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^&upretrYe (Court of ®bin
S"I'A-I'F. ex rel. OHIO CHRISTIANALLIANCE, et al.,
Relators,
vs.
TED STRICKLAND, et al.,
Respondents.
. Case No. 2009-1648
Original Action
RESPONDRNTS' iYIO1'ION FOR J[JDGMEN'P ON THE PLEADINGS
1'INIOTHY J. GRENDELI,* (0005827)*C'ounsel ofRec•ord
6640 Harris RoadBroadview Heights, Ohio 44147440-729-6145614-220-0833 fax
Counsel for RelatorsOhio Clu•istian Alliance, Ronald Amstutz,,Jolm Adatns, and Seth Morgan
RICHARD CORDRAY (0038034)Attorne., General of Ohio
BENJAMIN C. MIZ.ER* (0083089)Solicitor General* Counsel qfRecord
AL.EXANDRA T. SCHIMMER (0075732)Chief Deputy Solicitor GeneralRICIIARD N. COGLIANESE (0066830)PEARL M. CHIN (0078810)LUCAS R. BLOCHER (0079239)MICHAEL J. SCHULBR (0082390)ROBER"I' F. MCCARTIIY (0083829)Assistant Attonieys General30 East Broad Street, 17th FloorColumbus, Ohio 43215614-466-8980614-466-5087 faxbenjamin.rnizer@ohioattorneygeiieraLgov
Counsel for Respondetits
,ittt tfje
*upreme Court o
S"I'A7'E ex rel. 01110 CIIRISTIANALLIANCE, et al.,
Relators,
vs.
TED STRICKLAND, et al.,
Respondents.
® bio
Case No. 2009-1648
Original Action
RESPONDENTS' MOTION FOR JUDGMENT ON THE PLEADINGS
TIMO111Y J. GRENDELL* (0005827)*(.'ounsel of Record
6640 Harris RoadBroadview Heights, Ohio 44147440-729-6145614-220-0833 fax
Counsel for RelatorsOhio Christian Alliance, Ronald Amstutz,John Adanis, and Seth Morgan
RICHARD CORDRAY (0038034)Attorney General of Ohio
BENJAMIN C. MIZER* (0083089)Solicitor General*Cozinsel of Record
ALEXANDRA T. SCHIMMER (0075732)Chief Deputy Solicitor GeneralRICHARD N. COGLIANESE (0066830)PEARL M. CHIN (0078810)LUCAS R. BLOCHER (0079239)MICIIAEL J. SCHULI:R (0082390)ROBERT P. MCCARTHY (0083829)Assistant Attorneys General30 East Broad Street, 17th FloorColumbus, Ohio 43215614-466-8980614-466-5087 [email protected]
Counsel for Respondents
Pursuant to S. Ct. Prac. R. X(5) and Civ.R. 12(C), Respondents-Governor Ted Strickland;
the Ohio Lottery Commission, and the Director of the Ohio Lottery Commission, Kathleen
Burke-move for judgment on the pleadings. A supporting niemorandum follows.
Respectfully submitted,
RICHARD A. CORDRAY (0038034)Atprney General of Ohio
EIqMM1N1C. MIZ UR (0083089)olicitor GeneraltCounsel of Record
ALEXANDRA T. SCHIMMER (0075732)Chief Deputy Solicitor GeneralRICIIARD N. COGLIAt^IESE ( 0066830)PEARL M. CHIN (0078810)LUCAS R. BLOCHER (0079239)MICHAEL J. SCIIULER (0082390)ROBERT F. MCCARTHY (0083829)Assistant Attorneys General30 East Broad Street, 17th FloorColumbus, Ohio 43215614-466-8980614-466-5087 [email protected]
Counsel for Respondents
3iJT thE
upreme Court 0
STATE cx rel. ORIO CHRISTIANALLIANCE, et al.,
Relators,
vs.
1'ED STRICKLAND, et al.,
Respondents.
