Bill Text: OH SB141 | 2013-2014 | 130th General Assembly | Comm Sub

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

---

Bill Title: To create penalties related to casino gaming and transacting with a casino facility, to require the Casino Control Commission to include in its annual report to the General Assembly information regarding prosecutions for conduct that is subject to those penalties, to allow a license, for instant bingo other than at a bingo session, and to be amended to add additional locations.

Spectrum: Slight Partisan Bill (Republican 11-4)

Status: (Passed) 2014-12-19 - Governor' Action [SB141 Detail]

Download: Ohio-2013-SB141-Comm_Sub.html

---

As Reported by the Senate Criminal Justice Committee

130th General Assembly Regular Session 2013-2014

Sub. S. B. No. 141

Senators Obhof, Hughes 

---

A BILL

To amend sections 3772.03 and 3772.99 of the Revised

1

Code to create penalties related to casino gaming

2

and transacting with a casino facility and to

3

require the Casino Control Commission to include

4

in its annual report to the General Assembly

5

information regarding prosecutions for conduct

6

that is subject to those penalties.

7

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

Section 1. That sections 3772.03 and 3772.99 of the Revised	8
Code be amended to read as follows:	9

Sec. 3772.03. (A) To ensure the integrity of casino gaming,	10
the commission shall have authority to complete the functions of	11
licensing, regulating, investigating, and penalizing casino	12
operators, management companies, holding companies, key employees,	13
casino gaming employees, and gaming-related vendors. The	14
commission also shall have jurisdiction over all persons	15
participating in casino gaming authorized by Section 6(C) of	16
Article XV, Ohio Constitution, and this chapter.	17

(B) All rules adopted by the commission under this chapter	18
shall be adopted under procedures established in Chapter 119. of	19
the Revised Code. The commission may contract for the services of	20
experts and consultants to assist the commission in carrying out	21
its duties under this section.	22

(C) Within six months of September 10, 2010, the commission	23
shall adopt initial rules as are necessary for completing the	24
functions stated in division (A) of this section and for	25
addressing the subjects enumerated in division (D) of this	26
section.	27

(D) The commission shall adopt, and as advisable and	28
necessary shall amend or repeal, rules that include all of the	29
following:	30

(1) The prevention of practices detrimental to the public	31
interest;	32

(2) Prescribing the method of applying, and the form of	33
application, that an applicant for a license under this chapter	34
must follow as otherwise described in this chapter;	35

(3) Prescribing the information to be furnished by an	36
applicant or licensee as described in section 3772.11 of the	37
Revised Code;	38

(4) Describing the certification standards and duties of an	39
independent testing laboratory certified under section 3772.31 of	40
the Revised Code and the relationship between the commission, the	41
laboratory, the gaming-related vendor, and the casino operator;	42

(5) The minimum amount of insurance that must be maintained	43
by a casino operator, management company, holding company, or	44
gaming-related vendor;	45

(6) The approval process for a significant change in	46
ownership or transfer of control of a licensee as provided in	47
section 3772.091 of the Revised Code;	48

(7) The design of gaming supplies, devices, and equipment to	49
be distributed by gaming-related vendors;	50

(8) Identifying the casino gaming that is permitted,	51
identifying the gaming supplies, devices, and equipment, that are	52
permitted, defining the area in which the permitted casino gaming	53
may be conducted, and specifying the method of operation according	54
to which the permitted casino gaming is to be conducted as	55
provided in section 3772.20 of the Revised Code, and requiring	56
gaming devices and equipment to meet the standards of this state;	57

(9) Tournament play in any casino facility;

58

(10) Establishing and implementing a voluntary exclusion	59
program that provides all of the following:	60

(a) Except as provided by commission rule, a person who	61
participates in the program shall agree to refrain from entering a	62
casino facility.	63

(b) The name of a person participating in the program shall	64
be included on a list of persons excluded from all casino	65
facilities.	66

(c) Except as provided by commission rule, no person who	67
participates in the program shall petition the commission for	68
admittance into a casino facility.	69

(d) The list of persons participating in the program and the	70
personal information of those persons shall be confidential and	71
shall only be disseminated by the commission to a casino operator	72
and the agents and employees of the casino operator for purposes	73
of enforcement and to other entities, upon request of the	74
participant and agreement by the commission.	75

(e) A casino operator shall make all reasonable attempts as	76
determined by the commission to cease all direct marketing efforts	77
to a person participating in the program.	78

(f) A casino operator shall not cash the check of a person	79
participating in the program or extend credit to the person in any	80
manner. However, the program shall not exclude a casino operator	81
from seeking the payment of a debt accrued by a person before	82
participating in the program.	83

