live racing days, a permit	3613
holder may include the number of days on which live racing	3614
programs were conducted under a permit issued under section	3615
3769.07 of the Revised Code for racing days authorized at a	3616
winterized facility.	3617

(C) The commission shall allocate to each track one racing	3618
day for each permit holder during each calendar year for the	3619
conduct of a live racing program on which a permit holder may	3620
conduct as few as one live horse race, with the remainder of the	3621
horse races on that racing day on which pari-mutuel wagering is	3622
conducted as part of the live racing program being simulcast from	3623
other tracks and facilities located either inside or outside this	3624
state. In addition, the commission may allocate to each permit	3625
holder racing days on which it may as part of a live racing	3626
program simulcast more than two horse races from facilities	3627
located outside this state if the horse races involve a national	3628
wagering pool and pari-mutuel wagering is conducted on the	3629
national wagering pool, but on such a racing day there shall in no	3630
event be more than two horse races simulcast from facilities	3631
located outside this state included in a live racing program on	3632
which separate pari-mutuel wagering is conducted. As used in this	3633
division, "national wagering pool" means an interstate or	3634
intrastate common pari-mutuel wagering pool involving two or more	3635
selections covering two or more horse races conducted at tracks	3636
located inside or outside this state.	3637

In emergency situations, the commission may authorize a live	3638
racing day at a track in which all horse races on that racing day	3639
on which pari-mutuel wagering is conducted are simulcast from	3640
tracks and facilities located either inside or outside this state	3641
with the consent of the thoroughbred horsemens association for a	3642
track conducting a thoroughbred live racing program and with the	3643
consent of the Ohio harness horsemens association for a track	3644
conducting a harness live racing program. If a horsemen's	3645
organization withholds its consent, the permit holder may file an	3646
objection with the commission, which shall promptly consider the	3647
objection and determine whether the horsemen's organization's	3648
action in withholding consent is without substantial merit and, if	3649
the commission so determines, shall authorize the permit holder to	3650
simulcast the simulcast racing programs. The determination of the	3651
commission is final.	3652

(D) On any day that a racing day has been applied for at any	3653
track in this state, each track in this state may operate as	3654
either a simulcast host or a simulcast guest and may conduct, with	3655
the approval of the state racing commission, pari-mutuel wagering	3656
on all simulcasts of races conducted inside this state made	3657
available to it plus all simulcasts of races conducted at	3658
facilities located outside this state as determined by the	3659
simulcast hosts. Except as otherwise provided in this section, any	3660
simulcast host or simulcast guest may receive and conduct	3661
simulcast racing programs that feature any breed of horse at any	3662
time of day, as authorized by the commission. Those persons	3663
holding state fair, county fair, or other fair permits shall not	3664
receive a simulcast racing program on which pari-mutuel wagering	3665
is conducted, except that a holder of a permit issued under	3666
section 3769.07 of the Revised Code that has been authorized by	3667
the commission to conduct races of the state fair, a county fair,	3668
or other fair at a commercial track may receive and conduct	3669
simulcast racing programs as a simulcast host or simulcast guest	3670
at the same time in conjunction with the live racing program of	3671
the state fair, county fair, or other fair permit holder conducted	3672
at its track.	3673

The simulcast hosts, with the approval of the state racing	3674
commission, shall determine which simulcast racing programs	3675
offered by race tracks located outside this state will be	3676
simulcast at their tracks and at all simulcast hosts, simulcast	3677
guests, and satellite facilities in this state that are open and	3678
operating during the hours that the simulcast hosts are operating.	3679
Simulcast guests and satellite facilities shall receive all	3680
approved simulcast racing programs offered by simulcast hosts. In	3681
addition, a simulcast host and simulcast guest, with the approval	3682
of the commission, may also receive simulcast horse races and	3683
simulcast racing programs not agreed to by simulcast hosts.	3684

A simulcast host that normally operates during the day only	3685
may serve as a simulcast host for only day-simulcast racing	3686
programs, which include all simulcast racing programs that	3687
commence at a track located outside this state on or before four	3688
p.m. A simulcast host that normally operates during the evening	3689
only may serve as a simulcast host for only evening-simulcast	3690
racing programs, which include all simulcast racing programs that	3691
commence at a track located outside this state on or after three	3692
p.m. A simulcast host that normally operates during the evening,	3693
but that under its permit conducts live racing programs during the	3694
day, may serve as a simulcast host for day-simulcast racing	3695
programs. A permit holder that is offering at its track simulcast	3696
racing programs that commence at a track located outside this	3697
state on or before four p.m. and simulcast racing programs that	3698
commence at a track located outside this state on or after three	3699
p.m. may serve as a simulcast host for both the day-simulcast	3700
racing program and the evening-simulcast racing program only if no	3701
other permit holder is serving as a simulcast host for the other	3702
simulcast racing programs. The times listed in this and the	3703
immediately following paragraphs are standard time as described in	3704
section 1.04 of the Revised Code and in the "Uniform Time Act of	3705
1966," 80 Stat. 107, 15 U.S.C. 260 to 265.	3706

If a simulcast host is conducting a racing program that	3707
features thoroughbred or quarter horses on the same day that	3708
another simulcast host is conducting a live racing program that	3709
features harness horses at a track located in the same county as,	3710
or within twenty miles of, the track of the first simulcast host,	3711
the first simulcast host shall not conduct pari-mutuel wagering on	3712
simulcast racing programs that commence after four p.m. on that	3713
day and the second simulcast host shall not conduct wagering on	3714
simulcast racing programs that commence before three p.m. on that	3715
day.	3716

A simulcast host that is conducting a live racing program and	3717
is simulcasting that program to other simulcast hosts and	3718
simulcast guests in this state shall receive from each simulcast	3719
host and each simulcast guest receiving the simulcast an	3720
intrastate simulcast fee of one and three-eighths per cent of the	3721
amounts wagered on such simulcast racing program at its	3722
facilities. The simulcast hosts and simulcast guests receiving	3723
such simulcast racing program shall pay the intrastate simulcast	3724
fee to the collection and settlement agent, and the fee shall be	3725
disbursed by the agent, at the time and in the manner provided in	3726
section 3769.0810 of the Revised Code.	3727

(E)(1) The moneys wagered on simulcast racing programs on a	3728
racing day shall be separated from the moneys wagered on the live	3729
racing program on that racing day. From the moneys wagered on the	3730
simulcast races, each permit holder may retain as a commission the	3731
percentage of the amount wagered as specified in sections 3769.08	3732
and 3769.087 of the Revised Code, as applicable, and shall pay, by	3733
check, draft, or money order to the state tax commissioner, as a	3734
tax, the tax specified in sections 3769.08 and 3769.087 of the	3735
Revised Code, as applicable. From the tax collected, the tax	3736
commissioner shall make the distributions to the respective funds,	3737
and in the proper amounts, as required by sections 3769.08 and	3738
3769.087 of the Revised Code, as applicable. Except as provided in	3739
divisionsdivision (E)(2) and (3) of this section, from the amount	3740
remaining after the payment of state taxes on the moneys wagered	3741
on live racing programs and on the moneys wagered on simulcast	3742
racing programs, a permit holder shall retain an amount equal to	3743
two and three-eightsthree-eighths per cent of the amount wagered	3744
on live racing programs and on intrastate and interstate simulcast	3745
racing programs simulcast at its track and on the amount wagered	3746
on the live racing programs and simulcast racing programs at a	3747
satellite facility allocated to it under section 3769.26 of the	3748
Revised Code, as a fee to pay for those costs associated with the	3749
reception and transmission of simulcasts and the administrative	3750
cost of the conduct of live racing programs and simulcast racing	3751
programs. From the remaining balance, one-half shall be retained	3752
by the permit holder for purses. On a day when a permit holder	3753
conducts a live racing program, all purse money generated from	3754
wagering on live racing programs and on simulcast racing programs	3755
at its track shall be used for that permit holder's purse account.	3756
On a day when a permit holder operates as a simulcast host with no	3757
live racing program, or operates as a simulcast guest, all purse	3758
money generated from wagering on intrastate and interstate	3759
simulcast racing programs shall be paid to the state racing	3760
commission for deposit into the Ohio combined simulcast horse	3761
racing purse fund created under this section. In addition, on a	3762
day when a permit holder serves as a simulcast host for a	3763
satellite facility, all purse money generated from amounts wagered	3764
at the satellite facility allocated to the permit holder under	3765
section 3769.26 of the Revised Code shall be paid to the	3766
commission for deposit into the Ohio simulcast horse racing purse	3767
fund.	3768

(2) If there are not four satellite facilities in operation	3769
in this state within one year after the effective date of this	3770
sectionSeptember 19, 1996, or if there are not seven satellite	3771
facilities in operation in this state within two years after the	3772
effective date of this sectionSeptember 19, 1996, or if there are	3773
not ten satellite facilities in operation in this state within	3774
three years after the effective date of this sectionSeptember 19,	3775
1996, then in any such event the amount to be retained as a fee by	3776
the permit holder under division (E)(1) of this section shall be	3777
one and seven-eighths per cent until such time as the number of	3778
satellite facilities specified in division (E)(2) of this section	3779
are in operation. For good cause shown, the thoroughbred horsemens	3780
association and Ohio harness horsemens association may waive the	3781
requirements of division (E)(2) of this section or extend the date	3782
for compliance as to any year by filing a written notification	3783
with the state racing commission.	3784

(3) If a simulcast racing program simulcast by a simulcast	3785
host at its track or enclosure and to other simulcast hosts,	3786
simulcast guests, and satellite facilities in this state is a	3787
special racing event, the permit holder offering the special	3788
racing event and other simulcast hosts, simulcast guests, and	3789
satellite facilities receiving the special racing event shall not	3790
retain the fee provided under division (E)(1) or (2) of this	3791
section but shall retain from the moneys wagered on the special	3792
racing event an amount equal to the fee charged by the track,	3793
racing association, or state regulatory agency simulcasting the	3794
special racing event to the simulcast host. From the remaining	3795
balance, one-half shall be retained by the permit holder for	3796
purses in the manner provided in division (E)(1) of this section.	3797

A permit holder proposing to simulcast a special racing event	3798
as a simulcast host shall advise its horsemen's organization of	3799
the proposed schedule of the special racing event and obtain its	3800
consent to this schedule. The consent of the horsemen's	3801
organization shall not be unreasonably withheld and shall be	3802
consistent with the interest of preserving live racing in this	3803
state. If the horsemen's organization withholds its consent, the	3804
permit holder may file an objection with the state racing	3805
commission, which shall promptly consider the objection and	3806
determine whether the organization's action in withholding consent	3807
is without substantial merit and, if the commission so determines,	3808
shall authorize the permit holder to simulcast the special racing	3809
event. The determination of the commission is final.	3810

(F) There is hereby created in the state treasury the Ohio	3811
combined simulcast horse racing purse fund, to consist of moneys	3812
paid into it by permit holders pursuant to division (E) of this	3813
section and by satellite facilities pursuant to division (F) of	3814
section 3769.26 of the Revised Code. Moneys to the credit of the	3815
fund, including interest earned thereon, may be used by the	3816
commission for the costs of administering this division and the	3817
balance shall be distributed among permit holders no less	3818
frequently than monthly to each permit holder's purse account on	3819
order of the commission.	3820

For each calendar year, permit holders at each track shall	3821
receive a share of each distribution of the Ohio combined	3822
simulcast horse racing purse fund in the same percentage, rounded	3823
to the nearest one-hundredth of the amount of each distribution,	3824
as the average total amount wagered at the track on racing days at	3825
which live racing programs were conducted, including the amount	3826
allocated to the track under section 3769.26 of the Revised Code	3827
for live races, during the five calendar years immediately	3828
preceding the year for which the distribution is made bears to the	3829
average annual total amount wagered at all tracks in the state	3830
operating under permits issued by the state racing commission	3831
under section 3769.07, 3769.071, or 3769.072 of the Revised Code	3832
on all racing days at which live racing programs were conducted,	3833
including the amount allocated to the tracks under section 3769.26	3834
of the Revised Code for live races, during the five calendar years	3835
immediately preceding the year for which the distribution is made.	3836
By the thirty-first day of January of each year the commission	3837
shall calculate the share of the permit holders at each track for	3838
that year, shall enter the share percentages in its official	3839
records, and shall notify all permit holders of the share	3840
percentages of all tracks for that calendar year.	3841

The permit holders at each track, with the approval of the	3842
commission, shall allocate their share of the fund as distributed	3843
to the purse account of each permit holder for each race meeting.	3844

The commission shall cause to be kept accurate records of its	3845
administration of the fund, including all administrative expenses	3846
incurred by it and charged to the fund, and of distributions to	3847
permit holders. These records are public records available for	3848
inspection at any time during the regular business hours of the	3849
commission by any permit holder or horsemen's organization, by an	3850
authorized agent of the permit holder or horsemen's organization,	3851
or by any other person.	3852

(G) Upon the approval of the commission, a permit holder	3853
conducting live racing programs may transmit electronically	3854
televised simulcasts of horse races conducted at the permit	3855
holder's track to racing associations, tracks, and facilities	3856
located outside this state for the conduct of pari-mutuel wagering	3857
thereon, at the times, on the terms, and for the fee agreed upon	3858
by the permit holder and the receiving racing association, track,	3859
or facility. From the fees paid to the permit holder for such	3860
simulcasts, a permit holder shall retain for the costs of	3861
administration a fee in an amount equal to one per cent of the	3862
amount wagered on the races simulcast by the permit holder. From	3863
the remaining balance of the fee, one-half shall be retained by	3864
the permit holder for purses, except that notwithstanding the fee	3865
arrangement between the permit holder and the receiving racing	3866
association, track, or facility, the permit holder shall deposit	3867
into its purse account not less than an amount equal to	3868
three-fourths of one per cent of the amount wagered at racing	3869
associations, tracks, and facilities located outside the state on	3870
the races simulcast by the permit holder.	3871

All televised simulcasts of horse races conducted in this	3872
state to racing associations, tracks, and facilities located	3873
outside this state shall comply with the "Interstate Horse Racing	3874
Act of 1978," 92 Stat. 1811, 15 U.S.C.A. 3001 to 3007. The consent	3875
of the horsemen's organization at the track of the permit holder	3876
applying to the commission to simulcast horse races conducted at	3877
the permit holder's track to racing associations, tracks, and	3878
facilities located outside this state shall not be unreasonably	3879
withheld and shall be consistent with the interest of preserving	3880
live racing. If a horsemen's organization withholds its consent,	3881
the permit holder may file an objection with the commission, which	3882
shall promptly consider the objection and determine whether the	3883
horsemen's organization's action in withholding consent is without	3884
substantial merit and, if the commission so determines, shall	3885
authorize the permit holder to simulcast the races. The	3886
determination of the commission is final.	3887

(H)(1) The state racing commission may authorize any permit	3888
holder that is authorized to conduct live horse racing on racing	3889
days and that conducts pari-mutuel wagering on simulcasts of horse	3890
races under this section that are conducted at race tracks either	3891
inside or outside this state to conduct, supervise, and	3892
participate in interstate and intrastate common pari-mutuel	3893
wagering pools on those races in the manner provided in division	3894
(H) of this section. Except as otherwise expressly provided in	3895
division (H) of this section or in the rules of the state racing	3896
commission, the provisions of this chapter that govern pari-mutuel	3897
wagering apply to interstate or intrastate common pari-mutuel	3898
wagering pools.	3899

(2) Subject to the approval of the state racing commission,	3900
the types of wagering, calculation of the commission retained by	3901
the permit holder, tax rates, distribution of winnings, and rules	3902
of racing in effect for pari-mutuel wagering pools at the host	3903
track may govern wagers placed at a receiving track in this state	3904
and merged into an interstate or intrastate common pari-mutuel	3905
wagering pool. Breakage from interstate or intrastate common	3906
pari-mutuel wagering pools shall be calculated in accordance with	3907
the rules that govern the host track and shall be distributed	3908
among the tracks participating in the interstate or intrastate	3909
common wagering pool in a manner agreed to by the participating	3910
tracks and the host track. An interstate common pari-mutuel	3911
wagering pool formed under division (H)(3) of this section is	3912
subject to that division rather than to division (H)(2) of this	3913
section.	3914

(3) Subject to the approval of the state racing commission,	3915
an interstate common pari-mutuel wagering pool may be formed	3916
between a permit holder and one or more receiving tracks located	3917
in states other than the state in which the host track is located.	3918
The commission may approve types of wagering, calculation of the	3919
commission retained by the permit holder, tax rates, distribution	3920
of winnings, rules of racing, and calculation of breakage for such	3921
an interstate common pari-mutuel wagering pool that differ from	3922
those that would otherwise be applied in this state under this	3923
chapter but that are consistent for all tracks participating in	3924
the interstate common pari-mutuel wagering pool formed under	3925
division (H)(3) of this section.	3926

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

3927

(a) "Host track" means a track where live horse races are	3928
conducted and offered for simulcasting to receiving tracks.	3929

(b) "Receiving track" means a track where simulcasts of races	3930
from a host track are displayed and wagered on.	3931

(I) Each permit holder is responsible for paying all costs	3932
associated with the up-link for, and reception of, simulcasts, and	3933
the conduct and operation of simulcast racing programs, for all	3934
fees and costs associated with serving as a simulcast host or	3935
simulcast guest, and for any required fees payable to the tracks,	3936
racing associations, or state regulatory agencies where simulcast	3937
racing is conducted at tracks located outside this state.	3938

(J) No license, fee, or excise tax, other than as specified	3939
in division (E) of this section, shall be assessed upon or	3940
collected from a permit holder or the owners of a permit holder in	3941
connection with, or pertaining to, the operation and conduct of	3942
simulcast racing programs in this state, by any county, township,	3943
municipal corporation, district, or other body having the	3944
authority to assess or collect a tax or fee.	3945

(K)(1) Permit holders operating tracks within the same county	3946
or adjacent counties that are conducting simulcast racing programs	3947
under this section may enter into agreements regarding the conduct	3948
of simulcast racing programs at their respective tracks and the	3949
sharing of the retained commissions therefrom, for such periods of	3950
time, upon such terms and conditions, and subject to such rights	3951
and obligations, as the contracting permit holders consider	3952
appropriate under the circumstances. Permit holders so contracting	3953
shall notify the state racing commission of their entry into an	3954
agreement pursuant to this division, the names of the permit	3955
holders that are parties to the agreement, and the length of the	3956
term oftime the agreement shall be in effect.	3957

(2) Permit holders and the thoroughbred horsemens association	3958
and Ohio harness horsemens association may agree to do any of the	3959
following:	3960

(a) Increase or reduce the fees and amounts to be retained by	3961
the permit holders under this section;	3962

(b) Increase or reduce the fees and amounts to be allocated	3963
to the purse accounts orof permit holders under this section;	3964

(c) Increase or reduce the fees to be paid between and among	3965
simulcast hosts and simulcast guests under this section and under	3966
division (C) of section 3769.0810 of the Revised Code;	3967

(d) Modify, suspend, or waive the requirements set forth in	3968
division (B) of this section as to any permit holder or as to all	3969
permit holders.	3970

All permit holders and both horsemen's organizations shall	3971
approve such agreement. Any agreement entered into under division	3972
(K)(2) of this section shall set forth the effective date of any	3973
such increase or reduction, and the terms and provisions of the	3974
agreement, and a copy of the agreement shall be filed with the	3975
state racing commission.	3976

Sec. 3769.0810.  (A) As used in this section:

3977

(1) "Collection and settlement agent" means the permit holder	3978
designated by the state racing commission under division (B) of	3979
this section.	3980

(2) "Racing week" means a seven-day period commencing on a	3981
Monday and ending on a Sunday.	3982

(3) "Simulcast guest" and "simulcast host" have the same	3983
meanings as in section 3769.089 of the Revised Code.	3984

(4) "Satellite facility" has the same meaning as in section	3985
3769.25 of the Revised Code.	3986

(5) "Settlement of wagering accounts" means the exchange of	3987
funds in order to equalize payments of winning wagers at all	3988
tracks and facilities participating in a common pari-mutuel pool.	3989

(B) TheExcept as provided in division (K) of this section,	3990
the state racing commission shall annually appoint as the	3991
collection and settlement agent one or more permit holders of	3992
tracks that hold no fewer than three fifty-six-day permits issued	3993
under section 3769.07 of the Revised Code. The collection and	3994
settlement agent shall give a cash or surety bond payable to the	3995
treasurer of state in an amount set by the commission for the	3996
performance of its duties under this section, and the bond shall	3997
be filed with the commission.	3998

(C)(1) At the close of each day, each permit holder acting as	3999
a simulcast guest shall pay, by check, draft, or money order, or	4000
by wire transfer of funds, out of the money retained on that day	4001
to the collection and settlement agent an amount equal to one-half	4002
of one per cent of the total of all moneys wagered on that day on	4003
out-of-state simulcast racing programs simulcast to the simulcast	4004
guest from a simulcast host, to reimburse the simulcast host for	4005
administrative and simulcast costs.	4006

(2) Within five business days after the close of each racing	4007
week, the collection and settlement agent shall pay and distribute	4008
to each simulcast host operating during that racing week its pro	4009
rata share of the fees collected from simulcast guests during that	4010
racing week. If a simulcast host acted as a host for day-simulcast	4011
racing programs only, then its share of the fees collected by the	4012
collection and settlement agent shall be computed and based on	4013
fees paid by simulcast guests offering such day-simulcast racing	4014
programs at their tracks. If a simulcast host acted as a simulcast	4015
host for evening-simulcast racing programs only, then its share of	4016
the fees shall be computed and based on fees paid by simulcast	4017
guests offering such evening-simulcast racing programs at their	4018
tracks. In making a calculation of the amount of fees to be	4019
distributed to simulcast hosts, the collection and settlement	4020
agent shall allocate equally between the accounts of simulcast	4021
hosts conducting only day-simulcast racing programs and only	4022
evening-simulcast racing programs those fees received by the agent	4023
from simulcast guests for simulcast racing programs that commenced	4024
on or after three p.m. and on or before before four p.m. The times	4025
listed in division (C)(2) of this section are standard time as	4026
described in section 1.04 of the Revised Code and in the "Uniform	4027
Time Act of 1966," 80 Stat. 107, 15 U.S.C. 260 to 265.	4028

(D)(1) At the close of each day, each permit holder shall	4029
pay, by check, draft, or money order, or by wire transfer of	4030
funds, out of the money retained on that day to the collection and	4031
settlement agent the intrastate simulcast fee provided in division	4032
(D) of section 3769.089 of the Revised Code in the amount equal to	4033
one and three-eighths per cent of the total of all moneys wagered	4034
on that day at its track or enclosure on live races conducted in	4035
this state and simulcast to its facility.	4036

(2) Within five business days after the close of each racing	4037
week, the collection and settlement agent shall pay and distribute	4038
to permit holders that conducted live racing programs in this	4039
state during that racing week their share of the fees collected	4040
from other permit holders for that racing week.	4041

(E) At the close of each day, each permit holder and	4042
satellite facility shall pay, by check, draft, or money order, or	4043
by wire transfer of funds, out of the money retained on that day	4044
to the collection and settlement agent a sum equal to required	4045
fees due to tracks, racing associations, or state regulatory	4046
agencies located outside this state for races simulcast into this	4047
state based on the totals of all money wagered that day at its	4048
track or enclosure or satellite facility on simulcast racing	4049
programs of races conducted outside this state. The collection and	4050
settlement agent shall inform the permit holders and the satellite	4051
facilities each day of the fee charged by each track, racing	4052
association, or state regulatory agency located outside this state	4053
for the simulcast of simulcast racing programs on races conducted	4054
outside this state and simulcast into this state. The collection	4055
and settlement agent shall be responsible for paying and	4056
disbursing to these tracks, racing associations, and state	4057
regulatory agencies on a timely basis the fees collected by it	4058
from permit holders and satellite facilities under this division.	4059

(F) On or before the tenth day of each month, the collection	4060
and settlement agent shall file a report with the state racing	4061
commission showing all of the following:	4062

(1) All collections of moneys and fees from permit holders	4063
and satellite facilities during the preceding calendar month;	4064

(2) All payments and disbursements made by the agent to	4065
permit holders operating as simulcast hosts and the method of	4066
calculation of the share of each simulcast host;	4067

(3) All payments and disbursements of required fees to	4068
tracks, racing associations, and state regulatory agencies located	4069
outside this state from which there were simulcasts of simulcast	4070
racing programs into this state;	4071

(4) Such other information regarding the performance of its	4072
duties under this section as the commission may request.	4073

(G) All moneys and fees received and collected by the	4074
collection and settlement agent shall be deposited into, and	4075
disbursed from, separate bank accounts maintained with banks	4076
domiciled in this state established by the agent for this purpose,	4077
and no other funds or money of the agent or any other person shall	4078
be commingled with, deposited into, or withdrawn from the	4079
accounts. The collection and settlement agent may retain as its	4080
fee for services it provides and expenses it incurs in the	4081
performance of its duties under this section any interest earned	4082
on the bank accounts maintained by the agent under this division.	4083
The commission shall annually audit the bank account records, and	4084
the books and records, of the collection and settlement agent.	4085

(H)(1) The collection and settlement agent shall assist	4086
permit holders and satellite facilities in the settlement of	4087
wagering accounts between and among simulcast hosts, simulcast	4088
guests, and satellite facilities for intrastate simulcast racing	4089
programs.	4090

(2) The collection and settlement agent on behalf of all	4091
permit holders and satellite facilities operating in this state	4092
shall be responsible for the settlement of wagering accounts for	4093
interstate simulcast racing programs with all tracks, racing	4094
associations, and state regulatory agencies located outside this	4095
state. The agent shall notify each permit holder and satellite	4096
facility not less frequently than weekly of the amounts that may	4097
be due from it, or the amounts that may be due to it, for the	4098
settlement of wagering accounts on interstate simulcast racing	4099
programs simulcast into this state during the preceding race week.	4100
If a permit holder or satellite facility owes money for the	4101
settlement of wagering accounts for that racing week, it shall	4102
promptly pay, by check, draft, or money order, or by wire transfer	4103
of funds, to the agent the amount due. From the amounts it	4104
collects, the agent shall pay and disburse to permit holders and	4105
satellite facilities and to tracks, racing associations, and state	4106
regulatory agencies located outside this state, the amounts	4107
necessary to provide for the settlement of wagering accounts for	4108
that racing week.	4109

(I) If a permit holder or satellite facility fails to timely	4110
pay and remit to the collection and settlement agent the money and	4111
fees provided for in this section and in sections 3769.089 and	4112
3769.26 of the Revised Code, the agent shall promptly notify the	4113
commission, or if the collection and settlement agent fails to	4114
collect, pay, disburse, and account for, the moneys and fees in	4115
the manner provided for in this section, then in any such event or	4116
occurrence, based on the information in the commission's	4117
possession, the commission may issue an emergency order	4118
prohibiting the permit holder, satellite facility, or agent, as	4119
the case may be, from serving as a simulcast host or simulcast	4120
guest or from receiving any simulcast racing program, and	4121
conducting wagering thereon, at its track or satellite facility,	4122
until such time as the permit holder, satellite facility, or agent	4123
complies with the requirements of this section and sections	4124
3769.089 and 3769.26 of the Revised Code in the manner and to the	4125
extent set forth in the commission's order. In addition, the	4126
commission may make an assessment against the permit holder,	4127
satellite facility, or agent, as the case may be, based on	4128
information in the commission's possession. The commission shall	4129
give the party assessed written notice of the assessment by	4130
personal service or certified mail. All assessments not paid	4131
within thirty days after service of the notice of assessment,	4132
shall bear interest at the rate per annum prescribed by section	4133
5703.47 of the Revised Code computed from and after the date the	4134
assessment is made by the commission and entered in its official	4135
records until paid.	4136