®
Case No. 2009-1648
Original Action
MEMORANDUM IN SUPPORT OF RESPONDENTS'MOTION FOR JUD(:MENT ON THE PLEADINGS
TIMOTHY J. GRENDELL* (0005827)*C'ounsel ofRecorcd
Grendell & Simon Co., LPA6640 Harris RoadBroadview Heights, Ohio 44147440-729-6145614-220-0833 fax
Counsel for Relator•s.Ohio Christian Alliance, Ronald Amshztz,John Adams, and Seth Morgan
RICHARD CORDRAY (0038034)Attorney General of Ohio
BENJAMIN C. MIZER* (0083089)Solicitor General
*Counsel ofRecordALEXANDRA T. SCHIMMER (0075732)Chief Deputy Solicitor GeneralRICHARD N. COGLIANESE (0066830)PEARL M. CFIIN (0078810)LUCAS R. BLOCIIER (0079239)MICIIAEL J. SCHULER (0082390)ROBERT F. MCCARTIIY (0083829)Assistant Attorneys General30 East Broad Street, 17th FloorColumbus, Ohio 43215614-466-8980614-466-5087 faxbenjamin.mizer a)ohioattorneygeneral.gov
Counsel for Respondents
TABLE OF CONTENTS
Page
TABLE OF CONTENTS ................................................................................................................. i
...'I'ABLE OF AU'I'HORITIES ........... .............................................................................................. m
INTRODUCT I ON ...........................................................................................................................1
STATEMENT OF T11E CASF AND FACTS ......................... .......................... ................. ............ 2
A. The long history of lottery and gambling regulations in the State reveals tliat Ohioanshave disfavored private gambling interests but approved of State-run lotteryactivities . ..............................................................................................................................2
B. On a bipartisan vote, the General Assembly passed, and the Governor signed, theBudget Bill for fiscal years 2010-2011, which seeks to raise and appropriate revenuethrough the installation of video lottery terminals at seven Ohio racetracks .......................3
C. LetOhioVote.org filed a petition for writ of mandamus to subject the VLT Provisions
to referendum . ... ...................................................................................................................8
D. The Ohio Policy Roundtable filed a complaint for deciaratory judgment alleging thatVLT implementation is unconstitutional .............................................................................9
E. The Ohio Christian Alliance filed a petition for writ of mandamus, alleging that VL'1'implementation is unconstitutional ......................................................................................9
STANDARD OF REVIEW . ..........................................................................................................10
ARG UMENT .................................................................................................................................12
A. The VLT Provisions satisfy the single-subject rule of the Ohio Constitution ...................12
B. The General Assembly complied witli the three-considerations requirement ofArticle 11, § 15(C) when it cnacted the VLT Provisions ....................................................16
1. The VL"1' Provisions dic( not vitally alter the Budget Bill's subject matterbecause they related to the same conunon ptiupose as the original appropriationmeasures . .................................................... ...... .......... .......... ..... .......... .......... ............ .17
2. 'I'he VLT Provisions are consistent with the purpose of the three-considerationsrute because they were subject to vigorous public debate before their adoption. ......21
C. The State's implementation of VI,Ts does not create an itnpeimissible lending ofcredit or joint ownership uncter Article VIII, § 4 of the Ohio Constitution .......................23
1. The VL'T Provisions and regulations do not lend credit to private iirterests . .............24
2. The VLT Provisions and regulations do not amount to joint ownership inviolation of the Ohio Constitution ..............................................................................27
3. The VLT Provisions and regulations are consistent with the purpose of ArticleVIII, § 4 . .....................................................................................................................31
D. Relators cannot demonstrate that the Governor has violated his duty to "see that thelaws are faithfully executed" tmder Article 111, § 6 . ..........................................................32
E. The 50% commission payable to VLT agents is not derived from "net proceeds" andtherefore does not violate Article XV, § 6 ofthe Ohio Constitution .................................33
F. Ohio Constitution Article XV, § 6 permits the operation of VLTs . ..................................40
G. The General Assembly's decision to authorize VLTs in the Budget Bill, therebyfreeing up general revenue funds for other purposes, does not violate Article XV, § 6of the Ohio Constitution ......................................................... ............................................ 47
CONCLUSION ................... ..................... ...................................................................................... 50
CERTIFICATE OF SF.RV ICS ...... ................................................................................unnumbered
APPENDIX OF EXHIBCt'S
Directive to the Ohio Lottery, Implementing Video Lottery Terminals(July 13, 2009) :............................................................................................................... Ex. A
Am. Sub. II.B. 1, at 1796 ................................................................................................ Ex. B
Am. Sub. I3.B. 1, at 2797 ................................................................................................ Ex. C
Am. Sub. H.B. 1, § 305.10, at 2866 ................................................................................ Ex. D
VLT Rules........................................................................................................................ Ex. E
Executive Order 2009-17A, Immediate Adoption and Amendment of Rules toImplement Video Lottery Terminals (Aug. 18, 2009) .....................................................Ex. F
House and Senate Journals .......................................................................................Exs. G, H
ii
TABLE OF AUTFIORITIES
Cases Page(s)
Al Johnson Constr. Co. v. Kosydar (1975),42 Ol»o St.2d 29 ...................................................................................................................31
Alter v. Cincinnati (1897),56 Ohio St. 47 .......................................................................................................................28
C. L V. Z C. Group v. Warren (2000),88 Ohio St.3d 37 .......................................................................................................24, 27, 32
City of Cincinnati v. Harth (1920),101 Ohio St. 344 ...................................................................................................................25
ComTech Sys, Inc. v, Limbach (1991),59 Ohio St.3d 96 .............................................................................................................13, 15
Cttrtis v. Ohio Adult Parole Autla. (10t1i Dist.),2006-Ohi o-15 .................................................................................................. .......... ............10
Dalton v, Pataki (2005),5 N.Y.3d 243 .............................................................................................................36, 39, 45
DeRolph v. State,78 Ohio St.3d 193, 1997-Ohio-84 ....................................................................................7, 47
F'isher v. State (8th Dist. 1921),14 Ohio App. 355 ............................................................................................................41, 44
Gr•endell v. Ohio EPA (9th Dist. 2001),146 Ohio App. 3d 1- ............................................................................ .................... 28,30, 31
Groch v. Gtl4C,117 Ohio St.3d 192, 2008-Ohio-546 ....................................................................................12
Hoover v. Bd. ofCounty Comm'rs (1985),19 Ohio St.3d 1 .........................................................................................................17, 20, 21
In re Nov»ak,.13104 Ohio St.3d 466, 2004-Ohio-6777 ............ ................... ................... ................. ..............