(g) Any and all locations at which a person may register as a	84
participant in the program shall be published.	85

(11) Requiring the commission to adopt standards regarding	86
the marketing materials of a licensed casino operator, including	87
allowing the commission to prohibit marketing materials that are	88
contrary to the adopted standards;	89

(12) Requiring that the records, including financial	90
statements, of any casino operator, management company, holding	91
company, and gaming-related vendor be maintained in the manner	92
prescribed by the commission and made available for inspection	93
upon demand by the commission, but shall be subject to section	94
3772.16 of the Revised Code;	95

(13) Permitting a licensed casino operator, management	96
company, key employee, or casino gaming employee to question a	97
person suspected of violating this chapter;	98

(14) The chips, tokens, tickets, electronic cards, or similar	99
objects that may be purchased by means of an agreement under which	100
credit is extended to a wagerer by a casino operator;	101

(15) Establishing standards for provisional key employee	102
licenses for a person who is required to be licensed as a key	103
employee and is in exigent circumstances and standards for	104
provisional licenses for casino gaming employees who submit	105
complete applications and are compliant under an instant	106
background check. A provisional license shall be valid not longer	107
than three months. A provisional license may be renewed one time,	108
at the commission's discretion, for an additional three months. In	109
establishing standards with regard to instant background checks	110
the commission shall take notice of criminal records checks as	111
they are conducted under section 311.41 of the Revised Code using	112
electronic fingerprint reading devices.	113

(16) Establishing approval procedures for third-party	114
engineering or accounting firms, as described in section 3772.09	115
of the Revised Code;	116

(17) Prescribing the manner in which winnings, compensation	117
from casino gaming, and gross revenue must be computed and	118
reported by a licensee as described in Chapter 5753. of the	119
Revised Code;	120

(18) Prescribing conditions under which a licensee's license	121
may be suspended or revoked as described in section 3772.04 of the	122
Revised Code;	123

(19) Prescribing the manner and procedure of all hearings to	124
be conducted by the commission or by any hearing examiner;	125

(20) Prescribing technical standards and requirements that	126
are to be met by security and surveillance equipment that is used	127
at and standards and requirements to be met by personnel who are	128
employed at casino facilities, and standards and requirements for	129
the provision of security at and surveillance of casino	130
facilities;	131

(21) Prescribing requirements for a casino operator to	132
provide unarmed security services at a casino facility by licensed	133
casino employees, and the training that shall be completed by	134
these employees;	135

(22) Prescribing standards according to which casino	136
operators shall keep accounts and standards according to which	137
casino accounts shall be audited, and establish means of assisting	138
the tax commissioner in levying and collecting the gross casino	139
revenue tax levied under section 5753.02 of the Revised Code;	140

(23) Defining penalties for violation of commission rules and	141
a process for imposing such penalties subject to the review of the	142
joint committee on gaming and wagering;	143

(24) Establishing standards for decertifying contractors that	144
violate statutes or rules of this state or the federal government;	145

(25) Establishing standards for the repair of casino gaming	146
equipment;	147

(26) Establishing procedures to ensure that casino operators,	148
management companies, and holding companies are compliant with the	149
compulsive and problem gambling plan submitted under section	150
3772.18 of the Revised Code;	151

(27) Prescribing, for institutional investors in or holding	152
companies of a casino operator, management company, holding	153
company, or gaming-related vendor that fall below the threshold	154
needed to be considered an institutional investor or a holding	155
company, standards regarding what any employees, members, or	156
owners of those investors or holding companies may do and shall	157
not do in relation to casino facilities and casino gaming in this	158
state, which standards shall rationally relate to the need to	159
proscribe conduct that is inconsistent with passive institutional	160
investment status;	161

(28) Providing for any other thing necessary and proper for	162
successful and efficient regulation of casino gaming under this	163
chapter.	164

(E) The commission shall employ and assign gaming agents as	165
necessary to assist the commission in carrying out the duties of	166
this chapter. In order to maintain employment as a gaming agent,	167
the gaming agent shall successfully complete all continuing	168
training programs required by the commission and shall not have	169
been convicted of or pleaded guilty or no contest to a	170
disqualifying offense as defined in section 3772.07 of the Revised	171
Code.	172

(F) The commission, as a law enforcement agency, and its	173
gaming agents, as law enforcement officers as defined in section	174
2901.01 of the Revised Code, shall have authority with regard to	175
the detection and investigation of, the seizure of evidence	176
allegedly relating to, and the apprehension and arrest of persons	177
allegedly committing gaming offenses, and shall have access to	178
casino facilities to carry out the requirements of this chapter.	179

(G) The commission may eject or exclude or authorize the	180
ejection or exclusion of and a gaming agent may eject a person	181
from a casino facility for any of the following reasons:	182