Unless the party to whom the notice of assessment is directed	4137
files with the commission, within thirty days after service of the	4138
notice of assessment, either personally or by certified mail, a	4139
petition for reassessment in writing, signed by the party	4140
assessed, or by the party's authorized agent having knowledge of	4141
the facts, the assessment shall become conclusive and the amount	4142
of the assessment, together with interest on it, shall be due and	4143
payable from the party assessed to the commission. The petition	4144
shall indicate the objections of the party assessed, but	4145
additional objections may be raised in writing if received prior	4146
to the date shown on the final determination by the commission.	4147

Unless the petitioner waives a hearing, the commission shall	4148
assign a time and place for the hearing on the petition and notify	4149
the petitioner of the time and place of the hearing by personal	4150
service or certified mail, but the commission may continue the	4151
hearing from time to time if necessary.	4152

The commission may make such correction to its assessment as	4153
it finds proper. The commission shall serve a copy of its final	4154
determination on the petitioner by personal service or certified	4155
mail, and its decision in the matter is final, subject to appeal	4156
under section 119.12 of the Revised Code.	4157

After an assessment becomes final, if any portion of the	4158
assessment, or interest due on it, remains unpaid, a certified	4159
copy of the commission's entry making the assessment final may be	4160
filed in the office of the clerk of the court of common pleas in	4161
the county in which the track for which the permit was issued is	4162
located or the county in which the party assessed resides or has	4163
its principal place of business. If the party assessed maintains	4164
no place of business in this state and is not a resident of this	4165
state, the certified copy of the entry may be filed in the office	4166
of the clerk of the court of common pleas of Franklin county. The	4167
clerk, immediately upon the filing of such entry, shall enter a	4168
judgment for the state against the party assessed in the amount	4169
shown on the entry.	4170

From the date of the filing of the entry in the clerk's	4171
office, any unpaid portion of the assessment, including the	4172
interest, shall bear interest at the rate per annum prescribed in	4173
section 5703.47 of the Revised Code and shall have the same effect	4174
as other judgments. Execution shall issue upon the judgment upon	4175
request of the commission, and all laws applicable to sales on	4176
execution apply to sales made under the judgment.	4177

If the judgment is entered against the collection and	4178
settlement agent, the commission may immediately proceed against	4179
the agent's bond and surety for the full amount of the judgment	4180
and interest on it.	4181

Any assessment, including interest on it, paid to or	4182
collected by the commission shall be deposited with the treasurer	4183
of state to the account of the commission, and the fee portion of	4184
such amount shall be distributed by the treasurer of state on	4185
order of the commission to the collection and settlement agent or	4186
to the permit holders and satellite facilities entitled to receive	4187
such fees, as the case may be under the circumstances.	4188

(J) The commission may adopt rules for the implementation and	4189
administration of this section.	4190

(K)(1) Notwithstanding any other provision of this section,	4191
after sixty days notification to the commission, a permit holder	4192
may take responsibility for handling any payments and	4193
distributions required of a collection and settlement agent under	4194
this section for any or all related permits under common ownership	4195
in lieu of making the required payments and distributions through	4196
the collection and settlement agent designated by the state racing	4197
commission under division (B) of this section.	4198

(2) Any permit holder having responsibility for payments and	4199
distributions required under division (K)(1) of this section	4200
shall, on or before the tenth day of each month, file a report	4201
with the state racing commission showing the following:	4202

(a) All payments and disbursements made by the permit holder	4203
to permit holders operating as simulcast hosts and the method of	4204
calculation of the share of each simulcast host;	4205

(b) All payments and disbursements of required fees to	4206
tracks, racing associations, and state regulatory agencies located	4207
outside this state from which there were simulcasts of simulcast	4208
racing programs into the permit holder facilities;	4209

(c) Such other information regarding the performance of the	4210
permit holder's duties under this section as the commission may	4211
request.	4212

(3) A permit holder having responsibility for payments and	4213
distributions required under division (K)(1) of this section may	4214
utilize an authorized agent to make the required payments and	4215
distributions.	4216

Sec. 3769.0812.  Beginning in the calendar year after the	4217
first calendar year in which all thoroughbred permit holders	4218
receive a commission as a lottery sales agent for conducting video	4219
lottery terminal gaming on behalf of the state or on January 1,	4220
2015, whichever occurs first, the fees to be paid to thoroughbred	4221
jockeys shall be according to the following schedule:	4222

Purse	Winning Mount	Second Mount	Third Mount	Fourth Mount	Losing Mount		4223
Up to $5,999	10% of win purse	$65	$60	$55	$50		4224
$6,000 to $7,799	10% of win purse	$75	$70	$65	$60		4225
$7,800 to $9,999	10% of win purse	5% of place purse	$75	$70	$65		4226
$10,000 to $17,999	10% of win purse	5% of place purse	$85	$80	$75		4227
$18,000 to $24,999	10% of win purse	5% of place purse	5% of show purse	$85	$80		4228
$25,000 to $49,999	10% of win purse	5% of place purse	5% of show purse	$95	$85		4229
$50,000 to $74,999	10% of win purse	5% of place purse	5% of show purse	$100	$90		4230
$75,000 and up	10% of win purse	5% of place purse	5% of show purse	5% of fourth purse	$105		4231

As used in this section, "win purse" means the amount paid	4232
the winning horse less the fees paid by the owner to enter the	4233
horse in the race.	4234

Sec. 3770.02.  (A) Subject to the advice and consent of the	4235
senate, the governor shall appoint a director of the state lottery	4236
commission who shall serve at the pleasure of the governor. The	4237
director shall devote full time to the duties of the office and	4238
shall hold no other office or employment. The director shall meet	4239
all requirements for appointment as a member of the commission and	4240
shall, by experience and training, possess management skills that	4241
equip the director to administer an enterprise of the nature of a	4242
state lottery. The director shall receive an annual salary in	4243
accordance with pay range 48 of section 124.152 of the Revised	4244
Code.	4245

(B)(1) The director shall attend all meetings of the	4246
commission and shall act as its secretary. The director shall keep	4247
a record of all commission proceedings and shall keep the	4248
commission's records, files, and documents at the commission's	4249
principal office. All records of the commission's meetings shall	4250
be available for inspection by any member of the public, upon a	4251
showing of good cause and prior notification to the director.	4252

(2) The director shall be the commission's executive officer	4253
and shall be responsible for keeping all commission records and	4254
supervising and administering the state lottery in accordance with	4255
this chapter, and carrying out all commission rules adopted under	4256
section 3770.03 of the Revised Code.	4257

(C)(1) The director shall appoint an assistant director,	4258
deputy directors of marketing, operations, sales, finance, public	4259
relations, security, and administration, and as many regional	4260
managers as are required. The director may also appoint necessary	4261
professional, technical, and clerical assistants. All such	4262
officers and employees shall be appointed and compensated pursuant	4263
to Chapter 124. of the Revised Code. Regional and assistant	4264
regional managers, sales representatives, and any lottery	4265
executive account representatives shall remain in the unclassified	4266
service.	4267

(2) The director, in consultation with the director of	4268
administrative services, may establish standards of proficiency	4269
and productivity for commission field representatives.	4270

(D) The director shall request the bureau of criminal	4271
identification and investigation, the department of public safety,	4272
or any other state, local, or federal agency to supply the	4273
director with the criminal records of any job applicant and may	4274
periodically request the criminal records of commission employees.	4275
At or prior to the time of making such a request, the director	4276
shall require a job applicant or commission employee to obtain	4277
fingerprint cards prescribed by the superintendent of the bureau	4278
of criminal identification and investigation at a qualified law	4279
enforcement agency, and the director shall cause these fingerprint	4280
cards to be forwarded to the bureau of criminal identification and	4281
investigation and the federal bureau of investigation. The	4282
commission shall assume the cost of obtaining the fingerprint	4283
cards and shall pay to each agency supplying criminal records for	4284
each investigation under this division a reasonable fee, as	4285
determined by the agency.	4286

(E) The director shall license lottery sales agents pursuant	4287
to section 3770.05 of the Revised Code and, when it is considered	4288
necessary, may revoke or suspend the license of any lottery sales	4289
agent. The director may license video lottery technology	4290
providers, independent testing laboratories, and gaming employees,	4291
and promulgate rules relating thereto. When the director considers	4292
it necessary, the director may suspend or revoke the license of a	4293
video lottery technology provider, independent testing laboratory,	4294
or gaming employee, including suspension or revocation without	4295
affording an opportunity for a prior hearing under section 119.07	4296
of the Revised Code when the public safety, convenience, or trust	4297
requires immediate action.	4298

(F) The director shall confer at least once each month with	4299
the commission, at which time the director shall advise it	4300
regarding the operation and administration of the lottery. The	4301
director shall make available at the request of the commission all	4302
documents, files, and other records pertaining to the operation	4303
and administration of the lottery. The director shall prepare and	4304
make available to the commission each month a complete and	4305
accurate accounting of lottery revenues, prize money disbursements	4306
and the cost of goods and services awarded as prizes, operating	4307
expenses, and all other relevant financial information, including	4308
an accounting of all transfers made from any lottery funds in the	4309
custody of the treasurer of state to benefit education.	4310

(G) The director may enter into contracts for the operation	4311
or promotion of the lottery pursuant to Chapter 125. of the	4312
Revised Code.	4313

(H)(1) Pursuant to rules adopted by the commission under	4314
section 3770.03 of the Revised Code, the director shall require	4315
any lottery sales agents to either mail directly to the commission	4316
or deposit to the credit of the state lottery fund, in banking	4317
institutions designated by the treasurer of state, net proceeds	4318
due the commission as determined by the director, and to file with	4319
the director or the director's designee reports of their receipts	4320
and transactions in the sale of lottery tickets in the form	4321
required by the director.	4322

(2) Pursuant to rules adopted by the commission under Chapter	4323
119. of the Revised Code, the director may impose penalties for	4324
the failure of a sales agent to transfer funds to the commission	4325
in a timely manner. Penalties may include monetary penalties,	4326
immediate suspension or revocation of a license, or any other	4327
penalty the commission adopts by rule.	4328

(I) The director may arrange for any person, or any banking	4329
institution, to perform functions and services in connection with	4330
the operation of the lottery as the director may consider	4331
necessary to carry out this chapter.	4332

(J)(1) As used in this chapter, "statewide joint lottery	4333
game" means a lottery game that the commission sells solely within	4334
this state under an agreement with other lottery jurisdictions to	4335
sell the same lottery game solely within their statewide or other	4336
jurisdictional boundaries.	4337

(2) If the governor directs the director to do so, the	4338
director shall enter into an agreement with other lottery	4339
jurisdictions to conduct statewide joint lottery games. If the	4340
governor signs the agreement personally or by means of an	4341
authenticating officer pursuant to section 107.15 of the Revised	4342
Code, the director then may conduct statewide joint lottery games	4343
under the agreement.	4344

(3) The entire net proceeds from any statewide joint lottery	4345
games shall be used to fund elementary, secondary, vocational, and	4346
special education programs in this state.	4347

(4) The commission shall conduct any statewide joint lottery	4348
games in accordance with rules it adopts under division (B)(5) of	4349
section 3770.03 of the Revised Code.	4350

(K)(1) The director shall enter into an agreement with the	4351
department of alcohol and drug addiction services under which the	4352
department shall provide a program of gambling addiction services	4353
on behalf of the commission. The commission shall pay the costs of	4354
the program provided pursuant to the agreement.	4355

(2) As used in this section, "gambling addiction services"	4356
has the same meaning as in section 3793.01 of the Revised Code.	4357

Sec. 3770.05.  (A) As used in this section, "person" means	4358
any person, association, corporation, partnership, club, trust,	4359
estate, society, receiver, trustee, person acting in a fiduciary	4360
or representative capacity, instrumentality of the state or any of	4361
its political subdivisions, or any other combination of	4362
individuals meeting the requirements set forth in this section or	4363
established by rule or order of the state lottery commission.	4364

(B) The director of the state lottery commission may license	4365
any person as a lottery sales agent. No license shall be issued to	4366
any person or group of persons to engage in the sale of lottery	4367
tickets as the person's or group's sole occupation or business.	4368

Before issuing any license to a lottery sales agent, the	4369
director shall consider all of the following:	4370

(1) The financial responsibility and security of the	4371
applicant and the applicant's business or activity;	4372

(2) The accessibility of the applicant's place of business or	4373
activity to the public;	4374

(3) The sufficiency of existing licensed agents to serve the	4375
public interest;	4376

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

4377

(5) Any other factors pertaining to the public interest,	4378
convenience, or trust.	4379

(C) Except as otherwise provided in division (F) of this	4380
section, the director of the state lottery commission shall refuse	4381
to grant, or shall suspend or revoke, a license if the applicant	4382
or licensee:	4383

(1) Has been convicted of a felony or has been convicted of a	4384
crime involving moral turpitude;	4385

(2) Has been convicted of an offense that involves illegal	4386
gambling;	4387

(3) Has been found guilty of fraud or misrepresentation in	4388
any connection;	4389

(4) Has been found to have violated any rule or order of the	4390
commission; or	4391

(5) Has been convicted of illegal trafficking in supplemental	4392
nutrition assistance program benefits.	4393

(D) Except as otherwise provided in division (F) of this	4394
section, the director of the state lottery commission shall refuse	4395
to grant, or shall suspend or revoke, a license if the applicant	4396
or licensee is a corporation and any of the following applies:	4397

(1) Any of the corporation's directors, officers, or	4398
controlling shareholders has been found guilty of any of the	4399
activities specified in divisions (C)(1) to (5) of this section;	4400

(2) It appears to the director of the state lottery	4401
commission that, due to the experience, character, or general	4402
fitness of any director, officer, or controlling shareholder of	4403
the corporation, the granting of a license as a lottery sales	4404
agent would be inconsistent with the public interest, convenience,	4405
or trust;	4406

(3) The corporation is not the owner or lessee of the	4407
business at which it would conduct a lottery sales agency pursuant	4408
to the license applied for;	4409

(4) Any person, firm, association, or corporation other than	4410
the applicant or licensee shares or will share in the profits of	4411
the applicant or licensee, other than receiving dividends or	4412
distributions as a shareholder, or participates or will	4413
participate in the management of the affairs of the applicant or	4414
licensee.	4415

(E)(1) The director of the state lottery commission shall	4416
refuse to grant a license to an applicant for a lottery sales	4417
agent license and shall revoke a lottery sales agent license if	4418
the applicant or licensee is or has been convicted of a violation	4419
of division (A) or (C)(1) of section 2913.46 of the Revised Code.	4420

(2) The director shall refuse to grant a license to an	4421
applicant for a lottery sales agent license that is a corporation	4422
and shall revoke the lottery sales agent license of a corporation	4423
if the corporation is or has been convicted of a violation of	4424
division (A) or (C)(1) of section 2913.46 of the Revised Code.	4425

(F) The director of the state lottery commission shall	4426
request the bureau of criminal identification and investigation,	4427
the department of public safety, or any other state, local, or	4428
federal agency to supply the director with the criminal records of	4429
any applicant for a lottery sales agent license, and may	4430
periodically request the criminal records of any person to whom a	4431
lottery sales agent license has been issued. At or prior to the	4432
time of making such a request, the director shall require an	4433
applicant or licensee to obtain fingerprint impressions on	4434
fingerprint cards prescribed by the superintendent of the bureau	4435
of criminal identification and investigation at a qualified law	4436
enforcement agency, and the director shall cause those fingerprint	4437
cards to be forwarded to the bureau of criminal identification and	4438
investigation, to the federal bureau of investigation, or to both	4439
bureaus. The commission shall assume the cost of obtaining the	4440
fingerprint cards.	4441

The director shall pay to each agency supplying criminal	4442
records for each investigation a reasonable fee, as determined by	4443
the agency.	4444

The commission may adopt uniform rules specifying time	4445
periods after which the persons described in divisions (C)(1) to	4446
(5) and (D)(1) to (4) of this section may be issued a license and	4447
establishing requirements for those persons to seek a court order	4448
to have records sealed in accordance with law.	4449

(G)(1) Each applicant for a lottery sales agent license shall	4450
do both of the following:	4451

(a) Pay fees to the state lottery commission, if required by	4452
rule adopted by the director under Chapter 119. of the Revised	4453
Code and the permanent joint committee on gaming and wagering	4454
reviews and the controlling board approves the fees;	4455

(b) Prior to approval of the application, obtain a surety	4456
bond in an amount the director determines by rule adopted under	4457
Chapter 119. of the Revised Code or, alternatively, with the	4458
director's approval, deposit the same amount into a dedicated	4459
account for the benefit of the state lottery. The director also	4460
may approve the obtaining of a surety bond to cover part of the	4461
amount required, together with a dedicated account deposit to	4462
cover the remainder of the amount required. The director also may	4463
establish an alternative program or policy, with the approval of	4464
the commission by rule adopted under Chapter 119. of the Revised	4465
Code, that otherwise ensures the lottery's financial interests are	4466
adequately protected. If such an alternative program or policy is	4467
established, an applicant or lottery sales agent, subject to the	4468
director's approval, may be permitted to participate in the	4469
program or proceed under that policy in lieu of providing a surety	4470
bond or dedicated amount.	4471

A surety bond may be with any company that complies with the	4472
bonding and surety laws of this state and the requirements	4473
established by rules of the commission pursuant to this chapter. A	4474
dedicated account deposit shall be conducted in accordance with	4475
policies and procedures the director establishes.	4476

A surety bond, dedicated account, other established program	4477
or policy, or bothany combination of these resources, as	4478
applicable, may be used to pay for the lottery sales agent's	4479
failure to make prompt and accurate payments for lottery ticket	4480
sales, for missing or stolen lottery tickets, for damage to	4481
equipment or materials issued to the lottery sales agent, or to	4482
pay for expenses the commission incurs in connection with the	4483
lottery sales agent's license.	4484

(2) A lottery sales agent license is effective for at least	4485
one year, but not more than three years.	4486

A licensed lottery sales agent, on or before the date	4487
established by the director, shall renew the agent's license and	4488
provide at that time evidence to the director that the surety	4489
bond, dedicated account deposit, or both, required under division	4490
(G)(1)(b) of this section has been renewed or is active, whichever	4491
applies.	4492

Before the commission renews a lottery sales agent license,	4493
the lottery sales agent shall submit a renewal fee to the	4494
commission, if one is required by rule adopted by the director	4495
under Chapter 119. of the Revised Code and the permanent joint	4496
committee on gaming and wagering reviews and the controlling board	4497
approves the renewal fee. The renewal fee shall not exceed the	4498
actual cost of administering the license renewal and processing	4499
changes reflected in the renewal application. The renewal of the	4500
license is effective for up toat least one year, but not more	4501
than three years.	4502

(3) A lottery sales agent license shall be complete,	4503
accurate, and current at all times during the term of the license.	4504
Any changes to an original license application or a renewal	4505
application may subject the applicant or lottery sales agent, as	4506
applicable, to paying an administrative fee that shall be in an	4507
amount that the director determines by rule adopted under Chapter	4508
119. of the Revised Code,that the permanent joint committee on	4509
gaming and wagering reviews and that the controlling board	4510
approves, and that shall not exceed the actual cost of	4511
administering and processing the changes to an application.	4512

(4) The relationship between the commission and a lottery	4513
sales agent is one of trust. A lottery sales agent collects funds	4514
on behalf of the commission through the sale of lottery tickets	4515
for which the agent receives a compensation.	4516

(H) Pending a final resolution of any question arising under	4517
this section, the director of the state lottery commission may	4518
issue a temporary lottery sales agent license, subject to the	4519
terms and conditions the director considers appropriate.	4520

(I) If a lottery sales agent's rental payments for the	4521
lottery sales agent's premises are determined, in whole or in	4522
part, by the amount of retail sales the lottery sales agent makes,	4523
and if the rental agreement does not expressly provide that the	4524
amount of those retail sales includes the amounts the lottery	4525
sales agent receives from lottery ticket sales, only the amounts	4526
the lottery sales agent receives as compensation from the state	4527
lottery commission for selling lottery tickets shall be considered	4528
to be amounts the lottery sales agent receives from the retail	4529
sales the lottery sales agent makes, for the purpose of computing	4530
the lottery sales agent's rental payments.	4531

Sec. 3770.07.  (A)(1) Except as provided in division (A)(2)	4532
of this section, lottery prize awards shall be claimed by the	4533
holder of the winning lottery ticketproduct, or by the executor	4534
or administrator, or the trustee of a trust, of the estate of a	4535
deceased holder of a winning lottery ticketproduct, in a manner	4536
to be determined by the state lottery commission, within one	4537
hundred eighty days after the date on which the prize award was	4538
announced if the lottery game is an online game, and within one	4539
hundred eighty days after the close of the game if the lottery	4540
game is an instant game.	4541

NoAny lottery prize award with a value that meets or exceeds	4542
five hundred ninety-nine dollarsthe reportable winnings amounts	4543
set by 26 U.S.C. 6041, or a subsequent analogous section of the	4544
Internal Revenue Code, shall not be claimed by or paid to any	4545
person, as defined in section 1.59 of the Revised Code or as	4546
defined by rule or order of the state lottery commission, until	4547
the name, address, and social security number of each beneficial	4548
owner of the prize award are disclosed todocumented for the	4549
commission. Except when a beneficial owner otherwise consents in	4550
writing, in the case of a claim for a lottery prize award made by	4551
one or more beneficial owners using a trust, the name, address,	4552
and social security number of each such beneficial owner in the	4553
commission's records as a result of such a disclosure are	4554
confidential and shall not be subject to inspection or copying	4555
under section 149.43 of the Revised Code as a public record.	4556

Except as otherwise provided in division (A)(1) of this	4557
section or as otherwise provided by law, the name and address of	4558
any individual claiming a lottery prize award are subject to	4559
inspection or copying under section 149.43 of the Revised Code as	4560
a public record.	4561

(2) An eligible person serving on active military duty in any	4562
branch of the United States armed forces during a war or national	4563
emergency declared in accordance with federal law may submit a	4564
delayed claim for a lottery prize award. The eligible person shall	4565
do so by notifying the state lottery commission about the claim	4566
not later than the five hundred fortieth day after the date on	4567
which the prize award was announced if the lottery game is an	4568
online game or after the date on which the lottery game closed if	4569
the lottery game is an instant game.	4570

(3) If no valid claim to a lottery prize award is made within	4571
the prescribed period, the prize money, the cost of goods and	4572
services awarded as prizes, or, if goods or services awarded as	4573
prizes are resold by the state lottery commission, the proceeds	4574
from their sale shall be returned to the state lottery fund and	4575
distributed in accordance with section 3770.06 of the Revised	4576
Code.	4577

(4) The state lottery commission may share with other	4578
governmental agencies the name, address, and social security	4579
number of a beneficial owner disclosed to the commission under	4580
division (A)(1) of this section, as authorized under sections	4581
3770.071 and 3770.073 of the Revised Code. Any shared information	4582
as disclosed pursuant to those sections that is made confidential	4583
by division (A)(1) of this section remains confidential and shall	4584
not be subject to inspection or copying under section 149.43 of	4585
the Revised Code as a public record unless the applicable	4586
beneficial owner otherwise provides written consent.	4587

(5) As used in this division:

4588

(a) "Eligible person" means a person who is entitled to a	4589
lottery prize award and who falls into either of the following	4590
categories:	4591

(i) While on active military duty in this state, the person,	4592
as the result of a war or national emergency declared in	4593
accordance with federal law, is transferred out of this state	4594
before the one hundred eightieth day after the date on which the	4595
winner of the lottery prize award is selected.	4596

(ii) While serving in the reserve forces in this state, the	4597
person, as the result of a war or national emergency declared in	4598
accordance with federal law, is placed on active military duty and	4599
is transferred out of this state before the expiration of the one	4600
hundred eightieth day after the date on which the prize drawing	4601
occurs for an online game or before the expiration of the one	4602
hundred eightieth day following the close of an instant game as	4603
determined by the commission.	4604

(b) "Active military duty" means that a person is covered by	4605
the "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 50	4606
U.S.C. 501 et seq., as amended, or the "Uniformed Services	4607
Employment and Reemployment Rights Act of 1994," 108 Stat. 3149,	4608
38 U.S.C. 4301 et seq., as amended.	4609

(c) "Each beneficial owner" means the ultimate recipient or,	4610
if there is more than one, each ultimate recipient of a lottery	4611
prize award.	4612

(B) If a prize winner, as defined in section 3770.10 of the	4613
Revised Code, is under eighteen years of age, or is under some	4614
other legal disability, and the prize money or the cost of goods	4615
or services awarded as a prize exceeds one thousand dollars, the	4616
director of the state lottery commission shall order that payment	4617
be made to the order of the legal guardian of that prize winner.	4618
If the amount of the prize money or the cost of goods or services	4619
awarded as a prize is one thousand dollars or less, the director	4620
may order that payment be made to the order of the adult member,	4621
if any, of that prize winner's family legally responsible for the	4622
care of that prize winner.	4623

(C) No right of any prize winner, as defined in section	4624
3770.10 of the Revised Code, to a prize award shall be the subject	4625
of a security interest or used as collateral.	4626

(D)(1) No right of any prize winner, as defined in section	4627
3770.10 of the Revised Code, to a prize award shall be assignable	4628
except as follows: when the payment is to be made to the executor	4629
or administrator, or the trustee of a trust, of the estate of a	4630
winning ticket holderprize winner; when the award of a prize is	4631
disputed, any person may be awarded a prize award to which another	4632
has claimed title, pursuant to the order of a court of competent	4633
jurisdiction; when a person is awarded a prize award to which	4634
another has claimed title, pursuant to the order of a federal	4635
bankruptcy court under Title 11 of the United States Code; or as	4636
provided in sections 3770.10 to 3770.14 of the Revised Code.	4637

(2)(a) No right of any prize winner, as defined in section	4638
3770.10 of the Revised Code, to a prize award with a remaining	4639
unpaid balance of less than one hundred thousand dollars shall be	4640
subject to garnishment, attachment, execution, withholding, or	4641
deduction except as provided in sections 3119.80, 3119.81,	4642
3121.02, 3121.03, and 3123.06 of the Revised Code or when the	4643
director is to make a payment pursuant to section 3770.071 or	4644
3770.073 of the Revised Code.	4645

(b) No right of any prize winner, as defined in section	4646
3770.10 of the Revised Code, to a prize award with an unpaid	4647
balance of one hundred thousand dollars or more shall be subject	4648
to garnishment, attachment, execution, withholding, or deduction	4649
except as follows: as provided in sections 3119.80, 3119.81,	4650
3121.02, 3121.03, and 3123.06 of the Revised Code; when the	4651
director is to make a payment pursuant to section 3770.071 or	4652
3770.073 of the Revised Code; or pursuant to the order of a court	4653
of competent jurisdiction located in this state in a proceeding in	4654
which the state lottery commission is a named party, in which case	4655
the garnishment, attachment, execution, withholding, or deduction	4656
pursuant to the order shall be subordinate to any payments to be	4657
made pursuant to section 3119.80, 3119.81, 3121.02, 3121.03,	4658
3123.06, 3770.071, or 3770.073 of the Revised Code.	4659

(3) The state lottery commission may adopt and amend rules	4660
pursuant to Chapter 119. of the Revised Code as necessary to	4661
implement division (D) of this section, to provide for payments	4662
from prize awards subject to garnishment, attachment, execution,	4663
withholding, or deduction, and to comply with any applicable	4664
requirements of federal law.	4665

(4) Upon making payments from a prize award as required by	4666
division (D) of this section, the director and the state lottery	4667
commission are discharged from all further liability for those	4668
payments, whether they are made to an executor, administrator,	4669
trustee, judgment creditor, or another person, or to the prize	4670
winner, as defined in section 3770.10 of the Revised Code.	4671

(5) The state lottery commission shall adopt rules pursuant	4672
to section 3770.03 of the Revised Code concerning the payment of	4673
prize awards upon the death of a prize winner, as defined in	4674
section 3770.10 of the Revised Code. Upon the death of a prize	4675
winner, the remainder of the prize winner's prize award, to the	4676
extent it is not subject to a transfer agreement under sections	4677
3770.10 to 3770.14 of the Revised Code, may be paid to the	4678
executor, administrator, or trustee in the form of a discounted	4679
lump sum cash settlement.	4680