N. Ohio Patrolmen's Benevolent Assn. v. Parmcr (1980),61 Ohio St.2d 375 ................................................................................................................. I 1
Nadlin v. Stariclc (C.P. Montgoinery County 1963),24 Ohio Op. 2d 272 ............. ..................................... ............................................................. 41
ui
Peterson v. Teodosio (1973),34 Ohio St.2d 161 .................................................................................................................10
Roosevelt Prop. Co. v. Kinney ( 1984),12 Ohio St.3d 7 ...............................................................................................................11, 12
Sintmons-Harris v. Goff,86 Ohio St.3d 1, 1999-Ohio-77 ........ ..............................................................................13, 15
State ex rel. Campbell v. Cincinraati St Ry. Co. (1918),97 Ohio St. 283 .....................................................................................................................25
State ex rel. Cities of Charleston & Huntington v. W. Va. Econ. Dev. Auth. (W.Va. 2003),588 S.E.2d 655 ......................................................................................................................46
State ex rel. Cordray v. Midway Motor Sales, Inc.,122 Ohio St.3d 234, 2009-Ohio-2610 ..................................................................................11
State ex rel. Dann v. Taft,109 Ohio St.3d 364, 2006-Ohio-1825 ..................................................................................33
State ex rel. Dix v. Celeste (1984),11 Ohio St.3d 141 .................................................................................................................13
State ex rel. Eichenberger v. Neff (10th Dist. 1974),42 Ohio App. 2d 69 ...............................................................................................................28
State ex rel. Evans v. Bhd off Niends (Wash. 1952),247 P.2d 787 ............................................................................................................................... 46
Stale ex rel. Gabalac v. New Universal Congregation ofLiving Souls (9th Dist. 1977),55 Ohio App. 2d 96 ...............................................................................................................41
State ex rel. Gordon v. Rhodes• (1951),156 Ohio St. 81 ........... ......................................... ........... ...................................................... 27
Stale ex rel. Kauer v. Def'enbacher (1950),153 Ohio St. 268 ..................................................................................................................24
State ex rel. Le[OhioVote. org v. Brunner,2009-Ohio-4900 ............................................................................................................ passirn
State ex rel. McElroy v. Baron (1959),169 Ohio St. 439 ...................................................................................................................27
State ex rel. Nat'l City Bank v. Bd. of Educ. (1977),52 Ohio St.2d 81 ...................................................................................................................11
iv
State ex rel. Ohio AF'L-CIO v. Voinovich (1994),69 Ohio St. 3d 225, 1994-Ohio-1 .................................................................................. passim
State ex rel. Ohio Civil Service Employees Association, Local 11 v. SERB,104 Ohio St.3d 122, 2004-Ohio-6363 ..................................................................................15
State ex rel. Ohio Congress of Parents & Teachers v. State Bct of Educ.,
111 Ohio St.3d 568, 2006-Ohio-5512 ........ ....................................................................11, 12
State ex re1. Ohio Roundtctble v. Taft ( 10th Dist.),2003-Ohio-3340 ..................................................................................................14, 34, 48, 49
Slate ex rel. Pirnaan v. Money,69 Ohio St.3d 591, 1994-Ohio-208 ......................................................................................10
Stcite ex rel. Purdy v. Clermont Cty. Bd. of Elections (1996),77 Ohio St.3d 338 ...........................................................................................................12, 45
State ex rel. S. Monroe & Son Co. v. Baker (1925),112 Ohio St. 356 ...................................................................................................................33
State ex rel. Sapp v. Franklin Cty. Ct. qfAppeals,118 Ohio St.3d 368, 2008-Ohio-2637 ..................................................................................10
State ex rel. Saxbe v. Brand (1964),176 Ohio St. 44 .....................................................................................................................25
State ex rel. Smith v. Indus. Comm'n (1942),139 Ohio St. 303 ...................................................................................................................11
State ex rel. Taft v. Franklin Cty. Court of Common Pleas,81 Ohio St.3d 480, 1998-Ohio-333 ................................................................................11, 45
State ex rel. Tomino v. Brown (1989),47 Ohio St.3d 119 .................................................................................................................26
State v. Beclcley ( 1983),5 Oliio St.3d 4 .......................................................................................................................12
State v. Ferguson,120 Ohio St.3d 7, 2008-Ohio-4824 ................................................................................12, 45
State v. Marck (Mont. 1950),220 P.2d 1017 .............................................................................................................................46
Troy Amusement Co. v. Attenweiler (2d Dist. 1940),64 Ohio App. 105 ..................................................................................................................40
v
Wash. State Grange v. Wash. Slate Republican Pctrty (2008),128 S. CL. 1184 .....................................................................................................................12
Westerhaus v. Cincinnati (1956),165 Ohio St. 327 .............................................................................................................41, 46
Whaley v. Franklin Cty. Bd of Comm'rs,92 Ohio St.3d 574, 2001-Ohio-1287 .............. ......................................................................10
Wishing Well Club v. Akron (C.P. Sununit County 1951),66 Ohio Law Abs. 406, 112 N.E.2d 41 .................................................................................40
Statutes, Rules and Constitutional Provisions
Article II, § 15 of the Ohio Constitution ....................................................................................9, 12
Article VIII, § 4 of the Ohio Constitution .............................................................................. passim
Article VIII, § 6 of the Ohio Constitution ......................................................................................24
Article XV, § 6 of the Ohio Constitution ............................................................................... passini
C'iv. K. 10(C) ..................................................................................................................................10
O. A. C. 3 3 7 0:2-2- 01 ..................................................... ..................................................................2 8
O.A.C. 3770-4-09 ..........................................................................................................................29
O.A.C. 3770:1-9-53 .......................................................................................................................42
O.A.C. 3770: I -9-5 5 .......................................................................................................................42
