130th Ohio General Assembly
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H. B. No. 250  As Introduced
As Introduced

128th General Assembly
Regular Session
2009-2010
H. B. No. 250


Representatives Book, Blessing 



A BILL
To amend sections 3770.02, 3770.03, 3770.05, 3770.06, 3770.07, 3770.08, and 4301.03 and to enact sections 3770.21 to 3770.26, 3770.261, 3770.262, 3770.263, and 3770.27 to 3770.31 of the Revised Code to require the State Lottery Commission to establish licensing procedures for video lottery sales agents that are horseracing permit holders and authorizes those agents to conduct lotteries that provide immediate prize determinations for participants through the use of video lottery terminals at not more than seven licensed commercial horseracing tracks.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3770.02, 3770.03, 3770.05, 3770.06, 3770.07, 3770.08, and 4301.03 be amended and sections 3770.21, 3770.22, 3770.23, 3770.24, 3770.25, 3770.26, 3770.261, 3770.262, 3770.263, 3770.27, 3770.28, 3770.29, 3770.30, and 3770.31 of the Revised Code be enacted to read as follows:
Sec. 3770.02.  (A) Subject to the advice and consent of the senate, the governor shall appoint a director of the state lottery commission who shall serve at the pleasure of the governor. The director shall devote full time to the duties of the office and shall hold no other office or employment. The director shall meet all requirements for appointment as a member of the commission and shall, by experience and training, possess management skills that equip the director to administer an enterprise of the nature of a state lottery. The director shall receive an annual salary in accordance with pay range 48 of section 124.152 of the Revised Code.
(B)(1) The director shall attend all meetings of the commission and shall act as its secretary. The director shall keep a record of all commission proceedings and shall keep the commission's records, files, and documents at the commission's principal office. All records of the commission's meetings shall be available for inspection by any member of the public, upon a showing of good cause and prior notification to the director.
(2) The director shall be the commission's executive officer and shall be responsible for keeping all commission records and supervising and administering the state lottery in accordance with this chapter, and carrying out all commission rules adopted under section 3770.03 of the Revised Code.
(C)(1) The director shall appoint an assistant director, deputy directors of marketing, operations, video lottery terminals, sales, finance, public relations, security, and administration, and as many regional managers as are required. The director may also appoint necessary professional, technical, and clerical assistants. All such officers and employees shall be appointed and compensated pursuant to Chapter 124. of the Revised Code. Regional and assistant regional managers, sales representatives, and any lottery executive account representatives shall remain in the unclassified service.
There is hereby created a division of video lottery terminals within the commission that the deputy director of video lottery terminals shall supervise.
(2) The director, in consultation with the director of administrative services, may establish standards of proficiency and productivity for commission field representatives.
(D) The director shall request the bureau of criminal identification and investigation, the department of public safety, or any other state, local, or federal agency to supply the director with the criminal records of any job applicant and may periodically request the criminal records of commission employees. At or prior to the time of making such a request, the director shall require a job applicant or commission employee to obtain fingerprint cards prescribed by the superintendent of the bureau of criminal identification and investigation at a qualified law enforcement agency, and the director shall cause these fingerprint cards to be forwarded to the bureau of criminal identification and investigation and the federal bureau of investigation. The commission shall assume the cost of obtaining the fingerprint cards and shall pay to each agency supplying criminal records for each investigation under this division a reasonable fee, as determined by the agency.
(E) The director shall license lottery sales agents pursuant to section 3770.05 of the Revised Code and video lottery sales agents pursuant to section 3770.24 of the Revised Code and, when it is considered necessary, may revoke or suspend the license of any lottery sales such agent under this chapter.
(F) The director shall confer at least once each month with the commission, at which time the director shall advise it regarding the operation and administration of the lottery. The director shall make available at the request of the commission all documents, files, and other records pertaining to the operation and administration of the lottery. The director shall prepare and make available to the commission each month a complete and accurate accounting of lottery revenues, prize money disbursements and the cost of goods and services awarded as prizes, operating expenses, and all other relevant financial information, including an accounting of all transfers made from any lottery funds in the custody of the treasurer of state to benefit education.
(G) The director may enter into contracts for the operation or promotion of the lottery pursuant to Chapter 125. of the Revised Code.
(H)(1) Pursuant to rules adopted by the commission under section 3770.03 of the Revised Code, the director shall require any lottery sales agents licensed under section 3770.05 of the Revised Code to either mail directly to the commission or deposit to the credit of the state lottery fund, in banking institutions designated by the treasurer of state, net proceeds due the commission as determined by the director, and to file with the director or the director's designee reports of their receipts and transactions in the sale of lottery tickets products in the form required by the director.
(2) Pursuant to rules adopted by the commission under Chapter 119. of the Revised Code, the director may impose penalties for the failure of a sales agent to transfer funds to the commission in a timely manner. Penalties may include monetary penalties, immediate suspension or revocation of a license, or any other penalty the commission adopts by rule.
(I) The director may arrange for any person, or any banking institution, to perform functions and services in connection with the operation of the lottery as the director may consider necessary to carry out this chapter.
(J)(1) As used in this chapter, "statewide joint lottery game" means a lottery game that the commission sells solely within this state under an agreement with other lottery jurisdictions to sell the same lottery game solely within their statewide or other jurisdictional boundaries.
(2) If the governor directs the director to do so, the director shall enter into an agreement with other lottery jurisdictions to conduct statewide joint lottery games. If the governor signs the agreement personally or by means of an authenticating officer pursuant to section 107.15 of the Revised Code, the director then may conduct statewide joint lottery games under the agreement.
(3) The entire net proceeds from any statewide joint lottery games shall be used to fund elementary, secondary, vocational, and special education programs in this state.
(4) The commission shall conduct any statewide joint lottery games in accordance with rules it adopts under division (B)(5) of section 3770.03 of the Revised Code.
(K)(1) The director shall enter into an agreement with the department of alcohol and drug addiction services under which the department shall provide a program of gambling addiction services on behalf of the commission for persons who participate in the lottery under this chapter, including lotteries authorized by section 3770.22 of the Revised Code. The commission shall pay the costs of the program provided pursuant to the agreement.
(2) As used in this section, "gambling addiction services" has the same meaning as in section 3793.01 of the Revised Code.
Sec. 3770.03.  (A) The state lottery commission shall promulgate rules under which a statewide lottery may, including games providing immediate prize determinations for participants through the use of video lottery terminals, shall be conducted. The rules shall be promulgated pursuant to Chapter 119. of the Revised Code, except that instant game rules shall be promulgated pursuant to section 111.15 of the Revised Code but are not subject to division (D) of that section. Subjects covered in these rules shall include, but need not be limited to, the following:
(1) The type of lottery to be conducted;
(2) The prices of tickets in the lottery. products;
(3) The number, nature, and value of prize awards, the manner and frequency of prize drawings and determinations, and the manner in which prizes shall be awarded to holders of winning tickets.
