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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 399
2025-2026
Senator Schaffer
To
amend sections 109.32, 2915.02, 2915.08, 2915.081, 2915.082, 2915.10,
and 2915.14 and to enact sections 2915.021 and 2915.083 of the
Revised Code
to
modify the Attorney General's authority under the Charitable Gaming
Law and to make related changes to that law.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 109.32, 2915.02, 2915.08, 2915.081, 2915.082, 2915.10, and
2915.14 be amended and sections 2915.021 and 2915.083 of the Revised
Code be enacted to read as follows:
Sec.
109.32.
(A)
All annual filing fees obtained by the attorney general pursuant to
section 109.31 of the Revised Code, all receipts obtained from the
sale of the charitable foundations directory, all registration fees
received by the attorney general, bond forfeitures, awards of costs
and attorney's fees, and civil penalties assessed under Chapter 1716.
of the Revised Code, all license fees received by the attorney
general under section 2915.08, 2915.081, or 2915.082 of the Revised
Code, all fees received by the attorney general under section 2915.15
of the Revised Code, and all filing fees received by the attorney
general under divisions (F) and (G) of section 2915.02 of the Revised
Code, shall be paid into the state treasury to the credit of the
charitable law fund.
(B)(1)
Except as otherwise provided in divisions (B)(2) and (3) of this
section, the charitable law fund shall be used insofar as its moneys
are available for the expenses of the charitable law section of the
office of the attorney general.
(2)
All annual license fees that are received by the attorney general
under section 2915.08, 2915.081, or 2915.082 of the Revised Code, and
all filing fees received by the attorney general under divisions (F)
and (G) of section 2915.02 of the Revised Code, that are credited to
the fund shall be used by the attorney general, or any law
enforcement agency in cooperation with the attorney general, for the
purposes specified in
division
(H) of
section
2915.10
2915.021
of
the Revised Code and to administer and enforce Chapter 2915. of the
Revised Code.
(3)
All fees received by the attorney general under section 2915.15 of
the Revised Code that are credited to the fund shall be used for the
purposes specified in that section.
(C)
The expenses of the charitable law section in excess of moneys
available in the charitable law fund shall be paid out of regular
appropriations to the office of the attorney general.
Sec.
2915.02.
(A)
No person shall do any of the following:
(1)
Engage in bookmaking, or knowingly engage in conduct that facilitates
bookmaking;
(2)
Establish, promote, or operate or knowingly engage in conduct that
facilitates any game of chance conducted for profit or any scheme of
chance;
(3)
Knowingly procure, transmit, exchange, or engage in conduct that
facilitates the procurement, transmission, or exchange of information
for use in establishing odds or determining winners in connection
with bookmaking or with any game of chance conducted for profit or
any scheme of chance;
(4)
Engage in betting or in playing any scheme or game of chance as a
substantial source of income or livelihood;
(5)
Conduct, or participate in the conduct of, a sweepstakes with the use
of a sweepstakes terminal device at a sweepstakes terminal device
facility and either:
(a)
Give to another person any item described in division (VV)(1), (2),
(3), or (4) of section 2915.01 of the Revised Code as a prize for
playing or participating in a sweepstakes; or
(b)
Give to another person any merchandise prize, or a redeemable voucher
for a merchandise prize, the wholesale value of which is in excess of
ten dollars and which is awarded as a single entry for playing or
participating in a sweepstakes. Redeemable vouchers shall not be
redeemable for a merchandise prize that has a wholesale value of more
than ten dollars.
(6)
Conduct, or participate in the conduct of, a sweepstakes with the use
of a sweepstakes terminal device at a sweepstakes terminal device
facility without first obtaining a current annual "certificate
of registration" from the attorney general as required by
division (F) of this section;
(7)
With purpose to violate division (A)(1), (2), (3), (4), (5), or (6)
of this section, acquire, possess, control, or operate any gambling
device.
(B)
For purposes of division (A)(1) of this section, a person facilitates
bookmaking if the person in any way knowingly aids an illegal
bookmaking operation, including, without limitation, placing a bet
with a person engaged in or facilitating illegal bookmaking. For
purposes of division (A)(2) of this section, a person facilitates a
game of chance conducted for profit or a scheme of chance if the
person in any way knowingly aids in the conduct or operation of any
such game or scheme, including, without limitation, playing any such
game or scheme.
(C)
This section does not prohibit conduct in connection with gambling
expressly permitted by law.
(D)
This section does not apply to any of the following:
(1)
Games of chance, if all of the following apply:
(a)
The games of chance are not craps for money or roulette for money.
(b)
The games of chance are conducted by a charitable organization that
is, and has received from the internal revenue service a
determination letter that is currently in effect, stating that the
organization is
,
exempt from federal income taxation under subsection 501(a) and
described in subsection 501(c)(3) of the Internal Revenue Code.
(c)
The games of chance are conducted at festivals of the charitable
organization that are conducted not more than a total of five days a
calendar year, and are conducted on premises owned by the charitable
organization for a period of no less than one year immediately
preceding the conducting of the games of chance, on premises leased
from a governmental unit, or on premises that are leased from a
veteran's or fraternal organization and that have been owned by the
lessor veteran's or fraternal organization for a period of no less
than one year immediately preceding the conducting of the games of
chance.
A
charitable organization shall not lease premises from a veteran's or
fraternal organization to conduct a festival described in division
(D)(1)(c) of this section if the veteran's or fraternal organization
already has leased the premises twelve times during the preceding
year to charitable organizations for that purpose. If a charitable
organization leases premises from a veteran's or fraternal
organization to conduct a festival described in division (D)(1)(c) of
this section, the charitable organization shall not pay a rental rate
for the premises per day of the festival that exceeds the rental rate
per bingo session that a charitable organization may pay under
division (B)(1) of section 2915.09 of the Revised Code when it leases
premises from another charitable organization to conduct bingo games.
(d)
All of the money or assets received from the games of chance after
deduction only of prizes paid out during the conduct of the games of
chance are used by, or given, donated, or otherwise transferred to,
any organization that is described in subsection 509(a)(1),
509(a)(2), or 509(a)(3) of the Internal Revenue Code and is either a
governmental unit or an organization that is tax exempt under
subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code;
(e)
The games of chance are not conducted during, or within ten hours of,
a bingo game conducted for amusement purposes only pursuant to
section 2915.12 of the Revised Code.
No
person shall receive any commission, wage, salary, reward, tip,
donation, gratuity, or other form of compensation, directly or
indirectly, for operating or assisting in the operation of any game
of chance.
(2)
Any tag fishing tournament operated under a permit issued under
section 1533.92 of the Revised Code, as "tag fishing tournament"
is defined in section 1531.01 of the Revised Code;
(3)
Bingo conducted by a charitable organization that holds a license
issued under section 2915.08 of the Revised Code.
(E)
Division (D) of this section shall not be construed to authorize the
sale, lease, or other temporary or permanent transfer of the right to
conduct games of chance, as granted by that division, by any
charitable organization that is granted that right.
(F)
Any person desiring to conduct, or participate in the conduct of, a
sweepstakes with the use of a sweepstakes terminal device at a
sweepstakes terminal device facility shall first register with the
office of the attorney general and obtain an annual certificate of
registration by providing a filing fee of two hundred dollars and all
information as required by rule adopted under division (H) of this
section. Not later than the tenth day of each month, each sweepstakes
terminal device operator shall file a sweepstakes terminal device
monthly report with the attorney general and provide a filing fee of
fifty dollars and all information required by rule adopted under
division (H) of this section. All information provided to the
attorney general under this division shall be available to law
enforcement upon request.
