Bill Text: OH SB115 | 2013-2014 | 130th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: To amend Section 12 of Am. Sub. H.B. 386 of the 129th General Assembly to extend the moratorium on new establishments conducting sweepstakes by sweepstakes terminal devices, to require establishments to file a new affidavit, and to declare an emergency.

Spectrum: Partisan Bill (Republican 23-1)

Status: (Passed) 2013-05-28 - Effective Date [SB115 Detail]

Download: Ohio-2013-SB115-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

S. B. No. 115

Senator Faber 

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A BILL

To amend Section 12 of Am. Sub. H.B. 386 of the 129th

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General Assembly to extend the moratorium on new

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establishments conducting sweepstakes by

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sweepstakes terminal devices, to require

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establishments to file a new affidavit, and to

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declare an emergency.

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

Section 1.  That Section 12 of Am. Sub. H.B. 386 of the 129th	7
General Assembly be amended to read as follows:	8

Sec. 12. (A) As used in this section:

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(1) "Sweepstakes" means any game, contest, advertising scheme	10
or plan, or other promotion, but does not include bingo, or games	11
or lotteries conducted by the state lottery commission, in which	12
consideration is not required for a person to enter to win or to	13
become eligible to receive any prize, the determination of which	14
is based upon chance.	15

(2) "Sweepstakes terminal device" means a mechanical, video,	16
digital, or electronic machine or device that is owned, leased, or	17
otherwise possessed by any person conducting a sweepstakes, or by	18
that person's partners, affiliates, subsidiaries, or contractors,	19
that is intended to be used by a sweepstakes participant who	20
purchases a tangible product to enter a sweepstakes, and that is	21
capable of displaying information on a screen or other mechanism.	22
A device is a sweepstakes terminal device whether or not any of	23
the following apply:	24

(a) The device is server-based.

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(b) The device uses a simulated game terminal as a	26
representation of the prizes associated with the results of the	27
sweepstakes entries.	28

(c) The device utilizes software such that the simulated game	29
influences or determines the winning of or value of the prize.	30

(d) The device selects prizes from a predetermined finite	31
pool of entries.	32

(e) The device utilizes a mechanism that reveals the content	33
of a predetermined sweepstakes entry.	34

(f) The device predetermines the prize results and stores	35
those results for delivery at the time the sweepstakes entry	36
results are revealed.	37

(g) The device utilizes software to create a game result.

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(h) The device requires deposit of any money, coin, or token,	39
or the use of any credit card, debit card, prepaid card, or any	40
other method of payment to activate the electronic machine or	41
device.	42

(i) The device requires direct payment into the device, or	43
remote activation of the device.	44

(j) The device reveals the prize incrementally, even though	45
the device does not influence the awarding of a prize or the value	46
of any prize awarded.	47

(k) The device determines and associates the prize with an	48
entry or entries at the time the sweepstakes is entered.	49

(l) The device is a slot machine or other form of electrical,	50
mechanical, or computer game.	51

(3) "Enter" means the purchase of a tangible product by which	52
a person becomes eligible to receive any prize offered in a	53
sweepstakes.	54

(4) "Entry" means one event from the initial activation of	55
the sweepstakes terminal device until all sweepstakes prize	56
results from that activation are revealed.	57

(5) "Prize" means any gift, award, gratuity, good, service,	58
credit, reward, or any other thing of value that may be	59
transferred to a person, whether possession of the prize is	60
actually transferred, or placed on an account or other record as	61
evidence of the intent to transfer the prize.	62

(B) On and after the effective date of this sectionJune 11,	63
2012, and through June 30, 20132014, no person shall conduct a	64
sweepstakes through the use of a sweepstakes terminal device that	65
has not conducted such a sweepstakes before the effective date of	66
this sectionJune 11, 2012. All sweepstakes establishments	67
conducting a sweepstakes through the use of a sweepstakes terminal	68
device, whether or not licensed by a local entity, in existence	69
and operating before the effective date of this section may	70
continue to operate at only their current locations after the	71
effective date of this sectionJune 11, 2012. Upon the expiration	72
of any current occupancy permit, permission to operate, or other	73
permit or license issued by a local entity for a sweepstakes	74
establishment that was in existence before the effective date of	75
this section, the local entity shall renew the occupancy permits	76
or licenses or grant permission at those pre-existing locations in	77
accordance with that local entity's current permit or licensing	78
ordinances or procedures. This division is not intended to	79
supersede any similar action taken by a county, township, or	80
municipal corporation.	81