(B) The commission shall promulgate rules, in addition to those described in division (A) of this section, pursuant to Chapter 119. of the Revised Code under which a statewide lottery and statewide joint lottery games may, and lotteries, including games providing immediate prize determinations through the use of video lottery terminals shall, be conducted. Subjects covered in these rules shall include, but not be limited to, the following:
(1) The locations at which lottery tickets products may be sold and the manner in which they are to be sold. These rules may authorize the sale of lottery tickets products by commission personnel or other licensed individuals from traveling show wagons at the state fair, and at any other expositions the director of the commission considers acceptable. These rules shall prohibit commission personnel or other licensed individuals from soliciting from an exposition the right to sell lottery tickets at that exposition, but shall allow commission personnel or other licensed individuals to sell lottery tickets at an exposition if the exposition requests commission personnel or licensed individuals to do so. These rules may also address the accessibility of sales agent locations to commission products in accordance with the "Americans with Disabilities Act of 1990," 104 Stat. 327, 42 U.S.C.A. 12101 et seq.
(2) The manner in which lottery sales revenues are to be collected, including authorization for the director to impose penalties for failure by lottery sales agents or, under section 3770.28 of the Revised Code, video lottery sales agents to transfer revenues to the commission in a timely manner;
(3) The Except as provided in section 3770.26 of the Revised Code, the amount of compensation to be paid licensed lottery sales agents;
(4) The substantive criteria for the licensing of lottery sales agents consistent with section 3770.05 of the Revised Code, and procedures for revoking or suspending their licenses, or the licenses of video lottery sales agents issued under section 3770.24 of the Revised Code, consistent with Chapter 119. of the Revised Code. If circumstances, such as the nonpayment of funds owed by a lottery sales agent or video lottery sales agent, or other circumstances related to the public safety, convenience, or trust, require immediate action, the director may suspend a license without affording an opportunity for a prior hearing under section 119.07 of the Revised Code.
(5) Special game rules to implement any agreements signed by the governor that the director enters into with other lottery jurisdictions under division (J) of section 3770.02 of the Revised Code to conduct statewide joint lottery games. The rules shall require that the entire net proceeds of those games that remain, after associated operating expenses, prize disbursements, lottery sales agent bonuses, commissions, and reimbursements, and any other expenses necessary to comply with the agreements or the rules are deducted from the gross proceeds of those games, be transferred to the lottery profits education fund under division (B) of section 3770.06 of the Revised Code.
(C)(6) The manner in which lotteries that use video lottery terminals under section 3770.22 of the Revised Code must be conducted and the security, licensing, and enforcement procedures necessary to ensure the integrity of those lotteries;
(7) Licensing requirements and fees for key gaming employees of video lottery sales agents, as defined in section 3770.21 of the Revised Code, or agents' contractors that employ key gaming employees; provided that the maximum initial or yearly fee for a license issued by the commission and fees associated therewith shall be set by rule by the commission;
(8) Any other subjects the commission determines are necessary for the conduct of lotteries under section 3770.22 of the Revised Code.
(C) Chapter 2915. of the Revised Code does not apply to, affect, or prohibit lotteries conducted pursuant to this chapter.
(D) The commission may conduct lotteries simulating card games, spinning-wheel games, or cast object games by video lottery terminals pursuant to section 3770.22 of the Revised Code.
(E) The commission may promulgate rules, in addition to those described in divisions (A) and (B) of this section, that establish standards governing the display of advertising and celebrity images on lottery tickets and on other items that are used in the conduct of, or to promote, the statewide lottery and statewide joint lottery games. Any revenue derived from the sale of advertising displayed on lottery tickets and on those other items shall be considered, for purposes of section 3770.06 of the Revised Code, to be related proceeds in connection with the statewide lottery or gross proceeds from statewide joint lottery games, as applicable.
(D)(F)(1) The commission shall meet with the director at least once each month and shall convene other meetings at the request of the chairperson or any five of the members. No action taken by the commission shall be binding unless at least five of the members present vote in favor of the action. A written record shall be made of the proceedings of each meeting and shall be transmitted forthwith to the governor, the president of the senate, the senate minority leader, the speaker of the house of representatives, and the house minority leader.
(2) The director shall present to the commission a report each month, showing the total revenues, prize disbursements, and operating expenses of the state lottery for the preceding month. As soon as practicable after the end of each fiscal year, the commission shall prepare and transmit to the governor and the general assembly a report of lottery revenues, prize disbursements, and operating expenses for the preceding fiscal year and any recommendations for legislation considered necessary by the commission.
Sec. 3770.05.  (A) As used in this section, "person" means any person, association, corporation, partnership, club, trust, estate, society, receiver, trustee, person acting in a fiduciary or representative capacity, instrumentality of the state or any of its political subdivisions, or any other combination of individuals meeting the requirements set forth in this section or established by rule or order of the state lottery commission.
(B) The director of the state lottery commission may license any person as a lottery sales agent for the sale of lottery products. No license shall be issued to any person or group of persons to engage in the sale of lottery tickets products as the person's or group's sole occupation or business.
Before issuing any license to a lottery sales agent for the sale of lottery products, the director shall consider all of the following:
(1) The financial responsibility and security of the applicant and the applicant's business or activity;
(2) The accessibility of the applicant's place of business or activity to the public;
(3) The sufficiency of existing licensed agents to serve the public interest;
(4) The volume of expected sales by the applicant;
(5) Any other factors pertaining to the public interest, convenience, or trust.
(C) Except as otherwise provided in division (F) of this section, the director of the state lottery commission shall refuse to grant, or shall suspend or revoke, a license issued under this section if the applicant or licensee:
(1) Has been convicted of a felony or has been convicted of a crime involving moral turpitude;
(2) Has been convicted of an offense that involves illegal gambling;
(3) Has been found guilty of fraud or misrepresentation in any connection;
(4) Has been found to have violated any rule or order of the commission; or
(5) Has been convicted of illegal trafficking in food stamps.
(D) Except as otherwise provided in division (F) of this section, the director of the state lottery commission shall refuse to grant, or shall suspend or revoke, a license issued under this section if the applicant or licensee is a corporation and any of the following applies:
(1) Any of the corporation's directors, officers, or controlling shareholders has been found guilty of any of the activities specified in divisions (C)(1) to (5) of this section;
(2) It appears to the director of the state lottery commission that, due to the experience, character, or general fitness of any director, officer, or controlling shareholder of the corporation, the granting of a license as a lottery sales agent would be inconsistent with the public interest, convenience, or trust;
(3) The corporation is not the owner or lessee of the business at which it would conduct a lottery sales agency pursuant to the license applied for;
(4) Any person, firm, association, or corporation other than the applicant or licensee shares or will share in the profits of the applicant or licensee, other than receiving dividends or distributions as a shareholder, or participates or will participate in the management of the affairs of the applicant or licensee.