(E) No lottery prize award shall be awarded to or for any	4681
officer or employee of the state lottery commission, any officer	4682
or employee of the auditor of state actively auditing,	4683
coordinating and, or certifying commission drawings, or any blood	4684
relative or spouse of such an officer or employee of the	4685
commission or auditor of state living as a member of the officer's	4686
or employee's household, nor shall any such officer, employee,	4687
blood relative, or spouse attempt to claim a lottery prize award.	4688

(F) The director may prohibit vendors to the state lottery	4689
commission and their employees from being awarded a lottery prize	4690
award.	4691

(G) Upon the payment of prize awards pursuant to a provision	4692
of this section, other than a provision of division (D) of this	4693
section, the director and the state lottery commission are	4694
discharged from all further liability for their payment.	4695
Installment payments of lottery prize awards shall be paid by	4696
official check or warrant, and they shall be sent by mail delivery	4697
to the prize winner's address within the United States or by	4698
electronic funds transfer to an established bank account located	4699
within the United States, or the prize winner may pick them up at	4700
an office of the commission.	4701

Sec. 3770.071.  (A)(1) If the amount of the prize money or	4702
the cost of goods or services awarded as a lottery prize award is	4703
six hundred dollars or moremeets or exceeds the reportable	4704
winnings amounts set by 26 U.S.C. 6041, or a subsequent analogous	4705
section of the Internal Revenue Code, the director of the state	4706
lottery commission or the director's designee shall require the	4707
person entitled to the prize award to affirm in writing, under	4708
oath, or by electronic means, whether or not the person is in	4709
default under a support order. The director or the director's	4710
designee also may take any additional appropriate steps to	4711
determine if the person entitled to the prize award is in default	4712
under a support order. If the person entitled to the prize award	4713
affirms that the person is in default under a support order, or if	4714
the director or the director's designee determines that the person	4715
is in default under a support order, the director or the	4716
director's designee shall temporarily withhold payment of the	4717
prize award and notify the child support enforcement agency that	4718
administers the support order that the person is entitled to a	4719
prize award, of the amount of the prize award, and, if the prize	4720
award is to be paid in annual installments, of the number of	4721
installments.	4722

(2) Upon receipt of the notice from the director or the	4723
director's designee, the child support enforcement agency shall	4724
conduct an investigation to determine whether the person entitled	4725
to the lottery prize award is subject to a final and enforceable	4726
determination of default made under sections 3123.01 to 3123.07 of	4727
the Revised Code. If the agency determines that the person is so	4728
subject, it shall issue an intercept directive as described in	4729
section 3123.89 of the Revised Code to the director at lottery	4730
commission headquarters requiring the director or the director's	4731
designee to deduct from any unpaid prize award or any annual	4732
installment payment of an unpaid prize award, a specified amount	4733
for support in satisfaction of the support order under which the	4734
person is in default. To the extent possible, the amount specified	4735
to be deducted under the intercept directive shall satisfy the	4736
amount ordered for support in the support order under which the	4737
person is in default.	4738

A child support enforcement agency shall issue an intercept	4739
directive within thirty days from the date the director or the	4740
director's designee notifies the agency under division (A)(1) of	4741
this section. Within thirty days after the date on which the	4742
agency issues the intercept directive, the director or the	4743
director's designee shall pay the amount specified in the	4744
intercept directive to the office of child support in the	4745
department of job and family services. But, if the prize award is	4746
to be paid in annual installments, the director or the director's	4747
designee, on the date the next installment payment is due, shall	4748
deduct the amount specified in the intercept directive from that	4749
installment and, if necessary, any subsequent annual installments,	4750
at the time those installments become due and owing to the prize	4751
winner, and pay the amount to the office of child support.	4752

(B) As used in this section:

4753

(1) "Support order" has the same meaning as in section	4754
3119.01 of the Revised Code.	4755

(2) "Default" has the same meaning as in section 3121.01 of	4756
the Revised Code.	4757

(C) No person shall knowingly make a false affirmation or	4758
oath required by division (A) of this section.	4759

Sec. 3770.072. (A) As used in this section, "prize winner,"	4760
"transferee," and "transferor" have the same meanings as in	4761
section 3770.10 of the Revised Code.	4762

(B) The state lottery commission shall deduct amounts from	4763
lottery prize awards and file returns in accordance with section	4764
sections 5747.062 and 5747.064 of the Revised Code and any rules	4765
adopted by the tax commissioner pursuant to that sectionthose	4766
sections. This division also applies to lottery prize award	4767
payments the commission remits to transferees.	4768

(C)(1)(a) Each transferee shall deduct and withhold from each	4769
gross amount payable to each prize winner sixfour per cent of the	4770
gross amount payable prior to making any other reduction required	4771
by this chapter.	4772

(b) Subject to division (C)(1)(c) of this section, each	4773
transferee, including any transferee that is a related member, as	4774
defined in section 5733.042 of the Revised Code, to the	4775
transferor, shall deduct and withhold from each amount payable to	4776
a transferor that is not a prize winner sixfour per cent of the	4777
portion of the payment representing gain or income the transferor	4778
will recognize in connection with the payment.	4779

(c) For purposes of division (C)(1)(b) of this section, the	4780
portion of any payment representing gain or income recognized by	4781
the transferor shall be computed in accordance with the Internal	4782
Revenue Code. The transferor shall prepare a written statement	4783
setting forth that amount and sign the statement under penalty of	4784
perjury. Within five days before the date on which the payment is	4785
to be made, the transferor shall deliver the written statement to	4786
the transferee and deliver a copy of the written statement to the	4787
tax commissioner. If the transferee does not receive the written	4788
statement by the time the payment is made, the transferee shall	4789
withhold sixfour per cent of the entire amount of the payment. If	4790
the tax commissioner notifies the transferee that the transferor	4791
has erroneously computed the amount of gain or income recognized,	4792
the transferee shall withhold sixfour per cent of the entire	4793
amount of each payment to be made after the transferee receives	4794
the notice.	4795

(d) The tax commissioner may impose a penalty of up to one	4796
thousand dollars for any person failing to timely deliver to the	4797
tax commissioner the copy of the written statement as required by	4798
division (C)(1)(c) of this section. Proceeds from the imposition	4799
of the penalty shall be considered as revenue arising from the tax	4800
imposed under section 5733.06 or 5747.02 of the Revised Code, as	4801
applicable.	4802

(2) With respect to amounts deducted and withheld pursuant to	4803
division (C)(1) of this section, each transferee shall comply with	4804
divisions (A)(2) to (4) of section 5747.062 of the Revised Code.	4805

(3) An employee of a corporation, limited liability company,	4806
or business trust having control or supervision of or charged with	4807
the responsibility of filing the report and making the payment	4808
required by division (C) of this section and section 5747.062 of	4809
the Revised Code, or an officer, member, manager, or trustee of a	4810
corporation, limited liability company, or business trust who is	4811
responsible for the execution of the corporation's, limited	4812
liability company's, or business trust's fiscal responsibilities,	4813
shall be personally liable for failure to file the report or pay	4814
the amount due as required by division (C) of this section and	4815
section 5747.062 of the Revised Code. The dissolution,	4816
termination, or bankruptcy of a corporation, limited liability	4817
company, or business trust does not discharge a responsible	4818
officer's, member's, manager's, employee's, or trustee's liability	4819
for a failure of the corporation, limited liability company, or	4820
business trust to file returns or pay the amount due.	4821

(4)(a) The tax commissioner may make an assessment against	4822
any person listed in division (C)(1) or (3) of this section for	4823
any deficiency for any period. Section 5747.13 of the Revised Code	4824
shall apply with respect to issuing assessments, filing petitions	4825
for reassessments, conducting hearings, issuing final	4826
determinations, making the assessment final, and filing the entry	4827
that makes the assessment final. Section 5717.02 of the Revised	4828
Code shall apply to appeals of the commissioner's final decision	4829
in connection with assessments issued pursuant to division (C)(4)	4830
of this section.	4831

(b) An assessment issued against any person listed in	4832
division (C)(1) or (3) of this section shall not be considered an	4833
election of remedies or a bar to an assessment against any other	4834
person for the failure to comply with division (C)(1) of this	4835
section. No assessment shall be issued against any person who is	4836
so listed if the amount required to be withheld has been paid by	4837
another.	4838

(c) The assessment shall include interest at the rate per	4839
annum prescribed by section 5703.47 of the Revised Code on	4840
liability from the time the payment is due until the date of	4841
assessment. Interest shall continue to accrue from the date of	4842
assessment until the date the assessment is paid in full. Any	4843
interest accruing subsequent to the date of the issuance of the	4844
assessment shall be considered to be an additional deficiency for	4845
which the tax commissioner may issue subsequent assessments. The	4846
initial assessment and any subsequent assessments may include a	4847
penalty in an amount not to exceed twice the applicable interest	4848
charged under this division.	4849

Sec. 3770.073.  (A) If a person is entitled to a lottery	4850
prize award and is indebted to the state for the payment of any	4851
tax, workers' compensation premium, unemployment contribution,	4852
payment in lieu of unemployment contribution, certified claim	4853
under section 131.02 or 131.021 of the Revised Code, or is	4854
indebted to a political subdivision that has a certified claim	4855
under section 131.02 of the Revised Code, lottery sales receipts	4856
held in trust on behalf of the state lottery commission as	4857
described in division (G)(4) of section 3770.05 of the Revised	4858
Code, or charge, penalty, or interest arising from these debts and	4859
if the amount of the prize money or the cost of goods or services	4860
awarded as a lottery prize award is five thousand dollars or more,	4861
the director of the state lottery commission, or the director's	4862
designee, shall do either of the following:	4863

(1) If the prize award will be paid in a lump sum, deduct	4864
from the prize award and pay to the attorney general an amount in	4865
satisfaction of the debt and pay any remainder to that person. If	4866
the amount of the prize award is less than the amount of the debt,	4867
the entire amount of the prize award shall be deducted and paid in	4868
partial satisfaction of the debt.	4869

(2) If the prize award will be paid in annual installments,	4870
on the date the initial installment payment is due, deduct from	4871
that installment and pay to the attorney general an amount in	4872
satisfaction of the debt and, if necessary to collect the full	4873
amount of the debt, do the same for any subsequent annual	4874
installments, at the time the installments become due and owing to	4875
the person, until the debt is fully satisfied.	4876

(B) If a person entitled to a lottery prize award owes more	4877
than one debt, any debt owed to the state shall be satisfied	4878
first, subject to both section 5739.33 orand division (G) of	4879
section 5747.07 of the Revised Code shall be satisfied first	4880
having first priority, and subject to division (C) of this	4881
section.	4882

(C) Any debt owed under section 3770.071 of the Revised Code	4883
shall be satisfied with first priority over debts owed under this	4884
section.	4885

(D) Except as provided in section 131.021 of the Revised	4886
Code, this section applies only to debts that have become final.	4887

Sec. 3770.21. (A) As used in this section:

4888

(1) "Video lottery terminal" means any electronic device	4889
approved by the state lottery commission that provides immediate	4890
prize determinations for participants on an electronic display	4891
that is located at a facility owned by a holder of a permit as	4892
defined in rule 3769-1-05 of the Administrative Code.	4893

(2) "Video lottery terminal promotional gaming credit" means	4894
a video lottery terminal game credit, discount, or other similar	4895
item issued to a patron to enable the placement of, or increase	4896
in, a wager at a video lottery terminal.	4897

(3) "Video lottery terminal income" means credits played,	4898
minus approved video lottery terminal promotional gaming credits,	4899
minus video lottery prize awards.	4900

(B) The state lottery commission shall include, in	4901
conjunction with the state racing commission, in any rules adopted	4902
concerning video lottery terminals, the level of minimum	4903
investments that must be made by video lottery terminal licensees	4904
sales agents in the buildings, fixtures, equipment,	4905
facilities-related preparation, and grounds at the facilities,	4906
including temporary facilities, in which the terminals will be	4907
located, along with any standards and timetables for such	4908
investments.	4909

(C) A licensed video lottery sales agent may provide video	4910
lottery terminal promotional gaming credits to patrons for video	4911
lottery terminal gaming. Video lottery terminal promotional gaming	4912
credits shall be subject to approval by the director of the state	4913
lottery commission.	4914

(D) Video lottery terminal sales agents shall develop	4915
internal guidelines and controls for the purpose of giving	4916
minority business enterprises the ability to compete for the	4917
awarding of contracts to provide goods and services to those sales	4918
agents. As used in this division, "minority business enterprise"	4919
has the meaning defined in section 122.71 of the Revised Code.	4920

(E) No license or excise tax or fee not in effect on the	4921
effective date of this section shall be assessed upon or collected	4922
from a video lottery terminal licenseesales agent by any county,	4923
township, municipal corporation, school district, or other	4924
political subdivision of the state that has authority to assess or	4925
collect a tax or fee by reason of the video lottery terminal	4926
related conduct authorized by section 3770.03 of the Revised Code.	4927
This division does not prohibit the imposition of taxes under	4928
Chapter 718. or 3769. of the Revised Code.	4929

(D) The supreme court shall have exclusive, original	4930
jurisdiction over any claim(F)(1) Any action asserting that this	4931
section or section 3770.03 of the Revised Code or any portion of	4932
those sections or any rule adopted under those sections violates	4933
any provision of the Ohio Constitution, anyshall be brought in	4934
the court of common pleas of Franklin county within ninety days	4935
after the effective date of the amendment of this section by Am.	4936
Sub. H.B. 386 of the 129th general assembly or within ninety days	4937
after the effective day of any rule, as applicable.	4938

(2) Any claim asserting that any action taken by the governor	4939
or the lottery commission pursuant to those sections violates any	4940
provision of the Ohio Constitution or any provision of the Revised	4941
Code, or any claim asserting that any portion of this section	4942
violates any provision of the Ohio Constitution. If any claim over	4943
which the supreme court is granted exclusive, original	4944
jurisdiction by this division is filed in any lower court, the	4945
claim shall be dismissed by the court on the ground that the court	4946
lacks jurisdiction to review itshall be brought in the court of	4947
common pleas of Franklin county within sixty days after the action	4948
is taken.	4949

(3) Divisions (F)(1) and (2) of this section do not apply to	4950
any claim within the original jurisdiction of the supreme court or	4951
a court of appeals under Article IV of the Ohio Constitution.	4952

(E) Should any portion of this section or of section 3770.03	4953
of the Revised Code be found to be unenforceable or invalid, it	4954
shall be severed and the remaining portions remain in full force	4955
and effect.	4956

(G) The court of common pleas of Franklin county shall give	4957
any claim filed under division (F)(1) or (2) of this section	4958
priority over all other civil cases before the court, irrespective	4959
of position on the court's calendar, and shall make a	4960
determination on the claim expeditiously. A court of appeals shall	4961
give any appeal from a final order issued in a case brought	4962
pursuant to division (F) of this section priority over all other	4963
civil cases before the court, irrespective of position on the	4964
court's calendar, and shall make a determination on the appeal	4965
expeditiously.	4966

Sec. 3770.22.  (A) Any information concerning the following	4967
that is submitted, collected, or gathered as part of an	4968
application to the state lottery commission for a video lottery	4969
related license under this chapter is confidential and not subject	4970
to disclosure by a state agency or political subdivision as a	4971
public record under section 149.43 of the Revised Code:	4972

(1) A dependent of an applicant;

4973

(2) The social security number, passport number, or federal	4974
tax identification number of an applicant or the spouse of an	4975
applicant;	4976

(3) The home address and telephone number of an applicant or	4977
the spouse or dependent of an applicant;	4978

(4) An applicant's birth certificate;

4979

(5) The driver's license number of an applicant or the	4980
applicant's spouse;	4981

(6) The name or address of a previous spouse of the	4982
applicant;	4983

(7) The date of birth of the applicant and the spouse of an	4984
applicant;	4985

(8) The place of birth of the applicant and the spouse of an	4986
applicant;	4987

(9) The personal financial information and records of an	4988
applicant or of an employee or the spouse or dependent of an	4989
applicant, including tax returns and information, and records of	4990
criminal proceedings;	4991

(10) Any information concerning a victim of domestic	4992
violence, sexual assault, or stalking;	4993

(11) The electronic mail address of the spouse or family	4994
member of the applicant;	4995

(12) Any trade secret, medical records, and patents or	4996
exclusive licenses;	4997

(13) Security information, including risk prevention plans,	4998
detection and countermeasures, location of count rooms or other	4999
money storage areas, emergency management plans, security and	5000
surveillance plans, equipment and usage protocols, and theft and	5001
fraud prevention plans and countermeasures;	5002

(14) Information provided in a multijurisdictional personal	5003
history disclosure form, including the Ohio supplement, exhibits,	5004
attachments, and updates.	5005

(B) The individual's name, the individual's place of	5006
employment, the individual's job title, and the individual's	5007
gaming experience that is provided for an individual who holds,	5008
held, or has applied for a video lottery related license under	5009
this chapter is not confidential. The reason for denial or	5010
revocation of a video lottery related license or for disciplinary	5011
action against the individual is not confidential.	5012

(C) An individual who holds, held, or has applied for a video	5013
lottery related license under this chapter may waive the	5014
confidentiality requirements of division (A) of this section.	5015

(D) Confidential information received by the commission from	5016
another jurisdiction relating to a person who holds, held, or has	5017
applied for a license under this chapter is confidential and not	5018
subject to disclosure as a public record under section 149.43 of	5019
the Revised Code. The commission may share the information	5020
referenced in this division with, or disclose the information to,	5021
the inspector general, any appropriate prosecuting authority, any	5022
law enforcement agency, or any other appropriate governmental or	5023
licensing agency, if the agency that receives the information	5024
complies with the same requirements regarding confidentiality as	5025
those with which the commission must comply.	5026

The applicant shall complete a cover sheet for the	5027
application on which the applicant shall disclose the applicant's	5028
name, the business address of the lottery sales agent, management	5029
company, holding company, or gaming-related vendor employing the	5030
applicant, the business address and telephone number of such	5031
employer, and the county, state, and country in which the	5032
applicant's residence is located.	5033

Sec. 3772.01. As used in this chapter:

5034

(A) "Applicant" means any person who applies to the	5035
commission for a license under this chapter.	5036

(B) "Casino control commission fund" means the casino control	5037
commission fund described in Section 6(C)(3)(d) of Article XV,	5038
Ohio Constitution, the money in which shall be used to fund the	5039
commission and its related affairs.	5040

(C) "Casino facility" means a casino facility as defined in	5041
Section 6(C)(9) of Article XV, Ohio Constitution.	5042

(D) "Casino game" means any slot machine or table game as	5043
defined in this chapter.	5044

(E) "Casino gaming" means any type of slot machine or table	5045
game wagering, using money, casino credit, or any representative	5046
of value, authorized in any of the states of Indiana, Michigan,	5047
Pennsylvania, and West Virginia as of January 1, 2009, and	5048
includes slot machine and table game wagering subsequently	5049
authorized by, but shall not be limited by, subsequent	5050
restrictions placed on such wagering in such states. "Casino	5051
gaming" does not include bingo, as authorized in Section 6 of	5052
Article XV, Ohio Constitution and conducted as of January 1, 2009,	5053
or horse racing where the pari-mutuel system of wagering is	5054
conducted, as authorized under the laws of this state as of	5055
January 1, 2009.	5056

(E)(F) "Casino gaming employee" means any employee of a	5057
casino operator or management company, but not a key employee, and	5058
as further defined in section 3772.131 of the Revised Code.	5059

(F)(G) "Casino operator" means any person, trust,	5060
corporation, partnership, limited partnership, association,	5061
limited liability company, or other business enterprise that	5062
directly or indirectly holds an ownership or leasehold interest in	5063
a casino facility. "Casino operator" does not include an agency of	5064
the state, any political subdivision of the state, any person,	5065
trust, corporation, partnership, limited partnership, association,	5066
limited liability company, or other business enterprise that may	5067
have an interest in a casino facility, but who is legally or	5068
contractually restricted from conducting casino gaming.	5069

(G)(H) "Central system" means a computer system that provides	5070
the following functions related to casino gaming equipment used in	5071
connection with casino gaming authorized under this chapter:	5072
security, auditing, data and information retrieval, and other	5073
purposes deemed necessary and authorized by the commission.	5074

(H)(I) "Cheat" means to alter the result of a casino game,	5075
the element of chance, the operation of a machine used in a casino	5076
game, or the method of selection of criteria that determines (a)	5077
the result of the casino game, (b) the amount or frequency of	5078
payment in a casino game, (c) the value of a wagering instrument,	5079
or (d) the value of a wagering credit. "Cheat" does not include an	5080
individual who, without the assistance of another individual or	5081
without the use of a physical aid or device of any kind, uses the	5082
individual's own ability to keep track of the value of cards	5083
played and uses predictions formed as a result of the tracking	5084
information in the individual's playing and betting strategy.	5085

(J) "Commission" means the Ohio casino control commission.

5086

(I)(K) "Gaming agent" means a peace officer employed by the	5087
commission that is vested with duties to enforce this chapter and	5088
conduct other investigations into the conduct of the casino gaming	5089
and the maintenance of the equipment that the commission considers	5090
necessary and proper and is in compliance with section 109.77 of	5091
the Revised Code.	5092

(J)(L) "Gaming-related vendor" means any individual,	5093
partnership, corporation, association, trust, or any other group	5094
of individuals, however organized, who supplies gaming-related	5095
equipment, goods, or services to a casino operator or management	5096
company, that are directly related to or affect casino gaming	5097
authorized under this chapter, including, but not limited to, the	5098
manufacture, sale, distribution, or repair of slot machines and	5099
table game equipment.	5100

(K)(M) "Holding company" means any corporation, firm,	5101
partnership, limited partnership, limited liability company,	5102
trust, or other form of business organization not a natural person	5103
which directly or indirectly owns, hasdoes any of the following:	5104

(1) Has the power or right to control, or holds with power to	5105
vote, any part of an applicant,a casino operator, management	5106
company, or gaming-related vendor license applicant or licensee;	5107

(2) Holds an ownership interest of five per cent or more, as	5108
determined by the commission, in a casino operator, management	5109
company, or gaming-related vendor license applicant or licensee;	5110

(3) Holds voting rights with the power to vote five per cent	5111
or more of the outstanding voting rights of a casino operator,	5112
management company, or gaming-related vendor applicant or	5113
licensee.	5114

(L)(N) "Initial investment" includes costs related to	5115
demolition, engineering, architecture, design, site preparation,	5116
construction, infrastructure improvements, land acquisition,	5117
fixtures and equipment, insurance related to construction, and	5118
leasehold improvements.	5119

(M)(O) "Institutional investor" means any of the following	5120
entities owning onefive per cent or less, or a percentage between	5121
one and ten per cent as approved by the commission through a	5122
waiver on a case-by-case basismore, but less than fifteen per	5123
cent, of an ownership interest in a casino facility, casino	5124
operator, management company, or holding company: a corporation,	5125
bank, insurance company, pension fund or pension fund trust,	5126
retirement fund, including funds administered by a public agency,	5127
employees' profit-sharing fund or employees' profit-sharing trust,	5128
any association engaged, as a substantial part of its business or	5129
operations, in purchasing or holding securities, including a hedge	5130
fund, mutual fund, or private equity fund, or any trust in respect	5131
of which a bank is trustee or cotrustee, investment company	5132
registered under the "Investment Company Act of 1940," 15 U.S.C.	5133
80a-1 et seq., collective investment trust organized by banks	5134
under Part Nine of the Rules of the Comptroller of the Currency,	5135
closed-end investment trust, chartered or licensed life insurance	5136
company or property and casualty insurance company, investment	5137
advisor registered under the "Investment Advisors Act of 1940," 15	5138
U.S.C. 80 b-1 et seq., and such other persons as the commission	5139
may reasonably determine to qualify as an institutional investor	5140
for reasons consistent with this chapter, and that does not	5141
exercise control over the affairs of a licensee and its ownership	5142
interest in a licensee is for investment purposes only, as set	5143
forth in division (E) of section 3772.10 of the Revised Code.	5144

(N)(P) "Key employee" means any executive, employee, or agent	5145
of a casino operator or management company licensee having the	5146
power to exercise significant influence over decisions concerning	5147
any part of the operation of such licensee, including:	5148

(1) An officer, director, trustee, or partner of a person	5149
that has applied for or holds a casino operator, management	5150
company, or gaming-related vendor license or of a holding company	5151
that has control of a person that has applied for or holds a	5152
casino operator, management company, or gaming-related vendor	5153
license;	5154

(2) A person that holds a direct or indirect ownership	5155
interest of more than one per cent in a person that has applied	5156
for or holds a casino operator, management company, or	5157
gaming-related vendor license or holding company that has control	5158
of a person that has applied for or holds a casino operator,	5159
management company, or gaming-related vendor license;	5160

(3) A managerial employee of a person that has applied for or	5161
holds a casino operator or gaming-related vendor license in Ohio,	5162
or a managerial employee of a holding company that has control of	5163
a person that has applied for or holds a casino operator or	5164
gaming-related vendor license in Ohio, who performs the function	5165
of principal executive officer, principal operating officer,	5166
principal accounting officer, or an equivalent officer or other	5167
person the commission determines to have the power to exercise	5168
significant influence over decisions concerning any part of the	5169
operation of such licensee.	5170

The commission shall determine whether an individual whose	5171
duties or status varies from those described in this division also	5172
is considered a key employee.	5173

(O)(Q) "Licensed casino operator" means a casino operator	5174
that has been issued a license by the commission and that has been	5175
certified annually by the commission to have paid all applicable	5176
fees, taxes, and debts to the state.	5177

(P)(R) "Majority ownership interest" in a license or in a	5178
casino facility, as the case may be, means ownership of more than	5179
fifty per cent of such license or casino facility, as the case may	5180
be. For purposes of the foregoing, whether a majority ownership	5181
interest is held in a license or in a casino facility, as the case	5182
may be, shall be determined under the rules for constructive	5183
ownership of stock provided in Treas. Reg. 1.409A-3(i)(5)(iii) as	5184
in effect on January 1, 2009.	5185

(Q)(S) "Management company" means an organization retained by	5186
a casino operator to manage a casino facility and provide services	5187
such as accounting, general administration, maintenance,	5188
recruitment, and other operational services.	5189

(R)(T) "Ohio law enforcement training fund" means the state	5190
law enforcement training fund described in Section 6(C)(3)(f) of	5191
Article XV, Ohio Constitution, the money in which shall be used to	5192
enhance public safety by providing additional training	5193
opportunities to the law enforcement community.	5194

(S)(U) "Person" includes, but is not limited to, an	5195
individual or a combination of individuals; a sole proprietorship,	5196
a firm, a company, a joint venture, a partnership of any type, a	5197
joint-stock company, a corporation of any type, a corporate	5198
subsidiary of any type, a limited liability company, a business	5199
trust, or any other business entity or organization; an assignee;	5200
a receiver; a trustee in bankruptcy; an unincorporated	5201
association, club, society, or other unincorporated entity or	5202
organization; entities that are disregarded for federal income tax	5203
purposes; and any other nongovernmental, artificial, legal entity	5204
that is capable of engaging in business.	5205

(T)(V) "Problem casino gambling and addictions fund" means	5206
the state problem gambling and addictions fund described in	5207
Section 6(C)(3)(g) of Article XV, Ohio Constitution, the money in	5208
which shall be used for treatment of problem gambling and	5209
substance abuse, and for related research.	5210

(U)(W) "Promotional gaming credit" means a slot machine or	5211
table game credit, discount, or other similar item issued to a	5212
patron to enable the placement of, or increase in, a wager at a	5213
slot machine or table game.	5214