(G)
A person may apply to the attorney general, on a form prescribed by
the attorney general, for a certificate of compliance that the person
is not operating a sweepstakes terminal device facility. The form
shall require the person to include the address of the business
location where sweepstakes terminal devices will be used and to make
the following certifications:
(1)
That the person will not use more than two sweepstakes terminal
devices at the business location;
(2)
That the retail value of sweepstakes prizes to be awarded at the
business location using sweepstakes terminal devices during a
reporting period will be less than three per cent of the gross
revenue received at the business location during the reporting
period;
(3)
That no other form of gaming except lottery ticket sales as
authorized under Chapter 3770. of the Revised Code will be conducted
at the business location or in an adjoining area of the business
location;
(4)
That any sweepstakes terminal device at the business location will
not allow any deposit of any money, coin, or token, or the use of any
credit card, debit card, prepaid card, or any other method of similar
payment to be used, directly or indirectly, to participate in a
sweepstakes;
(5)
That notification of any prize will not take place on the same day as
a participant's sweepstakes entry; and
(6)
That the person consents to provide any other information to the
attorney general as required by rule adopted under division (H) of
this section.
The
filing fee for a certificate of compliance is two hundred fifty
dollars. The attorney general may charge up to an additional two
hundred fifty dollars for reasonable expenses resulting from any
investigation related to an application for a certificate of
compliance.
A
certificate of compliance is effective for one year. The certificate
holder may reapply for a certificate of compliance. A person issued a
certificate of compliance shall file semiannual reports with the
attorney general stating the number of sweepstakes terminal devices
at the business location and that the retail value of prizes awarded
at the business location using sweepstakes terminal devices is less
than three per cent of the gross revenue received at the business
location.
(H)
The attorney general shall adopt rules setting forth:
(1)
The required information to be submitted by persons conducting a
sweepstakes with the use of a sweepstakes terminal device at a
sweepstakes terminal device facility as described in division (F) of
this section; and
(2)
The requirements pertaining to a certificate of compliance under
division (G) of this section, which shall provide for a person to
file a consolidated application and a consolidated semiannual report
if a person has more than one business location.
The
attorney general shall issue a certificate of registration or a
certificate of compliance to all persons who have successfully
satisfied the applicable requirements of this section. The attorney
general shall post online a registry of all properly registered and
certified sweepstakes terminal device operators.
(I)
The attorney general may refuse to issue an annual certificate of
registration or certificate of compliance to any person or, if one
has been issued, the attorney general may revoke a certificate of
registration or a certificate of compliance if the applicant has
provided any information to the attorney general as part of a
registration, certification, monthly report, semiannual report, or
any other information that is materially false or misleading, or if
the applicant or any officer, partner, or owner of five per cent or
more interest in the applicant has violated any provision of this
chapter.
(J)
The
attorney general may take any necessary and reasonable action to
determine a violation of this chapter, including requesting documents
and information, performing inspections of premises, or requiring the
attendance of any person at an examination under oath.
(K)
Whoever
violates this section is guilty of gambling, a misdemeanor of the
first degree. If the offender previously has been convicted of any
gambling offense, gambling is a felony of the fifth degree.
Notwithstanding this division, failing to file a sweepstakes terminal
device monthly report as required by division (F) of this section or
the semiannual report required by division (G) of this section is a
misdemeanor of the first degree.
Sec.
2915.021.
(A)
The attorney general may take any necessary and reasonable action to
determine whether a violation of this chapter or the rules of the
attorney general adopted under this chapter is occurring or has
occurred, including all of the following:
(1)
Investigating any person, including a charitable organization,
distributor, or manufacturer or any officer, agent, trustee, member,
or employee of the organization, distributor, or manufacturer;
(2)
Conducting inspections of premises.
An
inspection of premises may be conducted only when the premises is
open for business or when the investigator or inspector reasonably
believes that activity is occurring on the premises.
An
inspection of premises may include the search and seizure of books,
records, gambling devices, and other materials, wherever they may be
found on the premises, if the investigator or inspector reasonably
suspects that they are evidence of such a violation.
(3)
Conducting inspections, audits, and observations of bingo or games of
chance;
(4)
Requiring the production of documentary material;
(5)
Requiring the attendance of any person, including any person who has
knowledge of any documentary material required to be produced under
division (A)(4) of this section, to testify under oath in one of the
following locations, as applicable:
(a)
The county in which the person resides or has a place of business;
(b)
Franklin county, if the person has no residence or place of business
in this state or if the person consents to testify there.
(B)
In addition to pursuing any other remedy authorized by law, the
attorney general may bring a civil action to enforce this chapter or
any rule of the attorney general adopted under this chapter.
(C)
A prosecuting attorney who brings a criminal or civil action to
enforce this chapter shall give written notice to the attorney
general when commencing the action.
(D)
No person shall knowingly do any of the following:
(1)
Destroy, alter, conceal, withhold, or deny access to any documentary
material that has been requested for examination or required to be
produced under this section;
(2)
Obstruct, impede, or interfere with any inspection, audit, or
observation under this section;
(3)
Refuse to comply with any reasonable request of, or obstruct, impede,
or interfere with any other reasonable action undertaken by, the
attorney general pursuant to this section.
(E)
Whoever violates division (D) of this section is guilty of
obstructing a gambling investigation, a misdemeanor of the first
degree.
(F)
Any documentary material obtained by the attorney general pursuant to
an investigation conducted under this section is not subject to
disclosure as a public record under section 149.43 of the Revised
Code.
Sec.
2915.08.
(A)(1)
Except as otherwise permitted under section 2915.092 of the Revised
Code,
annually
before the first day of January,
a
charitable organization that desires to conduct bingo shall apply to
the attorney general for one or more of the following types of
licenses to conduct bingo, as appropriate:
(a)
A type I license to conduct bingo as described in division (O)(1) of
section 2915.01 of the Revised Code;
(b)
A type II license to conduct instant bingo, electronic instant bingo,
or both at a bingo session;
(c)
A type III license to conduct instant bingo, electronic instant
bingo, or both other than at a bingo session, in accordance with
sections 2915.093 to 2915.095 or sections 2915.13 to 2915.15 of the
Revised Code, as applicable.
(2)
A veteran's organization or fraternal organization that is authorized
under section 2915.14 of the Revised Code to conduct electronic
instant bingo may be issued only one license to conduct electronic
instant bingo at any one time. The organization may conduct
electronic instant bingo under that license at only one location
specified on the license, which shall be the organization's principal
place of business.
(3)
An initial or renewed license issued under this section is valid for
a period of one year. The attorney general shall prescribe by rule
adopted pursuant to section 111.15 of the Revised Code a staggered
annual schedule of license application deadlines in order to
facilitate the efficient processing of applications.
(B)
The application shall be accompanied by a license fee as follows:
(1)
If the charitable organization was not licensed to conduct bingo
under this chapter before July 1, 2003, a fee established by the
attorney general by rule adopted pursuant to section 111.15 of the
Revised Code.