(E)(1) The director of the state lottery commission shall refuse to grant a license to an applicant for a lottery sales agent license issued under this section and shall revoke a lottery sales agent license if the applicant or licensee is or has been convicted of a violation of division (A) or (C)(1) of section 2913.46 of the Revised Code.
(2) The director shall refuse to grant a license issued under this section to an applicant for a lottery sales agent license that is a corporation and shall revoke the lottery sales agent license issued under this section of a corporation if the corporation is or has been convicted of a violation of division (A) or (C)(1) of section 2913.46 of the Revised Code.
(F) The director of the state lottery commission shall request the bureau of criminal identification and investigation, the department of public safety, or any other state, local, or federal agency to supply the director with the criminal records of any applicant for a lottery sales agent license, and may periodically request the criminal records of any person to whom a lottery sales agent license has been issued. At or prior to the time of making such a request, the director shall require an applicant or licensee to obtain fingerprint impressions on fingerprint cards prescribed by the superintendent of the bureau of criminal identification and investigation at a qualified law enforcement agency, and the director shall cause those fingerprint cards to be forwarded to the bureau of criminal identification and investigation, to the federal bureau of investigation, or to both bureaus. The commission shall assume the cost of obtaining the fingerprint cards.
The director shall pay to each agency supplying criminal records for each investigation a reasonable fee, as determined by the agency.
The commission may adopt uniform rules specifying time periods after which the persons described in divisions (C)(1) to (5) and (D)(1) to (4) of this section may be issued a license and establishing requirements for those persons to seek a court order to have records sealed in accordance with law.
(G)(1) Each applicant for a lottery sales agent license for the sale of lottery products shall do both of the following:
(a) Pay to the state lottery commission, at the time the application is submitted, a fee in an amount that the director of the state lottery commission determines by rule adopted under Chapter 119. of the Revised Code and that the controlling board approves;
(b) Prior to approval of the application, obtain a surety bond in an amount the director determines by rule adopted under Chapter 119. of the Revised Code or, alternatively, with the director's approval, deposit the same amount into a dedicated account for the benefit of the state lottery. The director also may approve the obtaining of a surety bond to cover part of the amount required, together with a dedicated account deposit to cover the remainder of the amount required.
A surety bond may be with any company that complies with the bonding and surety laws of this state and the requirements established by rules of the commission pursuant to this chapter. A dedicated account deposit shall be conducted in accordance with policies and procedures the director establishes.
A surety bond, dedicated account, or both, as applicable, may be used to pay for the lottery sales agent's failure to make prompt and accurate payments for lottery ticket product sales, for missing or stolen lottery tickets products, or for damage to equipment or materials issued to the lottery sales agent, or to pay for expenses the commission incurs in connection with the lottery sales agent's license.
(2) A lottery sales agent license for the sale of lottery products is effective for one year, except as otherwise provided in division (B) of section 3770.24 of the Revised Code.
A licensed lottery sales agent, on or before the date established by the director, shall renew the agent's license and provide at that time evidence to the director that the surety bond, dedicated account deposit, or both, required under division (G)(1)(b) of this section has been renewed or is active, whichever applies.
Before the commission renews a lottery sales agent license, the lottery sales agent shall submit a renewal fee to the commission in an amount that the director determines by rule adopted under Chapter 119. of the Revised Code and that the controlling board approves. The renewal fee shall not exceed the actual cost of administering the license renewal and processing changes reflected in the renewal application. The renewal of the license is effective for up to one year.
(3) A lottery sales agent license shall be complete, accurate, and current at all times during the term of the license. Any changes to an original license application or a renewal application may subject the applicant or lottery sales agent, as applicable, to paying an administrative fee that shall be in an amount that the director determines by rule adopted under Chapter 119. of the Revised Code, that the controlling board approves, and that shall not exceed the actual cost of administering and processing the changes to an application.
(4) The relationship between the commission and a lottery sales agent is one of trust. A lottery sales agent collects funds on behalf of the commission through the sale of lottery tickets products for which the agent receives a compensation.
(H) Pending a final resolution of any question arising under this section, the director of the state lottery commission may issue a temporary lottery sales agent license for the sale of lottery products, subject to the terms and conditions the director considers appropriate.
(I) If a lottery sales agent's rental payments for the lottery sales agent's premises are determined, in whole or in part, by the amount of retail sales the lottery sales agent makes, and if the rental agreement does not expressly provide that the amount of those retail sales includes the amounts the lottery sales agent receives from lottery ticket product sales, only the amounts the lottery sales agent receives as compensation from the state lottery commission for selling lottery tickets products shall be considered to be amounts the lottery sales agent receives from the retail sales the lottery sales agent makes, for the purpose of computing the lottery sales agent's rental payments.
Sec. 3770.06.  (A)(1) There is hereby created the state lottery gross revenue fund, which shall be in the custody of the treasurer of state, but shall not be part of the state treasury. All gross revenues received from sales of lottery tickets products, fines, fees, and related proceeds in connection with the statewide lottery and all gross proceeds from statewide joint lottery games shall be deposited into the fund. The treasurer of state shall invest any portion of the fund not needed for immediate use in the same manner as, and subject to all provisions of law with respect to the investment of, state funds. The treasurer of state shall disburse money from the fund on order of the director of the state lottery commission or the director's designee.
(2) Except for gross proceeds from statewide joint lottery games, all revenues of the state lottery gross revenue fund that are not paid to holders of winning lottery tickets participants, that are not required to meet short-term prize liabilities, that are not credited to lottery sales agents or video lottery sales agents in the form of bonuses, commissions, or reimbursements, that are not necessary for operating the video lottery terminals under Chapter 3770. of the Revised Code, that are not paid to financial institutions to reimburse those institutions for sales agent nonsufficient funds, and that are not collected from sales agents for remittance to insurers under contract to provide sales agent bonding services shall be transferred to the state lottery fund, which is hereby created in the state treasury. In addition, all revenues of the state lottery gross revenue fund that represent the gross proceeds from the statewide joint lottery games and that are not paid to holders of winning lottery tickets, that are not required to meet short-term prize liabilities, that are not credited to lottery sales agents in the form of bonuses, commissions, or reimbursements, and that are not necessary to cover operating expenses associated with those games or to otherwise comply with the agreements signed by the governor that the director enters into under division (J) of section 3770.02 of the Revised Code or the rules the commission adopts under division (B)(5) of section 3770.03 of the Revised Code shall be transferred to the state lottery fund. All
All investment earnings of the state lottery fund shall be credited to the fund. Moneys shall be disbursed from the fund pursuant to vouchers approved by the director. Total disbursements for monetary prize awards to holders of winning lottery tickets in connection with the statewide lottery and purchases of goods and services awarded as prizes to holders of winning lottery tickets shall be of an amount equal to at least fifty per cent of the total revenue accruing from the sale of lottery tickets products.