(V)(X) "Slot machine" means any mechanical, electrical, or	5215
other device or machine which, upon insertion of a coin, token,	5216
ticket, or similar object, or upon payment of any consideration,	5217
is available to play or operate, the play or operation of which,	5218
whether by reason of the skill of the operator or application of	5219
the element of chance, or both, makes individual prize	5220
determinations for individual participants in cash, premiums,	5221
merchandise, tokens, or any thing of value, whether the payoff is	5222
made automatically from the machine or in any other manner, but	5223
does not include any device that is a skill-based amusement	5224
machine, as defined in section 2915.01 of the Revised Code.	5225

(W)(Y) "Table game" means any game played with cards, dice,	5226
or any mechanical, electromechanical, or electronic device or	5227
machine for money, casino credit, or any representative of value.	5228
"Table game" does not include slot machines.	5229

(X)(Z) "Upfront license" means the first plenary license	5230
issued to a casino operator.	5231

(Y)(AA) "Voluntary exclusion program" means a program	5232
provided by the commission that allows persons to voluntarily	5233
exclude themselves from the gaming areas of facilities under the	5234
jurisdiction of the commission by placing their name on a	5235
voluntary exclusion list and following the procedures set forth by	5236
the commission.	5237

Sec. 3772.03. (A) To ensure the integrity of casino gaming,	5238
the commission shall have authority to complete the functions of	5239
licensing, regulating, investigating, and penalizing casino	5240
operators, management companies, holding companies, key employees,	5241
casino gaming employees, and gaming-related vendors. The	5242
commission also shall have jurisdiction over all persons	5243
participating in casino gaming authorized by Section 6(C) of	5244
Article XV, Ohio Constitution, and this chapter.	5245

(B) All rules adopted by the commission under this chapter	5246
shall be adopted under procedures established in Chapter 119. of	5247
the Revised Code. The commission may contract for the services of	5248
experts and consultants to assist the commission in carrying out	5249
its duties under this section.	5250

(C) Within six months of the effective date of this section	5251
September 10, 2010, the commission shall adopt initial rules as	5252
are necessary for completing the functions stated in division (A)	5253
of this section and for addressing the subjects enumerated in	5254
division (D) of this section.	5255

(D) The commission shall adopt, and as advisable and	5256
necessary shall amend or repeal, rules that include all of the	5257
following:	5258

(1) The prevention of practices detrimental to the public	5259
interest;	5260

(2) Prescribing the method of applying, and the form of	5261
application, that an applicant for a license under this chapter	5262
must follow as otherwise described in this chapter;	5263

(3) Prescribing the information to be furnished by an	5264
applicant or licensee as described in section 3772.11 of the	5265
Revised Code;	5266

(4) Describing the certification standards and duties of an	5267
independent testing laboratory certified under section 3772.31 of	5268
the Revised Code and the relationship between the commission, the	5269
laboratory, the gaming-related vendor, and the casino operator;	5270

(5) The minimum amount of insurance that must be maintained	5271
by a casino operator, management company, holding company, or	5272
gaming-related vendor;	5273

(6) The approval process for a significant change in	5274
ownership or transfer of control of a licensee as provided in	5275
section 3772.091 of the Revised Code;	5276

(7) The design of gaming supplies, devices, and equipment to	5277
be distributed by gaming-related vendors;	5278

(8) Identifying the casino gaming that is permitted,	5279
identifying the gaming supplies, devices, and equipment, that are	5280
permitted, defining the area in which the permitted casino gaming	5281
may be conducted, and specifying the method of operation according	5282
to which the permitted casino gaming is to be conducted as	5283
provided in section 3772.20 of the Revised Code, and requiring	5284
gaming devices and equipment to meet the standards of this state;	5285

(9) Tournament play in any casino facility;

5286

(10) Establishing and implementing a voluntary exclusion	5287
program that provides all of the following:	5288

(a) Except as provided by commission rule, a person who	5289
participates in the program shall agree to refrain from entering a	5290
casino facility.	5291

(b) The name of a person participating in the program shall	5292
be included on a list of persons excluded from all casino	5293
facilities.	5294

(c) Except as provided by commission rule, no person who	5295
participates in the program shall petition the commission for	5296
admittance into a casino facility.	5297

(d) The list of persons participating in the program and the	5298
personal information of those persons shall be confidential and	5299
shall only be disseminated by the commission to a casino operator	5300
and the agents and employees of the casino operator for purposes	5301
of enforcement and to other entities, upon request of the	5302
participant and agreement by the commission.	5303

(e) A casino operator shall make all reasonable attempts as	5304
determined by the commission to cease all direct marketing efforts	5305
to a person participating in the program.	5306

(f) A casino operator shall not cash the check of a person	5307
participating in the program or extend credit to the person in any	5308
manner. However, the program shall not exclude a casino operator	5309
from seeking the payment of a debt accrued by a person before	5310
participating in the program.	5311

(g) Any and all locations at which a person may register as a	5312
participant in the program shall be published.	5313

(11) Requiring the commission to adopt standards regarding	5314
the marketing materials of a licensed casino operator, including	5315
allowing the commission to prohibit marketing materials that are	5316
contrary to the adopted standards;	5317

(12) Requiring that the records, including financial	5318
statements, of any casino operator, management company, holding	5319
company, and gaming-related vendor be maintained in the manner	5320
prescribed by the commission and made available for inspection	5321
upon demand by the commission, but shall be subject to section	5322
3772.16 of the Revised Code;	5323

(13) Permitting a licensed casino operator, management	5324
company, key employee, or casino gaming employee to question a	5325
person suspected of violating this chapter;	5326

(14) The chips, tokens, tickets, electronic cards, or similar	5327
objects that may be purchased by means of an agreement under which	5328
credit is extended to a wagerer by a casino operator;	5329

(15) Establishing standards for provisional key employee	5330
licenses for a person who is required to be licensed as a key	5331
employee and is in exigent circumstances and standards for	5332
provisional licenses for casino gaming employees who submit	5333
complete applications and are compliant under an instant	5334
background check. A provisional license shall be valid not longer	5335
than three months. A provisional license may be renewed one time,	5336
at the commission's discretion, for an additional three months. In	5337
establishing standards with regard to instant background checks	5338
the commission shall take notice of criminal records checks as	5339
they are conducted under section 311.41 of the Revised Code using	5340
electronic fingerprint reading devices.	5341

(16) Establishing approval procedures for third-party	5342
engineering or accounting firms, as described in section 3772.09	5343
of the Revised Code;	5344

(17) Prescribing the manner in which winnings, compensation	5345
from casino gaming, and gross revenue must be computed and	5346
reported by a licensee as described in Chapter 5753. of the	5347
Revised Code;	5348

(18) Prescribing conditions under which a licensee's license	5349
may be suspended or revoked as described in section 3772.04 of the	5350
Revised Code;	5351

(19) Prescribing the manner and procedure of all hearings to	5352
be conducted by the commission or by any hearing examiner;	5353

(20) Prescribing technical standards and requirements that	5354
are to be met by security and surveillance equipment that is used	5355
at and standards and requirements to be met by personnel who are	5356
employed at casino facilities, and standards and requirements for	5357
the provision of security at and surveillance of casino	5358
facilities;	5359

(21) Prescribing requirements for a casino operator to	5360
provide unarmed security services at a casino facility by licensed	5361
casino employees, and the training that shall be completed by	5362
these employees;	5363

(22) Prescribing standards according to which casino	5364
operators shall keep accounts and standards according to which	5365
casino accounts shall be audited, and establish means of assisting	5366
the tax commissioner in levying and collecting the gross casino	5367
revenue tax levied under section 5753.02 of the Revised Code;	5368

(23) Defining penalties for violation of commission rules and	5369
a process for imposing such penalties subject to the review of the	5370
joint committee on gaming and wagering;	5371

(24) Establishing standards for decertifying contractors that	5372
violate statutes or rules of this state or the federal government;	5373

(25) Establishing standards for the repair of casino gaming	5374
equipment;	5375

(26) Establishing procedures to ensure that casino operators,	5376
management companies, and holding companies are compliant with the	5377
compulsive and problem gambling plan submitted under section	5378
3772.18 of the Revised Code;	5379

(27) Prescribing, for institutional investors in or holding	5380
companies of a casino operator, management company, holding	5381
company, or gaming-related vendor that fall below the threshold	5382
needed to be considered an institutional investor or a holding	5383
company, standards regarding what any employees, members, or	5384
owners of those investors or holding companies may do and shall	5385
not do in relation to casino facilities and casino gaming in this	5386
state, which standards shall rationally relate to the need to	5387
proscribe conduct that is inconsistent with passive institutional	5388
investment status;	5389

(28) Providing for any other thing necessary and proper for	5390
successful and efficient regulation of casino gaming under this	5391
chapter.	5392

(E) The commission shall employ and assign gaming agents as	5393
necessary to assist the commission in carrying out the duties of	5394
this chapter. In order to maintain employment as a gaming agent,	5395
the gaming agent shall successfully complete all continuing	5396
training programs required by the commission and shall not have	5397
been convicted of or pleaded guilty or no contest to a	5398
disqualifying offense as defined in section 3772.07 of the Revised	5399
Code.	5400

(F) The commission, as a law enforcement agency, and its	5401
gaming agents, as law enforcement officers as defined in section	5402
2901.01 of the Revised Code, shall have authority with regard to	5403
the detection and investigation of, the seizure of evidence	5404
allegedly relating to, and the apprehension and arrest of persons	5405
allegedly committing gaming offenses, and shall have access to	5406
casino facilities to carry out the requirements of this chapter.	5407

(G) The commission may eject or exclude or authorize the	5408
ejection or exclusion of and a gaming agent may eject a person	5409
from a casino facility for any of the following reasons:	5410

(1) The person's name is on the list of persons voluntarily	5411
excluding themselves from all casinos in a program established	5412
according to rules adopted by the commission;	5413

(2) The person violates or conspires to violate this chapter	5414
or a rule adopted thereunder; or	5415

(3) The commission determines that the person's conduct or	5416
reputation is such that the person's presence within a casino	5417
facility may call into question the honesty and integrity of the	5418
casino gaming operations or interfere with the orderly conduct of	5419
the casino gaming operations.	5420

(H) A person, other than a person participating in a	5421
voluntary exclusion program, may petition the commission for a	5422
public hearing on the person's ejection or exclusion under this	5423
chapter.	5424

(I) A casino operator or management company shall have the	5425
same authority to eject or exclude a person from the management	5426
company's casino facilities as authorized in division (G) of this	5427
section. The licensee shall immediately notify the commission of	5428
an ejection or exclusion.	5429

(J) The commission shall submit a written annual report with	5430
the governor, president and minority leader of the senate, speaker	5431
and minority leader of the house of representatives, and joint	5432
committee on gaming and wagering before the first day of September	5433
each year. The annual report shall include a statement describing	5434
the receipts and disbursements of the commission, relevant	5435
financial data regarding casino gaming, including gross revenues	5436
and disbursements made under this chapter, actions taken by the	5437
commission, an update on casino operators', management companies',	5438
and holding companies' compulsive and problem gambling plans and	5439
the voluntary exclusion program and list, and any additional	5440
information that the commission considers useful or that the	5441
governor, president or minority leader of the senate, speaker or	5442
minority leader of the house of representatives, or joint	5443
committee on gaming and wagering requests.	5444

(K) Notwithstanding any law to the contrary, beginning on	5445
July 1, 2011, the commission shall assume jurisdiction over and	5446
oversee the regulation of skill-based amusement machines as is	5447
provided in the law of this state.	5448

Sec. 3772.032. (A) The permanent joint committee on gaming	5449
and wagering is established. The committee consists of six	5450
members. The speaker of the house of representatives shall appoint	5451
to the committee three members of the house of representatives and	5452
the president of the senate shall appoint to the committee three	5453
members of the senate. Not more than two members appointed from	5454
each chamber may be members of the same political party. The	5455
chairperson shall be from the opposite house as the chairperson of	5456
the joint committee on agency rule review. If the chairperson is	5457
to be from the house of representatives, the speaker of the house	5458
of representatives shall designate a member as the chairperson and	5459
the president of the senate shall designate a member as the	5460
vice-chairperson. If the chairperson is to be from the senate, the	5461
president of the senate shall designate a member as the	5462
chairperson and the speaker of the house of representatives shall	5463
designate a member as the vice-chairperson.	5464

(B) The committee shall:

5465

(1) Review all constitutional amendments, laws, and rules	5466
governing the operation and administration of casino gaming and	5467
all authorized gaming and wagering activities and recommend to the	5468
general assembly and commission any changes it may find desirable	5469
with respect to the language, structure, and organization of those	5470
amendments, laws, or rules;	5471

(2) Make an annual report to the governor and to the general	5472
assembly with respect to the operation and administration of	5473
casino gaming;	5474

(3) Review all changes of fees and penalties as provided in	5475
this chapter and rules adopted thereunder; and	5476

(4) Review fees related to lottery sales agent licenses, as	5477
provided in section 3770.05 of the Revised Code; and	5478

(5) Study all proposed changes to the constitution and laws	5479
of this state and to the rules adopted by the commission governing	5480
the operation and administration of casino gaming, and report to	5481
the general assembly on their adequacy and desirability as a	5482
matter of public policy.	5483

(C) Any study, or any expense incurred, in furtherance of the	5484
committee's objectives shall be paid for from, or out of, the	5485
casino control commission fund or other appropriation provided by	5486
law. The members shall receive no additional compensation, but	5487
shall be reimbursed for actual and necessary expenses incurred in	5488
the performance of their official duties.	5489

Sec. 3772.04. (A)(1) If, as the result of an investigation,	5490
the commission concludes that a license or finding required by	5491
this chapter should be limited, conditioned, or restricted, or	5492
suspended,or revoked, denied, or not renewed, the commission	5493
shall conductmay, and if so requested by a licensee or applicant,	5494
shall, conduct a hearing in an adjudication under Chapter 119. of	5495
the Revised Code. After notice and opportunity for a hearing, the	5496
commission may limit, condition, restrict, suspend, revoke, deny,	5497
or not renew a license under rules adopted by the commission. The	5498
commission may reopen a licensing adjudication at any time.	5499

(2) The commission shall appoint a hearing examiner to	5500
conduct the hearing in the adjudication. A party to the	5501
adjudication may file written objections to the hearing examiner's	5502
report and recommendations not later than the thirtieth day after	5503
they are served upon the party or the party's attorney or other	5504
representative of record. The commission shall not take up the	5505
hearing examiner's report and recommendations earlier than the	5506
thirtieth day after the hearing examiner's report and	5507
recommendations were submitted to the commission.	5508

(3) If the commission finds that a person fails or has failed	5509
to meet any requirement under this chapter or a rule adopted	5510
thereunder, or violates or has violated this chapter or a rule	5511
adopted thereunder, the commission may issue an order:	5512

(a) Limiting, conditioning, or restricting, or suspending or,	5513
revoking, denying, or not renewing, a license issued under this	5514
chapter;	5515

(b) Limiting, conditioning, or restricting, or suspending or	5516
revoking, a finding made under this chapter;	5517

(c) Requiring a casino facility to exclude a licensee from	5518
the casino facility or requiring a casino facility not to pay to	5519
the licensee any remuneration for services or any share of	5520
profits, income, or accruals on the licensee's investment in the	5521
casino facility; or	5522

(d)(c) Fining a licensee or other person according to the	5523
penalties adopted by the commission.	5524

(4) An order may be judicially reviewed under section 119.12	5525
of the Revised Code.	5526

(B) Without in any manner limiting the authority of the	5527
commission to impose the level and type of discipline the	5528
commission considers appropriate, the commission may take into	5529
consideration the following:	5530

(1) If the licensee knew or reasonably should have known that	5531
the action complained of was a violation of any law, rule, or	5532
condition on the licensee's license;	5533

(2) If the licensee has previously been disciplined by the	5534
commission;	5535

(3) If the licensee has previously been subject to discipline	5536
by the commission concerning the violation of any law, rule, or	5537
condition of the licensee's license;	5538

(4) If the licensee reasonably relied upon professional	5539
advice from a lawyer, doctor, accountant, or other recognized	5540
professional that was relevant to the action resulting in the	5541
violation;	5542

(5) If the licensee or the licensee's employer had a	5543
reasonably constituted and functioning compliance program;	5544

(6) If the imposition of a condition requiring the licensee	5545
to establish and implement a written self-enforcement and	5546
compliance program would assist in ensuring the licensee's future	5547
compliance with all statutes, rules, and conditions of the	5548
license;	5549

(7) If the licensee realized a pecuniary gain from the	5550
violation;	5551

(8) If the amount of any fine or other penalty imposed would	5552
result in disgorgement of any gains unlawfully realized by the	5553
licensee;	5554

(9) If the violation was caused by an officer or employee of	5555
the licensee, the level of authority of the individual who caused	5556
the violation;	5557

(10) If the individual who caused the violation acted within	5558
the scope of the individual's authority as granted by the	5559
licensee;	5560

(11) The adequacy of any training programs offered by the	5561
licensee or the licensee's employer that were relevant to the	5562
activity that resulted in the violation;	5563

(12) If the licensee's action substantially deviated from	5564
industry standards and customs;	5565

(13) The extent to which the licensee cooperated with the	5566
commission during the investigation of the violation;	5567

(14) If the licensee has initiated remedial measures to	5568
prevent similar violations;	5569

(15) The magnitude of penalties imposed on other licensees	5570
for similar violations;	5571

(16) The proportionality of the penalty in relation to the	5572
misconduct;	5573

(17) The extent to which the amount of any fine imposed would	5574
punish the licensee for the conduct and deter future violations;	5575

(18) Any mitigating factors offered by the licensee; and

5576

(19) Any other factors the commission considers relevant.

5577

(C) For the purpose of conducting any study or investigation,	5578
the commission may direct that public hearings be held at a time	5579
and place, prescribed by the commission, in accordance with	5580
section 121.22 of the Revised Code. The commission shall give	5581
notice of all public hearings in such manner as will give actual	5582
notice to all interested parties.	5583

(C) In(D)(1) For the purpose of conducting the hearing in an	5584
adjudication under division (A) of this section, or in the	5585
discharge of any duties imposed by this chapter, the commission	5586
may require that testimony be given under oath and administer such	5587
oath, issue subpoenas compelling the attendance of witnesses and	5588
the production of any papers, books, and accounts, directed to the	5589
sheriffs of the counties where such witnesses or papers, books,	5590
and accounts are found and cause the deposition of any witness. In	5591
The subpoenas shall be served and returned in the same manner as	5592
subpoenas in criminal cases are served and returned. The fees of	5593
sheriffs shall be the same as those allowed by the court of common	5594
pleas in criminal cases.	5595

(2) In the event of the refusal of any person without good	5596
cause to comply with the terms of a subpoena issued by the	5597
commission or refusal to testify on matters about which the person	5598
may lawfully be questioned, the prosecuting attorney of the county	5599
in which such person resides, upon the petition of the commission,	5600
may bring a proceeding for contempt against such person in the	5601
court of common pleas of that county.	5602

(3) Witnesses shall be paid the fees and mileage provided for	5603
in section 119.094 of the Revised Code.	5604

(4) All fees and mileage expenses incurred at the request of	5605
a party shall be paid in advance by the party.	5606

(D)(E) When conducting a public hearing, the commission shall	5607
not limit the number of speakers who may testify. However, the	5608
commission may set reasonable time limits on the length of an	5609
individual's testimony or the total amount of time allotted to	5610
proponents and opponents of an issue before the commission.	5611

(E) An administrative law judge appointed by the commission	5612
may conduct a hearing under this chapter and recommend findings of	5613
fact and decisions to the commission.	5614

(F) The commission may rely, in whole or in part, upon	5615
investigations, conclusions, or findings of other casino gaming	5616
commissions or other government regulatory bodies in connection	5617
with licensing, investigations, or other matters relating to an	5618
applicant or licensee under this chapter.	5619

(G) Notwithstanding anything to the contrary in this chapter,	5620
and except with respect to a casino operator, management company,	5621
or holding company, the executive director may issue an emergency	5622
order for the suspension, limitation, or conditioning of any	5623
license, registration, approval, or certificate issued, approved,	5624
granted, or otherwise authorized by the commission under Chapter	5625
3772. of the Revised Code or the rules adopted thereunder,	5626
requiring the inclusion of persons on the commission's exclusion	5627
list provided for under section 3772.031 of the Revised Code and	5628
the rules adopted thereunder, and requiring a casino facility not	5629
to pay a licensee, registrant, or approved or certified person any	5630
remuneration for services or any share of profits, income, or	5631
accruals on that person's investment in the casino facility.	5632

(1) An emergency order may be issued when the executive	5633
director finds either of the following:	5634

(a) A licensee, registrant, or approved or certified person	5635
has been charged with a violation of any of the criminal laws of	5636
this state, another state, or the federal government;	5637

(b) Such an action is necessary to prevent a violation of	5638
this chapter or a rule adopted thereunder.	5639

(2) An emergency order issued under division (G) of this	5640
section shall state the reasons for the commission's action, cite	5641
the law or rule directly involved, and state that the party will	5642
be afforded a hearing if the party requests it within thirty days	5643
after the time of mailing or personal delivery of the order.	5644

(3)(a) Not later than the next business day after the	5645
issuance of the emergency order, the order shall be sent by	5646
registered or certified mail, return receipt requested, to the	5647
party at the party's last known mailing address appearing in the	5648
commission's records or personally delivered at any time to the	5649
party by an employee or agent of the commission.	5650

(b) A copy of the order shall be mailed to the attorney or	5651
other representative of record representing the party.	5652

(c) If the order sent by registered or certified mail is	5653
returned because the party fails to claim the order, the	5654
commission shall send the order by ordinary mail to the party at	5655
the party's last known address and shall obtain a certificate of	5656
mailing. Service by ordinary mail is complete when the certificate	5657
of mailing is obtained unless the order is returned showing	5658
failure of delivery.	5659

(d) If the order sent by registered, certified, or ordinary	5660
mail is returned for failure of delivery, the commission shall	5661
either make personal delivery of the order by an employee or agent	5662
of the commission or cause a summary of the substantive provisions	5663
of the order to be published once a week for three consecutive	5664
weeks in a newspaper of general circulation in the county where	5665
the last known address of the party is located.	5666

(i) Failure of delivery occurs only when a mailed order is	5667
returned by the postal authorities marked undeliverable, address	5668
or addressee unknown, or forwarding address unknown or expired.	5669

(ii) When service is completed by publication, a proof of	5670
publication affidavit, with the first publication of the summary	5671
set forth in the affidavit, shall be mailed by ordinary mail to	5672
the party at the party's last known address and the order shall be	5673
deemed received as of the date of the last publication.	5674

(e) Refusal of delivery of the order sent by mail or	5675
personally delivered to the party is not failure of delivery and	5676
service is deemed to be complete.	5677

(4) The emergency order shall be effective immediately upon	5678
service of the order on the party. The emergency order shall	5679
remain effective until further order of the executive director or	5680
the commission.	5681

(5) The commission may, and if so requested by the person	5682
affected by the emergency order shall, promptly conduct a hearing	5683
in an adjudication under Chapter 119. of the Revised Code.	5684

Sec. 3772.07.  The following appointing or licensing	5685
authorities shall obtain a criminal records check of the person	5686
who is to be appointed or licensed:	5687

(A) The governor, before appointing an individual as a member	5688
of the commission;	5689

(B) The commission, before appointing an individual as	5690
executive director or a gaming agent;	5691

(C) The commission, before issuing a license for a key	5692
employee or casino gaming employee, and before issuing a license	5693
for each investor, except an institutional investor, for a casino	5694
operator, management company, holding company, or gaming-related	5695
vendor;	5696

(D) The executive director, before appointing an individual	5697
as a professional, technical, or clerical employee of the	5698
commission.	5699

Thereafter, such an appointing or licensing authority shall	5700
obtain a criminal records check of the same individual at	5701
three-year intervals.	5702

The appointing or licensing authority shall providemake	5703
available to each person of whom a criminal records check is	5704
required a copy of the form and the standard fingerprint	5705
impression sheet prescribed under divisions (C)(1) and (2) of	5706
section 109.572 of the Revised Code. The person shall complete the	5707
form and impression sheet and return them toas directed by the	5708
appointing or licensing authority. If a person fails to complete	5709
and return the form and impression sheet within a reasonable time,	5710
the person is ineligible to be appointed or licensed or to	5711
continue in the appointment or licensure.	5712

The appointing or licensing authority shall forwardcause the	5713
completed form and impression sheet to be forwarded to the	5714
superintendent of the bureau of criminal identification and	5715
investigation. The appointing or licensing authority shall request	5716
the superintendent also to obtain information from the federal	5717
bureau of investigation, including fingerprint-based checks of the	5718
national crime information databases, and from other states and	5719
the federal government under the national crime prevention and	5720
privacy compact as part of the criminal records check.	5721

The commission shall pay the fee the bureau of criminal	5722
identification and investigation charges forFor all criminal	5723
records checks conducted under this section. An, the applicant for	5724
a casino operator, management company, holding company, or	5725
gaming-related vendor, key employee, or casino gaming employee	5726
license shall reimburse the commission for the amount ofpay the	5727
fee paid on the applicant's behalfcharged by the bureau of	5728
criminal identification and investigation or by a vendor approved	5729
by the bureau to conduct a criminal records check based on the	5730
applicant's fingerprints in accordance with division (A)(15) of	5731
section 109.572 of the Revised Code. AnIf the applicant for a key	5732
employee or casino gaming employee license shall reimburse the	5733
commission for the amount of the fee paid on the applicant's	5734
behalf, unless the applicant is applying at the request of a	5735
casino operator or, management company, in which caseholding	5736
company, or gaming-related vendor, the casino operator or,	5737
management company, holding company, or gaming-related vendor	5738
shall reimburse the commissionpay the fee charged for all	5739
criminal records checks conducted under this section.	5740

The appointing or licensing authority shall review the	5741
results of a criminal records check. An appointee for a commission	5742
member shall forward the results of the criminal records check to	5743
the president of the senate before the senate advises and consents	5744
to the appointment of the commission member. The appointing or	5745
licensing authority shall not appoint or license or retain the	5746
appointment or licensure of a person a criminal records check	5747
discloses has been convicted of or has pleaded guilty or no	5748
contest to a disqualifying offense. A "disqualifying offense"	5749
means any gambling offense, any theft offense, any offense having	5750
an element of fraud or misrepresentation, any offense having an	5751
element of moral turpitude, and any felony not otherwise included	5752
in the foregoing list, except as otherwise provided in section	5753
3772.10 of the Revised Code.	5754

The report of a criminal records check is not a public record	5755
that is open to public inspection and copying. The commission	5756
shall not make the report available to any person other than the	5757
person who was the subject of the criminal records check; an	5758
appointing or licensing authority; a member, the executive	5759
director, or an employee of the commission; or any court or	5760
agency, including a hearing examiner, in a judicial or	5761
administrative proceeding relating to the person's employment with	5762
the entity requesting the criminal records check in which the	5763
criminal records check is relevantor application for a license	5764
under this chapter.	5765

Sec. 3772.091. (A) No license issued under this chapter is	5766
transferable. NewExcept as provided in division (B) of this	5767
section, new majority ownership interest or control of a licensee	5768
shall require a new license. The commission may reopen a licensing	5769
investigation at any time. A significant change in or transfer of	5770
control, as determined by the commission, shall require the filing	5771
of an application for a new license and submission of a license	5772
fee with the commission before any such change or transfer of	5773
control is approved. A change in or transfer of control to an	5774
immediate family member is not considered a significant change	5775
under this section.	5776

(B) An initial license shall not be considered transferred,	5777
and a new license shall not be required, when an initial licensee	5778
that is licensed before June 1, 2013, does or has done both of the	5779
following:	5780

(1) Obtains a majority ownership interest in, or a change in	5781
or transfer of control of, another initial licensee for the same	5782
casino facility; and	5783

(2) Was investigated under this chapter as a parent,	5784
affiliate, subsidiary, key employee, or partner, or joint venturer	5785
with another initial licensee that has held for the same casino	5786
facility a majority ownership interest in or control of the	5787
initial license when the initial license was issued and when such	5788
an initial licensee obtains a majority ownership interest in or a	5789
change in or transfer of control.	5790

(C) As used in this section,:

5791

(1) "controlControl" means either of the following:

5792

(1)(a) Either:

5793

(a)(i) Holding fifty per cent or more of the outstanding	5794
voting securities of a licensee; or	5795

(b)(ii) For an unincorporated licensee, having the right to	5796
fifty per cent or more of the profits of the licensee, or having	5797
the right in the event of dissolution to fifty per cent or more of	5798
the assets of the licensee.	5799

(2)(b) Having the contractual power presently to designate	5800
fifty per cent or more of the directors of a for-profit or	5801
not-for-profit corporation, or in the case of trusts described in	5802
paragraphs (c)(3) to (5) of 16 C.F.R. 801.1, the trustees of such	5803
a trust.	5804

(2) "Initial license" means the first plenary license issued	5805
to an initial licensee.	5806

(3) "Initial licensee" means any of the persons issued an	5807
initial license to conduct or participate in conducting casino	5808
gaming at each casino facility as either a casino operator, a	5809
management company, or a holding company of a casino operator or	5810
management company.	5811

Sec. 3772.10. (A) In determining whether to grant or maintain	5812
the privilege of a casino operator, management company, holding	5813
company, key employee, casino gaming employee, or gaming-related	5814
vendor license, the Ohio casino control commission shall consider	5815
all of the following, as applicable:	5816

(1) The reputation, experience, and financial integrity of	5817
the applicant, its holding company, if applicable, and any other	5818
person that directly or indirectly controls the applicant;	5819

(2) The financial ability of the applicant to purchase and	5820
maintain adequate liability and casualty insurance and to provide	5821
an adequate surety bond;	5822

(3) The past and present compliance of the applicant and its	5823
affiliates or affiliated companies with casino-related licensing	5824
requirements in this state or any other jurisdiction, including	5825
whether the applicant has a history of noncompliance with the	5826
casino licensing requirements of any jurisdiction;	5827

(4) If the applicant has been indicted, convicted, pleaded	5828
guilty or no contest, or forfeited bail concerning any criminal	5829
offense under the laws of any jurisdiction, either felony or	5830
misdemeanor, not including traffic violations;	5831

(5) If the applicant has filed, or had filed against it a	5832
proceeding for bankruptcy or has ever been involved in any formal	5833
process to adjust, defer, suspend, or otherwise work out the	5834
payment of any debt;	5835

(6) If the applicant has been served with a complaint or	5836
other notice filed with any public body regarding a payment of any	5837
tax required under federal, state, or local law that has been	5838
delinquent for one or more years;	5839

(7) If the applicant is or has been a defendant in litigation	5840
involving its business practices;	5841

(8) If awarding a license would undermine the public's	5842
confidence in the casino gaming industry in this state;	5843

(9) If the applicant meets other standards for the issuance	5844
of a license that the commission adopts by rule, which shall not	5845
be arbitrary, capricious, or contradictory to the expressed	5846
provisions of this chapter.	5847

(B) All applicants for a license under this chapter shall	5848
establish their suitability for a license by clear and convincing	5849
evidence. If the commission determines that a person is eligible	5850
under this chapter to be issued a license as a casino operator,	5851
management company, holding company, key employee, casino gaming	5852
employee, or gaming-related vendor, the commission shall issue	5853
such license for not more than three years, as determined by	5854
commission rule, if all other requirements of this chapter have	5855
been satisfied.	5856

(C) The commission shall not issue a casino operator,	5857
management company, holding company, key employee, casino gaming	5858
employee, or gaming-related vendor license under this chapter to	5859
an applicant if:	5860

(1) The applicant has been convicted of a disqualifying	5861
offense, as defined in section 3772.07 of the Revised Code.	5862

(2) The applicant has submitted an application for license	5863
under this chapter that contains false information.	5864

(3) The applicant is a commission member.