O.A.C. 3770:1-9-634 .... ................................................. ........................................ ........................ 43
O.A.C. 3770:1-9-668 ...............................................................................................................43, 44
O.A.C. 3770:2-2-01 .....................................................................................................28, 37, 41, 45
O.A.C. 3770:2-3-01 ............................................................................................................... passim
O.A.C. 3770:2-3-03 .......................................................................................................................28
O. A. C. 3 770:2-3 -05 .......................................................................................................................31
O.A.C. 3770:2-3-08 ............................................................................................................... passina
O.A.C. 3770:2-3-09 .......................................................................................................................30
O. A. C. 3 77 0:2-4 -04 ................ ............................... ......... ..... ................:...... ....... ..... ....................... 30
vi
O.A.C. 3770:2-4-06 .....................................................................................................................30
O.A.C. 3770:2-4-07 .......................................................................................................................3 0
<). A.C. 3770:2-6-01 .......................................................................................................................30
O. A.C. 3770:2-6-02 .......................................................................................................................30
O.A.C. 3770:2-6-03 .................................................................................................................30, 38
O.A.C. 3 770:2-6-04 .......................................................................................................................30
O. A. C. 3 770 :2-6 -0 5 ..................... ............................................................................ ......................3 0
O.A.C. 3770:2-7-01 .................................................................................................................29, 44
O.A.C. 3770:2-8-01 .......................................................................................................................38
O.A.C. 3770:2-10-60 .....................................................................................................................3 7
R.C. 109.08 ....................................................................................................................................26
R.C. 119.03 ......................................................................................................................................8
R.C. 3318.31 ..................................................................................................................................15
R.C. 3769.08 ..................................................................................................................................3 8
R.C. 3770.02 ..................................................................................................................................29
R.C. 3770.03 .......................................................................................................................... passim
R.C. 3770.06 .......................................................................................................................... passim
R.C. 3770.21 ....................................................................................................................................6
R.C. 4301.17 ..................................................................................................................................26
S. Ct. Prac. R. X(5) ........................................................................................................................10
Other Authorities
1975 Op. Att'y (3en. No. 75-005 ...................................................................................................41
^:: ^ ...........................................................................................Am. Sub. H.B. 1 Bud et Bill") passim
Am. Sub. H.B. 405 ................... .................................... ............................... ............................. 14, 15
vii
David M. Gold, Public Aid to Private Enterprise under the Ohio Constitution: Sections 4,6, and 13 ofArticle VIII in Historical Perspective (1984-1985), 16 U. 'I'ol. L. Rev.405 ........................................................................................................................................24
Gongwer Rep. No. 112, v. 78 (June 24, 2009) ................................................................................4
Gongwer Rep. No. 119, v. 78 (June 19, 2009) ..................... ..................................................... 4, 22
Gongwer Rep. No. 125, v. 78 (June 29, 2009) ................................................................................4
Gongwer Rep. No. 127, v. 78 (July 1, 2009) ...................................................................................4
Gongwer Rep. No. 128, v. 78 (July 2, 2009) ............................. .................. .................................... 5
Gongwer Rep. No. 129, v. 78 (July 6, 2009) ...................................................................................5
Gongwer Rep. No. 130, v. 78 (July 7, 2009) ...................................................................................5
Gongwer Rep. No. 133, v. 78 (July 10, 2009) ...........................................................................5, 22
I I.B. 245 (2009) ...............................................................................................................................4
vni
INTRODUCTION
I'his case presents another challenge to the provisions of the budget bill for fiscal years
2010-2011, Am. Sub. II.B. 1(`Budget Bill"), that recognize the Lottery Commission's authority
to implement video lottery terminals ("VL7's") at seven Ohio racetracks. See also State ex rel.
Ohio Policy Roundtable v. Strickland, No. 2009-1590. 'fhe plan to operate VLTs under the
Lottery Commission's authority was the product of a highly publicized and hotly debated
bipartisan compromise to close a multi-billion dollar shortfall in the biennial budget.
This Court recently held in State ex rel. LetOhioVole.org v. Braanner, 2009-Ohio-4900, that
the VLT Provisions are subject to a 90-day stay to allow LelOhioVote.org to circulate a
referenclum petition to place the provisions on the November 2010 ballot. But if
LetOhioVote.org does not submit the requisite signatures by the end of the 90-day period, the
VLT Provisions will go into effect. The constitutional claims brought by Relators in this case
therefore remain ripe, and the Court can and should dismiss those claims at the threshold.'
To begin with, Relators' challenge to the conslitutionality of the VL1' Provisions faces two
high hurdles. First, it is a facial attack, which this Court and the United States Supreme Court
disfavor. As such, Relators must establish that the law is invalid in all of its applications-a
showing they cannot make. Second, this Court presumes that legislative enactinents are
constitutional unless the challenger can show otherwise beyond a reasonable donbt. Relators
cannot discharge that heavy burden here.
' Respondents also recognize that this Court ordered briefing on the question whether the Courthas jurisdiction to proceed witli this case in view of the deeision in LelOhioVote.org, and
Respondents of cotn-se will comply with that order. But Respondents also acquiesced inRelators' motion for expedited proceedings and stated thattlzeir Answer and responsive motionwould be filed today. By this brief, Respondents are complying with that expedited schedule.