(B) Pursuant to Section 6 of Article XV, Ohio Constitution, there is hereby established in the state treasury the lottery profits education fund. Whenever, in the judgment of the director of budget and management, the amount to the credit of the state lottery fund that does not represent proceeds from statewide joint lottery games is in excess of that needed to meet the maturing obligations of the commission and as working capital for its further operations, the director shall transfer the excess to the lottery profits education fund in connection with the statewide lottery. In addition, whenever, in the judgment of the director of budget and management, the amount to the credit of the state lottery fund that represents proceeds from statewide joint lottery games equals the entire net proceeds of those games as described in division (B)(5) of section 3770.03 of the Revised Code and the rules adopted under that division, the director shall transfer those proceeds to the lottery profits education fund. There shall also be credited to the fund any repayments of moneys loaned from the educational excellence investment fund. Investment earnings of the lottery profits education fund shall be credited to the fund.
The lottery profits education fund shall be used solely for the support of elementary, secondary, vocational, and special education programs as determined in appropriations made by the general assembly, or as provided in applicable bond proceedings for the payment of debt service on obligations issued to pay costs of capital facilities, including those for a system of common schools throughout the state pursuant to section 2n of Article VIII, Ohio Constitution. When determining the availability of money in the lottery profits education fund, the director of budget and management may consider all balances and estimated revenues of the fund.
(C) There is hereby established in the state treasury the deferred prizes trust fund. With the approval of the director of budget and management, an amount sufficient to fund annuity prizes shall be transferred from the state lottery fund and credited to the trust fund. The treasurer of state shall credit all earnings arising from investments purchased under this division to the trust fund. Within sixty days after the end of each fiscal year, the treasurer of state shall certify to the director of budget and management whether the actuarial amount of the trust fund is sufficient over the fund's life for continued funding of all remaining deferred prize liabilities as of the last day of the fiscal year just ended. Also, within that sixty days, the director of budget and management shall certify the amount of investment earnings necessary to have been credited to the trust fund during the fiscal year just ending to provide for such continued funding of deferred prizes. Any earnings credited in excess of the latter certified amount shall be transferred to the lottery profits education fund.
To provide all or a part of the amounts necessary to fund deferred prizes awarded by the commission in connection with the statewide lottery, the treasurer of state, in consultation with the commission, may invest moneys contained in the deferred prizes trust fund which represents that represent proceeds from the statewide lottery in obligations of the type permitted for the investment of state funds but whose maturities are thirty years or less. Notwithstanding the requirements of any other section of the Revised Code, to provide all or part of the amounts necessary to fund deferred prizes awarded by the commission in connection with statewide joint lottery games, the treasurer of state, in consultation with the commission, may invest moneys in the trust fund which represent proceeds derived from the statewide joint lottery games in accordance with the rules the commission adopts under division (B)(5) of section 3770.03 of the Revised Code. Investments of the trust fund are not subject to the provisions of division (A)(10) of section 135.143 of the Revised Code limiting to twenty-five per cent the amount of the state's total average portfolio that may be invested in debt interests and limiting to one-half of one per cent the amount that may be invested in debt interests of a single issuer.
All purchases made under this division shall be effected on a delivery versus payment method and shall be in the custody of the treasurer of state.
The treasurer of state may retain an investment advisor, if necessary. The commission shall pay any costs incurred by the treasurer of state in retaining an investment advisor.
(D) The auditor of state shall conduct annual audits of all funds and any other audits as the auditor of state or the general assembly considers necessary. The auditor of state may examine all records, files, and other documents of the commission, and records of lottery sales agents and of video lottery sales agents that pertain to their activities as agents, for purposes of conducting authorized audits.
The state lottery commission shall establish an internal audit program before the beginning of each fiscal year, subject to the approval of the auditor of state. At the end of each fiscal year, the commission shall prepare and submit an annual report to the auditor of state for the auditor of state's review and approval, specifying the internal audit work completed by the end of that fiscal year and reporting on compliance with the annual internal audit program. The form and content of the report shall be prescribed by the auditor of state under division (C) of section 117.20 of the Revised Code.
(E) Whenever, in the judgment of the director of budget and management, an amount of net state lottery proceeds is necessary to be applied to the payment of debt service on obligations, all as defined in sections 151.01 and 151.03 of the Revised Code, the director shall transfer that amount directly from the state lottery fund or from the lottery profits education fund to the bond service fund defined in those sections. The provisions of this division are subject to any prior pledges or obligation of those amounts to the payment of bond service charges as defined in division (C) of section 3318.21 of the Revised Code, as referred to in division (B) of this section.
Sec. 3770.07.  (A)(1) Except as provided in division (A)(2) of this section, lottery prize awards shall be claimed by the holder of the winning lottery ticket product, or by the executor or administrator, or the trustee of a trust, of the estate of a deceased holder of a winning lottery ticket product, in a manner to be determined by the state lottery commission, within one hundred eighty days after the date on which the prize award was announced if the lottery game is an online game, and within one hundred eighty days after the close of the game if the lottery game is an instant game.
No lottery prize award with a value that exceeds five eleven hundred ninety-nine dollars shall be claimed by or paid to any person, as defined in section 1.59 of the Revised Code or as defined by rule or order of the state lottery commission, until the name, address, and social security number of each beneficial owner of the prize award are disclosed to documented for the commission. Except when a beneficial owner otherwise consents in writing, in the case of a claim for a lottery prize award made by one or more beneficial owners using a trust, the name, address, and social security number of each such beneficial owner in the commission's records as a result of such a disclosure are confidential and shall not be subject to inspection or copying under section 149.43 of the Revised Code as a public record.
Except as otherwise provided in division (A)(1) of this section or as otherwise provided by law, the name and address of any individual claiming a lottery prize award are subject to inspection or copying under section 149.43 of the Revised Code as a public record.
(2) An eligible person serving on active military duty in any branch of the United States armed forces during a war or national emergency declared in accordance with federal law may submit a delayed claim for a lottery prize award. The eligible person shall do so by notifying the state lottery commission about the claim not later than the five hundred fortieth day after the date on which the prize award was announced if the lottery game is an online game or after the date on which the lottery game closed if the lottery game is an instant game.