5865

(4) The applicant owns an ownership interest that is unlawful	5866
under this chapter, unless waived by the commission.	5867

(5) The applicant violates specific rules adopted by the	5868
commission related to denial of licensure.	5869

(6) The applicant is a member of or employed by a gaming	5870
regulatory body of a governmental unit in this state, another	5871
state, or the federal government, or is employed by a governmental	5872
unit of this state. This division does not prohibit a casino	5873
operator from hiring special duty law enforcement officers if the	5874
officers are not specifically involved in gaming-related	5875
regulatory functions.	5876

(7) The commission otherwise determines the applicant is	5877
ineligible for the license.	5878

(D)(1) The commission shall investigate the qualifications of	5879
each applicant under this chapter before any license is issued and	5880
before any finding with regard to acts or transactions for which	5881
commission approval is required is made. The commission shall	5882
continue to observe the conduct of all licensees and all other	5883
persons having a material involvement directly or indirectly with	5884
a casino operator, management company, or holding company to	5885
ensure that licenses are not issued to or held by, or that there	5886
is not any material involvement with a casino operator, management	5887
company, or holding company by, an unqualified, disqualified, or	5888
unsuitable person or a person whose operations are conducted in an	5889
unsuitable manner or in unsuitable or prohibited places or	5890
locations.	5891

(2) The executive director may recommend to the commission	5892
that it deny any application, or limit, condition, or restrict, or	5893
suspend or revoke, any license or finding, or impose any fine upon	5894
any licensee or other person according to this chapter and the	5895
rules adopted thereunder.	5896

(3) A license issued under this chapter is a revocable	5897
privilege. No licensee has a vested right in or under any license	5898
issued under this chapter. The initial determination of the	5899
commission to deny, or to limit, condition, or restrict, a license	5900
may be appealed under section 2505.03 of the Revised Code.	5901

(E)(1) An institutional investor otherwise required tomay be	5902
found to be suitable or qualified by the commission under this	5903
chapter and the rules adopted under this chapter. An institutional	5904
investor shall be presumed suitable or qualified upon submitting	5905
documentation sufficient to establish qualifications as an	5906
institutional investor and upon certifying all of the following:	5907

(a) The institutional investor owns, holds, or controls	5908
publicly traded securities issued by a licensee or holding,	5909
intermediate, or parent company of a licensee or in the ordinary	5910
course of business for investment purposes only.	5911

(b) The institutional investor does not exercise influence	5912
over the affairs of the issuer of such securities nor over any	5913
licensed subsidiary of the issuer of such securities.	5914

(c) The institutional investor does not intend to exercise	5915
influence over the affairs of the issuer of such securities, nor	5916
over any licensed subsidiary of the issuer of such securities, in	5917
the future, and that it agrees to notify the commission in writing	5918
within thirty days if such intent changes.	5919

(2) The exercise of voting privileges with regard to publicly	5920
traded securities shall not be deemed to constitute the exercise	5921
of influence over the affairs of a licensee.	5922

(3) The commission shall rescind the presumption of	5923
suitability for an institutional investor at any time if the	5924
institutional investor exercises or intends to exercise influence	5925
or control over the affairs of the licensee.	5926

(4) This division shall not be construed to preclude the	5927
commission from requesting information from or investigating the	5928
suitability or qualifications of an institutional investor if the:	5929

(a) The commission becomes aware of facts or information that	5930
may result in the institutional investor being found unsuitable or	5931
disqualified; or	5932

(b) The commission has any other reason to seek information	5933
from the investor to determine whether it qualifies as an	5934
institutional investor.	5935

(5) If the commission finds an institutional investor to be	5936
unsuitable or unqualified, the commission shall so notify the	5937
investor and the casino operator, holding company, management	5938
company, or gaming-related vendor licensee in which the investor	5939
invested. The commission shall allow the investor and the licensee	5940
a reasonable amount of time, as specified by the commission on a	5941
case-by-case basis, to cure the conditions that caused the	5942
commission to find the investor unsuitable or unqualified. If	5943
during the specified period of time the investor or the licensee	5944
does not or cannot cure the conditions that caused the commission	5945
to find the investor unsuitable or unqualified, the commission may	5946
allow the investor or licensee more time to cure the conditions or	5947
the commission may begin proceedings to deny, suspend, or revoke	5948
the license of the casino operator, holding company, management	5949
company, or gaming-related vendor in which the investor invested	5950
or to deny any of the same the renewal of any such license.	5951

(6) A private licensee or holding company shall provide the	5952
same information to the commission as a public company would	5953
provide in a form 13d or form 13g filing to the securities and	5954
exchange commission.	5955

(F) Information provided on the application shall be used as	5956
a basis for a thorough background investigation of each applicant.	5957
A false or incomplete application is cause for denial of a license	5958
by the commission. All applicants and licensees shall consent to	5959
inspections, searches, and seizures and to the disclosure to the	5960
commission and its agents of confidential records, including tax	5961
records, held by any federal, state, or local agency, credit	5962
bureau, or financial institution and to provide handwriting	5963
exemplars, photographs, fingerprints, and information as	5964
authorized in this chapter and in rules adopted by the commission.	5965

Sec. 3772.13. (A) No person may be employed as a key employee	5966
of a casino operator, management company, or holding company	5967
unless the person is the holder of a valid key employee license	5968
issued by the commission.	5969

(B) No person may be employed as a key employee of a	5970
gaming-related vendor unless that person is either the holder of a	5971
valid key employee license issued by the commission, or the	5972
person, at least five business days prior to the first day of	5973
employment as a key employee, has filed a notification of	5974
employment with the commission and subsequently files a completed	5975
application for a key employee license within the first thirty	5976
days of employment as a key employee.	5977

(C) Each applicant shall, before the issuance of any key	5978
employee license, produce information, documentation, and	5979
assurances as are required by this chapter and rules adopted	5980
thereunder. In addition, each applicant shall, in writing,	5981
authorize the examination of all bank accounts and records as may	5982
be deemed necessary by the commission.	5983

(C)(D) To be eligible for a key employee license, the	5984
applicant shall be at least twenty-one years of age and shall meet	5985
the criteria set forth by rule by the commission.	5986

(D)(E) Each application for a key employee license shall be	5987
on a form prescribed by the commission and shall contain all	5988
information required by the commission. The applicant shall set	5989
forth in the application if the applicant has been issued prior	5990
gambling-related licenses; if the applicant has been licensed in	5991
any other state under any other name, and, if so, the name under	5992
which the license was issued and the applicant's age at the time	5993
the license was issued; any criminal conviction the applicant has	5994
had; and if a permit or license issued to the applicant in any	5995
other state has been suspended, restricted, or revoked, and, if	5996
so, the cause and the duration of each action. The applicant also	5997
shall complete a cover sheet for the application on which the	5998
applicant shall disclose the applicant's name, the business	5999
address of the casino operator, management company, holding	6000
company, or gaming-related vendor employing the applicant, the	6001
business address and telephone number of such employer, and the	6002
county, state, and country in which the applicant's residence is	6003
located.	6004

(E)(F) Each applicant shall submit with each application, on	6005
a form provided by the commission, two sets of fingerprints and a	6006
photograph. The commission shall charge each applicant an	6007
application fee set by the commission to cover all actual costs	6008
generated by each licensee and all background checks under this	6009
section and section 3772.07 of the Revised Code.	6010

(F)(G)(1) The casino operator, management company, or holding	6011
company by whom a person is employed as a key employee shall	6012
terminate the person's employment in any capacity requiring a	6013
license under this chapter and shall not in any manner permit the	6014
person to exercise a significant influence over the operation of a	6015
casino facility if:	6016

(a) The person does not apply for and receive a key employee	6017
license within three months of being issued a provisional license,	6018
as established under commission rule.	6019

(b) The person's application for a key employee license is	6020
denied by the commission.	6021

(c) The person's key employee license is revoked by the	6022
commission.	6023

The commission shall notify the casino operator, management	6024
company, or holding company who employs such a person by certified	6025
mail of any such finding, denial, or revocation.	6026

(2) A casino operator, management company, or holding company	6027
shall not pay to a person whose employment is terminated under	6028
division (F)(G)(1) of this section, any remuneration for any	6029
services performed in any capacity in which the person is required	6030
to be licensed, except for amounts due for services rendered	6031
before notice was received under that division. A contract or	6032
other agreement for personal services or for the conduct of any	6033
casino gaming at a casino facility between a casino operator,	6034
management company, or holding company and a person whose	6035
employment is terminated under division (F)(G)(1) of this section	6036
may be terminated by the casino operator, management company, or	6037
holding company without further liability on the part of the	6038
casino operator, management company, or holding company. Any such	6039
contract or other agreement is deemed to include a term	6040
authorizing its termination without further liability on the part	6041
of the casino operator, management company, or holding company	6042
upon receiving notice under division (F)(G)(1) of this section.	6043
That a contract or other agreement does not expressly include such	6044
a term is not a defense in any action brought to terminate the	6045
contract or other agreement, and is not grounds for relief in any	6046
action brought questioning termination of the contract or other	6047
agreement.	6048

(3) A casino operator, management company, or holding	6049
company, without having obtained the prior approval of the	6050
commission, shall not enter into any contract or other agreement	6051
with a person who has been found unsuitable, who has been denied a	6052
license, or whose license has been revoked under division	6053
(F)(G)(1) of this section, or with any business enterprise under	6054
the control of such a person, after the date on which the casino	6055
operator, management company, or holding company receives notice	6056
under that division.	6057

Sec. 3772.16. (A) Any information concerning the following	6058
submitted, collected, or gathered as part of an application to the	6059
commission for a license under this chapter is confidential and	6060
not subject to disclosure by any state agency or political	6061
subdivision as a record under section 149.43 of the Revised Code:	6062

(1) A minor child of an applicant;

6063

(2) The social security number, passport number, or federal	6064
tax identification number of an applicant or the spouse of an	6065
applicant;	6066

(3) The home address and telephone number of an applicant or	6067
the spouse or childrendependent of an applicant;	6068

(4) An applicant's birth certificate;

6069

(5) The driver's license number of an applicant or the	6070
applicant's spouse;	6071

(6) The name or address of a previous spouse of the	6072
applicant;	6073

(7) The date of birth of the applicant and the spouse of an	6074
applicant;	6075

(8) The place of birth of the applicant and the spouse of an	6076
applicant;	6077

(9) The personal financial information and records of an	6078
applicant or of an employee or the spouse or minor childdependent	6079
of an applicant, including tax returns and information, and	6080
records of criminal proceedings;	6081

(10) Any information concerning a victim of domestic	6082
violence, sexual assault, or stalking;	6083

(11) The electronic mail address of the spouse or family	6084
member of the applicant;	6085

(12) An applicant's home addresses; and

6086

(13) Any trade secret, medical records, and patents or	6087
exclusive licenses;	6088

(13) Security information, including risk prevention plans,	6089
detection and countermeasures, location of count rooms or other	6090
money storage areas, emergency management plans, security and	6091
surveillance plans, equipment and usage protocols, and theft and	6092
fraud prevention plans and countermeasures;	6093

(14) Information provided in a multijurisdictional personal	6094
history disclosure form, including the Ohio supplement, exhibits,	6095
attachments, and updates.	6096

(B) Notwithstanding any other law, upon written request from	6097
a person, the commission shall provide the following information	6098
to the person except as provided in this chapter:	6099

(1) The information provided under this chapter concerning a	6100
licensee or an applicant;	6101

(2) The amount of the wagering tax and admission tax paid	6102
daily to the state by a licensed applicant or an operating agent;	6103
and	6104

(3) A copy of a letter providing the reasons for the denial	6105
of an applicant's license or an operating agent's contract and a	6106
copy of a letter providing the reasons for the commission's	6107
refusal to allow an applicant to withdraw the applicant's	6108
application, but with confidential information redacted if that	6109
information is the reason for the denial or refusal to withdraw.	6110

(C) In addition to information that is confidential under	6111
division (A) of this section, medical records, trade secrets,	6112
patents or exclusive licenses, and marketing materials maintained	6113
by the commission concerning a person who holds, held, or has	6114
applied for a license under this chapter is confidential and not	6115
subject to section 149.43 of the Revised Code.	6116

(D) The individual's name, the individual's place of	6117
employment, the individual's job title, and the individual's	6118
gaming experience that is provided for an individual who holds,	6119
held, or has applied for a license under this chapter is not	6120
confidential. The reason for denial or revocation of a license or	6121
for disciplinary action against the individual and information	6122
submitted by the individual for a felony waiver request is not	6123
confidential. The cover sheet completed by an applicant for a key	6124
employee license under section 3772.13 of the Revised Code is not	6125
confidential.	6126

(E)(D) An individual who holds, held, or has applied for a	6127
license under this chapter may waive the confidentiality	6128
requirements of division (A) of this section.	6129

(E) Confidential information received by the commission from	6130
another jurisdiction relating to a person who holds, held, or has	6131
applied for a license under this chapter is confidential and not	6132
subject to disclosure as a public record under section 149.43 of	6133
the Revised Code. The commission may share the information	6134
referenced in this division with, or disclose the information to,	6135
the inspector general, any appropriate prosecuting authority, any	6136
law enforcement agency, or any other appropriate governmental or	6137
licensing agency, if the agency that receives the information	6138
complies with the same requirements regarding confidentiality as	6139
those with which the commission must comply.	6140

Sec. 3772.17. (A) The upfront license fee to obtain a license	6141
as a casino operator shall be fifty million dollars per casino	6142
facility, whichand shall be paid upon each casino operator's	6143
filing of its casino operator license application with the	6144
commission. The upfront license fee, once paid to the commission,	6145
shall be deposited into the economic development programs fund,	6146
which is created in the state treasury. New	6147

(B) New casino operator, management company, and holding	6148
company license and renewal license fees shall be set by rule,	6149
subject to the review of the joint committee on gaming and	6150
wagering. If an applicant for a license as a management company or	6151
holding company is related through a joint venture or controlled	6152
by or under common control with another applicant for a license as	6153
a casino operator, management company, or holding company for the	6154
same casino facility and the applicant for a license as a	6155
management company or holding company was reviewed for suitability	6156
as part of the investigation of the casino operator, only one	6157
license fee shall be assessed against both applicants for that	6158
casino facility.	6159

(B)(C) The fee to obtain an application for a casino	6160
operator, management company, or holding company license shall be	6161
one million five hundred thousand dollars per application. The	6162
application fee for a casino operator, management company, or	6163
holding company license may be increased to the extent that the	6164
actual review and investigation costs relating to an applicant	6165
exceed the application fee set forth in this division. If an	6166
applicant for a license as a management company or holding company	6167
is related through a joint venture or controlled by or under	6168
common control with another applicant for a license as a casino	6169
operator, management company, or holding company for the same	6170
casino facility, with the exception of actual costs of the review	6171
and investigation of the additional applicant, only one	6172
application fee shall be required of such applicants for that	6173
casino facility. The application fee shall be deposited into the	6174
casino control commission fund. The application fee is	6175
nonrefundable.	6176

(C)(D) The license fees for a gaming-related vendor shall be	6177
set by rule, subject to the review of the joint committee on	6178
gaming and wagering. Additionally, the commission may assess an	6179
applicant a reasonable fee in the amount necessary to process a	6180
gaming-related vendor license application.	6181

(D)(E) The license fees for a key employee shall be set by	6182
rule, subject to the review of the joint committee on gaming and	6183
wagering. Additionally, the commission may assess an applicant a	6184
reasonable fee in the amount necessary to process a key employee	6185
license application. If the license is being sought at the request	6186
of a casino operator, such fees shall be paid by the casino	6187
operator.	6188

(E)(F) The license fees for a casino gaming employee shall be	6189
set by rule, subject to the review of the joint committee on	6190
gaming and wagering. If the license is being sought at the request	6191
of a casino operator, the fee shall be paid by the casino	6192
operator.	6193

Sec. 3772.28. (A) A licensed casino operator shall not enter	6194
into a debt transaction without the approval of the commission.	6195
The licensed casino operator shall submit, in writing, a request	6196
for approval of a debt transaction that contains at least the	6197
following information:	6198

(1) The names and addresses of all parties to the debt	6199
transaction;	6200

(2) The amount of the funds involved;

6201

(3) The type of debt transaction;

6202

(4) The source of the funds to be obtained;

6203

(5) All sources of collateral;

6204

(6) The purpose of the debt transaction;

6205

(7) The terms of the debt transaction;

6206

(8) Any other information deemed necessary by the commission.

6207

(B) As used in this section, "debt transaction" means a	6208
transaction by a licensed casino operator concerning a casino	6209
facility totaling five hundred thousand dollars or more in which a	6210
licensed casino operator acquires debt, including bank financing,	6211
private debt offerings, and any other transaction that results in	6212
the encumbrance of assets.	6213

(C) Notwithstanding divisions (A) and (B) of this section, a	6214
licensed casino operator may enter into one or more debt	6215
transactions with affiliated companies provided the aggregate	6216
amount of all such debt transactions at any one time does not	6217
exceed ten million dollars. When a licensed casino operator	6218
intends to enter into such a debt transaction with an affiliated	6219
company, the licensed casino operator shall provide immediate	6220
notification, in writing, to the commission. The commission is	6221
entitled to require prior approval of the debt transaction if the	6222
commission provides notice to the licensed casino operator within	6223
seven days after receiving the notification. In determining	6224
whether to approve such a debt transaction, the commission may	6225
require the licensed casino operator to submit the information	6226
specified in division (A) of this section. The commission may	6227
adopt rules governing its review and approval of such debt	6228
transactions. For the purposes of this division, "affiliated	6229
companies" means any holding company or institutional investor or	6230
any individual, partnership, corporation, association, trust, or	6231
any other group of individuals, however organized, which directly	6232
or indirectly owns, has the power or right to control, or holds	6233
with the power to vote, an ownership interest in a licensed casino	6234
operator.	6235

Sec. 3772.35.  (A) Any action asserting that this chapter,	6236
any portion of this chapter, or any rule adopted under this	6237
chapter violates any provision of the Ohio Constitution shall be	6238
brought in the court of common pleas of Franklin county within	6239
ninety days after the effective date of the enactment of this	6240
section by Sub. H.B. 386 of the 129th general assembly or within	6241
ninety days after the effective date of any rule, as applicable.	6242

(B) Any claim asserting that any action taken by the	6243
commission under this chapter violates any provision of the Ohio	6244
Constitution or any provision of the Revised Code shall be brought	6245
in the court of common pleas of Franklin county within sixty days	6246
after the action is taken.	6247

(C) Divisions (A) and (B) of this section do not apply to any	6248
claim within the original jurisdiction of the supreme court or a	6249
court of appeals under Article IV of the Ohio Constitution.	6250

(D) The court of common pleas of Franklin county shall give	6251
any claim filed under division (A) or (B) of this section priority	6252
over all other civil cases before the court, irrespective of	6253
position on the court's calendar, and shall make a determination	6254
on the claim expeditiously. A court of appeals shall give any	6255
appeal from a final order issued in a case brought under division	6256
(A) or (B) of this section priority over all other civil cases	6257
before the court, irrespective of position on the court's	6258
calendar, and shall make a determination on the appeal	6259
expeditiously.	6260

Sec. 3772.99.  (A) The commission shall levy and collect	6261
penalties for noncriminal violations of this chapter. Noncriminal	6262
violations include using the term "casino" in any advertisement in	6263
regard to a facility operating video lottery terminals, as defined	6264
in section 3770.21 of the Revised Code, in this state. But	6265
penalties for the use of the term "casino" shall not be levied	6266
against and collected from a person operating such a facility that	6267
used the term "casino" in any advertisement before November 3,	6268
2009. Moneys collected from such penalty levies shall be credited	6269
to the general revenue fund.	6270

(B) If a licensed casino operator, management company,	6271
holding company, gaming-related vendor, or key employee violates	6272
this chapter or engages in a fraudulent act, the commission may	6273
suspend or revoke the license and may do either or both of the	6274
following:	6275

(1) Suspend, revoke, or restrict the casino gaming operations	6276
of a casino operator;	6277

(2) Require the removal of a management company, key	6278
employee, or discontinuance of services from a gaming-related	6279
vendor.	6280

(C) The commission shall impose civil penalties against a	6281
person who violates this chapter under the penalties adopted by	6282
commission rule and reviewed by the joint committee on gaming and	6283
wagering.	6284

(D) A person who knowingly or intentionally does any of the	6285
following commits a misdemeanor of the first degree on the first	6286
offense and a felony of the fifth degree for a subsequent offense:	6287

(1) Makes a false statement on an application submitted under	6288
this chapter;	6289

(2) Permits a person less than twenty-one years of age to	6290
make a wager at a casino facility;	6291

(3) Aids, induces, or causes a person less than twenty-one	6292
years of age who is not an employee of the casino gaming operation	6293
to enter or attempt to enter a casino facility;	6294

(4) Enters or attempts to enter a casino facility while under	6295
twenty-one years of age, unless the person enters a designated	6296
area as described in section 3772.24 of the Revised Code;	6297

(5) Wagers or accepts a wager at a location other than a	6298
casino facility;	6299

(6) Is a casino operator or employee and participates in	6300
casino gaming other than as part of operation or employment.	6301

(E) A person who knowingly or intentionally does any of the	6302
following commits a felony of the fifth degree on a first offense	6303
and a felony of the fourth degree for a subsequent offense. If the	6304
person is a licensee under this chapter, the commission shall	6305
revoke the person's license after the first offense.	6306

(1) Offers, promises, or gives anything of value or benefit	6307
to a person who is connected with the casino operator, management	6308
company, holding company, or gaming-related vendor, including	6309
their officers and employees, under an agreement to influence or	6310
with the intent to influence the actions of the person to whom the	6311
offer, promise, or gift was made in order to affect or attempt to	6312
affect the outcome of a casino game or an official action of a	6313
commission member;	6314

(2) Solicits, accepts, or receives a promise of anything of	6315
value or benefit while the person is connected with a casino,	6316
including an officer or employee of a casino operator, management	6317
company, or gaming-related vendor, under an agreement to influence	6318
or with the intent to influence the actions of the person to	6319
affect or attempt to affect the outcome of a casino game or an	6320
official action of a commission member;	6321

(3) Uses or possesses with the intent to use a device to	6322
assist in projecting the outcome of the casino game, keeping track	6323
of the cards played, analyzing the probability of the occurrence	6324
of an event relating to the casino game, or analyzing the strategy	6325
for playing or betting to be used in the casino game, except as	6326
permitted by the commission;	6327

(4)(2) Cheats at a casino game;

6328

(5)(3) Manufactures, sells, or distributes any cards, chips,	6329
dice, game, or device that is intended to be used to violate this	6330
chapter;	6331

(6)(4) Alters or misrepresents the outcome of a casino game	6332
on which wagers have been made after the outcome is made sure but	6333
before the outcome is revealed to the players;	6334

(7)(5) Places, increases, or decreases a wager on the outcome	6335
of a casino game after acquiring knowledge that is not available	6336
to all players and concerns the outcome of the casino game that is	6337
the subject of the wager;	6338

(8)(6) Aids a person in acquiring the knowledge described in	6339
division (E)(7)(5) of this section for the purpose of placing,	6340
increasing, or decreasing a wager contingent on the outcome of a	6341
casino game;	6342

(9)(7) Claims, collects, takes, or attempts to claim,	6343
collect, or take money or anything of value in or from a casino	6344
game with the intent to defraud or without having made a wager	6345
contingent on winning a casino game;	6346

(10)(8) Claims, collects, or takes an amount of money or	6347
thing of value of greater value than the amount won in a casino	6348
game;	6349

(11)(9) Uses or possesses counterfeit chips or, tokens, or	6350
cashless wagering instruments in or for use in a casino game;	6351

(12)(10) Possesses a key or device designed for opening,	6352
entering, or affecting the operation of a casino game, drop box,	6353
or an electronic or a mechanical device connected with the casino	6354
game or removing coins, tokens, chips, or other contents of a	6355
casino game. This division does not apply to a casino operator,	6356
management company, or gaming-related vendor or their agents and	6357
employees in the course of agency or employment.	6358

(13)(11) Possesses materials used to manufacture a slug or	6359
device intended to be used in a manner that violates this chapter;	6360