All of Relators' claims lack merit. The VLT Provisions satisfy the single-subject
requirement because they relate to the core purpose of the Budget Bill: In accordance with well-
established autliority, these provisions deal with the operations of and appropriations for the state
government, and they fund critical government operations. The VLT Provisions also satisfy both
the lettei- and the spirit of the three-considerations requiremcnt of the Ohio Constitution because
they were subject to close public debate and did not vitally alter the original Budget Bill. Neither
the VLT Provisions nor the Lottery Commission's accompanying VLT regulations improperly
lend credit to or enter a joint ownership aixangement with private entities. The VLT Provisions
and regulations likewise satisfy the constitutional requirement that net lottery proceeds go to
education. And VLTs are the type of lottery activity that the Lottery Commission has been
constitutionally authorized to conduct since the enactment of Article XV, § 6 of the Oliio
Constitution. Moreover, regardless of whether VLTs constitute a lottery, the Constitution allows
the General Assembly to authorizc broader forms of gambling, and thus the VLTs are
constitutionally pe•niissible.
Because all of the Respondents are tlierefore following their duty to comply with the Ohio
Constitution and Ohio law, Relators are not entitled to their request for mandamus relief. The
Court should enter judgrnent on the pleadings for Respondents to ensure the stability of the
State's budget.
STATEMEN'T OF THE CASE AND FACTS
A. The long history of lottery and gambling regulations in the State reveals that Ohioanshave disfavored private gambling interests but approved of State-run lotteryactivities.
The Inteivenor-Respondents in LetOhioVote.org v. Br•unner, No. 2009-1310, and the
Respondents in State ex rel. Ohio Policy Roundtcible v. Strickland, No. 2009-1590, traced the
long history of lottery regulation in Ohio. The lesson of that history is that while private
2
gambling initiatives have consistently been disfavored, Ohio's citizens and their elected
representatives have generally supported state-sponsored lottery activities that generate revenue
for public projects.
B. On a bipartisan vote, the General Assembly passed, and the Governor signed, theBudget Bill for fiscal years 2010-2011, which seeks to raise and appropriate revenuethrough the installation of video lottery terminals at seven Ohio racetracks.
As required by law, the Governor submitted a proposed 2010-2011 biennial budget to the
General Assembly. The Budget Bill, H.B. 1, was introduced in the House on February 12, 2009,
"to make operation appropriations for the biennium beginning July 1, 2009 and ending Jrme 30,
2011, and to provide authorization and conditions for the operation of state programs." Ilouse
Jouinal (Feb. 12, 2009), at 77. After rePerral to the Ilouse Finance and Appropriations
Committee, a substitute bill was reported back to the House for second consideration and
adopted on April 28, 2009. House Jouinal (Apr. 28, 2009), at 389. The Ilouse undertook its
third consideration of an amended version of the bill on April 29, 2009, and passed it on the
same day. IIouse Journal (Apr. 29, 2009), at 395.
The Budget Bill was then filed with the Senate Clerk for its first consideration on April 30,
2009. Senate Journal (Apr. 30, 2009), at 405-11. The bill was referred to the Senate Finance
and Financial Institutions Committee, wliich reported back to the Senate a substih.ite bill and
recomrnended its passage on June 2, 2009. Senate Journal (June 2, 2009), at 462. The
committee's report was accepted and journalized on that date as the second consideration. Id.
The Senate undertook its third consideration of the bill on June 3, 2009, and passed it on the
same day. Senate Journal (June 3, 2009), at 469. The aniended Budget Bill was then retumed to
the Ilouse for conclurence. On June 10, 2009, the House voted not to concur with the Senate's
ainendments. Senate Journal (June 10, 2009), at 752. 'I'hcrefore, the House and Senate
appointed a Conference Committee. Id. at 732-33.
3
During this period, the Director of thc Office of Budget and Management--consistent with
the OBM Director's ongoing duty to monitor the budget informed the Governor and the
House/Senate Conference Cotnmittee that, in light of declining tax revenues, they would need to
conipensate for an estimated $3.2 billion shortfall in the 2010-2011 biennial budget. Given their
constitutional rnandate to ensure a balanced budget, state legislators and the Govemor were faced
with difficult options-raise taxes on Ohioans, cut public services and benefits, or identify
additional revenue.
On June 19, 2009, the Governor amiotmced his proposed framework to balance the 2010-
2011 biennial budget without raising taxes. Gongwer Rep. No. 119, v. 78 (June 19, 2009). The
proposal called for: (1) spending cuts of nlore than $2.43 billion across state agencies;
(2) prioritization of education for economic growth, no cuts to elementary and secondary school
fiinding, and a continued tuition freeze at Ohio's public universities; and (3) the implementation
of VLTs at Ohio's seven racetracks, estimated to provide approximately $933 million in
increased lottery revenue over the biennium.
Between June 19, 2009 and June 30, 2009, lawmakers issued various statements on the
Governor's proposal, and they continued to resolve their differences over the biennial budgct.
See Gongwer Rep. No. 112, v. 78 (June 24, 2009). On June 29, 2009, the Senate approved a
one-week interim budget to give legislators additional time to work through the impasse.
Gongwer Rep. No. 125, v. 78 (June 29, 2009). On July 1, 2009, the House voted to approve a
second one-week budget extension. See I1.B. 245 (2009).
On July 1, 2009, the Senate President announced that he would initiate hearings on the
VI,T proposal by convening a five-member Select Committee on Video Lottery Terminals
("VLT Select Committee"). Gongwer Rep. No. 127, v. 78 (July 1, 2009). That same day, the
4
House Finance and Appropriations Comuiittee annotmced that it would hold three hearings to
weigh in on the impact of potential budget decisions.