(2)
If the charitable organization was licensed to conduct bingo under
this chapter before July 1, 2003, the following applicable fee:
(a)
For a type I license for a charitable organization that wishes to
conduct bingo during twenty-six or more weeks in any calendar year, a
license fee of two hundred dollars;
(b)
For a type II or type III license for a charitable organization that
previously has not been licensed under this chapter to conduct
instant bingo or electronic instant bingo and that wishes to conduct
bingo during twenty-six or more weeks in any calendar year, a license
fee of five hundred dollars;
(c)
For a type II or type III license for a charitable organization that
previously has been licensed under this chapter to conduct instant
bingo or electronic instant bingo and that desires to conduct bingo
during twenty-six or more weeks in any calendar year, a license fee
that is based upon the gross profits received by the charitable
organization from the operation of instant bingo or electronic
instant bingo during the one-year period ending on the
thirty-first
day of October of the year immediately preceding
date
that is two months before
the
year
application
deadline
for
which
the
license
is sought
renewal
,
and that is one of the following:
(i)
Five hundred dollars, if the total is fifty thousand dollars or less;
(ii)
One thousand two hundred fifty dollars plus one-fourth per cent of
the gross profit, if the total is more than fifty thousand dollars
but less than two hundred fifty thousand one dollars;
(iii)
Two thousand two hundred fifty dollars plus one-half per cent of the
gross profit, if the total is more than two hundred fifty thousand
dollars but less than five hundred thousand one dollars;
(iv)
Three thousand five hundred dollars plus one per cent of the gross
profit, if the total is more than five hundred thousand dollars but
less than one million one dollars;
(v)
Five thousand dollars plus one per cent of the gross profit, if the
total is one million one dollars or more.
(c)
(d)
For a type I, type II, or type III license for a charitable
organization that desires to conduct bingo during fewer than
twenty-six weeks in any calendar year, a reduced license fee
established by the attorney general by rule adopted pursuant to
section 111.15 of the Revised Code.
(C)
The application shall be in the form prescribed by the attorney
general, shall be signed and sworn to by the applicant, and shall
contain all of the following:
(1)
The name and post-office address of the applicant;
(2)
A statement that the applicant is a charitable organization and that
it has been in continuous existence as a charitable organization in
this state for two years immediately preceding the making of the
application;
(3)
The location at which the organization will conduct bingo, which
location shall be within the county in which the principal place of
business of the applicant is located, the days of the week and the
times on each of those days when bingo will be conducted, whether the
organization owns, leases, or subleases the premises, and a copy of
the rental agreement if it leases or subleases the premises;
(4)
A statement of the applicant's previous history, record, and
association that is sufficient to establish that the applicant is a
charitable organization, and a copy of a determination letter that is
issued by the Internal Revenue Service and states that the
organization is tax exempt under subsection 501(a) and described in
subsection 501(c)(3), 501(c)(4), 501(c)(7), 501(c)(8), 501(c)(10), or
501(c)(19) of the Internal Revenue Code;
(5)
A statement as to whether the applicant has ever had any previous
application refused, whether it previously has had a license revoked
or suspended, and the reason stated by the attorney general for the
refusal, revocation, or suspension;
(6)
A statement of the charitable purposes for which the net profit
derived from bingo described in division (O)(1) of section 2915.01 of
the Revised Code will be used, or a statement of how the net profit
derived from instant bingo or electronic instant bingo will be
distributed in accordance with section 2915.101 of the Revised Code,
as applicable;
(7)
Other necessary and reasonable information that the attorney general
may require by rule adopted pursuant to section 111.15 of the Revised
Code;
(8)
If the applicant is a charitable trust as defined in section 109.23
of the Revised Code, a statement as to whether it has registered with
the attorney general pursuant to section 109.26 of the Revised Code
or filed annual reports pursuant to section 109.31 of the Revised
Code, and, if it is not required to do either, the exemption in
section 109.26 or 109.31 of the Revised Code that applies to it;
(9)
If the applicant is a charitable organization as defined in section
1716.01 of the Revised Code, a statement as to whether it has filed
with the attorney general a registration statement pursuant to
section 1716.02 of the Revised Code and a financial report pursuant
to section 1716.04 of the Revised Code, and, if it is not required to
do both, the exemption in section 1716.03 of the Revised Code that
applies to it;
(10)
In the case of an applicant seeking to qualify as a youth athletic
park organization, a statement issued by a board or body vested with
authority under Chapter 755. of the Revised Code for the supervision
and maintenance of recreation facilities in the territory in which
the organization is located, certifying that the playing fields owned
by the organization were open for use to all residents of that
territory, regardless of race, color, creed, religion, sex, or
national origin, for athletic activities by youth athletic
organizations that do not discriminate on the basis of race, color,
creed, religion, sex, or national origin, and that the fields were
not used for any profit-making activity at any time during the year.
That type of board or body is authorized to issue the statement upon
request and shall issue the statement if it finds that the
applicant's playing fields were so used.
(D)
The attorney general, within thirty days after receiving a timely
filed application from a charitable organization that has been issued
a license under this section that has not expired and has not been
revoked or suspended, shall send a temporary permit to the applicant
specifying the date on which the application was filed with the
attorney general and stating that, pursuant to section 119.06 of the
Revised Code, the applicant may continue to conduct bingo until a new
license is granted or, if the application is rejected, until fifteen
days after notice of the rejection is mailed to the applicant. The
temporary permit does not affect the validity of the applicant's
application and does not grant any rights to the applicant except
those rights specifically granted in section 119.06 of the Revised
Code. The issuance of a temporary permit by the attorney general
pursuant to this division does not prohibit the attorney general from
rejecting the applicant's application because of acts that the
applicant committed, or actions that the applicant failed to take,
before or after the issuance of the temporary permit.
(E)
Within thirty days after receiving an initial license application
from a charitable organization to conduct bingo, the attorney general
shall conduct a preliminary review of the application and notify the
applicant regarding any deficiencies. Once an application is deemed
complete, or beginning on the thirtieth day after the application is
filed, if the attorney general failed to notify the applicant of any
deficiencies, the attorney general shall have an additional sixty
days to conduct an investigation and either grant, grant with limits,
restrictions, or probationary conditions, or deny the application
based on findings established and communicated in accordance with
divisions (F) and (I) of this section. As an option to granting,
granting with limits, restrictions, or probationary conditions, or
denying an initial license application, the attorney general may
grant a temporary license and request additional time to conduct the
investigation if the attorney general has cause to believe that
additional time is necessary to complete the investigation and has
notified the applicant in writing about the specific concerns raised
during the investigation.
(F)(1)
The attorney general shall adopt rules to enforce sections 2915.01,
2915.02, and 2915.07 to 2915.15 of the Revised Code to ensure that
bingo is conducted in accordance with those sections and to maintain
proper control over the conduct of bingo. Except as otherwise
provided in this section, the rules shall be adopted pursuant to
Chapter 119. of the Revised Code. The attorney general shall license
charitable organizations to conduct bingo in conformance with this
chapter and with the licensing provisions of Chapter 119. of the
Revised Code.
(2)
If any of the following applies to an organization, the attorney
general may refuse to grant a license to the organization, may revoke
or suspend the organization's license, or may place limits,
restrictions, or probationary conditions on the organization's
license for a limited or indefinite period, as determined by the
attorney general:
(a)
The organization fails or has failed at any time to meet any
requirement of section 109.26, 109.31, or 1716.02, or sections
2915.07 to 2915.15 of the Revised Code, or violates or has violated
any provision of sections 2915.02 or 2915.07 to 2915.13 of the
Revised Code or any rule adopted by the attorney general pursuant to
this chapter.
(b)
The organization makes or has made an incorrect or false statement
that is material to the granting of the license in an application
filed under this section.
(c)
The organization submits or has submitted any incorrect or false
information relating to an application if the information is material
to the granting of the license.
(d)
The organization maintains or has maintained any incorrect or false
information that is material to the granting of the license in the
records required to be kept pursuant to section 2915.10 of the
Revised Code, if applicable.
(e)
The attorney general has good cause to believe that the organization
will not conduct bingo in accordance with sections 2915.07 to 2915.15
of the Revised Code or with any rule adopted by the attorney general
pursuant to this chapter.