(14)(12) Operates a casino gaming operation in which wagering	6361
is conducted or is to be conducted in a manner other than the	6362
manner required under this chapter.	6363

(F) The possession of more than one of the devices described	6364
in division (E)(11)(9), (12)(10), or (13)(11) of this section	6365
creates a rebuttable presumption that the possessor intended to	6366
use the devices for cheating.	6367

(G) A person who knowingly or intentionally does any of the	6368
following commits a felony of the third degree. If the person is a	6369
licensee under this chapter, the commission shall revoke the	6370
person's license after the first offense. A public servant or	6371
party official who is convicted under this division is forever	6372
disqualified from holding any public office, employment, or	6373
position of trust in this state.	6374

(1) Offers, promises, or gives anything of value or benefit	6375
to a person who is connected with the casino operator, management	6376
company, holding company, or gaming-related vendor, including	6377
their officers and employees, under an agreement to influence or	6378
with the intent to influence the actions of the person to whom the	6379
offer, promise, or gift was made in order to affect or attempt to	6380
affect the outcome of a casino game or an official action of a	6381
commission member, agent, or employee;	6382

(2) Solicits, accepts, or receives a promise of anything of	6383
value or benefit while the person is connected with a casino,	6384
including an officer or employee of a casino operator, management	6385
company, or gaming-related vendor, under an agreement to influence	6386
or with the intent to influence the actions of the person to	6387
affect or attempt to affect the outcome of a casino game or an	6388
official action of a commission member, agent, or employee;	6389

(H) A person who is convicted of a felony described in this	6390
chapter may be barred for life from entering a casino facility by	6391
the commission.	6392

Sec. 4301.03.  The liquor control commission may adopt and	6393
promulgate, repeal, rescind, and amend, in the manner required by	6394
this section, rules, standards, requirements, and orders necessary	6395
to carry out this chapter and Chapter 4303. of the Revised Code,	6396
but all rules of the board of liquor control that were in effect	6397
immediately prior to April 17, 1963, shall remain in full force	6398
and effect as rules of the liquor control commission until and	6399
unless amended or repealed by the liquor control commission. The	6400
rules of the commission may include the following:	6401

(A) Rules with reference to applications for and the issuance	6402
of permits for the manufacture, distribution, transportation, and	6403
sale of beer and intoxicating liquor, and the sale of alcohol; and	6404
rules governing the procedure of the division of liquor control in	6405
the suspension, revocation, and cancellation of those permits;	6406

(B) Rules and orders providing in detail for the conduct of	6407
any retail business authorized under permits issued pursuant to	6408
this chapter and Chapter 4303. of the Revised Code, with a view to	6409
ensuring compliance with those chapters and laws relative to them,	6410
and the maintenance of public decency, sobriety, and good order in	6411
any place licensed under the permits. No rule or order shall	6412
prohibit the operation of video lottery terminal games at a	6413
commercial race track where live horse racing and simulcasting are	6414
conducted in accordance with Chapter 3769. of the Revised Code or	6415
the sale of lottery tickets issued pursuant to Chapter 3770. of	6416
the Revised Code by any retail business authorized under permits	6417
issued pursuant to that chapter.	6418

No rule or order shall prohibit pari-mutuel wagering on	6419
simulcast horse races at a satellite facility that has been issued	6420
a D liquor permit under Chapter 4303. of the Revised Code. No rule	6421
or order shall prohibit a charitable organization that holds a D-4	6422
permit from selling or serving beer or intoxicating liquor under	6423
its permit in a portion of its premises merely because that	6424
portion of its premises is used at other times for the conduct of	6425
a bingo game, as described in division (S)(O) of section 2915.01	6426
of the Revised Code. However, such an organization shall not sell	6427
or serve beer or intoxicating liquor or permit beer or	6428
intoxicating liquor to be consumed or seen in the same location in	6429
its premises where a bingo game, as described in division	6430
(S)(O)(1) of section 2915.01 of the Revised Code, is being	6431
conducted while the game is being conducted. As used in this	6432
division, "charitable organization" has the same meaning as in	6433
division (H) of section 2915.01 of the Revised Code. No rule or	6434
order pertaining to visibility into the premises of a permit	6435
holder after the legal hours of sale shall be adopted or	6436
maintained by the commission.	6437

(C) Standards, not in conflict with those prescribed by any	6438
law of this state or the United States, to secure the use of	6439
proper ingredients and methods in the manufacture of beer, mixed	6440
beverages, and wine to be sold within this state;	6441

(D) Rules determining the nature, form, and capacity of all	6442
packages and bottles to be used for containing beer or	6443
intoxicating liquor, except for spirituous liquor to be kept or	6444
sold, governing the form of all seals and labels to be used on	6445
those packages and bottles, and requiring the label on every	6446
package, bottle, and container to state the ingredients in the	6447
contents and, except on beer, the terms of weight, volume, or	6448
proof spirits, and whether the same is beer, wine, alcohol, or any	6449
intoxicating liquor except for spirituous liquor;	6450

(E) Uniform rules governing all advertising with reference to	6451
the sale of beer and intoxicating liquor throughout the state and	6452
advertising upon and in the premises licensed for the sale of beer	6453
or intoxicating liquor;	6454

(F) Rules restricting and placing conditions upon the	6455
transfer of permits;	6456

(G) Rules and orders limiting the number of permits of any	6457
class within the state or within any political subdivision of the	6458
state; and, for that purpose, adopting reasonable classifications	6459
of persons or establishments to which any authorized class of	6460
permits may be issued within any political subdivision;	6461

(H) Rules and orders with reference to sales of beer and	6462
intoxicating liquor on Sundays and holidays and with reference to	6463
the hours of the day during which and the persons to whom	6464
intoxicating liquor of any class may be sold, and rules with	6465
reference to the manner of sale;	6466

(I) Rules requiring permit holders buying beer to pay and	6467
permit holders selling beer to collect minimum cash deposits for	6468
kegs, cases, bottles, or other returnable containers of the beer;	6469
requiring the repayment, or credit, of the minimum cash deposit	6470
charges upon the return of the empty containers; and requiring the	6471
posting of such form of indemnity or such other conditions with	6472
respect to the charging, collection, and repayment of minimum cash	6473
deposit charges for returnable containers of beer as are necessary	6474
to ensure the return of the empty containers or the repayment upon	6475
that return of the minimum cash deposits paid;	6476

(J) Rules establishing the method by which alcohol products	6477
may be imported for sale by wholesale distributors and the method	6478
by which manufacturers and suppliers may sell alcohol products to	6479
wholesale distributors.	6480

Every rule, standard, requirement, or order of the commission	6481
and every repeal, amendment, or rescission of them shall be posted	6482
for public inspection in the principal office of the commission	6483
and the principal office of the division of liquor control, and a	6484
certified copy of them shall be filed in the office of the	6485
secretary of state. An order applying only to persons named in it	6486
shall be served on the persons affected by personal delivery of a	6487
certified copy, or by mailing a certified copy to each person	6488
affected by it or, in the case of a corporation, to any officer or	6489
agent of the corporation upon whom a service of summons may be	6490
served in a civil action. The posting and filing required by this	6491
section constitutes sufficient notice to all persons affected by	6492
such rule or order which is not required to be served. General	6493
rules of the commission promulgated pursuant to this section shall	6494
be published in the manner the commission determines.	6495

Sec. 4303.17. (A)(1) Permit D-4 may be issued to a club that	6496
has been in existence for three years or more prior to the	6497
issuance of the permit to sell beer and any intoxicating liquor to	6498
its members only, in glass or container, for consumption on the	6499
premises where sold. The fee for this permit is four hundred	6500
sixty-nine dollars.	6501

No D-4 permit shall be granted or retained until all elected	6502
officers of the organization controlling the club have filed with	6503
the division of liquor control a statement, signed under oath,	6504
certifying that the club is operated in the interest of the	6505
membership of a reputable organization, which is maintained by a	6506
dues paying membership, and setting forth the amount of initiation	6507
fee and yearly dues.	6508

The roster of membership of a D-4 permit holder shall be	6509
submitted under oath on the request of the superintendent of	6510
liquor control. Any information acquired by the superintendent or	6511
the division with respect to that membership shall not be open to	6512
public inspection or examination and may be divulged by the	6513
superintendent and the division only in hearings before the liquor	6514
control commission or in a court action in which the division or	6515
the superintendent is named a party.	6516

(2) The requirement that a club shall have been in existence	6517
for three years in order to qualify for a D-4 permit does not	6518
apply to units of organizations chartered by congress or to a	6519
subsidiary unit of a national fraternal organization if the parent	6520
organization has been in existence for three years or more at the	6521
time application for a permit is made by that unit.	6522

(B) No rule or order of the division or commission shall	6523
prohibit a charitable organization that holds a D-4 permit from	6524
selling or serving beer or intoxicating liquor under its permit in	6525
a portion of its premises merely because that portion of its	6526
premises is used at other times for the conduct of a bingo game as	6527
described in division (S)(O)(1) of section 2915.01 of the Revised	6528
Code. However, such an organization shall not sell or serve beer	6529
or intoxicating liquor or permit beer or intoxicating liquor to be	6530
consumed or seen in the same location in its premises where a	6531
bingo game as described in division (S)(O)(1) of section 2915.01	6532
of the Revised Code is being conducted while the game is being	6533
conducted. As used in this division, "charitable organization" has	6534
the same meaning as in division (H) of section 2915.01 of the	6535
Revised Code.	6536

(C) Notwithstanding any contrary provision of sections	6537
4301.32 to 4301.41, division (C)(1) of section 4303.29, and	6538
section 4305.14 of the Revised Code, the holder of a D-4 permit	6539
may transfer the location of the permit and sell beer and wine at	6540
the new location if that location is in an election precinct in	6541
which the sale of beer and wine, but not spirituous liquor,	6542
otherwise is permitted by law.	6543

Sec. 5703.21.  (A) Except as provided in divisions (B) and	6544
(C) of this section, no agent of the department of taxation,	6545
except in the agent's report to the department or when called on	6546
to testify in any court or proceeding, shall divulge any	6547
information acquired by the agent as to the transactions,	6548
property, or business of any person while acting or claiming to	6549
act under orders of the department. Whoever violates this	6550
provision shall thereafter be disqualified from acting as an	6551
officer or employee or in any other capacity under appointment or	6552
employment of the department.	6553

(B)(1) For purposes of an audit pursuant to section 117.15 of	6554
the Revised Code, or an audit of the department pursuant to	6555
Chapter 117. of the Revised Code, or an audit, pursuant to that	6556
chapter, the objective of which is to express an opinion on a	6557
financial report or statement prepared or issued pursuant to	6558
division (A)(7) or (9) of section 126.21 of the Revised Code, the	6559
officers and employees of the auditor of state charged with	6560
conducting the audit shall have access to and the right to examine	6561
any state tax returns and state tax return information in the	6562
possession of the department to the extent that the access and	6563
examination are necessary for purposes of the audit. Any	6564
information acquired as the result of that access and examination	6565
shall not be divulged for any purpose other than as required for	6566
the audit or unless the officers and employees are required to	6567
testify in a court or proceeding under compulsion of legal	6568
process. Whoever violates this provision shall thereafter be	6569
disqualified from acting as an officer or employee or in any other	6570
capacity under appointment or employment of the auditor of state.	6571

(2) For purposes of an internal audit pursuant to section	6572
126.45 of the Revised Code, the officers and employees of the	6573
office of internal auditing in the office of budget and management	6574
charged with conducting the internal audit shall have access to	6575
and the right to examine any state tax returns and state tax	6576
return information in the possession of the department to the	6577
extent that the access and examination are necessary for purposes	6578
of the internal audit. Any information acquired as the result of	6579
that access and examination shall not be divulged for any purpose	6580
other than as required for the internal audit or unless the	6581
officers and employees are required to testify in a court or	6582
proceeding under compulsion of legal process. Whoever violates	6583
this provision shall thereafter be disqualified from acting as an	6584
officer or employee or in any other capacity under appointment or	6585
employment of the office of internal auditing.	6586

(3) As provided by section 6103(d)(2) of the Internal Revenue	6587
Code, any federal tax returns or federal tax information that the	6588
department has acquired from the internal revenue service, through	6589
federal and state statutory authority, may be disclosed to the	6590
auditor of state or the office of internal auditing solely for	6591
purposes of an audit of the department.	6592

(4) For purposes of Chapter 3739. of the Revised Code, an	6593
agent of the department of taxation may share information with the	6594
division of state fire marshal that the agent finds during the	6595
course of an investigation.	6596

(C) Division (A) of this section does not prohibit any of the	6597
following:	6598

(1) Divulging information contained in applications,	6599
complaints, and related documents filed with the department under	6600
section 5715.27 of the Revised Code or in applications filed with	6601
the department under section 5715.39 of the Revised Code;	6602

(2) Providing information to the office of child support	6603
within the department of job and family services pursuant to	6604
section 3125.43 of the Revised Code;	6605

(3) Disclosing to the board of motor vehicle collision repair	6606
registration any information in the possession of the department	6607
that is necessary for the board to verify the existence of an	6608
applicant's valid vendor's license and current state tax	6609
identification number under section 4775.07 of the Revised Code;	6610

(4) Providing information to the administrator of workers'	6611
compensation pursuant to sections 4123.271 and 4123.591 of the	6612
Revised Code;	6613

(5) Providing to the attorney general information the	6614
department obtains under division (J) of section 1346.01 of the	6615
Revised Code;	6616

(6) Permitting properly authorized officers, employees, or	6617
agents of a municipal corporation from inspecting reports or	6618
information pursuant to rules adopted under section 5745.16 of the	6619
Revised Code;	6620

(7) Providing information regarding the name, account number,	6621
or business address of a holder of a vendor's license issued	6622
pursuant to section 5739.17 of the Revised Code, a holder of a	6623
direct payment permit issued pursuant to section 5739.031 of the	6624
Revised Code, or a seller having a use tax account maintained	6625
pursuant to section 5741.17 of the Revised Code, or information	6626
regarding the active or inactive status of a vendor's license,	6627
direct payment permit, or seller's use tax account;	6628

(8) Releasing invoices or invoice information furnished under	6629
section 4301.433 of the Revised Code pursuant to that section;	6630

(9) Providing to a county auditor notices or documents	6631
concerning or affecting the taxable value of property in the	6632
county auditor's county. Unless authorized by law to disclose	6633
documents so provided, the county auditor shall not disclose such	6634
documents;	6635

(10) Providing to a county auditor sales or use tax return or	6636
audit information under section 333.06 of the Revised Code;	6637

(11) Subject to section 4301.441 of the Revised Code,	6638
disclosing to the appropriate state agency information in the	6639
possession of the department of taxation that is necessary to	6640
verify a permit holder's gallonage or noncompliance with taxes	6641
levied under Chapter 4301. or 4305. of the Revised Code;	6642

(12) Disclosing to the department of natural resources	6643
information in the possession of the department that is necessary	6644
to verify the taxpayer's compliance with division (A)(1), (8), or	6645
(9) of section 5749.02 of the Revised Code and information	6646
received pursuant to section 1509.50 of the Revised Code	6647
concerning the amount due under that section;	6648

(13) Disclosing to the department of job and family services,	6649
industrial commission, and bureau of workers' compensation	6650
information in the possession of the department of taxation solely	6651
for the purpose of identifying employers that misclassify	6652
employees as independent contractors or that fail to properly	6653
report and pay employer tax liabilities. The department of	6654
taxation shall disclose only such information that is necessary to	6655
verify employer compliance with law administered by those	6656
agencies.	6657

(14) Disclosing to the Ohio casino control commission	6658
information in the possession of the department of taxation that	6659
is necessary to verify a taxpayer'scasino operator's compliance	6660
with section 5747.063 or 5753.02 of the Revised Code and sections	6661
related thereto;	6662

(15) Disclosing to the state lottery commission information	6663
in the possession of the department of taxation that is necessary	6664
to verify a lottery sales agent's compliance with section 5747.064	6665
of the Revised Code.	6666

Sec. 5747.062. As used in this section, "transferee" has the	6667
same meaning as in section 3770.10 of the Revised Code, and	6668
"recipient" includes a transferee.	6669

(A)(1) The state lottery commission shall deduct and withhold	6670
from each lottery prize award payment that exceeds five thousand	6671
dollars an amount equal to sixfour per cent of the payment, prior	6672
to making any other reduction required by Chapter 3770. of the	6673
Revised Code.	6674

(2) On or before the tenth banking day of each month, the	6675
state lottery commission, and each transferee required to deduct	6676
and withhold amounts pursuant to section 3770.072 of the Revised	6677
Code, shall file a return and remit to the tax commissioner all	6678
amounts deducted and withheld pursuant to this section during the	6679
preceding month.	6680

(3) On or before the thirty-first day of January of each	6681
year, the state lottery commission, and each transferee required	6682
to deduct and withhold amounts pursuant to section 3770.072 of the	6683
Revised Code, shall file with the commissioner an annual return,	6684
in the form prescribed by the tax commissioner, indicating the	6685
total amount deducted and withheld pursuant to this section or	6686
section 3770.072 of the Revised Code during the preceding calendar	6687
year. At the time of filing that return, the state lottery	6688
commission or transferee shall remit any amount deducted and	6689
withheld during the preceding calendar year that was not	6690
previously remitted.	6691

(4) The state lottery commission, and each transferee	6692
required to deduct and withhold amounts pursuant to section	6693
3770.072 of the Revised Code, shall issue to each person with	6694
respect to whom tax has been deducted and withheld by the	6695
commission or transferee pursuant to this section or section	6696
3770.072 of the Revised Code during the preceding calendar year,	6697
an information return in the form prescribed by the commissioner.	6698

(B)(1) Division (B)(1) of this section does not apply to	6699
persons classified for federal income tax purposes as associations	6700
taxable as corporations.	6701

Amounts withheld pursuant to this section or section 3770.072	6702
of the Revised Code shall be treatedallowed as a credit against	6703
payment of the tax imposed pursuant to section 5747.02 of the	6704
Revised Code upon the lottery prize award recipient, upon a	6705
beneficiary of such a recipient, or upon any investor in such a	6706
recipient if the recipient is a pass-through entity or disregarded	6707
entity, and shall be treated as taxes paid by the recipient,	6708
beneficiary, or investor on the date on which those amounts are	6709
deducted and withheldfor purposes of section 5747.09 of the	6710
Revised Code. The credit is a refundable credit and shall be	6711
claimed in the order required under section 5747.98 of the Revised	6712
Code. The credit is available to the recipient, beneficiary, or	6713
investor even if the commission or transferee does not remit to	6714
the tax commissioner the amount withheld.	6715

(2) Division (B)(2) of this section applies only to persons	6716
classified for federal income tax purposes as associations taxable	6717
as corporations.	6718

Amounts withheld pursuant to this section or section 3770.072	6719
of the Revised Code shall be treated as a credit against the tax	6720
imposed pursuant to section 5733.06 of the Revised Code for the	6721
tax year immediately following the date on which those amounts are	6722
deducted and withheld, upon the lottery prize award recipient,	6723
upon a beneficiary of such a recipient, or upon an investor in	6724
such a recipient if the recipient is a pass-through entity or	6725
disregarded entity, and shall be treated as paid by the recipient,	6726
beneficiary, or investor on the date on which those amounts are	6727
deducted and withheld. The credit is a refundable credit and shall	6728
be claimed in the order required under section 5733.98 of the	6729
Revised Code. The credit is available to the recipient,	6730
beneficiary, or investor even if the commission or transferee does	6731
not remit to the tax commissioner the amount withheld.	6732

(3) Nothing in division (B)(1) or (2) of this section shall	6733
be construed to allow more than one person to claim the credit for	6734
any portion of each amount deducted and withheld.	6735

(C) Failure of the commission or any transferee to deduct and	6736
withhold the required amounts from lottery prize awards or to	6737
remit amounts withheld as required by this section and section	6738
3770.072 of the Revised Code shall not relieve a taxpayer	6739
described in division (B) of this section from liability for the	6740
tax imposed by section 5733.06 or 5747.02 of the Revised Code.	6741

Sec. 5747.063.  (A)(1) If a person's winnings at a casino	6742
facility are an amount for which reporting to the internal revenue	6743
service of the amount is required by 26 U.S.C.section 6041 or a	6744
subsequent, analogous section of the Internal Revenue Code, as	6745
amended the casino operator shall deduct and withhold Ohio income	6746
tax from the person's winnings at a rate of sixfour per cent of	6747
the amount won and shall deduct and withhold municipal income tax	6748
from the person's winnings at the rate of tax of the municipal	6749
corporation in which the casino facility is located. A person's	6750
amount of winnings shall be determined each time the person	6751
exchanges amounts won in tokens, chips, casino credit, or other	6752
pre-paidprepaid representations of value for cash or a cash	6753
equivalent. The casino operator shall issue, to a person from	6754
whose winnings an amount has been deducted and withheld, a receipt	6755
for the amount deducted and withheld, and also shall obtain from	6756
the person additional information that will be necessary for the	6757
casino operator to prepare the returns required by this section.	6758

(2) If a person's winnings at a casino facility require	6759
reporting to the internal revenue service under division (A)(1) of	6760
this section, the casino operator also shall require the person to	6761
state in writing, under penalty of falsification, whether the	6762
person is in default under a support order.	6763

(B) Amounts deducted and withheld by a casino operator are	6764
held in trust for the benefit of the state and municipal	6765
corporations, as applicable.	6766

(1) On or before the tenth banking day of each month, the	6767
casino operator shall file a return electronically with the tax	6768
commissioner and the tax administrator of the municipal	6769
corporation, as applicable, identifying the persons from whose	6770
winnings amounts were deducted and withheld and, the amount of	6771
each such deduction and withholding during the preceding calendar	6772
month, the amount of the winnings from which each such amount was	6773
withheld, the type of casino gaming that resulted in such	6774
winnings, and any other information required by the tax	6775
commissioner. With the return, the casino operator shall remit	6776
electronically to the tax commissioner and the tax administrator	6777
of the municipal corporation, as applicable, all the amounts	6778
deducted and withheld during the preceding month. And together	6779
with the return and remittance, the casino operator shall transmit	6780
electronically to the tax commissioner a copy of each receipt	6781
issued, and a copy of each statement made, under divisions (A)(1)	6782
and (2) of this section.	6783

(2)(a) A casino operator shall maintain a record of each	6784
written statement provided under division (A)(2) of this section	6785
in which a person admits to being in default under a support	6786
order. The casino operator shall make these records available to	6787
the director of job and family services upon request.	6788

(b) A casino operator shall maintain copies of receipts	6789
issued under division (A)(1) of this section and of written	6790
statements provided under division (A)(2) of this section and	6791
shall make these copies available to the tax commissioner upon	6792
request.	6793

(c) A casino operator shall maintain the information	6794
described in divisions (B)(2)(a) and (b) of this section in	6795
accordance with section 5747.17 of the Revised Code and any rules	6796
adopted pursuant thereto.	6797

(3) Annually, on or before the thirty-first day of January, a	6798
casino operator shall file an annual return electronically with	6799
the tax commissioner and the tax administrator of the municipal	6800
corporation, as applicable, indicating the total amount deducted	6801
and withheld during the preceding calendar year. The casino	6802
operator shall remit electronically with the annual return any	6803
amount that was deducted and withheld and that was not previously	6804
remitted. If the identity of a person and the amount deducted and	6805
withheld with respect to that person were omitted on a monthly	6806
return, that information shall be indicated on the annual return.	6807
And if a copy of the receipt and statement pertaining to a person	6808
was not previously transmitted to the tax commissioner, the	6809
receipt and statement shall be transmitted to the tax commissioner	6810
electronically with the annual return.	6811

(3)(4)(a) A casino operator who fails to file a return and	6812
remit the amounts deducted and withheld is personally liable for	6813
the amount deducted and withheld and not remitted. The tax	6814
commissioner and the tax administrator of the municipal	6815
corporation, as applicable, may impose a penalty up to one	6816
thousand dollars if a return is filed late, if amounts deducted	6817
and withheld are remitted late, if a return is not filed, or if	6818
amounts deducted and withheld are not remitted. Interest accrues	6819
on past due amounts deducted and withheld at the rate prescribed	6820
in section 5703.47 of the Revised Code. The tax commissioner and	6821
the tax administrator of the municipal corporation, as applicable,	6822
may collect past due amounts deducted and withheld and penalties	6823
and interest thereon by assessment under section 5747.13 of the	6824
Revised Code as if they were income taxes collected by an	6825
employer.	6826

(b) If a casino operator sells the casino facility or	6827
otherwise quits the casino business, the amounts deducted and	6828
withheld and any penalties and interest thereon are immediately	6829
due and payable. The successor shall withhold an amount of the	6830
purchase money that is sufficient to cover the amounts deducted	6831
and withheld and penalties and interest thereon until the	6832
predecessor casino operator produces either a receipt from the tax	6833
commissioner and the tax administrator of the municipal	6834
corporation, as applicable, showing that the amounts deducted and	6835
withheld and penalties and interest thereon have been paid or a	6836
certificate from the tax commissioner and the tax administrator of	6837
the municipal corporation, as applicable, indicating that no	6838
amounts deducted and withheld or penalties and interest thereon	6839
are due. If the successor fails to withhold purchase money, the	6840
successor is personally liable for payment of the amounts deducted	6841
and withheld and penalties and interest thereon, up to the amount	6842
of the purchase money.	6843

(C)(1) Annually, on or before the thirty-first day of	6844
January, a casino operator shall issue an information return to	6845
each person with respect to whom an amount has been deducted and	6846
withheld during the preceding calendar year. The information	6847
return shall show the total amount deducted from the person's	6848
winnings by the casino operator during the preceding calendar	6849
year.	6850

(2) Annually, on or before the thirty-first day of January, a	6851
casino operator shall provide to the commissioner a copy of each	6852
information return issued under division (C)(1) of this section	6853
for the preceding calendar year. The commissioner may require that	6854
the copies be transmitted electronically.	6855

(D) Amounts deducted and withheld shall be treatedallowed as	6856
a credit against payment of the tax imposed by section 5747.02 of	6857
the Revised Code and shall be treated as taxes paid for purposes	6858
of section 5747.09 of the Revised Code. The credit is refundable	6859
and shall be claimed in the order required under section 5747.98	6860
of the Revised Code. OnlyThis division applies only to the person	6861
for whom the amount is deducted and withheld may claim a credit	6862
for such amount.	6863

(E) The failure of a casino operator to deduct and withhold	6864
the required amount from a person's winnings does not relieve the	6865
person from liability for the tax imposed by section 5747.02 of	6866
the Revised Code with respect to those winnings. And compliance	6867
with this section does not relieve a casino operator or a person	6868
who has winnings at a casino facility from compliance with	6869
relevant provisions of federal tax laws.	6870

(F) The tax commissioner and the tax administrator of the	6871
municipal corporation, as applicable, shall prescribe the form of	6872
the receipt, statement, and returns required by this section. The	6873
director of job and family services shall prescribe the form of	6874
the statement required by this section.	6875

(G) The commissioner may adopt rules that are necessary to	6876
administer this section.	6877

Sec. 5747.064. (A) As used in this section, "video lottery	6878
terminal" has the same meaning as in section 3770.21 of the	6879
Revised Code.	6880

(B) If a person's prize award from a video lottery terminal	6881
is an amount for which reporting to the internal revenue service	6882
of the amount is required by section 6041 of the Internal Revenue	6883
Code, as amended, the lottery sales agent shall deduct and	6884
withhold Ohio income tax from the person's prize award at a rate	6885
of four per cent of the amount won and shall deduct and withhold	6886
municipal income tax from the person's winnings at the rate of tax	6887
of the municipal corporation in which the video lottery terminal	6888
facility is located. The lottery sales agent shall issue, to a	6889
person from whose prize award an amount has been deducted or	6890
withheld, a receipt for the amount deducted and withheld, and also	6891
shall obtain from the person additional information that will be	6892
necessary for the lottery sales agent to prepare the returns	6893
required by this section.	6894