(1) The person's name is on the list of persons voluntarily	183
excluding themselves from all casinos in a program established	184
according to rules adopted by the commission;	185

(2) The person violates or conspires to violate this chapter	186
or a rule adopted thereunder; or	187

(3) The commission determines that the person's conduct or	188
reputation is such that the person's presence within a casino	189
facility may call into question the honesty and integrity of the	190
casino gaming operations or interfere with the orderly conduct of	191
the casino gaming operations.	192

(H) A person, other than a person participating in a	193
voluntary exclusion program, may petition the commission for a	194
public hearing on the person's ejection or exclusion under this	195
chapter.	196

(I) A casino operator or management company shall have the	197
same authority to eject or exclude a person from the management	198
company's casino facilities as authorized in division (G) of this	199
section. The licensee shall immediately notify the commission of	200
an ejection or exclusion.	201

(J) The commission shall submit a written annual report with	202
the governor, president and minority leader of the senate, speaker	203
and minority leader of the house of representatives, and joint	204
committee on gaming and wagering before the first day of September	205
each year. The annual report shall cover the previous fiscal year	206
and shall include aall of the following:	207

(1) A statement describing the receipts and disbursements of	208
the commission, relevant;	209

(2) Relevant financial data regarding casino gaming,	210
including gross revenues and disbursements made under this	211
chapter, actions;	212

(3) Actions taken by the commission, an;

213

(4) An update on casino operators', management companies',	214
and holding companies' compulsive and problem gambling plans and	215
the voluntary exclusion program and list, and any;	216

(5) Information regarding prosecutions for conduct described	217
in division (H) of section 3772.99 of the Revised Code, including,	218
but not limited to, the total number of prosecutions commenced and	219
the name of each person prosecuted;	220

(6) Any additional information that the commission considers	221
useful or that the governor, president or minority leader of the	222
senate, speaker or minority leader of the house of	223
representatives, or joint committee on gaming and wagering	224
requests.	225

(K) Notwithstanding any law to the contrary, beginning on	226
July 1, 2011, the commission shall assume jurisdiction over and	227
oversee the regulation of skill-based amusement machines as is	228
provided in the law of this state.	229

Sec. 3772.99.  (A) The commission shall levy and collect	230
penalties for noncriminal violations of this chapter. Noncriminal	231
violations include using the term "casino" in any advertisement in	232
regard to a facility operating video lottery terminals, as defined	233
in section 3770.21 of the Revised Code, in this state. Moneys	234
collected from such penalty levies shall be credited to the	235
general revenue fund.	236

(B) If a licensed casino operator, management company,	237
holding company, gaming-related vendor, or key employee violates	238
this chapter or engages in a fraudulent act, the commission may	239
suspend or revoke the license and may do either or both of the	240
following:	241

(1) Suspend, revoke, or restrict the casino gaming operations	242
of a casino operator;	243

(2) Require the removal of a management company, key	244
employee, or discontinuance of services from a gaming-related	245
vendor.	246

(C) The commission shall impose civil penalties against a	247
person who violates this chapter under the penalties adopted by	248
commission rule and reviewed by the joint committee on gaming and	249
wagering.	250

(D) A person who knowingly or intentionally does any of the	251
following commits a misdemeanor of the first degree on the first	252
offense and a felony of the fifth degree for a subsequent offense:	253

(1) Makes a false statement on an application submitted under	254
this chapter;	255

(2) Permits a person less than twenty-one years of age to	256
make a wager at a casino facility;	257

(3) Aids, induces, or causes a person less than twenty-one	258
years of age who is not an employee of the casino gaming operation	259
to enter or attempt to enter a casino facility;	260

(4) Enters or attempts to enter a casino facility while under	261
twenty-one years of age, unless the person enters a designated	262
area as described in section 3772.24 of the Revised Code;	263

(5) Is a casino operator or employee and participates in	264
casino gaming other than as part of operation or employment.	265

(E) A person who knowingly or intentionally does any of the	266
following commits a felony of the fifth degree on a first offense	267
and a felony of the fourth degree for a subsequent offense. If the	268
person is a licensee under this chapter, the commission shall	269
revoke the person's license after the first offense.	270

(1) Uses or possesses with the intent to use a device to	271
assist in projecting the outcome of the casino game, keeping track	272
of the cards played, analyzing the probability of the occurrence	273
of an event relating to the casino game, or analyzing the strategy	274
for playing or betting to be used in the casino game, except as	275
permitted by the commission;	276

(2) Cheats at a casino game;

277

(3) Manufactures, sells, or distributes any cards, chips,	278
dice, game, or device that is intended to be used to violate this	279
chapter;	280