(3)
If the attorney general has good cause to believe that any director
or officer of the organization has breached the director's or
officer's fiduciary duty to, or committed theft or any other type of
misconduct related to, the organization or any other charitable
organization that has been issued a bingo license under this chapter,
the attorney general may refuse to grant a license to the
organization, may impose limits, restrictions, or probationary
conditions on the license, or may revoke or suspend the
organization's license for a period not to exceed five years.
(4)
The
attorney general may adopt rules under Chapter 119. of the Revised
Code prescribing procedures allowing the attorney general to seek a
summary suspension of an organization's license issued under this
section, temporary license issued under this section, or temporary
permit issued under this section if the attorney general has good
cause to believe that the organization or any of the organization's
employees, officers, directors, agents, representatives, or partners,
has violated this chapter or a rule adopted under this chapter.
(5)
The
attorney general may impose a civil fine on an organization licensed
or permitted under this chapter for failure to comply with any
restrictions, limits, or probationary conditions on its license, and
for failure to comply with this chapter or any rule adopted under
this chapter, according to a schedule of fines that the attorney
general shall adopt in accordance with Chapter 119. of the Revised
Code.
(5)
(6)
For
the purposes of division (F) of this section, any action of an
officer, trustee, agent, representative, or bingo game operator of an
organization is an action of the organization.
(G)
The attorney general may grant licenses to charitable organizations
that are branches, lodges, or chapters of national charitable
organizations.
(H)
The attorney general shall send notice of any of the following
actions in writing to the prosecuting attorney and sheriff of the
county in which the charitable organization is located and to any
other law enforcement agency in that county that so requests, of all
of the following:
(1)
The issuance of a license under this section;
(2)
The issuance of an amended license under this section;
(3)
The rejection of an application for and refusal to grant a license
under this section;
(4)
The revocation of any license previously issued under this section;
(5)
The suspension of any license previously issued under this section;
(6)
The placing of any limits, restrictions, or probationary conditions
placed on a license issued under this section.
(I)
A license issued by the attorney general under this section shall set
forth the information contained on the application of the charitable
organization that the attorney general determines is relevant,
including, but not limited to, the location at which the organization
will conduct bingo, whether the license is a type I, type II, or type
III license, and the days of the week and the times on each of those
days when bingo will be conducted. If the attorney general refuses to
grant, places limits, restrictions, or probationary conditions on, or
revokes or suspends a license, the attorney general shall notify the
applicant in writing and specifically identify the reason for the
refusal, revocation, limit, restriction, probationary condition, or
suspension in narrative form and, if applicable, by identifying the
section of the Revised Code violated. The failure of the attorney
general to give the written notice of the reasons for the refusal,
revocation, limit, restriction, probationary condition, or suspension
or a mistake in the written notice does not affect the validity of
the attorney general's refusal to grant, or the revocation or
suspension of, or limit, restriction, probationary condition on, a
license. If the attorney general fails to give the written notice or
if there is a mistake in the written notice, the applicant may bring
an action to compel the attorney general to comply with this division
or to correct the mistake, but the attorney general's order refusing
to grant, or placing a limit, restriction, or probationary condition
on, or revoking or suspending, a license shall not be enjoined during
the pendency of the action.
(J)(1)(a)
Except as otherwise provided in division (J)(2) of this section, a
charitable organization that has been issued a license under this
section but that cannot conduct bingo at the location, or on the day
of the week or at the time, specified on the license due to
circumstances that make it impractical to do so, or that desires to
conduct instant bingo other than at a bingo session at additional
locations not identified on the license, may apply in writing,
together with an application fee of two hundred fifty dollars, to the
attorney general, at least thirty days prior to a change in or
addition of a location, day of the week, or time, and request an
amended license.
(b)
As applicable, the application shall describe the causes making it
impractical for the organization to conduct bingo in conformity with
its license and shall indicate the location, days of the week, and
times on each of those days when it desires to conduct bingo and, as
applicable, shall indicate the additional locations at which it
desires to conduct instant bingo other than at a bingo session.
(c)
Except as otherwise provided in division (J)(3) of this section, the
attorney general shall issue the amended license in accordance with
division (I) of this section, and the organization shall surrender
its original license to the attorney general.
(2)(a)
A charitable organization that has been issued a license under this
section to conduct electronic instant bingo but that cannot conduct
electronic instant bingo at the location, or on the day of the week
or at the time, specified on the license due to circumstances that
make it impractical to do so, may apply in writing, together with an
application fee of two hundred fifty dollars, to the attorney
general, at least thirty days prior to a change in a location, day of
the week, or time, and request an amended license. A charitable
organization may not apply for an amended license to conduct
electronic instant bingo at any additional location.
(b)
The application shall describe the causes making it impractical for
the organization to conduct electronic instant bingo in conformity
with its license and shall indicate the location, days of the week,
and times on each of those days when it desires to conduct electronic
instant bingo.
(c)
Except as otherwise provided in division (J)(3) of this section, the
attorney general shall issue the amended license in accordance with
division (I) of this section, and the organization shall surrender
its original license to the attorney general.
(3)
The attorney general may refuse to grant an amended license under
division (J)(1) or (2) of this section according to the terms of
division (F) of this section.
(K)
The attorney general may enter into a written contract with any other
state agency to delegate to that state agency the powers prescribed
to the attorney general under Chapter 2915. of the Revised Code.
(L)
The attorney general, by rule adopted pursuant to section 111.15 of
the Revised Code, may adopt rules to determine the requirements for a
charitable organization that is exempt from federal income taxation
under subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code to be in good standing in the state.
Sec.
2915.081.
(A)
No distributor shall sell, offer to sell, or otherwise provide or
offer to provide bingo supplies to another person, or modify,
convert, add to, or remove parts from bingo supplies to further their
promotion or sale, for use in this state without having obtained a
license from the attorney general under this section.
(B)(1)
The attorney general may issue a distributor license to any person
that meets the requirements of this section. The application for the
license shall be on a form prescribed by the attorney general and be
accompanied by the annual fee prescribed by this section. The license
is valid for a period of one year, and the annual fee for the license
is five thousand dollars.
(2)
Upon applying for or renewing a license under this section, an
applicant shall file with and have approved by the attorney general a
bond in which the applicant shall be the principal obligor, in the
sum of fifty thousand dollars, with one or more sureties authorized
to do business in this state. The applicant shall maintain the bond
in effect as long as the license is valid; however, the liability of
the surety under the bond shall not exceed an all-time aggregate
liability of fifty thousand dollars. The bond, which may be in the
form of a rider to a larger blanket liability bond, shall run to the
state and to any person who may have a cause of action against the
principal obligor of the bond for any liability arising out of a
violation by the obligor of any provision of this chapter or any rule
adopted pursuant to this chapter.
(C)
(1)
The attorney general may refuse to issue a distributor license to any
person
applicant
to
which any of the following applies, or to any person that has an
officer,
partner,
or
other
person who has an ownership interest
any
owner
of
ten per cent or more
of the applicant
and to whom any of the following applies:
(1)
(a)
The
person
applicant
,
officer,
or
partner
,
or owner
has been convicted of a disqualifying offense as determined in
accordance with section 9.79 of the Revised Code.
(2)
(b)
The
person
applicant
,
officer,
or
partner
,
or owner
has made an incorrect or false statement that is material to the
granting of a license in an application submitted to the attorney
general under this section or in a similar application submitted to a
gambling licensing authority in another jurisdiction if the statement
resulted in license revocation through administrative action in the
other jurisdiction.
(3)
(c)
The
person
applicant
,
officer,
or
partner
,
or owner
has submitted any incorrect or false information relating to the
application to the attorney general under this section, if the
information is material to the granting of the license.