(C) Amounts deducted and withheld by a lottery sales agent	6895
are held in trust for the benefit of the state and municipal	6896
corporations, as applicable.	6897

(1) On or before the tenth day of each month, the lottery	6898
sales agent shall file a return electronically with the tax	6899
commissioner and the tax administrator of the municipal	6900
corporation, as applicable, identifying the persons from whose	6901
prize awards amounts were deducted and withheld, the amount of	6902
each such deduction and withholding during the preceding month,	6903
the amount of the prize award from which each such amount was	6904
withheld, and any other information required by the commissioner	6905
and the tax administrator of the municipal corporation, as	6906
applicable. With the return, the lottery sales agent shall remit	6907
electronically to the commissioner and the tax administrator of	6908
the municipal corporation, as applicable, all the amounts deducted	6909
and withheld during the preceding month.	6910

(2) A lottery sales agent shall maintain a record of all	6911
receipts issued under division (B) of this section and shall make	6912
those records available to the commissioner and the tax	6913
administrator of the municipal corporation, as applicable, upon	6914
request. Such records shall be maintained in accordance with	6915
section 5747.17 of the Revised Code and any rules adopted pursuant	6916
thereto.	6917

(3) Annually, on or before the thirty-first day of January, a	6918
lottery sales agent shall file an annual return electronically	6919
with the tax commissioner and the tax administrator of the	6920
municipal corporation, as applicable, indicating the total amount	6921
deducted and withheld during the preceding calendar year. The	6922
lottery sales agent shall remit electronically with the annual	6923
return any amount that was deducted and withheld and that was not	6924
previously remitted. If the identity of a person and the amount	6925
deducted and withheld with respect to that person were omitted on	6926
a monthly return, that information shall be indicated on the	6927
annual return.	6928

(4)(a) A lottery sales agent who fails to file a return and	6929
remit the amounts deducted and withheld is personally liable for	6930
the amount deducted and withheld and not remitted. The	6931
commissioner and the tax administrator of the municipal	6932
corporation, as applicable, may impose a penalty of up to one	6933
thousand dollars if a return is filed late, if amounts deducted	6934
and withheld are remitted late, if a return is not filed, or if	6935
amounts deducted and withheld are not remitted. Interest accrues	6936
on past due amounts deducted and withheld at the rate prescribed	6937
in section 5703.47 of the Revised Code. The commissioner and the	6938
tax administrator of the municipal corporation, as applicable, may	6939
collect past due amounts deducted and withheld and penalties and	6940
interest thereon by assessment under section 5747.13 of the	6941
Revised Code as if they were income taxes collected by an	6942
employer.	6943

(b) If a lottery sales agent ceases to operate video lottery	6944
terminals, the amounts deducted and withheld and any penalties and	6945
interest thereon are immediately due and payable. A successor of	6946
the lottery sales agent that purchases the video lottery terminals	6947
from the agent shall withhold an amount of the purchase money that	6948
is sufficient to cover the amounts deducted and withheld and	6949
penalties and interest thereon until the predecessor lottery sales	6950
agent produces either a receipt from the tax commissioner and the	6951
tax administrator of the municipal corporation, as applicable,	6952
showing that the amounts deducted and withheld and penalties and	6953
interest thereon have been paid or a certificate from the	6954
commissioner and the tax administrator of the municipal	6955
corporation, as applicable, indicating that no amounts deducted	6956
and withheld or penalties and interest thereon are due. If the	6957
successor fails to withhold purchase money, the successor is	6958
personally liable for payment of the amounts deducted and withheld	6959
and penalties and interest thereon, up to the amount of the	6960
purchase money.	6961

(D)(1) Annually, on or before the thirty-first day of	6962
January, a lottery sales agent shall issue an information return	6963
to each person with respect to whom an amount has been deducted	6964
and withheld during the preceding calendar year. The information	6965
return shall show the total amount deducted from the person's	6966
prize award by the lottery sales agent during the preceding year.	6967

(2) Annually, on or before the thirty-first day of January, a	6968
lottery sales agent shall provide to the tax commissioner and the	6969
tax administrator of the municipal corporation, as applicable, a	6970
copy of each information return issued under division (D)(1) of	6971
this section for the preceding calendar year. The commissioner and	6972
the tax administrator of the municipal corporation, as applicable,	6973
may require that such copies be transmitted electronically.	6974

(E) Amounts deducted and withheld shall be allowed as a	6975
credit against payment of the tax imposed by section 5747.02 of	6976
the Revised Code and shall be treated as taxes paid for purposes	6977
of section 5747.09 of the Revised Code. This division applies only	6978
to the person for whom the amount is deducted and withheld.	6979

(F) The failure of a lottery sales agent to deduct and	6980
withhold the required amount from a person's prize award does not	6981
relieve the person from liability for the tax imposed by section	6982
5747.02 of the Revised Code with respect to that income.	6983
Compliance with this section does not relieve a lottery sales	6984
agent or a person who has a prize award from compliance with	6985
relevant provisions of federal tax laws.	6986

(G) The commissioner and the tax administrator of the	6987
municipal corporation, as applicable, shall prescribe the form of	6988
the receipt and returns required by this section and the	6989
commissioner may promulgate any rules necessary to administer the	6990
section.	6991

Sec. 5747.08.  An annual return with respect to the tax	6992
imposed by section 5747.02 of the Revised Code and each tax	6993
imposed under Chapter 5748. of the Revised Code shall be made by	6994
every taxpayer for any taxable year for which the taxpayer is	6995
liable for the tax imposed by that section or under that chapter,	6996
unless the total credits allowed under divisions (E), (F), and (G)	6997
of section 5747.05 of the Revised Code for the year are equal to	6998
or exceed the tax imposed by section 5747.02 of the Revised Code,	6999
in which case no return shall be required unless the taxpayer is	7000
liable for a tax imposed pursuant to Chapter 5748. of the Revised	7001
Code.	7002

(A) If an individual is deceased, any return or notice	7003
required of that individual under this chapter shall be made and	7004
filed by that decedent's executor, administrator, or other person	7005
charged with the property of that decedent.	7006

(B) If an individual is unable to make a return or notice	7007
required by this chapter, the return or notice required of that	7008
individual shall be made and filed by the individual's duly	7009
authorized agent, guardian, conservator, fiduciary, or other	7010
person charged with the care of the person or property of that	7011
individual.	7012

(C) Returns or notices required of an estate or a trust shall	7013
be made and filed by the fiduciary of the estate or trust.	7014

(D)(1)(a) Except as otherwise provided in division (D)(1)(b)	7015
of this section, any pass-through entity may file a single return	7016
on behalf of one or more of the entity's investors other than an	7017
investor that is a person subject to the tax imposed under section	7018
5733.06 of the Revised Code. The single return shall set forth the	7019
name, address, and social security number or other identifying	7020
number of each of those pass-through entity investors and shall	7021
indicate the distributive share of each of those pass-through	7022
entity investor's income taxable in this state in accordance with	7023
sections 5747.20 to 5747.231 of the Revised Code. Such	7024
pass-through entity investors for whom the pass-through entity	7025
elects to file a single return are not entitled to the exemption	7026
or credit provided for by sections 5747.02 and 5747.022 of the	7027
Revised Code; shall calculate the tax before business credits at	7028
the highest rate of tax set forth in section 5747.02 of the	7029
Revised Code for the taxable year for which the return is filed;	7030
and are entitled to only their distributive share of the business	7031
credits as defined in division (D)(2) of this section. A single	7032
check drawn by the pass-through entity shall accompany the return	7033
in full payment of the tax due, as shown on the single return, for	7034
such investors, other than investors who are persons subject to	7035
the tax imposed under section 5733.06 of the Revised Code.	7036

(b)(i) A pass-through entity shall not include in such a	7037
single return any investor that is a trust to the extent that any	7038
direct or indirect current, future, or contingent beneficiary of	7039
the trust is a person subject to the tax imposed under section	7040
5733.06 of the Revised Code.	7041

(ii) A pass-through entity shall not include in such a single	7042
return any investor that is itself a pass-through entity to the	7043
extent that any direct or indirect investor in the second	7044
pass-through entity is a person subject to the tax imposed under	7045
section 5733.06 of the Revised Code.	7046

(c) Nothing in division (D) of this section precludes the tax	7047
commissioner from requiring such investors to file the return and	7048
make the payment of taxes and related interest, penalty, and	7049
interest penalty required by this section or section 5747.02,	7050
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)	7051
of this section shall be construed to provide to such an investor	7052
or pass-through entity any additional deduction or credit, other	7053
than the credit provided by division (J) of this section, solely	7054
on account of the entity's filing a return in accordance with this	7055
section. Such a pass-through entity also shall make the filing and	7056
payment of estimated taxes on behalf of the pass-through entity	7057
investors other than an investor that is a person subject to the	7058
tax imposed under section 5733.06 of the Revised Code.	7059

(2) For the purposes of this section, "business credits"	7060
means the credits listed in section 5747.98 of the Revised Code	7061
excluding the following credits:	7062

(a) The retirement credit under division (B) of section	7063
5747.055 of the Revised Code;	7064

(b) The senior citizen credit under division (C) of section	7065
5747.05 of the Revised Code;	7066

(c) The lump sum distribution credit under division (D) of	7067
section 5747.05 of the Revised Code;	7068

(d) The dependent care credit under section 5747.054 of the	7069
Revised Code;	7070

(e) The lump sum retirement income credit under division (C)	7071
of section 5747.055 of the Revised Code;	7072

(f) The lump sum retirement income credit under division (D)	7073
of section 5747.055 of the Revised Code;	7074

(g) The lump sum retirement income credit under division (E)	7075
of section 5747.055 of the Revised Code;	7076

(h) The credit for displaced workers who pay for job training	7077
under section 5747.27 of the Revised Code;	7078

(i) The twenty-dollar personal exemption credit under section	7079
5747.022 of the Revised Code;	7080

(j) The joint filing credit under division (G) of section	7081
5747.05 of the Revised Code;	7082

(k) The nonresident credit under division (A) of section	7083
5747.05 of the Revised Code;	7084

(l) The credit for a resident's out-of-state income under	7085
division (B) of section 5747.05 of the Revised Code;	7086

(m) The low-income credit under section 5747.056 of the	7087
Revised Code.	7088

(3) The election provided for under division (D) of this	7089
section applies only to the taxable year for which the election is	7090
made by the pass-through entity. Unless the tax commissioner	7091
provides otherwise, this election, once made, is binding and	7092
irrevocable for the taxable year for which the election is made.	7093
Nothing in this division shall be construed to provide for any	7094
deduction or credit that would not be allowable if a nonresident	7095
pass-through entity investor were to file an annual return.	7096

(4) If a pass-through entity makes the election provided for	7097
under division (D) of this section, the pass-through entity shall	7098
be liable for any additional taxes, interest, interest penalty, or	7099
penalties imposed by this chapter if the tax commissioner finds	7100
that the single return does not reflect the correct tax due by the	7101
pass-through entity investors covered by that return. Nothing in	7102
this division shall be construed to limit or alter the liability,	7103
if any, imposed on pass-through entity investors for unpaid or	7104
underpaid taxes, interest, interest penalty, or penalties as a	7105
result of the pass-through entity's making the election provided	7106
for under division (D) of this section. For the purposes of	7107
division (D) of this section, "correct tax due" means the tax that	7108
would have been paid by the pass-through entity had the single	7109
return been filed in a manner reflecting the tax commissioner's	7110
findings. Nothing in division (D) of this section shall be	7111
construed to make or hold a pass-through entity liable for tax	7112
attributable to a pass-through entity investor's income from a	7113
source other than the pass-through entity electing to file the	7114
single return.	7115

(E) If a husband and wife file a joint federal income tax	7116
return for a taxable year, they shall file a joint return under	7117
this section for that taxable year, and their liabilities are	7118
joint and several, but, if the federal income tax liability of	7119
either spouse is determined on a separate federal income tax	7120
return, they shall file separate returns under this section.	7121

If either spouse is not required to file a federal income tax	7122
return and either or both are required to file a return pursuant	7123
to this chapter, they may elect to file separate or joint returns,	7124
and, pursuant to that election, their liabilities are separate or	7125
joint and several. If a husband and wife file separate returns	7126
pursuant to this chapter, each must claim the taxpayer's own	7127
exemption, but not both, as authorized under section 5747.02 of	7128
the Revised Code on the taxpayer's own return.	7129

(F) Each return or notice required to be filed under this	7130
section shall contain the signature of the taxpayer or the	7131
taxpayer's duly authorized agent and of the person who prepared	7132
the return for the taxpayer, and shall include the taxpayer's	7133
social security number. Each return shall be verified by a	7134
declaration under the penalties of perjury. The tax commissioner	7135
shall prescribe the form that the signature and declaration shall	7136
take.	7137

(G) Each return or notice required to be filed under this	7138
section shall be made and filed as required by section 5747.04 of	7139
the Revised Code, on or before the fifteenth day of April of each	7140
year, on forms that the tax commissioner shall prescribe, together	7141
with remittance made payable to the treasurer of state in the	7142
combined amount of the state and all school district income taxes	7143
shown to be due on the form, unless the combined amount shown to	7144
be due is one dollar or less, in which case that amount need not	7145
be remitted.	7146

Upon good cause shown, the tax commissioner may extend the	7147
period for filing any notice or return required to be filed under	7148
this section and may adopt rules relating to extensions. If the	7149
extension results in an extension of time for the payment of any	7150
state or school district income tax liability with respect to	7151
which the return is filed, the taxpayer shall pay at the time the	7152
tax liability is paid an amount of interest computed at the rate	7153
per annum prescribed by section 5703.47 of the Revised Code on	7154
that liability from the time that payment is due without extension	7155
to the time of actual payment. Except as provided in section	7156
5747.132 of the Revised Code, in addition to all other interest	7157
charges and penalties, all taxes imposed under this chapter or	7158
Chapter 5748. of the Revised Code and remaining unpaid after they	7159
become due, except combined amounts due of one dollar or less,	7160
bear interest at the rate per annum prescribed by section 5703.47	7161
of the Revised Code until paid or until the day an assessment is	7162
issued under section 5747.13 of the Revised Code, whichever occurs	7163
first.	7164

If the tax commissioner considers it necessary in order to	7165
ensure the payment of the tax imposed by section 5747.02 of the	7166
Revised Code or any tax imposed under Chapter 5748. of the Revised	7167
Code, the tax commissioner may require returns and payments to be	7168
made otherwise than as provided in this section.	7169

To the extent that any provision in this division conflicts	7170
with any provision in section 5747.026 of the Revised Code, the	7171
provision in that section prevails.	7172

(H) If any report, claim, statement, or other document	7173
required to be filed, or any payment required to be made, within a	7174
prescribed period or on or before a prescribed date under this	7175
chapter is delivered after that period or that date by United	7176
States mail to the agency, officer, or office with which the	7177
report, claim, statement, or other document is required to be	7178
filed, or to which the payment is required to be made, the date of	7179
the postmark stamped on the cover in which the report, claim,	7180
statement, or other document, or payment is mailed shall be deemed	7181
to be the date of delivery or the date of payment.	7182

If a payment is required to be made by electronic funds	7183
transfer pursuant to section 5747.072 of the Revised Code, the	7184
payment is considered to be made when the payment is received by	7185
the treasurer of state or credited to an account designated by the	7186
treasurer of state for the receipt of tax payments.	7187

"The date of the postmark" means, in the event there is more	7188
than one date on the cover, the earliest date imprinted on the	7189
cover by the United States postal service.	7190

(I) The amounts withheld by thean employer pursuant to	7191
section 5747.06 of the Revised Code,a casino operator pursuant to	7192
section 5747.063 of the Revised Code, or a lottery sales agent	7193
pursuant to section 5747.064 of the Revised Code shall be allowed	7194
to the recipient of the compensation casino winnings, or lottery	7195
prize award as credits against payment of the appropriate taxes	7196
imposed on the recipient by section 5747.02 and under Chapter	7197
5748. of the Revised Code.	7198

(J) If, in accordance with division (D) of this section, a	7199
pass-through entity elects to file a single return and if any	7200
investor is required to file the return and make the payment of	7201
taxes required by this chapter on account of the investor's other	7202
income that is not included in a single return filed by a	7203
pass-through entity, the investor is entitled to a refundable	7204
credit equal to the investor's proportionate share of the tax paid	7205
by the pass-through entity on behalf of the investor. The investor	7206
shall claim the credit for the investor's taxable year in which or	7207
with which ends the taxable year of the pass-through entity.	7208
Nothing in this chapter shall be construed to allow any credit	7209
provided in this chapter to be claimed more than once. For the	7210
purposes of computing any interest, penalty, or interest penalty,	7211
the investor shall be deemed to have paid the refundable credit	7212
provided by this division on the day that the pass-through entity	7213
paid the estimated tax or the tax giving rise to the credit.	7214

(K) The tax commissioner shall ensure that each return	7215
required to be filed under this section includes a box that the	7216
taxpayer may check to authorize a paid tax preparer who prepared	7217
the return to communicate with the department of taxation about	7218
matters pertaining to the return. The return or instructions	7219
accompanying the return shall indicate that by checking the box	7220
the taxpayer authorizes the department of taxation to contact the	7221
preparer concerning questions that arise during the processing of	7222
the return and authorizes the preparer only to provide the	7223
department with information that is missing from the return, to	7224
contact the department for information about the processing of the	7225
return or the status of the taxpayer's refund or payments, and to	7226
respond to notices about mathematical errors, offsets, or return	7227
preparation that the taxpayer has received from the department and	7228
has shown to the preparer.	7229

(L) The tax commissioner shall permit individual taxpayers to	7230
instruct the department of taxation to cause any refund of	7231
overpaid taxes to be deposited directly into a checking account,	7232
savings account, or an individual retirement account or individual	7233
retirement annuity, or preexisting college savings plan or program	7234
account offered by the Ohio tuition trust authority under Chapter	7235
3334. of the Revised Code, as designated by the taxpayer, when the	7236
taxpayer files the annual return required by this section	7237
electronically.	7238

(M) The tax commissioner may adopt rules to administer this	7239
section.	7240

Sec. 5747.12.  If a person entitled to a refund under section	7241
5747.11 or 5747.13 of the Revised Code is indebted to this state	7242
for any tax, workers' compensation premium due under section	7243
4123.35 of the Revised Code, unemployment compensation	7244
contribution due under section 4141.25 of the Revised Code,	7245
certified claim under section 131.02 or 131.021 of the Revised	7246
Code, or fee that is paid to the state or to the clerk of courts	7247
pursuant to section 4505.06 of the Revised Code, or any charge,	7248
penalty, or interest arising from such a tax, workers'	7249
compensation premium, unemployment compensation contribution,	7250
certified claim, or fee, the amount refundable may be applied in	7251
satisfaction of the debt. If the amount refundable is less than	7252
the amount of the debt, it may be applied in partial satisfaction	7253
of the debt. If the amount refundable is greater than the amount	7254
of the debt, the amount remaining after satisfaction of the debt	7255
shall be refunded. If the person has more than one such debt, any	7256
debt subject to section 5739.33 or division (G) of section 5747.07	7257
of the Revised Code or arising under section 5747.063 or 5747.064	7258
of the Revised Code shall be satisfied first. Except as provided	7259
in section 131.021 of the Revised Code, this section applies only	7260
to debts that have become final.	7261

The tax commissioner may charge each respective agency of the	7262
state for the commissioner's cost in applying refunds to debts due	7263
to the state and may charge the attorney general for the	7264
commissioner's cost in applying refunds to certified claims. The	7265
commissioner may promulgate rules to implement this section. The	7266
rules may address, among other things, situations such as those	7267
where persons may jointly be entitled to a refund but do not	7268
jointly owe a debt or certified claim.	7269

The tax commissioner may, with the consent of the taxpayer,	7270
provide for the crediting, against tax imposed under this chapter	7271
or Chapter 5748. of the Revised Code and due for any taxable year,	7272
of the amount of any refund due the taxpayer under this chapter or	7273
Chapter 5748. of the Revised Code, as appropriate, for a preceding	7274
taxable year.	7275

Sec. 5747.98.  (A) To provide a uniform procedure for	7276
calculating the amount of tax due under section 5747.02 of the	7277
Revised Code, a taxpayer shall claim any credits to which the	7278
taxpayer is entitled in the following order:	7279

(1) The retirement income credit under division (B) of	7280
section 5747.055 of the Revised Code;	7281

(2) The senior citizen credit under division (C) of section	7282
5747.05 of the Revised Code;	7283

(3) The lump sum distribution credit under division (D) of	7284
section 5747.05 of the Revised Code;	7285

(4) The dependent care credit under section 5747.054 of the	7286
Revised Code;	7287

(5) The lump sum retirement income credit under division (C)	7288
of section 5747.055 of the Revised Code;	7289

(6) The lump sum retirement income credit under division (D)	7290
of section 5747.055 of the Revised Code;	7291

(7) The lump sum retirement income credit under division (E)	7292
of section 5747.055 of the Revised Code;	7293

(8) The low-income credit under section 5747.056 of the	7294
Revised Code;	7295

(9) The credit for displaced workers who pay for job training	7296
under section 5747.27 of the Revised Code;	7297

(10) The campaign contribution credit under section 5747.29	7298
of the Revised Code;	7299

(11) The twenty-dollar personal exemption credit under	7300
section 5747.022 of the Revised Code;	7301

(12) The joint filing credit under division (G) of section	7302
5747.05 of the Revised Code;	7303

(13) The nonresident credit under division (A) of section	7304
5747.05 of the Revised Code;	7305

(14) The credit for a resident's out-of-state income under	7306
division (B) of section 5747.05 of the Revised Code;	7307

(15) The credit for employers that enter into agreements with	7308
child day-care centers under section 5747.34 of the Revised Code;	7309

(16) The credit for employers that reimburse employee child	7310
care expenses under section 5747.36 of the Revised Code;	7311

(17) The credit for adoption of a minor child under section	7312
5747.37 of the Revised Code;	7313

(18) The credit for purchases of lights and reflectors under	7314
section 5747.38 of the Revised Code;	7315

(19) The nonrefundable job retention credit under division	7316
(B) of section 5747.058 of the Revised Code;	7317

(20) The credit for selling alternative fuel under section	7318
5747.77 of the Revised Code;	7319

(21) The second credit for purchases of new manufacturing	7320
machinery and equipment and the credit for using Ohio coal under	7321
section 5747.31 of the Revised Code;	7322

(22) The job training credit under section 5747.39 of the	7323
Revised Code;	7324

(23) The enterprise zone credit under section 5709.66 of the	7325
Revised Code;	7326

(24) The credit for the eligible costs associated with a	7327
voluntary action under section 5747.32 of the Revised Code;	7328

(25) The credit for employers that establish on-site child	7329
day-care centers under section 5747.35 of the Revised Code;	7330

(26) The ethanol plant investment credit under section	7331
5747.75 of the Revised Code;	7332

(27) The credit for purchases of qualifying grape production	7333
property under section 5747.28 of the Revised Code;	7334

(28) The small business investment credit under section	7335
5747.81 of the Revised Code;	7336

(29) The credit for research and development and technology	7337
transfer investors under section 5747.33 of the Revised Code;	7338

(30) The enterprise zone credits under section 5709.65 of the	7339
Revised Code;	7340

(31) The research and development credit under section	7341
5747.331 of the Revised Code;	7342

(32) The credit for rehabilitating a historic building under	7343
section 5747.76 of the Revised Code;	7344

(33) The refundable credit for rehabilitating a historic	7345
building under section 5747.76 of the Revised Code;	7346

(34) The refundable jobs creation credit or job retention	7347
credit under division (A) of section 5747.058 of the Revised Code;	7348

(35) The refundable credit for taxes paid by a qualifying	7349
entity granted under section 5747.059 of the Revised Code;	7350

(36) The refundable credits for taxes paid by a qualifying	7351
pass-through entity granted under division (J) of section 5747.08	7352
of the Revised Code;	7353

(37) The refundable credit for tax withheld under division	7354
(B)(1) of section 5747.062 of the Revised Code;	7355

(38) The refundable credit for tax withheld under section	7356
5747.063 of the Revised Code;	7357

(39) The refundable credit under section 5747.80 of the	7358
Revised Code for losses on loans made to the Ohio venture capital	7359
program under sections 150.01 to 150.10 of the Revised Code;	7360

(40)(38) The refundable motion picture production credit	7361
under section 5747.66 of the Revised Code.	7362

(B) For any credit, except the refundable credits enumerated	7363
in this section and the credit granted under division (I) of	7364
section 5747.08 of the Revised Code, the amount of the credit for	7365
a taxable year shall not exceed the tax due after allowing for any	7366
other credit that precedes it in the order required under this	7367
section. Any excess amount of a particular credit may be carried	7368
forward if authorized under the section creating that credit.	7369
Nothing in this chapter shall be construed to allow a taxpayer to	7370
claim, directly or indirectly, a credit more than once for a	7371
taxable year.	7372

Sec. 5753.03.  (A) For the purpose of receiving and	7373
distributing, and accounting for, revenue received from the tax	7374
levied by section 5753.02 of the Revised Code, the following funds	7375
are created in the state treasury:	7376

(1) The casino tax revenue fund;

7377

(2) The gross casino revenue county fund;

7378

(3) The gross casino revenue county student fund;

7379

(4) The gross casino revenue host city fund;

7380

(5) The Ohio state racing commission fund;

7381

(6) The Ohio law enforcement training fund;

7382

(7) The problem casino gambling and addictions fund;

7383

(8) The casino control commission fund;

7384

(9) The casino tax administration fund.

7385

(B) All moneys collected from the tax levied under this	7386
chapter shall be deposited into the casino tax revenue fund.	7387

(C) From the casino tax revenue fund the director of budget	7388
and management shall transfer as needed to the tax refund fund	7389
amounts equal to the refunds certified by the tax commissioner	7390
under section 5753.06 of the Revised Code.	7391

(D) After making any transfers required by division (C) of	7392
this section, but not later than the fifteenth day of the month	7393
following the end of each calendar quarter, the director of budget	7394
and management shall transfer amounts to each fund as follows:	7395

(1) Fifty-one per cent to the gross casino revenue county	7396
fund to make payments as required by Section 6(C)(3)(a) of Article	7397
XV, Ohio Constitution;	7398

(2) Thirty-four per cent to the gross casino revenue county	7399
student fund to make payments as required by Section 6(C)(3)(b) of	7400
Article XV, Ohio Constitution and as provided in section 5753.11	7401
of the Revised Code;	7402

(3) Five per cent to the gross casino revenue host city fund	7403
for the benefit of the cities in which casino facilities are	7404
located;	7405

(4) Three per cent to the Ohio state racing commission fund	7406
to support horse racing in this state at which the pari-mutuel	7407
system of wagering is conducted;	7408

(5) Two per cent to the Ohio law enforcement training fund to	7409
support law enforcement functions in the state;	7410

(6) Two per cent to the problem casino gambling and	7411
addictions fund to support efforts to alleviate problem gambling	7412
and substance abuse and related research in the state;	7413

(7) Three per cent to the casino control commission fund to	7414
support the operations of the Ohio casino control commission and	7415
to defray the cost of administering the tax levied under section	7416
5753.02 of the Revised Code.	7417

Payments under divisions (D)(1), (2), and (3) of this section	7418
shall be made by the end of the month following the end of the	7419
quarterly period. The tax commissioner shall make the data	7420
available to the director of budget and management for this	7421
purpose.	7422

Payments from the gross casino revenue county student fund as	7423
required under section 5753.11 of the Revised Code shall be made	7424
by the last day of January and by the last day of August of each	7425
year, beginning in 2013. The tax commissioner shall make the data	7426
available to the director of budget and management for this	7427
purpose.	7428

Of the money credited to the Ohio law enforcement training	7429
fund, the director of budget and management shall distribute	7430
eighty-five per cent of the money to the Ohio peace officer	7431
training academy and fifteen per cent of the money to the division	7432
of criminal justice services.	7433

(E)(1) The tax commissioner shall serve as an agent of the	7434
counties of this state only for the purposes of this division and	7435
solely to make payments directly to municipal corporations and	7436
school districts, as applicable, on the counties' behalf.	7437

(2) On or before the last day of the month following the end	7438
of each calendar quarter, the tax commissioner shall provide for	7439
payment from the funds referenced in divisions (D)(1) and (3) of	7440
this section to each county and municipal corporation as	7441
prescribed in those divisions.	7442

(3) On or before the last day of January and the last day of	7443
August each year, the commissioner shall provide for payments from	7444
the fund referenced in division (D)(2) of this section to each	7445
school district as prescribed in that division.	7446

(F) The director of budget and management shall transfer one	7447
per cent of the money credited to the casino control commission	7448
fund to the casino tax administration fund. The tax commissioner	7449
shall use the casino tax administration fund to defray the costs	7450
incurred in administering the tax levied by this chapter.	7451

(G) All investment earnings of the gross casino revenue	7452
county student fund shall be credited to the fund.	7453

Sec. 5753.11.  (A) As used in this section:

7454

(1) "Public school district" means any city, local, exempted	7455
village, or joint vocational school district, community school	7456
established under Chapter 3314. of the Revised Code, STEM school	7457
established under Chapter 3326. of the Revised Code, or	7458
college-preparatory boarding school established under Chapter	7459
3328. of the Revised Code. "Public school district" does not	7460
include any STEM school operated under section 3326.51 of the	7461
Revised Code.	7462

(2) "Student population" means the number of students	7463
residing in a county who are enrolled in a public school district	7464
in grades kindergarten through twelve and the total number of	7465
preschool children with disabilities on the following dates:	7466

(a) For the January distribution, the Friday of the first	7467
full school week in October;	7468

(b) For the August distribution, the Friday of the first full	7469
school week in May.	7470

(B) For the purpose of calculating student population, each	7471
public school district shall, twice annually, report to the	7472
department of education the students enrolled in the district on	7473
the days specified in division (A)(2) of this section. A student	7474
shall be considered to be enrolled in a public school district if	7475
the student is participating in education programs of the public	7476
school district and the public school district has not:	7477

(1) Received documentation from a parent terminating	7478
enrollment of the student;	7479

(2) Been provided documentation of a student's enrollment in	7480
another public or private school; or	7481

(3) Ceased to offer education to the student.