(4) Alters or misrepresents the outcome of a casino game on	281
which wagers have been made after the outcome is made sure but	282
before the outcome is revealed to the players;	283

(5) Places, increases, or decreases a wager on the outcome of	284
a casino game after acquiring knowledge that is not available to	285
all players and concerns the outcome of the casino game that is	286
the subject of the wager;	287

(6) Aids a person in acquiring the knowledge described in	288
division (E)(5) of this section for the purpose of placing,	289
increasing, or decreasing a wager contingent on the outcome of a	290
casino game;	291

(7) Claims, collects, takes, or attempts to claim, collect,	292
or take money or anything of value in or from a casino game with	293
the intent to defraud or without having made a wager contingent on	294
winning a casino game;	295

(8) Claims, collects, or takes an amount of money or thing of	296
value of greater value than the amount won in a casino game;	297

(9) Uses or possesses counterfeit chips, tokens, or cashless	298
wagering instruments in or for use in a casino game;	299

(10) Possesses a key or device designed for opening,	300
entering, or affecting the operation of a casino game, drop box,	301
or an electronic or a mechanical device connected with the casino	302
game or removing coins, tokens, chips, or other contents of a	303
casino game. This division does not apply to a casino operator,	304
management company, or gaming-related vendor or their agents and	305
employees in the course of agency or employment.	306

(11) Possesses materials used to manufacture a device	307
intended to be used in a manner that violates this chapter;	308

(12) Operates a casino gaming operation in which wagering is	309
conducted or is to be conducted in a manner other than the manner	310
required under this chapter.	311

(F) The possession of more than one of the devices described	312
in division (E)(9), (10), or (11) of this section creates a	313
rebuttable presumption that the possessor intended to use the	314
devices for cheating.	315

(G) A person who knowingly or intentionally does any of the	316
following commits a felony of the third degree. If the person is a	317
licensee under this chapter, the commission shall revoke the	318
person's license after the first offense. A public servant or	319
party official who is convicted under this division is forever	320
disqualified from holding any public office, employment, or	321
position of trust in this state.	322

(1) Offers, promises, or gives anything of value or benefit	323
to a person who is connected with the casino operator, management	324
company, holding company, or gaming-related vendor, including	325
their officers and employees, under an agreement to influence or	326
with the intent to influence the actions of the person to whom the	327
offer, promise, or gift was made in order to affect or attempt to	328
affect the outcome of a casino game or an official action of a	329
commission member, agent, or employee;	330

(2) Solicits, accepts, or receives a promise of anything of	331
value or benefit while the person is connected with a casino,	332
including an officer or employee of a casino operator, management	333
company, or gaming-related vendor, under an agreement to influence	334
or with the intent to influence the actions of the person to	335
affect or attempt to affect the outcome of a casino game or an	336
official action of a commission member, agent, or employee;	337

(H) A person who knowingly or intentionally does any of the	338
following while participating in casino gaming or otherwise	339
transacting with a casino facility as permitted by Chapter 3772.	340
of the Revised Code commits a felony of the fifth degree on a	341
first offense and a felony of the fourth degree for a subsequent	342
offense:	343

(1) Causes or attempts to cause a casino facility to fail to	344
file a report required under 31 U.S.C. 5313(a) or 5325 or any	345
regulation prescribed thereunder or section 1315.53 of the Revised	346
Code, or to fail to file a report or maintain a record required by	347
an order issued under section 21 of the "Federal Deposit Insurance	348
Act" or section 123 of Pub. L. No. 91-508;	349

(2) Causes or attempts to cause a casino facility to file a	350
report required under 31 U.S.C. 5313(a) or 5325 or any regulation	351
prescribed thereunder or section 1315.53 of the Revised Code, to	352
file a report or to maintain a record required by any order issued	353
under 31 U.S.C. 5326, or to maintain a record required under any	354
regulation prescribed under section 21 of the "Federal Deposit	355
Insurance Act" or section 123 of Pub. L. No. 91-508 that contains	356
a material omission or misstatement of fact;	357

(3) With one or more casino facilities, structures a	358
transaction, is complicit in structuring a transaction, attempts	359
to structure a transaction, or is complicit in an attempt to	360
structure a transaction.	361

(I) A person who is convicted of a felony described in this	362
chapter may be barred for life from entering a casino facility by	363
the commission.	364

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

365

(1) To be "complicit" means to engage in any conduct of a	366
type described in divisions (A)(1) to (4) of section 2923.03 of	367
the Revised Code.	368

(2) "Structure a transaction" has the same meaning as in	369
section 1315.51 of the Revised Code.	370

Section 2. That existing sections 3772.03 and 3772.99 of the	371
Revised Code are hereby repealed.	372