(4)
(d)
The
person
applicant
,
officer,
or
partner
,
or owner
has failed to correct any incorrect or false information that is
material to the granting of the license in the records required to be
maintained under division (F) of section 2915.10 of the Revised Code.
(5)
(e)
The
person
applicant
,
officer,
or
partner
,
or owner
has had a license related to gambling revoked or suspended under the
laws of this state, another state, or the United States.
(6)
(f)
The
attorney general has good cause to believe that
a person
the applicant
,
officer,
or
partner
,
or owner
has committed a breach of fiduciary duty, theft, or other type of
misconduct related to a charitable organization that has obtained a
bingo license issued under this chapter.
(g)
The applicant, officer, partner, or owner has filed, or had filed
against it, a proceeding for bankruptcy, or has been involved in a
formal process to adjust, defer, suspend, or otherwise work out the
payment of any debt.
(h)
The applicant, officer, partner, or owner has been served with a
complaint or other notice filed with any public body regarding a
payment of any tax required under federal, state, or local law that
has been delinquent for one or more years.
(i)
The applicant, officer, partner, or owner is or has been a defendant
in litigation involving its business practices.
(j)
The reputation, experience, and financial integrity of the applicant
and any officer or partner or any owner of ten per cent or more of
the applicant is of a nature or quality such that the issuance of a
license is, in the attorney general's opinion, against the public
interest.
(k)
The financial ability of the applicant is insufficient to purchase
and maintain adequate liability and casualty insurance and to provide
an adequate surety bond.
(l)
Awarding a license would undermine the public's confidence in
charitable gaming in this state.
(2)
The attorney general may adopt rules under Chapter 119. of the
Revised Code specifying additional reasons for which the attorney
general may refuse to issue a distributor license under this section.
(D)
The attorney general shall not issue a distributor license to any
person that is involved in the conduct of bingo on behalf of a
charitable organization or that is a lessor of premises used for the
conduct of bingo. This division does not prohibit a distributor from
advising charitable organizations on the use and benefit of specific
bingo supplies or prohibit a distributor from advising a customer on
operational methods to improve bingo profitability.
(E)(1)
No distributor shall sell, offer to sell, or otherwise provide or
offer to provide bingo supplies to any person, or modify, convert,
add to, or remove parts from bingo supplies to further their
promotion or sale, for use in this state except to or for the use of
a charitable organization that has been issued a license under
section 2915.08 of the Revised Code or to another distributor that
has been issued a license under this section. No distributor shall
accept payment for the sale or other provision of bingo supplies
other than by check or electronic fund transfer.
(2)
No distributor may donate, give, loan, lease, or otherwise provide
any bingo supplies or equipment, or modify, convert, add to, or
remove parts from bingo supplies to further their promotion or sale,
to or for the use of a charitable organization for use in a bingo
session conditioned on or in consideration for an exclusive right to
provide bingo supplies to the charitable organization. A distributor
may provide a licensed charitable organization with free samples of
the distributor's products to be used as prizes or to be used for the
purpose of sampling.
(3)
No distributor shall purchase bingo supplies for use in this state
from any person except from a manufacturer issued a license under
section 2915.082 of the Revised Code or from another distributor
issued a license under this section. Subject to division (D) of
section 2915.082 of the Revised Code, no distributor shall pay for
purchased bingo supplies other than by check or electronic fund
transfer.
(4)
No distributor shall participate in the conduct of bingo on behalf of
a charitable organization or have any direct or indirect ownership
interest in a premises used for the conduct of bingo.
(5)
No distributor shall knowingly solicit, offer, pay, or receive any
kickback, bribe, or undocumented rebate, directly or indirectly,
overtly or covertly, in cash or in kind, in return for providing
bingo supplies to any person in this state.
(F)(1)
No distributor shall knowingly sell, offer to sell, or otherwise
provide or offer to provide an electronic instant bingo system to any
person for use in this state, or install, maintain, update, or repair
an electronic instant bingo system, without first obtaining an
electronic instant bingo distributor endorsement to the person's
distributor license issued under this section. An applicant for a
distributor license under this section may apply simultaneously for
an electronic instant bingo distributor endorsement to that license.
(2)
An applicant for an electronic instant bingo distributor endorsement
shall submit the application on a form prescribed by the attorney
general and shall submit one complete set of fingerprints directly to
the superintendent of the bureau of criminal identification and
investigation for the purpose of conducting a criminal records check.
The applicant shall provide the fingerprints using a method the
superintendent prescribes pursuant to division (C)(2) of section
109.572 of the Revised Code and shall fill out the form the
superintendent prescribes pursuant to division (C)(1) of that
section. Upon receiving an application for an electronic instant
bingo distributor endorsement, the attorney general shall request the
superintendent, or a vendor approved by the bureau, to conduct a
criminal records check based on the applicant's fingerprint
impressions in accordance with division (A)(18) of that section. The
applicant shall pay any fee required under division (C)(3) of that
section.
(3)
The attorney general shall not issue an electronic instant bingo
distributor endorsement to an applicant unless the attorney general
has received the results of the criminal records check described in
division (F)(2) of this section. The attorney general shall not issue
an electronic instant bingo distributor endorsement to an applicant
if the applicant, any officer or partner of the applicant, or any
person who has an ownership interest of ten per cent or more in the
applicant has violated any provision of this chapter or any rule
adopted by the attorney general under this chapter or has violated
any existing or former law or rule of this state, any other state, or
the United States that is substantially equivalent to any provision
of this chapter or any rule adopted by the attorney general under
this chapter.
(4)
An electronic instant bingo distributor endorsement issued under this
section shall be valid for the period of the underlying distributor
license.
(G)
The attorney general may suspend, place limits, restrictions, or
probationary conditions on, or revoke a distributor license or an
electronic instant bingo distributor endorsement, for a limited or
indefinite period of time at the attorney general's discretion, for
any of the following reasons:
(1)
Any reason for which the attorney general may refuse to issue the
license or endorsement;
(2)
The distributor holding the license or endorsement violates any
provision of this chapter or any rule adopted by the attorney general
under this chapter;
(3)
The distributor or any officer, partner, or other person who has an
ownership interest of ten per cent or more in the distributor is
convicted of either of the following:
(a)
A felony under the laws of this state, another state, or the United
States;
(b)
Any gambling offense.
(H)
The attorney general may adopt rules for the application, acceptance,
denial, suspension, revocation, limitation, restriction, or condition
of a distributor license or endorsement, and to enforce any other
provisions of this section, in accordance with Chapter 119. of the
Revised Code.
The
attorney general shall adopt rules in accordance with that chapter
prescribing procedures allowing the attorney general to seek a
summary suspension of a person's license or endorsement issued under
this section if the attorney general has good cause to believe that
the person or any of the person's employees, officers, directors,
agents, representatives, or partners has violated this chapter or a
rule adopted under this chapter.
(I)
The attorney general may impose a civil fine on a distributor
licensed or permitted under this chapter for failure to comply with
any restrictions, limits, or probationary conditions on its license,
or for failure to comply with this chapter or any rule adopted under
this chapter, according to a schedule of fines that the attorney
general shall adopt in accordance with Chapter 119. of the Revised
Code.
(J)
Whoever violates division (A), (E), or (F) of this section is guilty
of illegally operating as a distributor. Except as otherwise provided
in this division, illegally operating as a distributor is a
misdemeanor of the first degree. If the offender previously has been
convicted of a violation of division (A), (E), or (F) of this
section, illegally operating as a distributor is a felony of the
fifth degree.
Sec.
2915.082.