(3) If no valid claim to a lottery prize award is made within the prescribed period, the prize money, the cost of goods and services awarded as prizes, or, if goods or services awarded as prizes are resold by the state lottery commission, the proceeds from their sale shall be returned to the state lottery fund and distributed in accordance with section 3770.06 of the Revised Code.
(4) The state lottery commission may share with other governmental agencies the name, address, and social security number of a beneficial owner disclosed to the commission under division (A)(1) of this section, as authorized under sections 3770.071 and 3770.073 of the Revised Code. Any shared information as disclosed pursuant to those sections that is made confidential by division (A)(1) of this section remains confidential and shall not be subject to inspection or copying under section 149.43 of the Revised Code as a public record unless the applicable beneficial owner otherwise provides written consent.
(5) As used in this division:
(a) "Eligible person" means a person who is entitled to a lottery prize award and who falls into either of the following categories:
(i) While on active military duty in this state, the person, as the result of a war or national emergency declared in accordance with federal law, is transferred out of this state before the one hundred eightieth day after the date on which the winner of the lottery prize award is selected.
(ii) While serving in the reserve forces in this state, the person, as the result of a war or national emergency declared in accordance with federal law, is placed on active military duty and is transferred out of this state before the expiration of the one hundred eightieth day after the date on which the prize drawing occurs for an online game or before the expiration of the one hundred eightieth day following the close of an instant game as determined by the commission.
(b) "Active military duty" means that a person is covered by the "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 50 U.S.C. 501 et seq., as amended, or the "Uniformed Services Employment and Reemployment Rights Act of 1994," 108 Stat. 3149, 38 U.S.C. 4301 et seq., as amended.
(c) "Each beneficial owner" means the ultimate recipient or, if there is more than one, each ultimate recipient of a lottery prize award.
(B) If a prize winner, as defined in section 3770.10 of the Revised Code, is under eighteen years of age, or is under some other legal disability, and the prize money or the cost of goods or services awarded as a prize exceeds one thousand dollars, the director of the state lottery commission shall order that payment be made to the order of the legal guardian of that prize winner. If the amount of the prize money or the cost of goods or services awarded as a prize is one thousand dollars or less, the director may order that payment be made to the order of the adult member, if any, of that prize winner's family legally responsible for the care of that prize winner.
(C) No right of any prize winner, as defined in section 3770.10 of the Revised Code, to a prize award shall be the subject of a security interest or used as collateral.
(D)(1) No right of any prize winner, as defined in section 3770.10 of the Revised Code, to a prize award shall be assignable except as follows: when the payment is to be made to the executor or administrator, or the trustee of a trust, of the estate of a winning ticket holder prize winner; when the award of a prize is disputed, any person may be awarded a prize award to which another has claimed title, pursuant to the order of a court of competent jurisdiction; when a person is awarded a prize award to which another has claimed title, pursuant to the order of a federal bankruptcy court under Title 11 of the United States Code; or as provided in sections 3770.10 to 3770.14 of the Revised Code.
(2)(a) No right of any prize winner, as defined in section 3770.10 of the Revised Code, to a prize award with a remaining unpaid balance of less than one hundred thousand dollars shall be subject to garnishment, attachment, execution, withholding, or deduction except as provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and 3123.06 of the Revised Code or when the director is to make a payment pursuant to section 3770.071 or 3770.073 of the Revised Code.
(b) No right of any prize winner, as defined in section 3770.10 of the Revised Code, to a prize award with an unpaid balance of one hundred thousand dollars or more shall be subject to garnishment, attachment, execution, withholding, or deduction except as follows: as provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and 3123.06 of the Revised Code; when the director is to make a payment pursuant to section 3770.071 or 3770.073 of the Revised Code; or pursuant to the order of a court of competent jurisdiction located in this state in a proceeding in which the state lottery commission is a named party, in which case the garnishment, attachment, execution, withholding, or deduction pursuant to the order shall be subordinate to any payments to be made pursuant to section 3119.80, 3119.81, 3121.02, 3121.03, 3123.06, 3770.071, or 3770.073 of the Revised Code.
(3) The state lottery commission may adopt and amend rules pursuant to Chapter 119. of the Revised Code as necessary to implement division (D) of this section, to provide for payments from prize awards subject to garnishment, attachment, execution, withholding, or deduction, and to comply with any applicable requirements of federal law.
(4) Upon making payments from a prize award as required by division (D) of this section, the director and the state lottery commission are discharged from all further liability for those payments, whether they are made to an executor, administrator, trustee, judgment creditor, or another person, or to the prize winner, as defined in section 3770.10 of the Revised Code.
(5) The state lottery commission shall adopt rules pursuant to section 3770.03 of the Revised Code concerning the payment of prize awards upon the death of a prize winner, as defined in section 3770.10 of the Revised Code. Upon the death of a prize winner, the remainder of the prize winner's prize award, to the extent it is not subject to a transfer agreement under sections 3770.10 to 3770.14 of the Revised Code, may be paid to the executor, administrator, or trustee in the form of a discounted lump sum cash settlement.
(E) No lottery prize award shall be awarded to or for any officer or employee of the state lottery commission, any officer or employee of the auditor of state actively auditing, coordinating and, or certifying commission drawings, or any blood relative or spouse of such an officer or employee of the commission or auditor of state living as a member of the officer's or employee's household, nor shall any such officer, employee, blood relative, or spouse attempt to claim a lottery prize award.
(F) The director may prohibit vendors to the state lottery commission and their employees from being awarded a lottery prize award.
(G) Upon the payment of prize awards pursuant to a provision of this section other than a provision of division (D) of this section or section 3770.28 of the Revised Code, the director and the state lottery commission are discharged from all further liability for their payment. Installment payments of lottery prize awards shall be paid by official check or warrant, and they shall be sent by mail delivery to the prize winner's address within the United States or by electronic funds transfer to an established bank account located within the United States, or the prize winner may pick them up at an office of the commission.
Sec. 3770.08.  (A) No person shall sell a lottery ticket at a price greater than that fixed established by rule of the state lottery commission.
(B) No person other than a licensed lottery sales agent or video lottery sales agent shall sell lottery tickets products, but nothing in this section shall be construed to prevent any person from giving lottery tickets products to another as a gift. A transfer of lottery tickets products by any person which that is made in connection with a marketing, promotional, or advertising program shall be deemed to be a gift for the purposes of this chapter.
(C) No person shall sell a lottery ticket product to any person under eighteen years of age, and no person under eighteen years of age shall attempt to purchase a lottery ticket product. The commission shall adopt rules to establish a problem gamblers list and create a voluntary exclusion program.
(D) No person, directly or indirectly, on behalf of self, or another, nor any organization, shall invite, solicit, demand, offer, or accept any payment, contribution, favor, or other consideration to influence the award, renewal, or retention of a lottery sales or video lottery sales agent license.