7482

If more than one public school district reports a student as	7483
enrolled, the department shall use procedures adopted by the	7484
department for the reconciliation of enrollment to determine the	7485
district of enrollment for purposes of this section. In the case	7486
of the dual enrollment of a student in a joint vocational school	7487
district and another public school district, the student shall be	7488
included in the enrollments for both schools. If the valid school	7489
district or enrollment cannot be determined in time for the	7490
certification, the count of these students shall be divided	7491
equally between the reporting districts.	7492

(C) The department of education shall certify to the	7493
department of taxation the student population for each county and	7494
the student population for each public school district located in	7495
whole or in part in the county on or before the thirtieth day of	7496
December, for the January distribution and on or before the	7497
thirtieth day of July, for the August distribution. A student	7498
shall be included in the school district enrollment for a county	7499
only if a student resides in that county. The location of each	7500
community school shall be the enrollment area required to be	7501
defined by the community school and its sponsor in accordance with	7502
division (A)(19) of section 3314.03 of the Revised Code, the	7503
location of each STEM schools shall be any county in which its	7504
enrolled students reside, and the location of the	7505
college-preparatory boarding schools shall be the territory of the	7506
school district in which the college-preparatory school is located	7507
or the territory of any city, exempted village, or local school	7508
district that has agreed to be a participating district under	7509
section 3328.04 of the Revised Code.	7510

The student population count certified by the department of	7511
education to the department of taxation is final and shall not be	7512
adjusted by future updates to the counts.	7513

(D) Not later than the thirty-first day of January and the	7514
thirty-first day of August of each year, the tax commissioner	7515
shall distribute funds in the gross casino revenue county student	7516
fund to public school districts. The commissioner shall calculate	7517
the amount of funds to distribute to each public school district	7518
as follows:	7519

(1) The commissioner shall calculate the proportional share	7520
of the funds attributable to each county by dividing the total	7521
student population certified for each county by the sum of the	7522
total student population certified in all counties statewide.	7523

(2) The commissioner shall multiply the amount in division	7524
(D)(1) of this section by the total amount of funds in the gross	7525
casino revenue county student fund to obtain the share of funds	7526
for each county.	7527

(3) The commissioner shall multiply the amount in division	7528
(D)(2) of this section by the quotient of the student population	7529
certified for each individual district located in the county	7530
divided by the sum of the student population certified for all	7531
public school districts located in the county.	7532

The commissioner shall distribute to each public school	7533
district the amount so calculated for each district.	7534

Section 2.  That existing sections 122.014, 173.121, 718.03,	7535
2915.01, 2915.02, 2915.06, 2915.08, 2915.09, 2915.091, 2915.092,	7536
2915.093, 2915.094, 2915.10, 2915.101, 2915.12, 2923.31, 2933.51,	7537
3301.0714, 3769.08, 3769.087, 3769.089, 3769.0810, 3770.02,	7538
3770.05, 3770.07, 3770.071, 3770.072, 3770.073, 3770.21, 3772.01,	7539
3772.03, 3772.032, 3772.04, 3772.07, 3772.091, 3772.10, 3772.13,	7540
3772.16, 3772.17, 3772.28, 3772.99, 4301.03, 4303.17, 5703.21,	7541
5747.062, 5747.063, 5747.08, 5747.12, 5747.98, and 5753.03, and	7542
section 3772.14 of the Revised Code are hereby repealed.	7543

Section 3.  That Section 3 of Sub. H.B. 277 of the 129th	7544
General Assembly be amended to read as follows:	7545

Sec. 3. (A) Notwithstanding sections 3769.04 and 3769.13 of	7546
the Revised Code, for a period of two years after the effective	7547
date of this section, a permit holder who is eligible to become a	7548
video lottery sales agent may apply to the State Racing Commission	7549
to move its track to another location using the following approval	7550
procedure:	7551

(1) The permit holder shall submit, for the consideration of	7552
the State Racing Commission in its determination on whether to	7553
approve the transfer, its proposal to the State Racing Commission	7554
and shall specify the location of the new track and the	7555
incremental economic benefits the permit holder is willing to	7556
provide to the state.	7557

(2) The State Racing Commission shall approve or deny the	7558
transfer.	7559

(3) The permit holder may apply to the State Lottery	7560
Commission for a video lottery sales agent license at the new	7561
track location.	7562

(B) The State Racing Commission, subject to division (D) of	7563
this section, shall give preference to transfer proposals	7564
involving moves to locations in which neither horse-racing	7565
meetings nor casino gaming have been authorized before July 1,	7566
2011. A permit holder that is authorized to transfer its track	7567
under this section and that is a video lottery sales agent may	7568
operate at a temporary facility at its new location while	7569
constructing or otherwise preparing its new track at that	7570
location. A permit holder that is not transferring its track and	7571
is remaining at its permitted location and that is a video lottery	7572
sales agent may operate a temporary facility at its permitted	7573
location while constructing or otherwise preparing its permanent	7574
video lottery terminal facility at its track. A temporary	7575
facility, either at a new track location or an existing track	7576
location of a track that does not transfer its track, shall meet	7577
any minimal capital investment and structure requirements	7578
established by rule by the State Racing Commission in conjunction	7579
with the State Lottery Commission.	7580

(C) The stateState Racing Commission, in consultation with	7581
the Governor, may discuss and negotiate with parties regarding the	7582
transferring of racing permits to new track locations and may, in	7583
its discretion, enter into agreements regarding the transfer of	7584
permits to new locations in advance of the process set forth in	7585
this section.	7586

(D) A permit holder who is located on property owned by a	7587
political subdivision may move its track to a new location within	7588
twenty miles of its current location. Such a permit holder shall	7589
not be charged any fee by the state in exchange for applying for a	7590
move, for having its move approved, or for moving its existing	7591
track as specified under this division. The State Racing	7592
Commission shall give a preference greater than the preference	7593
given under division (B) of this section to such a permit holder	7594
as part of the approval procedure.	7595

(E) Chapter 2915. of the Revised Code does not apply to,	7596
affect, or prohibit lotteries or video lotteries conducted under	7597
this section and Chapter 3770. of the Revised Code. The State	7598
Racing Commission may not adopt rules regarding the operation of	7599
lotteries or video lotteries conducted under Chapter 3770. of the	7600
Revised Code.	7601

(F) The State Racing Commission may adopt rules under Chapter	7602
119. of the Revised Code to effectuate this section and to	7603
establish fees to relocate tracks for applicants under this	7604
section.	7605

(G) As used in this section:

7606

(1) "Permit holder" means a person that has been authorized	7607
by the State Racing Commission to conduct one or more horse-racing	7608
meetings under Chapter 3769. of the Revised Code.	7609

(2) "Track" means any place, track, or enclosure where a	7610
permit holder conducts live horse racing for profit at a racing	7611
meeting. "Track" includes facilities or premises contiguous or	7612
adjacent to those places, tracks, or enclosures.	7613

(3) "Video lottery sales agent" means a person who is a	7614
permit holder and holds a current license issued by the State	7615
Lottery Commission to assist the Commission in conducting video	7616
lotteries through the use of video lottery terminals at a track.	7617

Section 4.  That existing Section 3 of Sub. H.B. 277 of the	7618
129th General Assembly is hereby repealed.	7619

Section 5.  That Section 4 of Sub. H.B. 277 of the 129th	7620
General Assembly is hereby repealed.	7621

Section 6.  (A) The Governor is authorized to execute a deed	7622
in the name of the state conveying to Lebanon Trotting Club, Inc.,	7623
and Miami Valley Trotting, Inc., the holders of pari-mutuel racing	7624
permits issued by the State Racing Commission, or to their	7625
respective successors and assigns (hereinafter collectively	7626
referred to as the "grantee"), all of the state's right, title,	7627
and interest in the following described real estate:	7628

Situated in Turtlecreek Township, City of Lebanon, County of	7629
Warren, State of Ohio and being part of Warren County Parcel Nos.	7630
11064000140 and 12363000030, which land is situated at the	7631
northeast corner of the intersection of State Route 63 and Union	7632
Road, and is bounded to the west by Union Road, to the south by	7633
Route 63, and to the east by a private roadway used by the	7634
Department of Rehabilitation and Correction for ingress and egress	7635
from Route 63 to the Lebanon Correctional Institution's dairy	7636
barn. The northerly boundary shall be established by a survey	7637
designed to ensure that the land to be conveyed does not exceed	7638
one hundred twenty acres.	7639

In preparing the deed, the Auditor of State, with the	7640
assistance of the Attorney General, may modify the foregoing	7641
description insofar as necessary to bring it into conformity with	7642
the actual bounds of the real estate being described.	7643

(B) Consideration for conveyance of the real estate is four	7644
million five hundred thousand dollars.	7645

(C) The net proceeds of the sale of the real estate shall be	7646
deposited in the state treasury to the credit of the Department of	7647
Rehabilitation and Correction, Fund 2000, appropriation item	7648
501607, Ohio Penal Industries, which contains funds for	7649
expenditures on farm and agricultural uses, for which these	7650
proceeds shall be used.	7651

(D) The grantee, following the conveyance of the real estate,	7652
and in accordance with the terms of the purchase contract, shall	7653
do all of the following:	7654

(1) Permit the state and its successors and assigns perpetual	7655
ingress and egress rights to the culvert and roadway located along	7656
the easterly line of the real estate, which culvert and roadway	7657
are presently used by the state to access the Lebanon Correctional	7658
Institution's dairy barn. The grantee shall be responsible for all	7659
costs related to the continued maintenance of the culvert and	7660
roadway in their current condition.	7661

(2) Create and maintain, at the grantee's sole cost, a	7662
landscape buffer zone along the perimeter of the real estate. The	7663
design, location, and materials used in the landscape buffer zone	7664
shall be approved by the state.	7665

(3) Coordinate with the appropriate state and local	7666
authorities to improve State Route 63 with new signage and	7667
adequate turning lanes.	7668

(E) The grantee shall not use, develop, or sell the premises	7669
such that it will interfere with the quiet enjoyment of the	7670
neighboring state-owned land.	7671

(F) The real estate shall be sold as an entire tract and not	7672
in parcels.	7673

(G) The grantee shall pay all costs associated with the	7674
purchase and conveyance of the real estate, which costs shall	7675
include, but are not limited to, the following: surveying costs;	7676
title costs; preparation of metes and bounds property	7677
descriptions; appraisals; environmental studies, assessments, and	7678
remediation; and deed recordation costs.	7679

(H) The Auditor of State, with the assistance of the Attorney	7680
General, shall prepare a deed to the real estate. The deed shall	7681
state the consideration and the conditions. The deed shall be	7682
executed by the Governor in the name of the state, countersigned	7683
by the Secretary of State, sealed with the Great Seal of the	7684
State, presented in the Office of the Auditor of State for	7685
recording, and delivered to the grantee. The grantee shall present	7686
the deed for recording in the Office of the Warren County	7687
Recorder.	7688

(I) This section expires two years after its effective date.

7689

Section 7.  (A) As used in this section:

7690

(1) "Permit holder" means a person that has been authorized	7691
by the State Racing Commission to conduct one or more horse-racing	7692
meetings under Chapter 3769. of the Revised Code.	7693

(2) "Track" means any place, track, or enclosure where a	7694
permit holder conducts live horse racing for profit at a racing	7695
meeting. "Track" includes facilities or premises contiguous or	7696
adjacent to those places, tracks, or enclosures.	7697

(B) There is hereby created in the state treasury the	7698
Racetrack Relocation Fund. The fund shall receive any money paid	7699
to the state by horse-racing permit holders for the privilege to	7700
relocate to a new facility in accordance with Section 3 of Sub.	7701
H.B. 277 of the 129th General Assembly, as amended by this act.	7702
Upon the allocation of all the money in the fund in accordance	7703
with this section, the fund shall cease to exist.	7704

(C) There is hereby created in the state treasury the	7705
Racetrack Facility Community Economic Redevelopment Fund into	7706
which shall be deposited moneys as specified by this section and	7707
rules promulgated by the State Racing Commission. The fund shall	7708
be used for repurposing or demolishing of an abandoned	7709
horse-racing facility or reinvestment in the area, neighborhood,	7710
and community near an abandoned facility, and for the costs of	7711
administering this program. Any remaining funds shall be	7712
transferred to the General Revenue Fund. Upon the allocation of	7713
all the money in the fund in accordance with this section, the	7714
fund shall cease to exist.	7715

(D) The Director of Development or any successor department	7716
or agency shall oversee and administer the Racetrack Facility	7717
Community Economic Redevelopment Fund for the purpose of the	7718
repurposing or demolishing of an abandoned horse-racing facility	7719
or reinvestment in the area, neighborhood, and community near an	7720
abandoned facility through loans and grants. The Director shall	7721
provide guidelines for racetrack facility community economic	7722
development projects in the state. Projects may include, but are	7723
not limited to, site planning, site certification, structure	7724
demolition, physical site redevelopment, relocation of utilities,	7725
or construction. Projects shall not incorporate acquisition and	7726
related expense. Moneys in the fund may be used to pay reasonable	7727
costs incurred by the Director in administering this section.	7728

(E) The moneys in the Racetrack Relocation Fund shall be	7729
transferred by the Director of Budget and Management to the	7730
following funds in the following amounts:	7731

(1) Five hundred thousand dollars to the Problem Casino	7732
Gambling and Addictions Fund described in Section 6(C)(3)(g) of	7733
Article XV, Ohio Constitution, to be used for research and data	7734
collection on gambling addiction issues;	7735

(2) Not more than three million dollars to the previous	7736
community of each moved track, which shall be deposited in the	7737
Racetrack Facility Community Economic Redevelopment Fund;	7738

(3) The remainder to the General Revenue Fund.

7739

Section 8.  Except as otherwise provided in this act, all	7740
appropriation items in this act are appropriated out of any moneys	7741
in the state treasury to the credit of the designated fund that	7742
are not otherwise appropriated. For all appropriations made in	7743
this act, the amounts in the first column are for fiscal year 2012	7744
and the amounts in the second column are for fiscal year 2013.	7745

DEV DEPARTMENT OF DEVELOPMENT	7746

5LU0

195673

Racetrack Facility Community Economic Redevelopment Fund

$

12,000,000

$

0

7747

Up to twelve million dollars of the foregoing appropriation	7748
item 195673, Racetrack Facility Community Economic Redevelopment	7749
Fund, shall be used for the purpose of the repurposing or	7750
demolishing of an abandoned horse-racing facility or reinvestment	7751
in the area, neighborhood, and community near an abandoned	7752
facility. Any unexpended and unencumbered portion of this	7753
appropriation item at the end of fiscal year 2012 is hereby	7754
reappropriated for the same purpose in fiscal year 2013.	7755

The foregoing appropriation may be used to pay reasonable	7756
costs incurred by the Director of Development in administering the	7757
program.	7758

Section 9.  A) As used in this section, "permit holder" and	7759
"track" have the same meanings as in Section 7 of this act.	7760

(B) Within six months of the effective date of this section,	7761
the Governor, in consultation with the State Racing Commission,	7762
shall discuss, negotiate in good faith, and reach an agreement	7763
with necessary parties regarding providing five hundred thousand	7764
dollars per year, with the first payment by December 31, 2014, and	7765
annually thereafter, to the municipal corporations or townships	7766
receiving moneys from the Racetrack Relocation Fund under division	7767
(E)(3) of Section 7 of this act.	7768

Section 10. The Director of Budget and Management shall pay	7769
one million dollars by December 31, 2012, to the municipal	7770
corporation or township in which each commercial racetrack is	7771
located, including a municipal corporation or township to which a	7772
racetrack is to relocate as specified in the memorandum of	7773
understanding of February 17, 2012, between the Office of the	7774
Governor, State of Ohio, and Penn National Gaming, Inc.,	7775
pertaining to racing permit transfers, but excluding the previous	7776
municipal corporation or township of each moved track and	7777
excluding a municipal corporation or township in a county with a	7778
population between 1,100,000 and 1,200,000 in the most recent	7779
federal decennial census. The Director shall transfer these	7780
payments, totaling six million dollars, from the Casino Operator	7781
Settlement Fund created in section 3772.34 of the Revised Code.	7782
The Director shall pay an additional one million dollars by June	7783
30, 2013, to each of these municipal corporations and townships,	7784
and shall transfer these payments, totaling six million dollars,	7785
from the Casino Operator Settlement Fund. These expenditures are	7786
hereby appropriated. Each municipal corporation or township	7787
receiving such a payment shall use at least fifty per cent of the	7788
funds received for infrastructure or capital improvements.	7789

Section 11.  Notwithstanding any provision in law to the	7790
contrary, the Director of Alcohol and Drug Addiction Services	7791
shall complete a study to identify the current status of gaming	7792
addiction problems within the state. In fiscal year 2013, the	7793
Director may certify to the Director of Budget and Management the	7794
cost, not exceeding two hundred fifty thousand dollars, incurred	7795
by the Department of Alcohol and Drug Addiction Services in	7796
conducting the gaming addiction study. In response to receiving	7797
this certification, the Director of Budget and Management may	7798
transfer the cost of the study in cash from the General Revenue	7799
Fund to the Problem Casino and Gambling Addictions Fund (Fund	7800
5JL0) to reimburse the fund for costs incurred in conducting the	7801
study.	7802

Section 12.  (A) As used in this section:

7803

(1) "Sweepstakes" means any game, contest, advertising scheme	7804
or plan, or other promotion, but does not include bingo, or games	7805
or lotteries conducted by the state lottery commission, in which	7806
consideration is not required for a person to enter to win or to	7807
become eligible to receive any prize, the determination of which	7808
is based upon chance.	7809

(2) "Sweepstakes terminal device" means a mechanical, video,	7810
digital, or electronic machine or device that is owned, leased, or	7811
otherwise possessed by any person conducting a sweepstakes, or by	7812
that person's partners, affiliates, subsidiaries, or contractors,	7813
that is intended to be used by a sweepstakes participant who	7814
purchases a tangible product to enter a sweepstakes, and that is	7815
capable of displaying information on a screen or other mechanism.	7816
A device is a sweepstakes terminal device whether or not any of	7817
the following apply:	7818

(a) The device is server-based.

7819

(b) The device uses a simulated game terminal as a	7820
representation of the prizes associated with the results of the	7821
sweepstakes entries.	7822

(c) The device utilizes software such that the simulated game	7823
influences or determines the winning of or value of the prize.	7824

(d) The device selects prizes from a predetermined finite	7825
pool of entries.	7826

(e) The device utilizes a mechanism that reveals the content	7827
of a predetermined sweepstakes entry.	7828

(f) The device predetermines the prize results and stores	7829
those results for delivery at the time the sweepstakes entry	7830
results are revealed.	7831

(g) The device utilizes software to create a game result.

7832

(h) The device requires deposit of any money, coin, or token,	7833
or the use of any credit card, debit card, prepaid card, or any	7834
other method of payment to activate the electronic machine or	7835
device.	7836

(i) The device requires direct payment into the device, or	7837
remote activation of the device.	7838

(j) The device reveals the prize incrementally, even though	7839
the device does not influence the awarding of a prize or the value	7840
of any prize awarded.	7841

(k) The device determines and associates the prize with an	7842
entry or entries at the time the sweepstakes is entered.	7843

(l) The device is a slot machine or other form of electrical,	7844
mechanical, or computer game.	7845

(3) "Enter" means the purchase of a tangible product by which	7846
a person becomes eligible to receive any prize offered in a	7847
sweepstakes.	7848

(4) "Entry" means one event from the initial activation of	7849
the sweepstakes terminal device until all sweepstakes prize	7850
results from that activation are revealed.	7851

(5) "Prize" means any gift, award, gratuity, good, service,	7852
credit, reward, or any other thing of value that may be	7853
transferred to a person, whether possession of the prize is	7854
actually transferred, or placed on an account or other record as	7855
evidence of the intent to transfer the prize.	7856

(B) On and after the effective date of this section, and	7857
through June 30, 2013, no person shall conduct a sweepstakes	7858
through the use of a sweepstakes terminal device that has not	7859
conducted such a sweepstakes before the effective date of this	7860
section. All sweepstakes establishments conducting a sweepstakes	7861
through the use of a sweepstakes terminal device, whether or not	7862
licensed by a local entity, in existence and operating before the	7863
effective date of this section may continue to operate at only	7864
their current locations after the effective date of this section.	7865
Upon the expiration of any current occupancy permit, permission to	7866
operate, or other permit or license issued by a local entity for a	7867
sweepstakes establishment that was in existence before the	7868
effective date of this section, the local entity shall renew the	7869
occupancy permits or licenses or grant permission at those	7870
pre-existing locations in accordance with that local entity's	7871
current permit or licensing ordinances or procedures. This	7872
division is not intended to supersede any similar action taken by	7873
a county, township, or municipal corporation.	7874

(C) The General Assembly finds the following:

7875

(1) The state has experienced a proliferation of retail	7876
businesses that utilize a sweepstakes to facilitate sales. These	7877
establishments utilize computer terminals or stand alone machines,	7878
which currently are not consistently and uniformly regulated	7879
statewide and have created a window of opportunity for rogue	7880
operators to open in cities across the state.	7881

(2) Judges across the state have issued conflicting rulings	7882
regarding the legality of these sweepstakes establishments.	7883

(3) The General Assembly has determined that a moratorium on	7884
new retail sweepstakes establishments is needed while legislation	7885
is being considered.	7886

Within thirty days after the effective date of this section,	7887
a sweepstakes establishment conducting a sweepstakes through the	7888
use of a sweepstakes terminal device in existence and operating	7889
before the effective date of this section shall file an affidavit	7890
with the Attorney General certifying that the establishment was in	7891
existence and operating before the effective date of this section	7892
and indicating the address of the establishment.	7893

If a sweepstakes establishment was in existence and operating	7894
before the effective date of this section, but was involuntarily	7895
shut down by law enforcement before that date, solely for the	7896
purposes of this moratorium those sweepstakes establishments shall	7897
be considered to be in existence and operating before the	7898
effective date of this section. If the sweepstakes establishment	7899
is permitted to resume operations pursuant to court order, the	7900
sweepstakes establishment shall have thirty days from the date of	7901
resuming operations to file the required affidavit.	7902

On and after the effective date of this section, and through	7903
June 30, 2013, the Attorney General or the appropriate county	7904
prosecuting attorney may bring an action for injunction against a	7905
person that conducts a sweepstakes through the use of a	7906
sweepstakes terminal device that has not conducted such a	7907
sweepstakes before the effective date of this section. If such a	7908
person continues to conduct such a sweepstakes after an injunction	7909
is granted, a contempt action may be brought by any means	7910
necessary.	7911

Section 13. By December 31, 2013, the Attorney General shall	7912
submit to the President and Minority Leader of the Senate and the	7913
Speaker and Minority Leader of the House of Representatives a	7914
report on the Attorney General's recommendations on how to best	7915
use resources and moneys that are distributed from the gross	7916
casino revenue tax pursuant to Section 6(C)(3) of Article XV, Ohio	7917
Constitution to the Ohio Law Enforcement Training Fund pursuant to	7918
section 5753.03 of the Revised Code. The report shall include a	7919
recommendation for sharing a portion of such resources and moneys	7920
with local law enforcement agencies beginning in fiscal year 2015.	7921

Section 14. (A) Within one year of the effective date of this	7922
section, the Department of Job and Family Services shall negotiate	7923
with the casino operators and video lottery sales agents and shall	7924
issue a report to the President and Minority Leader of the Senate	7925
and the Speaker and Minority Leader of the House of	7926
Representatives and the Permanent Joint Committee on Gaming and	7927
Wagering that makes recommendations on the processes and	7928
procedures necessary to allow the state to establish a data match	7929
and prize and winnings intercept program to identify obligors who	7930
are subject to a final and enforceable determination of default	7931
made under sections 3123.01 to 3123.07 of the Revised Code. Such a	7932
program shall require casino operators and video lottery sales	7933
agents to withhold an amount sufficient to satisfy any past due	7934
support owed by an obligor from a lottery prize award or from	7935
casino winnings owed to an obligor identified in the data match,	7936
up to the amount of the award. The report shall include	7937
recommendations on taking steps necessary to limit access to an	7938
obligor's personal information viewed by employees of the casino	7939
operator or video lottery sales agent when determining a data	7940
match.	7941

(B) As used in this section:

7942

(1) "Casino operator" has the same meaning as in section	7943
3772.01 of the Revised Code.	7944

(2) "Video lottery sales agent" means a person who is a	7945
permit holder and holds a current license issued by the State	7946
Lottery Commission to assist the Commission in conducting video	7947
lotteries through the use of video lottery terminals at a track.	7948

Section 15. The items of law contained in this act, and their	7949
applications, are severable. If any item of law contained in this	7950
act, or if any application of any item of law contained in this	7951
act, is held invalid, the invalidity does not affect other items	7952
of law contained in this act and their applications that can be	7953
given effect without the invalid item of law or application.	7954

Section 16. The amendment by this act of section 3769.0810 of	7955
the Revised Code takes effect July 1, 2015.	7956

Section 17. Section 5747.08 of the Revised Code is presented	7957
in this act as a composite of the section as amended by both Sub.	7958
S.B. 155 and Am. Sub. S.B. 194 of the 128th General Assembly. The	7959
General Assembly, applying the principle stated in division (B) of	7960
section 1.52 of the Revised Code that amendments are to be	7961
harmonized if reasonably capable of simultaneous operation, finds	7962
that the composite is the resulting version of the section in	7963
effect prior to the effective date of the section as presented in	7964
this act.	7965

Section 18.  This act is an emergency measure necessary for	7966
the immediate preservation of the public peace, health, and	7967
safety. The reason for such necessity is the importance of not	7968
delaying licensing procedures and money distribution. Therefore,	7969
this act goes into immediate effect.	7970