(A)
No manufacturer shall sell, offer to sell, or otherwise provide or
offer to provide bingo supplies for use in this state without having
obtained a license from the attorney general under this section.
(B)(1)
The attorney general may issue a manufacturer license to any person
that meets the requirements of this section. The application for the
license shall be on a form prescribed by the attorney general and be
accompanied by the annual fee prescribed by this section. The license
is valid for a period of one year, and the annual fee for the license
is five thousand dollars.
(2)
Upon applying for or renewing a license under this section, an
applicant shall file with and have approved by the attorney general a
bond in which the applicant shall be the principal obligor, in the
sum of fifty thousand dollars, with one or more sureties authorized
to do business in this state. The applicant shall maintain the bond
in effect as long as the license is valid; however, the liability of
the surety under the bond shall not exceed an all-time aggregate
liability of fifty thousand dollars. The bond, which may be in the
form of a rider to a larger blanket liability bond, shall run to the
state and to any person who may have a cause of action against the
principal obligor of the bond for any liability arising out of a
violation by the obligor of any provision of this chapter or any rule
adopted pursuant to this chapter.
(C)
The attorney general
shall
adopt rules under Chapter 119. of the Revised Code specifying the
suitability factors for issuing manufacturer licenses to applicants
under this section and the reasons for which the attorney general
may
refuse to issue a manufacturer license to any person
to which any of the following applies
,
or
to
including
all of the following:
(1)
Whether any of the following apply to the applicant or to
any
person
that has an
officer
,
or
partner
,
or
other
person who has an ownership interest
any
owner
of
ten per cent or more
and to whom any of the following applies
of the applicant
:
(1)
(a)
The
person
applicant
,
officer,
or
partner
,
or owner
has been convicted of a disqualifying offense as determined in
accordance with section 9.79 of the Revised Code.
(2)
(b)
The
person
applicant
,
officer,
or
partner
,
or owner
has made an incorrect or false statement that is material to the
granting of a license in an application submitted to the attorney
general under this section or in a similar application submitted to a
gambling licensing authority in another jurisdiction if the statement
resulted in license revocation through administrative action in the
other jurisdiction.
(3)
(c)
The
person
applicant
,
officer,
or
partner
,
or owner
has submitted any incorrect or false information relating to the
application to the attorney general under this section, if the
information is material to the granting of the license.
(4)
(d)
The
person
applicant
,
officer,
or
partner
,
or owner
has failed to correct any incorrect or false information that is
material to the granting of the license in the records required to be
maintained under division (G) of section 2915.10 of the Revised Code.
(5)
(e)
The
person
applicant
,
officer,
or
partner
,
or owner
has had a license related to gambling revoked or suspended under the
laws of this state, another state, or the United States.
(6)
(f)
The
attorney general has good cause to believe that the
person
applicant
,
officer,
or
partner
,
or owner
has committed a breach of fiduciary duty, theft, or other type of
misconduct, related to a charitable organization that has obtained a
bingo license under this chapter.
(g)
The applicant, officer, partner, or owner has filed, or had filed
against it, a proceeding for bankruptcy, or has been involved in a
formal process to adjust, defer, suspend, or otherwise work out the
payment of any debt.
(h)
The applicant, officer, partner, or owner has been served with a
complaint or other notice filed with any public body regarding a
payment of any tax required under federal, state, or local law that
has been delinquent for one or more years.
(i)
The applicant, officer, partner, or owner is or has been a defendant
in litigation involving its business practices.
(2)
The reputation, experience, and financial integrity of the applicant
and any officer or partner or any owner of ten per cent or more of
the applicant;
(3)
The financial ability of the applicant to purchase and maintain
adequate liability and casualty insurance and to provide an adequate
surety bond;
(4)
Whether awarding a license would undermine the public's confidence in
charitable gaming in this state.
(D)(1)
No manufacturer shall sell, offer to sell, or otherwise provide or
offer to provide bingo supplies to any person for use in this state
except to a distributor that has been issued a license under section
2915.081 of the Revised Code. No manufacturer shall accept payment
for the sale of bingo supplies other than by check or electronic fund
transfer.
(2)
No manufacturer shall knowingly solicit, offer, pay, or receive any
kickback, bribe, or undocumented rebate, directly or indirectly,
overtly or covertly, in cash or in kind, in return for providing
bingo supplies to any person in this state.
(E)(1)
No manufacturer shall knowingly sell, offer to sell, or otherwise
provide or offer to provide an electronic instant bingo system to any
person for use in this state, or submit an electronic instant bingo
system for testing and approval under section 2915.15 of the Revised
Code, without first obtaining an electronic instant bingo
manufacturer endorsement to the person's manufacturer license issued
under this section. An applicant for a manufacturer license under
this section may apply simultaneously for an electronic instant bingo
manufacturer endorsement to that license.
(2)
A manufacturer licensed under this section may only sell, offer to
sell, or otherwise provide or offer to provide electronic instant
bingo systems that contain proprietary software owned by or licensed
to the manufacturer. If the proprietary software is licensed to the
manufacturer, the manufacturer shall provide a copy of the license
along with the application for an endorsement under this section.
(3)
An applicant for an electronic instant bingo manufacturer endorsement
shall submit the application on a form prescribed by the attorney
general and shall submit one complete set of fingerprints directly to
the superintendent of the bureau of criminal identification and
investigation for the purpose of conducting a criminal records check.
The applicant shall provide the fingerprints using a method the
superintendent prescribes pursuant to division (C)(2) of section
109.572 of the Revised Code and shall fill out the form the
superintendent prescribes pursuant to division (C)(1) of that
section. Upon receiving an application for an electronic instant
bingo manufacturer endorsement, the attorney general shall request
the superintendent, or a vendor approved by the bureau, to conduct a
criminal records check based on the applicant's fingerprint
impressions in accordance with division (A)(18) of that section. The
applicant shall pay any fee required under division (C)(3) of that
section.
(4)
The attorney general shall not issue an electronic instant bingo
manufacturer endorsement to an applicant unless the attorney general
has received the results of the criminal records check described in
division (E)(3) of this section. The attorney general shall not issue
an electronic instant bingo manufacturer endorsement to an applicant
if the applicant, any officer or partner of the applicant, or any
person who has an ownership interest of ten per cent or more in the
applicant has violated any existing or former law or rule of this
state, any other state, or the United States that is substantially
equivalent to any provision of this chapter or any rule adopted by
the attorney general under this chapter.
(F)(1)
The attorney general may suspend, place limits, restrictions, or
probationary conditions on, or revoke a manufacturer license or an
electronic instant bingo manufacturer endorsement for a limited or
indefinite period of time for any of the following reasons:
(a)
Any reason for which the attorney general may refuse to issue the
license or endorsement;
(b)
The manufacturer holding the license or endorsement violates any
provision of this chapter or any rule adopted by the attorney general
under this chapter;
(c)
The manufacturer or any officer, partner, or other person who has an
ownership interest of ten per cent or more in the manufacturer is
convicted of either of the following:
(i)
A felony under the laws of this state, another state, or the United
States;
(ii)
Any gambling offense.
(2)
The attorney general may perform an onsite inspection of a
manufacturer of bingo supplies that is selling, offering to sell, or
otherwise providing or offering to provide bingo supplies or that is
applying for a license to sell, offer to sell, or otherwise provide
or offer to provide bingo supplies in this state.
(3)(a)
The attorney general shall establish by rule an application and
renewal fee for an electronic instant bingo manufacturer endorsement
in an amount sufficient to cover the costs the attorney general
incurs in processing applications for electronic instant bingo
manufacturer endorsements and investigating an applicant's
suitability.