(C) The General Assembly finds the following:

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(1) The state has experienced a proliferation of retail	83
businesses that utilize a sweepstakes to facilitate sales. These	84
establishments utilize computer terminals or stand alone machines,	85
which currently are not consistently and uniformly regulated	86
statewide and have created a window of opportunity for rogue	87
operators to open in cities across the state.	88

(2) Judges across the state have issued conflicting rulings	89
regarding the legality of these sweepstakes establishments.	90

(3) The General Assembly has determined that a moratorium on	91
new retail sweepstakes establishments is needed while legislation	92
is being considered.	93

(D)(1) Within thirty days after the effective date of this	94
sectionJune 11, 2012, a sweepstakes establishment conducting a	95
sweepstakes through the use of a sweepstakes terminal device in	96
existence and operating before the effectivethat date of this	97
section shall file an affidavit with the Attorney General	98
certifying that the establishment was in existence and operating	99
before the effectivethat date of this section and indicating the	100
address of the establishment.	101

If a sweepstakes establishment was in existence and operating	102
before the effective date of this sectionJune 11, 2012, but was	103
involuntarily shut down by law enforcement before that date,	104
solely for the purposes of this moratorium those sweepstakes	105
establishments shall be considered to be in existence and	106
operating before the effective date of this sectionJune 11, 2012.	107
If the sweepstakes establishment is permitted to resume operations	108
pursuant to court order, the sweepstakes establishment shall have	109
thirty days from the date of resuming operations to file the	110
required affidavit.	111

(2) Within thirty days after the effective date of this	112
amendment, a sweepstakes establishment conducting a sweepstakes	113
through the use of a sweepstakes terminal device in existence and	114
operating before June 11, 2012, and any such establishment in	115
existence and operating after that date and before the effective	116
date of this amendment, shall file an affidavit with the Attorney	117
General. The affidavit shall be made under oath on forms	118
prescribed by the Attorney General and shall contain information	119
as prescribed by the Attorney General, including, but not limited	120
to, the appropriate names, as determined by the Attorney General,	121
of owners or employees of the establishment, the date that the	122
establishment began conducting sweepstakes through the use of a	123
sweepstakes terminal device, and the date that the establishment	124
began making such sweepstakes available to the general public.	125

(E)(1) On and after the effective date of this sectionJune	126
11, 2012, and through June 30, 20132014, the Attorney General or	127
the appropriate county prosecuting attorney may bring an action	128
for injunction against a person that conducts a sweepstakes	129
through the use of a sweepstakes terminal device that has not	130
conducted such a sweepstakes before the effective date of this	131
sectionJune 11, 2012. If such a person continues to conduct such	132
a sweepstakes after an injunction is granted, a contempt action	133
may be brought by any means necessary.	134

(2) The Attorney General may impose a civil penalty of not	135
more than one thousand dollars for each day a person violates	136
division (D)(2) of this section. The Attorney General shall	137
commence and prosecute to judgment a civil action in a court of	138
competent jurisdiction to collect any civil penalty imposed under	139
this section that remains unpaid. All amounts collected shall be	140
deposited into the Attorney General Reimbursement Fund created in	141
section 109.11 of the Revised Code and shall be used by the	142
Attorney General solely to enforce this section.	143

(3) The Attorney General may initiate and prosecute a	144
criminal action against any person that provides false information	145
on the affidavit required under division (D)(2) of this section in	146
any court of competent jurisdiction in this state for a violation	147
of section 2921.13 of the Revised Code. When proceeding under this	148
section, the Attorney General has all rights, privileges, and	149
powers of prosecuting attorneys, and any assistant or special	150
counsel designated by the Attorney General for that purpose has	151
the same authority.	152

Section 2.  That existing Section 12 of Am. Sub. H.B. 386 of	153
the 129th General Assembly is hereby repealed.	154

Section 3.  This act is an emergency measure necessary for	155
the immediate preservation of the public peace, health, and	156
safety. The reasons for such necessity are the same as the	157
findings of the General Assembly described in the act. Therefore,	158
this act goes into immediate effect.	159