On July 2, 2009, the Senate VLT Select Comnlittee heard testimony from Of6ce of Budget
& Management Assistant Director David Ellis and Ohio Lottery Cormnission Director Michael
Dolan. '1'he witnesses spent nearly two and a half hours answering questions on the details of the
VLT proposal. Gongwer Rep. No. 128, Vol. 78 (July 2, 2009). The Committee reconvened on
July 6, 2009, hearing testimony from industry groups supporting and opposing the VLT
proposal, including the Ohio Horsemen's Benevolent and Protective Association, MTR Gaming
Group, and the American Policy Roundtable. Gongwer Rep. No. 129, v. 78 (July 6, 2009). On
July 7, 2009, the Committee heard testimony from various attorneys as to the legal irnplications
of the VLT proposal. Gongwer Rep. No. 130, v. 78 (July 7, 2009).
On July 2, 2009, the IIouse Finance Committee held the first of its three meetings,
receiving testimony from state agency cliiefs and govei-nment prograni advocates on the impact
oC program budget cuts that would occur if the VLT proposal were not included in the budget.
Witnesses included Ohio Department of Rehabilitation and Corrections Director TeiTy Collins,
Department of .lob and Fainily Services Director Douglas Lumpkin, Superintendent of Public
Instruction Deborah Delisle, and various social services groups. Gongwer Rep. No. 128, v. 78
(July 2, 2009). The IIouse Finance Committee heard further testimony on July 6 and 7.
Gongwer Rep. No. 130, v. 78 (July 7, 2009).
On July 10, 2009, the House Speaker and the Senate President announced an agreement
that would authorize VL'fs through executive order and supporting legislative language.
Gongwer Rep. No. 133, v. 78 (Jiily 10, 2009). Consistent with that agreement, on July 13, 2009,
the Governor issued a directive to the Lottery Director, instructing him to implenzent
5
immediately a program to license the operation of VL"I's at seven Ohio racetracks. See Directive
to the Ohio Lottery, Implementing Video Lottery Terminals (July 13, 2009), at 14 (attached as
Ex. A). The Governor estimated that VLTs would generate $933 million in revenue and
licensing fees for the State. Id. ¶ 2. This funding would then be directed to education. In
accordance with Article XV, § 6 of the Ohio Constitution, the Governor instructed that all net
proceeds from VLTs "shall be deposited and utilized to benefit education programs in Ohio in
the sarne inanner as all other lottery net proceeds." Id. ¶ 4(f). He made the directive eontingent
upon an acknowledgment from the General Assenibly that the Lottery Commission had the
authority to implement VLTs. IcI. ¶ 5.
That sanie day, the General Assembly passed the 2010-2011 biennial budget, Am. Sub. No.
H.B. 1. The House voted 54-44 to accept the Conference Committee's report. See IIouse
Journal (July 13, 2009), at 714, 1813-16, 1843, 1844. By a vote o£ 17-15, the Senate did so as
well. See Senate Jounlal(Juiy 13, 2009), at 874, 1973-76, 2002, 2003.
uthority to implenient VLTs. It
amended R.C. 3770.03(A) to provide that "[tlhe state lottery commission shall promulgate rules
under which a statewide lottery may be conducted which includes, and since the ori >it, nal
enactment of this section has included, the authority for the conunission to operate video lottery
terminal games." Am. Sub. H.B. 1, at 1796 (attached as Ex. B). It also included additional
language to that effect: "Anv reference in this chapter to tickets shall not be construed to in any
way limit the authority of the commission to^erate video lottery terminal games." Id.
The General Assembly also amended R.C. 3770.21 to deffiie a VLT as an "elechronic
device approved by the state_lottery com7nission that provides immediate prize deter-minations
£orparticipants on a,n electronic display." Id. at 1801. The General Assembly fiirtlrer directed
6
the Lottery Coimnission to include in any VLT rules the minimuin level of investment required
by licensees. Id. at 1801-02. The legislature also prohibited municipalities and other political
subdivisions from assessing new license or excise taxes on the VLTs. N. at 1802.
As explained above, Article XV, § 6 of the Ohio Constitution rnandates that the net
proceeds of the Ohio Lottery must go entirely to education. The General Assembly has
implemented that constitutional mandate by creating the Lottery Profits Education Fund. R.C.
3770.06(B). Gross proceeds of the Ohio Lottery are deposited into the State Lottery Gross
Revenue Fund, which is used to pay certain expenses for lottery operations and prizes. After the
expenses have been paid, the remaining proceeds are deposited into the State Lottery Fund, R.C.
3770.06(A), liom which other lottery operation expenses are paid. From there, all net profits
from lottery activities- that is, all of the money that is not needed to meet the Ohio Lottery's
expenses and obligations-is transfen-ed to the Lottery Profits Fducation Fund. R.C.
3770.06(B).
Consistent with these constitutional and statutory provisions, the Budget Bill appropriates
all of the net proceeds froxn the Ohio Lottery, including an estimated $851.5 million in net profits
from VL'1's, to elementary and secondaiy education. Specifically, the Budget Bill allocates $990
million in fiscal year 2010 and $1.27 billion in fiscal year 2010 for Ohio schools, for a total of
almost $2.3 billion over the biennium. See Am. Sab. H.B. 1, at 2797 (attached as Ex. C). All of'
that money is earmarked for Foundation Funding, which is distributed to local school districts
based on the fonnula in Title 33 of the Revised Code. (The Governor and General Assembly
substantially revised the Foundation Funding forrnula in their ongoing efforts to meet this
Court's mandate in DeRotph v. Stqte, 78 Ohio St.3d 193, 1997-Ohio-84). The Budget Bill also
appropriates $50,000 per year over the biennium to the Inspector General for VLT oversight.