(b)
If the cost of processing a particular application and investigating
the applicant's suitability exceeds the amount of the application and
renewal fee, the attorney general may charge the applicant an
additional fee as necessary to cover that cost.
(c)
The attorney general shall not issue an electronic instant bingo
manufacturer endorsement unless the attorney general has received
payment in full from the applicant for all fees to be charged under
this section.
(G)
The attorney general may adopt rules for the application, acceptance,
denial, suspension, revocation, limitation, restriction, or condition
of a manufacturer license or endorsement described in this section,
and to enforce any other provisions of this section, in accordance
with Chapter 119. of the Revised Code.
The
attorney general shall adopt rules in accordance with that chapter
prescribing procedures allowing the attorney general to seek a
summary suspension of a person's license or endorsement issued under
this section if the attorney general has good cause to believe that
the person or any of the person's employees, officers, directors,
agents, representatives, or partners, has violated this chapter or a
rule adopted under this chapter.
(H)
The attorney general may impose a civil fine on a manufacturer
licensed or permitted under this chapter for failure to comply with
any restrictions, limits, or probationary conditions on its license,
and for failure to comply with this chapter or any rule adopted under
this chapter, according to a schedule of fines that the attorney
general shall adopt in accordance with Chapter 119. of the Revised
Code.
(I)
Whoever violates division (A), (D), or (E) of this section is guilty
of illegally operating as a manufacturer. Except as otherwise
provided in this division, illegally operating as a manufacturer is a
misdemeanor of the first degree. If the offender previously has been
convicted of a violation of division (A), (D), or (E) of this
section, illegally operating as a manufacturer is a felony of the
fifth degree.
Sec.
2915.083.
(A)
Notwithstanding any contrary provision of section 149.43 of the
Revised Code, the attorney general shall not disclose to the public
any of the following information or documents concerning a person who
has applied for or been issued a license under this chapter or the
person's spouse, dependent, or employee, unless the person authorizes
the attorney general to disclose the information:
(1)
A social security number, passport number, or federal tax
identification number;
(2)
A home address, telephone number, or electronic mail address;
(3)
A birth certificate;
(4)
A driver's license or state identification card number;
(5)
The name or address of a previous spouse;
(6)
A date or place of birth;
(7)
Any personal financial information or records, including personal tax
returns and information and records of criminal proceedings;
(8)
Any information concerning a minor child;
(9)
Any information concerning a person the attorney general has reason
to know is a victim of domestic violence, sexual assault, or
stalking;
(10)
Any trade secret, medical records, or patents or exclusive licenses;
(11)
Security information, including risk prevention plans, detection and
countermeasures, location of count rooms or other money storage
areas, emergency management plans, security and surveillance plans,
equipment and usage protocols, and theft and fraud prevention plans
and countermeasures;
(12)
Any other information the attorney general receives from another
jurisdiction relating to a person who holds, held, or has applied for
a license under this chapter.
(B)
Except as otherwise provided in division (A) of this section, both of
the following are subject to disclosure as a public record under
section 149.43 of the Revised Code:
(1)
The information a licensee under this chapter or an applicant for a
license under this chapter has submitted to the attorney general as
part of applying for or renewing the license;
(2)
The attorney general's reasons for denying or revoking a license
under this chapter or for taking other disciplinary action under this
chapter.
(C)
Division (A) of this section does not prohibit the attorney general
from disclosing information and documents described in that division
to the Ohio casino control commission, the state lottery commission,
the inspector general, a prosecuting authority, a law enforcement
agency, or any other appropriate governmental entity or licensing
agency, provided that the recipient shall not disclose the
information and documents to the public.
Sec.
2915.10.
(A)
No charitable organization that conducts bingo or a game of chance
pursuant to division (D) of section 2915.02 of the Revised Code shall
fail to maintain the following records for at least three years from
the date on which the bingo or game of chance is conducted:
(1)
An itemized list of the gross receipts of each bingo session, each
game of instant bingo by serial number, each electronic instant bingo
game by serial number, each raffle, each punch board game, and each
game of chance, and an itemized list of the gross profits of each
game of instant bingo by serial number and each electronic instant
bingo game by serial number;
(2)
An itemized list of all expenses, other than prizes, that are
incurred in conducting bingo, the name of each person to whom the
expenses are paid, and a receipt for all of the expenses;
(3)
A list of all prizes awarded during each bingo session, each raffle,
each punch board game, and each game of chance conducted by the
charitable organization, the total prizes awarded from each game of
instant bingo by serial number and each electronic instant bingo game
by serial number, and the name, address, and social security number
of all persons who are winners of prizes of six hundred dollars or
more in value;
(4)
An itemized list of the recipients of the net profit of the bingo or
game of chance, including the name and address of each recipient to
whom the money is distributed, and if the organization uses the net
profit of bingo, or the money or assets received from a game of
chance, for any charitable or other purpose set forth in division (V)
of section 2915.01, division (D) of section 2915.02, or section
2915.101 of the Revised Code, a list of each purpose and an itemized
list of each expenditure for each purpose;
(5)
The number of persons who participate in any bingo session or game of
chance that is conducted by the charitable organization;
(6)
A list of receipts from the sale of food and beverages by the
charitable organization or one of its auxiliary units or societies,
if the receipts were excluded from gross receipts under division (T)
of section 2915.01 of the Revised Code;
(7)
An itemized list of all expenses incurred at each bingo session, each
raffle, each punch board game, or each game of instant bingo or
electronic instant bingo conducted by the charitable organization in
the sale of food and beverages by the charitable organization or by
an auxiliary unit or society of the charitable organization, the name
of each person to whom the expenses are paid, and a receipt for all
of the expenses.
(B)
A charitable organization shall keep the records that it is required
to maintain pursuant to division (A) of this section at its principal
place of business in this state or at its headquarters in this state
and shall notify the attorney general of the location at which those
records are kept.
(C)
The gross profit from each bingo session or game described in
division (O)(1) or (2) of section 2915.01 of the Revised Code shall
be deposited into a checking account devoted exclusively to the bingo
session or game. Payments for allowable expenses incurred in
conducting the bingo session or game and payments to recipients of
some or all of the net profit of the bingo session or game shall be
made only by checks or electronic fund transfers drawn on the bingo
session or game account.
(D)
Each charitable organization shall conduct and record an inventory of
all of its bingo supplies as of the first day of November of each
year.
(E)
The attorney general may adopt rules in accordance with Chapter 119.
of the Revised Code that establish standards of accounting, record
keeping, and reporting to ensure that gross receipts from bingo or
games of chance are properly accounted for.
(F)
A distributor shall maintain, for a period of three years after the
date of its sale or other provision, a record of each instance of its
selling or otherwise providing to another person bingo supplies for
use in this state. The record shall include all of the following for
each instance:
(1)
The name of the manufacturer from which the distributor purchased the
bingo supplies and the date of the purchase;
(2)
The name and address of the charitable organization or other
distributor to which the bingo supplies were sold or otherwise
provided;
(3)
A description that clearly identifies the bingo supplies;
(4)
Invoices that include the nonrepeating serial numbers of all paper
bingo cards and sheets and all instant bingo deals sold or otherwise
provided to each charitable organization.
(G)
A manufacturer shall maintain, for a period of three years after the
date of its sale or other provision, a record of each instance of its
selling or otherwise providing bingo supplies for use in this state.
The record shall include all of the following for each instance:
(1)
The name and address of the distributor to whom the bingo supplies
were sold or otherwise provided;
(2)
A description that clearly identifies the bingo supplies, including
serial numbers;
(3)
Invoices that include the nonrepeating serial numbers of all paper
bingo cards and sheets and all instant bingo deals sold or otherwise
provided to each distributor.