(E) Except as otherwise provided in this division, no person shall sell lottery tickets on any fairgrounds during any annual exhibition conducted in accordance with Chapter 991. or 1711. of the Revised Code. "Fairgrounds" includes any land or property under the control or management of any agricultural society or of the Ohio expositions commission. This division does not apply to the sale of lottery tickets products by the commission at the state fairground during the state fair.
Sec. 3770.21.  As used in sections 3770.21 to 3770.30 of the Revised Code:
(A) "Associated equipment" means any hardware or software that is connected to video lottery terminal or the central communications system for the purpose of performing communications to, or validation, auditing, or data and information retrieval by, the state lottery commission. "Associated equipment" does not include telecommunications facilities and equipment of a public utility or video lottery terminals.
(B) "Central communications system" means the computer system that is operated and controlled under the authority of the state lottery commission, to which video lottery terminals and their associated equipment communicate for security, auditing, data and information retrieval, and other purposes authorized under this chapter and that has the ability to activate and deactivate the operation of video lottery terminals.
(C) "EDGE business enterprises" has the same meaning as in section 123.152 of the Revised Code.
(D) "Video lottery terminal" means a device approved by the state lottery commission for the purpose of conducting at tracks lotteries that provide immediate prize determinations for participants.
(E) "Video lottery sales agent" means a person who is a permit holder and holds a current license issued under section 3770.24 of the Revised Code to assist the state lottery commission in conducting lotteries through the use of video lottery terminals at a track.
(F) "Gross proceeds" means the amount of wagers by participants in lotteries minus payments to winning participants and minus value credits redeemed through a video lottery terminal.
(G) "Key gaming employee" means an individual determined to be a key gaming employee under rules adopted by the state lottery commission.
(H) "Ohio-based business" means a business that is subject to a tax imposed by Chapter 5725., 5727., 5733., or 5751. of the Revised Code and that has a physical presence in this state.
(I) "Permit holder" means a person, as defined in section 1701.01 of the Revised Code, that has been authorized by the state racing commission to conduct one or more horse racing meetings under Chapter 3769. of the Revised Code.
(J) "Value credit" means a credit that provides customers of a video lottery sales agent with free plays on video lottery terminal.
(K) "Track" means any place, track, or enclosure where a permit holder conducts live horse racing for profit at a racing meeting. "Track" includes facilities on premises contiguous or adjacent to those places, tracks, or enclosures.
Sec. 3770.22. The state lottery commission shall conduct lotteries that provide immediate prize determinations for participants through the use of video lottery terminals. The commission shall conduct these lotteries only through video lottery sales agents that were permit holders that conducted live horseracing meetings continuing since calendar year 2003, and only at tracks operated by one or more video lottery sales agents. If, on the effective date of this section, more than one permit holder conducted horseracing meetings at a track during the previous calendar year, the permit holders shall designate, by a written agreement, one permit holder, or a person or entity owning or owned by one or more permit holders, as the video lottery sales agent for that track. The agreement shall be filed with the commission prior to the issuance of a video lottery sales agent license and shall not be modified without the consent of the commission.
Sec. 3770.23.  A video lottery terminal shall be connected to the central communications system. The state lottery commission shall evaluate and approve both the hardware of a video lottery terminal and the software that is used to operate the video lottery terminal. The commission shall contract with an independent testing laboratory to ensure that the video lottery terminals operate in full compliance with all rules and regulations. The commission shall not approve a video lottery terminal unless the software that is used to operate the video lottery terminal will provide to participants a projected average return of more than eighty-five per cent during the expected lifetime of the video lottery terminal using standard methods of probability theory.
Except as provided in the agreement required by section 3770.26 of the Revised Code, the number, type, denomination, and location of video lottery terminals at a track shall be agreed upon between the agent and the commission. Not more than sixty per cent of the video lottery terminals operated by the commission at the track of a video lottery sales agent during the first five years of operation shall be manufactured by the same entity.
Sec. 3770.24.  (A) The director of the state lottery commission shall license a permit holder as a video lottery sales agent. Each applicant for a license as a video lottery sales agent shall do all of the following:
(1) Pay to the commission a nonrefundable application fee of one hundred thousand dollars;
(2) Present proof, in the form required by the director, that the applicant is a permit holder;
(3) Prior to the approval of the application, obtain a letter of credit, or a surety, or, if required by the director, a fidelity bond, in an amount to be determined by the director, but not more than two million dollars. The bond may be with any company that complies with the bonding and surety laws of this state and the requirements established by rules of the commission under section 3770.03 of the Revised Code.
(B) A video lottery sales agent license is effective for ten years. A video lottery sales agent, on or before the date established by the director, shall renew the agent's license and the agreement required by section 3770.26 of the Revised Code, and provide evidence that the agent is a current permit holder and has renewed the letter of credit, surety, or bond required by this section.
A video lottery sales agent may only transfer the agent's video lottery sales license with the consent of the commission.
(C) Any violation of this chapter, or of any rule adopted under it, is sufficient reason for the commission to refuse to issue a license, or for the commission to suspend or revoke any license issued, under this section.
With respect to the issuance, refusal, suspension, or revocation of a license under this section, the action of the commission is subject to Chapter 119. of the Revised Code.
Sec. 3770.25.  The relationship between the state lottery commission and a video lottery sales agent is one of trust. A video lottery sales agent collects funds on behalf of the commission through the sale of lottery products for which the agent receives a commission.
A video lottery sales agent may provide value credits to its customers as authorized by rule of the state lottery commission to promote and advertise the use of video lottery terminals.
Sec. 3770.26. (A) The state lottery commission shall execute an agreement with each video lottery sales agent. Each agreement and renewed agreement shall provide all of the following:
(1) That fifty per cent of the gross proceeds of the lotteries conducted under section 3770.22 of the Revised Code shall be paid as a commission to the agent for services and personnel provided under section 3770.28 of the Revised Code by the agent for the lotteries and for the provision, maintenance, and repair of the buildings and grounds at the track where the video lottery terminals are located and that the remaining fifty per cent of the gross proceeds shall be retained by the state;
(2) That the agent shall give to the commission a written schedule that lists the installed cost of all fixtures and equipment supplied by the agent to assist the commission in conducting lotteries under section 3770.22 of the Revised Code;
(3) That not more than two thousand five hundred video lottery terminals shall be placed at each track, without a determination by the director of the state lottery commission that the number of devices is consistent with the purposes of this chapter and has been requested by the agent;
(4) That the agent shall do all of the following:
(a) Set a goal to award not less than fifty per cent of the contracts related to the provision, maintenance, and repair under division (B) of section 3770.28 of the Revised Code of necessary capital improvements for the facilities at the track at which video lottery terminals are located to, and make a good faith effort to see that not less than fifty per cent of the subcontracts of those contracts are awarded to, Ohio-based businesses;
(b) Make a good faith effort to see that not less than five per cent of the subcontracts described in division (A)(5)(a) of this section are awarded to Ohio-based businesses that are EDGE business enterprises in accordance with executive order 2008-13S;
(c) Set a goal that not less than fifty per cent of the key video lottery employees and other personnel employed under division (C) of section 3770.28 of the Revised Code to perform duties to implement sections 3770.21 to 3770.30 of the Revised Code are residents of the county where the track is located or of a county adjacent to that county.