7
Am. Sub. H.B. 1, § 305.10, at 2866 (attached as Ex. D). The $2.3 billion in net lottery proceeds
is a critical part of the State's total contribution of $13,037,282,060 toward education ni the
current biennitun.
'1'he Governor signed the Budget Bill into law on July 17, 2009.
On August 17, 2009, the Lottery Commission approved a series of proposed administrative
rules governing VLT implementation and operation. See VLT Rules (attached as Ex. E). The
next day, Governor Strickland issued an executive order authorizing the Commission to enact
those rules immediately pursuant to R.C. 119.03(F). See Executive Order 2009-17A, Inunediate
Adoption and Amendment of Rules to Implement Video Lottery Terminals (Aug. 18, 2009)
(attached as Ex. F).
C. LetOhioVote.org filed a petition for writ of mandamus to subject the VLT Provisionsto referendum.
On July 20, 2009, a group of relators, including an organization styled LetOhioVote.org,
petitiotzed this Court for a writ of mandamw, against the Ohio Secretary of State.
LetOhioVote.org argued that the VLT Provisions are subject to referendum under Article II, § lc
of the Ohio Constitution and requested, among other relief, that the Court order the Secretary to
set forth in her joLunals that the VLT Provisions slza1l not be effective for 90 days.
This Court granted LetOhioVote.org's requested mandamus relief on September 21, 2009.
The Court held that the VLT Provisions "are subject to referendum" because they "do not fall
within any of the exceptions to the right of referendurn in that they are neither laws providing for
tax levies, nor appropriations ior the current expenses of the state government, nor emergency
laws necessary for the immediate preservation of the public peace, health, or safety." State ex.
r•el. LetOlaioVote.org v. Brunner, 2009-Ohio-4900, slip op. at syl.
8
D. The Ohio Policy Konndtable filed a complaint for declaratory judgment alleging thatVLT implementation is unconstitutional.
After GetOhioVote.org was argued but before this Court's decision, the Ohio Policy
Roundtable petitioned the Court seeking a declaration that: (1) the implemeutation and operation
of VLTs do not constitute a "lottery" within the meaning of Article XV,§ 6 of the Ohio
Constitution; (2) the Budget Bill and the Lottery Corrunission's administrative regulations
governing VLT itnplementation violate Article XV, § 6 of the Ohio Constitution because they
fail to place the entire net proceeds from the operation of VLTs "into a fund of the state treasury
which shall be used solely for the support of elementary, secondary, vocational and special
education programs"; and (3) the General Assembly violated the single-subject rule of Ar-ticle 11,
§ 15(D) of the Ohio Constitution by including the VLT provisions in the Budget Bill. The
named respondents-Governor Ted Strieldand, the Ohio Lottery Commission, the individual
members of the Commission, and the Lottery Director, Kathleen Burke-filed an answer and a
motion for judgtnent on the pleadings. The CoLirt has not yet ruled on that motion.
E. The Ohio Christian Alliance filed a petition for writ of mandamus, alleging that VLTimplementation is unconsfitutional.
On Septeniber 14, 2009, Relators Ohio Christian Alliance, Ronald Amstuta, .lohn Adams,
and Seth Morgan filed a verified complaint and petition for writ of mandanlus and prohibition.
They raise seven substantive claims: (1) the General Assembly's decision to include the VL`1'
provisions in the Budget Bill violates the single-subject rule of Article 11, Section 15(D) of the
Ohio Constitution; (2) the Gencral Assembly's passage of the Budget Bill violates Article II,
§ 15(C) of the Ohio Constitution because the House and Senate did not consider the legislation
on three separate days; (3) the Lottery Commission's implementation of VLTs is an improper
joint association with seven pari-mutuel racing facilities under Article VIII, § 4 of the Ohio
Cotistitution; (4) Governor Strickland's Directive to the Ohio Lottery Commission violates his
9
duty under Article 111, Section 6 of the Ohio Constitution to see that the laws of Ohio are
faithfully executed; (5) the Lottery Cominission's administrative regulations governing VLT
implementation and operation violate Article XV, Section 6 of the Ohio Constitution because
they share the proceeds of VLTs with the seven racing facilities; (6) the Lottery Commission's
expansion of the Ohio Lottery to include VL'fs violates the Ohio Constitution and Ohio law;
(7) the Governor's decision to dedicate VLT revenues to education, thereby Ji•eeing up resources
in the general revenue fund, is unconstitutional.
Relators request a declaratory judgnent, injunctive relief, and a writ of mandamus or
prohibition ordering the Governor, the Lottery Commission, and Director Burke to take no
further action to implement VI,Ts.
STANDARI) OF REVIEW
Where, as here, the issues are legal ones that can be resolved without factual development,
judgnient on the pleadings is both peruiitted and appropriate. State ex rel. Pirman v. Money, 69
Ohio St.3d 591, 593, 1994-Ohio-208; S. Ct. Prac. R. X(5).
Judgment on the pleadings is required when it appears, after presuining the truth of all
material factual allegations in Relators' coniplaint and making all reasonable inferences in
Relators' favor, that they are not entitled to the requested relief. Slate ex rel. Scapp v. Franklin
Cry. Ct. ofAppeals, 118 Ohio St.3d 368, 2008-Ohio-2637, ¶ 13 ; accord Whaley v. Franklin Cly.
Bd, of Comm'rs, 92 Ohio St.3d 574, 581, 2001-Ohio-1287. The Court may only consider the
allegations in the pleadings and any lnaterial incorporated by reference or attached as exhibits to
tlie pleadings. Civ. R. 10(C); Peterson v. Teodosio (1973), 34 Ohio St.2d 161, 166; Curtis v.