(H)
The
attorney general or any law enforcement agency may do all of the
following:
(1)
Investigate any charitable organization, distributor, or manufacturer
or any officer, agent, trustee, member, or employee of the
organization, distributor, or manufacturer;
(2)
Examine the accounts and records of the charitable organization,
distributor, or manufacturer or of any officer, agent, trustee,
member, or employee of the organization, distributor, or
manufacturer;
(3)
Conduct inspections, audits, and observations of bingo or games of
chance;
(4)
Conduct inspections of the premises where bingo or games of chance
are conducted or where bingo supplies are manufactured or
distributed;
(5)
Take any other necessary and reasonable action to determine if a
violation of any provision of this chapter has occurred and to
determine whether section 2915.11 of the Revised Code has been
complied with.
If
any law enforcement agency has reasonable grounds to believe that a
charitable organization, distributor, or manufacturer or an officer,
agent, trustee, member, or employee of the organization, distributor,
or manufacturer has violated any provision of this chapter, the law
enforcement agency may proceed by action in the proper court to
enforce this chapter, provided that the law enforcement agency shall
give written notice to the attorney general when commencing an action
as described in this division.
(I)
No person shall destroy, alter, conceal, withhold, or deny access to
any accounts or records of a charitable organization, distributor, or
manufacturer that have been requested for examination, or obstruct,
impede, or interfere with any inspection, audit, or observation of
bingo or a game of chance, of premises where bingo or a game of
chance is conducted, or of premises where bingo supplies are
manufactured or distributed, or refuse to comply with any reasonable
request of, or obstruct, impede, or interfere with any other
reasonable action undertaken by, the attorney general or a law
enforcement agency pursuant to division (H) of this section.
(J)
Whoever
violates division (A)
or
(I)
of
this section is guilty of
failure
to maintain charitable gaming records,
a
misdemeanor of the first degree.
Sec.
2915.14.
(A)
No charitable organization shall conduct electronic instant bingo
unless all of the following are true:
(1)
The organization is a veteran's organization described in division
(J) of section 2915.01 of the Revised Code, or is a fraternal
organization described in division (L) of section 2915.01 of the
Revised Code, and the organization qualified as a veteran's
organization or fraternal organization, as applicable, on or before
June 30, 2021.
(2)
The organization is a veteran's organization described in subsection
501(c)(4) of the Internal Revenue Code or is, and has received from
the internal revenue service a determination letter that is currently
in effect stating that the organization is, exempt from federal
income taxation under subsection 501(a), and is described in
subsection 501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) of the
Internal Revenue Code.
(3)
The organization has not conducted a raffle in violation of division
(B) of section 2915.092 of the Revised Code using an electronic
raffle machine, as described in Ohio Veterans and Fraternal
Charitable Coalition v. DeWine, Case No. 13-CV-13610 (C.P. Franklin
Co. February 23, 2018), at any time on or after January 1, 2022.
(B)
No charitable organization that conducts electronic instant bingo
shall do any of the following:
(1)
Possess an electronic instant bingo system that was not obtained in
accordance with this chapter or with any rule adopted under this
chapter;
(2)
Conduct electronic instant bingo on any day, at any time, or on any
premises not specified on the organization's type II or type III
license issued under section 2915.08 of the Revised Code;
(3)
Hold more than one valid license to conduct electronic instant bingo
at any one time;
(4)
Conduct electronic instant bingo on more than one premises or on any
premises other than the charitable organization's principal place of
business;
(5)
Operate more than ten electronic bingo systems at the premises on
which the charitable organization conducts electronic instant bingo
under its license;
(6)
Fail to display both of the following conspicuously at the premises
on which the charitable organization conducts electronic instant
bingo:
(a)
The charitable organization's bingo license;
(b)
The serial number of each deal of electronic instant bingo tickets
being sold.
(7)
Permit any person the charitable organization knows, or should have
known, to be under eighteen years of age to play electronic instant
bingo;
(8)
Sell or provide to any person an electronic instant bingo ticket for
a price different from the price displayed on the game flare for that
deal, except that the charitable organization may give a participant
who wins an electronic instant bingo game an electronic instant bingo
ticket as a prize in place of a cash prize;
(9)
Fail, once an electronic instant bingo deal is begun, to continue to
sell tickets in that deal until all prizes have been awarded;
(10)
Permit any person whom the organization knows, or should have known,
has been convicted of a felony or gambling offense in any
jurisdiction to be a bingo game operator in the conduct of electronic
instant bingo;
(11)
Permit a bingo game operator to play electronic instant bingo;
(12)(a)
Except as otherwise provided in division (B)(12)(b) of this section,
pay compensation to a bingo game operator for conducting electronic
instant bingo.
(b)
Division (B)(12)(a) of this section does not prohibit an employee of
a veteran's organization or fraternal organization from redeeming
electronic instant bingo tickets or vouchers for the organization's
members or invited guests, so long as no portion of the employee's
compensation is paid from any bingo receipts.
(13)
Pay consulting fees to any person in relation to electronic instant
bingo.
(C)
No person shall sell, offer to sell, or otherwise provide or offer to
provide an electronic instant bingo system to any person for use in
this state unless the electronic instant bingo system has been
approved under section 2915.15 of the Revised Code.
(D)
The attorney general shall adopt rules under Chapter 119. of the
Revised Code to ensure the integrity of electronic instant bingo,
including, but not limited to, rules governing all of the following:
(1)
The requirements to receive a license or endorsement to conduct
electronic instant bingo;
(2)
The location and number of electronic instant bingo systems in use,
which shall not exceed ten at the single licensed location per
organization;
(3)
The times when electronic instant bingo may be offered;
(4)
Signage requirements in facilities where electronic instant bingo is
offered;
(5)
Electronic instant bingo device and system specifications, including
reveal features and game themes;
(6)
Procedures and standards for the review, approval, inspection, and
monitoring of electronic instant bingo systems, as described in
section 2915.15 of the Revised Code;
(7)
Procedures and standards for the review and approval of any changes
to technology, systems, or games licensed or permitted under this
chapter;
(8)
The fees to be charged under section 2915.15 of the Revised Code for
review, approval, inspection, and monitoring of electronic instant
bingo systems
;
(9)
Procedures allowing the attorney general to seek a summary suspension
of a license to conduct electronic instant bingo or a license to
manufacture or distribute electronic instant bingo systems if the
attorney general has good cause to believe that the person or
organization licensed to conduct electronic instant bingo, or the
person or organization licensed to manufacture or distribute
electronic instant bingo systems, or any of the organization's
employees, officers, directors, agents, representatives, or partners,
has violated this chapter or a rule adopted under this chapter
.
(E)
Whoever knowingly violates division (A), (B), or (C) of this section
or a rule adopted under division (D) of this section is guilty of
illegal electronic instant bingo conduct. Illegal electronic instant
bingo conduct is a misdemeanor of the first degree, except that if
the offender previously has been convicted of a violation of division
(A) or (B) of this section or of a rule adopted under division (D) of
this section, illegal instant bingo conduct is a felony of the fifth
degree.
Section
2.
That
existing sections 109.32, 2915.02, 2915.08, 2915.081, 2915.082,
2915.10, and 2915.14 of the Revised Code are hereby repealed.
Section
3.
Except
as otherwise provided in division (F) of section 2915.08 of the
Revised Code, as amended by this act, a bingo license issued under
that section that is valid on the effective date of this section
remains valid until the next date by which the licensee must apply to
renew the license under the rules of the Attorney General, as
described in division (A)(3) of that section.