(5) That, not later than one year after the initial implementation of sections 3770.21 to 3770.30 of the Revised Code and annually thereafter, the agent shall report to the commission on its efforts to comply with divisions (A)(4)(a) and (d) of this section;
(6) That within five years after commencing operation of the lotteries conducted under section 3770.22 of the Revised Code, the agent shall make not less than eighty million dollars in improvements to the buildings and grounds at the track where the video lottery terminals are located, including temporary facilities, with not less than twenty million dollars in improvements to the buildings and grounds at the track being made within the first year. All improvements are subject to review by the commission.
(B) The term of the agreement shall not exceed ten years and shall not be terminated by the parties during its term, except for breach of a provision of the agreement, or suspension or revocation of a video lottery sales agent's license issued under section 3770.24 of the Revised Code or of a permit issued under Chapter 3769. of the Revised Code. The video lottery sales agent shall have exclusive rights to conduct lotteries through the use of video lottery terminals during the term of the agreement. If the commission intends to terminate or not renew an agreement, it shall provide the agent with an opportunity for an adjudication under Chapter 119. of the Revised Code.
Sec. 3770.261. (A) The agreement between the state lottery commission and each video lottery sales agent shall provide that a one-time licensing fee equal to sixty-five million dollars shall be paid by the agent to the commission, with thirteen million dollars to be paid on September 15, 2009, thirteen million dollars to be paid on December 15, 2009, thirteen million dollars to be paid on March 15, 2010, thirteen million dollars to be paid on June 15, 2010, and thirteen million dollars to be paid on September 15, 2010.
(B) Video lottery sales agents shall file with the commission all documents relating to their borrowing or financing of video lottery terminal licensing fees stating the date at which the borrowing or financing is retired.
Sec. 3770.262. (A) The state lottery commission may charge fees to persons applying for a contract as a vendor, retailer, or lessor of video lottery terminals. The fees shall be reasonably calculated to cover the costs of processing applications.
(B) If the state lottery commission determines the certification standards of another state are comprehensive, thorough, and provide adequate safeguards, the commission may certify an applicant without the necessity of a full investigation.
Sec. 3770.263.  (A) There is hereby created the video lottery study council consisting of five members. The speaker of the house of representatives shall appoint to the council two members of the house of representatives, the president of the senate shall appoint to the council two members of the senate, and the governor shall appoint to the council one member. Members of the council shall serve at the pleasure of their appointing authority, and shall serve without compensation, but shall be reimbursed for actual and necessary expenses incurred in the performance of their duties.
(B) The council shall do all of the following:
(1) Make an impartial review of all laws governing the operation and administration of video lottery gaming and recommend to the general assembly any changes it may find desirable with respect to the language, structure, and organization of those laws;
(2) Make an annual report to the governor and the general assembly with respect to the operation and administration of video lottery gaming; and
(3) Study all proposed changes in the laws governing the operation and administration of video lottery gaming and report to the general assembly on their desirability as a matter of public policy.
Sec. 3770.27.  In conducting lotteries under section 3770.22 of the Revised Code, the director of the state lottery commission shall do all of the following:
(A) Approve, qualify, certify, purchase or lease, install, maintain, repair, replace, and operate all video lottery terminals, associated equipment, and intellectual property necessary for the conduct of the lotteries. At the commencement of operations the video lottery terminals shall be new, state-of-the-art video lottery terminals. Thereafter, the video lottery sales agent has the right to request that underperforming video lottery terminals be removed and replaced with better performing video lottery terminals.
(B) Procure, install, establish, maintain, repair, replace, and operate the central communications system that provides security, auditing, and data and information retrieval as determined necessary by the commission, that is compatible with all video lottery terminal manufacturers, distributors, suppliers, and providers, and that uses a gaming standards association communications protocol. The central communications system provider shall upgrade the protocol to the latest standards at the request of the commission. The central communications system shall be online and in communication with computers, video lottery terminals, and associated equipment located at the tracks of video lottery sales agents.
(C) Select, qualify, certify, retain, pay, and terminate all contractors, suppliers, service companies, and vendors of the commission necessary for the conduct of lotteries under section 3770.22 of the Revised Code, including those persons that provide video lottery terminals, associated equipment, and the central communications system;
(D) Establish standards for the daily payment on business days, by a video lottery sales agent through electronic transfer or other system mandated by the director, of the gross proceeds of lotteries conducted under section 3770.22 of the Revised Code, less the commission paid to the video lottery sales agent under division (A)(1) of section 3770.26 of the Revised Code;
(E) Review advertising and promotion of the lottery and levels thereof. The commission may approve or disapprove of any advertising and promotion, but approval shall not be unreasonably withheld.
Sec. 3770.28.  In assisting the state lottery commission with the conduct of lottery games under section 3770.22 of the Revised Code, a video lottery sales agent shall do all of the following:
(A) Promptly report to the video lottery terminal manufacturer and the commission any malfunctions of the devices, or failures of the manufacturers or service technicians to promptly service and repair the devices or associated equipment;
(B) Provide, maintain, and repair necessary capital improvements for the facilities at the track at which video lottery terminals are located;
(C) Hire and compensate adequate personnel to ensure compliance with the provisions of this chapter relating to the operation of video lottery terminals, including sufficient security personnel to protect and secure the video lottery terminals and associated equipment, and the track at which the video lottery terminals are located;
(D) By electronic transfer or other system mandated by the director of the state lottery commission, transfer or deliver daily on business days to the commission the gross proceeds of lotteries conducted under section 3770.22 of the Revised Code, less the commission paid to the agent under division (A)(1) of section 3770.26 of the Revised Code;
(E) Deliver payment to winning participants of prizes awarded by lotteries conducted by the commission through video lottery terminals at the track.
Sec. 3770.29. (A) The conduct of lotteries and the operation of video lottery terminals at tracks under section 3770.22 of the Revised Code shall not be deemed to change the character of the use of the tracks under any county, municipal, or township land use regulation, ordinance, or agreement.
(B) No license or excise tax or fee shall be assessed upon or collected from a video lottery sales agent by any county, township, municipal corporation, school district, or other political subdivision of the state that has the authority to assess or collect a tax or fee, by reason of the conduct of lotteries at tracks under section 3770.22 of the Revised Code. This division does not prohibit the imposition of taxes under Chapter 718. or 3769. of the Revised Code.
Sec. 3770.30. Sections 3770.21 to 3770.30 of the Revised Code do not modify the authority of the state racing commission to regulate horse racing in accordance with Chapter 3769. of the Revised Code or, except as provided in sections 3770.21 to 3770.30 of the Revised Code, the rights and responsibilities of permit holders under that chapter.
Sec. 3770.31. (A) The supreme court shall have exclusive, original jurisdiction in all cases that challenge the constitutionality of sections 3770.21 to 3770.31 of the Revised Code or the relevant portions of any related sections.
(B) Any action challenging the constitutionality of sections 3770.21 to 3770.31 of the Revised Code or the relevant portions of any related section shall be commenced within ninety days after the effective date of those sections.
Sec. 4301.03.  The liquor control commission may adopt and promulgate, repeal, rescind, and amend, in the manner required by this section, rules, standards, requirements, and orders necessary to carry out this chapter and Chapter 4303. of the Revised Code, but all rules of the board of liquor control that were in effect immediately prior to April 17, 1963, shall remain in full force and effect as rules of the liquor control commission until and unless amended or repealed by the liquor control commission. The rules of the commission may include the following:
(A) Rules with reference to applications for and the issuance of permits for the manufacture, distribution, transportation, and sale of beer and intoxicating liquor, and the sale of alcohol; and rules governing the procedure of the division of liquor control in the suspension, revocation, and cancellation of those permits;
(B) Rules and orders providing in detail for the conduct of any retail business authorized under permits issued pursuant to this chapter and Chapter 4303. of the Revised Code, with a view to ensuring compliance with those chapters and laws relative to them, and the maintenance of public decency, sobriety, and good order in any place licensed under the permits. No rule or order shall prohibit the sale of lottery tickets products issued pursuant to Chapter 3770. of the Revised Code by any retail business authorized under permits issued pursuant to that chapter.
No rule or order shall prohibit pari-mutuel wagering on simulcast horse races at a satellite facility that has been issued a D liquor permit under Chapter 4303. of the Revised Code. No rule or order shall prohibit a charitable organization that holds a D-4 permit from selling or serving beer or intoxicating liquor under its permit in a portion of its premises merely because that portion of its premises is used at other times for the conduct of a bingo game, as described in division (S) of section 2915.01 of the Revised Code. However, such an organization shall not sell or serve beer or intoxicating liquor or permit beer or intoxicating liquor to be consumed or seen in the same location in its premises where a bingo game, as described in division (S)(1) of section 2915.01 of the Revised Code, is being conducted while the game is being conducted. As used in this division, "charitable organization" has the same meaning as in division (H) of section 2915.01 of the Revised Code. No rule or order pertaining to visibility into the premises of a permit holder after the legal hours of sale shall be adopted or maintained by the commission.
(C) Standards, not in conflict with those prescribed by any law of this state or the United States, to secure the use of proper ingredients and methods in the manufacture of beer, mixed beverages, and wine to be sold within this state;
(D) Rules determining the nature, form, and capacity of all packages and bottles to be used for containing beer or intoxicating liquor, except for spirituous liquor to be kept or sold, governing the form of all seals and labels to be used on those packages and bottles, and requiring the label on every package, bottle, and container to state the ingredients in the contents and, except on beer, the terms of weight, volume, or proof spirits, and whether the same is beer, wine, alcohol, or any intoxicating liquor except for spirituous liquor;
(E) Uniform rules governing all advertising with reference to the sale of beer and intoxicating liquor throughout the state and advertising upon and in the premises licensed for the sale of beer or intoxicating liquor;
(F) Rules restricting and placing conditions upon the transfer of permits;
(G) Rules and orders limiting the number of permits of any class within the state or within any political subdivision of the state; and, for that purpose, adopting reasonable classifications of persons or establishments to which any authorized class of permits may be issued within any political subdivision;
(H) Rules and orders with reference to sales of beer and intoxicating liquor on Sundays and holidays and with reference to the hours of the day during which and the persons to whom intoxicating liquor of any class may be sold, and rules with reference to the manner of sale;
(I) Rules requiring permit holders buying beer to pay and permit holders selling beer to collect minimum cash deposits for kegs, cases, bottles, or other returnable containers of the beer; requiring the repayment, or credit, of the minimum cash deposit charges upon the return of the empty containers; and requiring the posting of such form of indemnity or such other conditions with respect to the charging, collection, and repayment of minimum cash deposit charges for returnable containers of beer as are necessary to ensure the return of the empty containers or the repayment upon that return of the minimum cash deposits paid;
(J) Rules establishing the method by which alcohol products may be imported for sale by wholesale distributors and the method by which manufacturers and suppliers may sell alcohol products to wholesale distributors.
Every rule, standard, requirement, or order of the commission and every repeal, amendment, or rescission of them shall be posted for public inspection in the principal office of the commission and the principal office of the division of liquor control, and a certified copy of them shall be filed in the office of the secretary of state. An order applying only to persons named in it shall be served on the persons affected by personal delivery of a certified copy, or by mailing a certified copy to each person affected by it or, in the case of a corporation, to any officer or agent of the corporation upon whom a service of summons may be served in a civil action. The posting and filing required by this section constitutes sufficient notice to all persons affected by such rule or order which is not required to be served. General rules of the commission promulgated pursuant to this section shall be published in the manner the commission determines.
Section 2. That existing sections 3770.02, 3770.03, 3770.05, 3770.06, 3770.07, 3770.08, and 4301.03 of the Revised Code are hereby repealed.
Section 3. A video lottery sales agent shall set a goal to award not less than ten per cent of the contracts described in division (A)(5)(a) of section 3770.26 of the Revised Code to Ohio-based businesses that are minority business enterprises in accordance with Executive Order 2008-13S.
Section 4. Notwithstanding sections 3769.04 and 3769.13 of the Revised Code, for a period of two years after the effective date of this section, a permit holder who is located on property owned by a political subdivision and who is eligible to become an electronic lottery sales agent may move its track to another location in a contiguous county that is within fifty miles of its current location for any reason and without the application or petition otherwise required by those sections. That permit holder may operate as an electronic lottery sales agent at a temporary facility at its new location while constructing or otherwise preparing its new track at that location. However, that permit holder may not move its track into a contiguous county in which a permit holder who is eligible to become an electronic lottery sales agent already is located on the effective date of this section.
As used in this section, "permit holder," "electronic lottery sales agent," and "track" have the same meanings as in section 3770.21 of the Revised Code.
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