Ohio AdaElt Parole Auth. (10th Dist.), No. 04AP-1214, 2006-Ohio-15 ^ 24.
Relators request a writ of mandamus from this Court ordering Respondents to take no
further action in irnplementing VLTs. "Mandamus is a writ issued, in the name of the state, to an
10
inferior tribunat, a corporation, board, or person, comtnanding the performance of an act whicli
the law specially enjoins as a duty resulting from an of3ice, trust, or station °' State ex ret Smith
v. Indus. Comm'n (1942), 139 Ohio St. 303, 306 (citation ornitted). To obtain a writ of
mandamus, Relators must show that: (1) they have a clear legal right to the requested relief,
(2) the Respondent is under a clear legal duty to perform the reqncsted act; and (3) Relators do
not have an adequate remedy at law. State ex rel. Nat'l C'ity Bank v. Bd. of Educ. (1977), 52
Ohio St.2d 81, 83.
The gravamen of Relators' petition is their belief that the VLT Provisions in the Budget
Bill and the associated Lottery Conunission regulations are unconstitutional, and that
Respondents lack the authority to expand the state lottery to include VLTs. This Court has
repeatedly held that legislative enactnients are entitled to a strong presumption of
constitutionality. State ex rel. Ohio Congress o,f Parents & Teachers v. State Bd. of Fduc., 111
Ohio St.3d 568, 2006-Ohio-5512, ¶ 20 (citing N. Ohio Patrolmen's Benevolent Assn. v. Parma
(1980), 61 Oliio St.2d 375, 377); State e.x re1. Taft v. Franklin Cly. Court of Common Pleas, 81
Ohio St.3d 480, 481, 1998-Ohio-333. "When the validity of a stah.ite is challenged on
constitutional grounds, the sole function of the court is to determine wliether it transcends the
limits of legislative power," not to judge the statute's "policy or wisdom." Ohio Congress, 111
Ohio St.3d at 573 (internal quotation marks and citation omitted).
"This principle applies equally to administrative regulations," Roosevelt Prop. Co. v.
Kinney (1984), 12 Ohio St.3d 7, 13, which "ha[ve] the force and effect oflaw," State ex rel.
Cordray v. Midway Motor Sates, Ittc., 122 Ohio St.3d 234, 2009-Ohio-2610, ¶ 23.
Administrative regulations are, therefore, "presumed reasoriable, both factually and legally, and
11
the burden rests on the party challenging the rule to introduce evidence to the contrary."
Roosevelt Prop., 12 Ohio St.3d at 13.
Aecordingly, a party challenging the constitutionality of a statute or administrative
regulation bears the burden of proving that it is unconstitutional beyond a reasonable doubt.
State v. Tergus•or:, 120 Ohio St.3d 7, 2008-Ohio-4824, ¶ 12; accord Ohio Congress, 2006-Ohio-
5512 at ¶ 20. In reviewing eonstitutional claims, the Court "must give due deference to the
General Assembly," Ohio Congress, 2006-Ohio-5512 at ¶ 20, and "apply all presumptions and
pertinent niles of construction so as to uphold, if at all possible, a statute or ordinanee asserted as
unconstitutional" State ex rel. Purdy v. Clermnnt County Bd. of Elections (1996), 77 Ohio St.3d
338, 345 (citation omitted).
The presumption of constitutionality is even stronger when, as here, a law is challenged on
its face rather than as applied. Both the United States Supreme Court and this Court strongly
disfavor f'acial challenges. See Wash, State Grange v. Was•h. State Republican Party (2008), 128
S. Ct. 1184, 1190; State v. Beckley (1983), 5 Ohio St.3d 4, 8. To succeed, a party bringing a
facial challenge must "demonstrate that there is no set of circumstances in which the statute
would be valid." Groch v. GMC, 117 Ohio St.3d 192, 2008-Ohio-546, ¶ 26.
ARGUMENT
A. The VLT Provisions satisfy the single-suh,ject rule of the Ohio Constitution.
Relators first argue that the VL1' Provisions of the Budget Bill violaLe the single-subject
rule of the Ohio Constitution. Compl. ¶¶ 36-40. Article 11, § 15(D) of the Ohio Constitution
provides that "[n]o bill shall contaiit more tlkui one subject, wliich shall be clearly expressed in
its title." Relators' claim fails on its face, because the VL'I' Provisions comply with theone-
subject requirement.
12
The single-subject rule as interpreted by this Court is not onerous. The Court has long
recognized that "the mere fact that a bill ernbraces more than one topic is not fatal, as long as a
common purpose or relationship exists between the topics." State ex rel. Ohio ATL-CIO v.
Voinovich, 69 Ohio St.3d 225, 229, 1994-Ohio-1 (citation and emphasis omitted). An enactment
will be struck down as invalid only when it is so unrelated to other provisions as to constitute a
"inanifestly gross and fraudulent violation" of the single-subject rule. In re Nowak, 104 Ohio
St.3d 466, 2004-Ohio-6777, ¶ 45; Voinovich, 69 Ohio St.3d at 229. Given the Court's
acknowledgement of a strong presumption of constitutionality to legislative enactments, the
"manifestly gross and fi•audtilent" standard ensures that thc single-subject rule will not be
construed in a way that unnecessarily restricts the General. Assernbly's plenary powers to make
laws or to multiply excessively the number of legislative enactments. State ex rel. Dzx v. Celeste
( 1984), 11 Ohio St.3d 141, 145.
The Court has also recognized the special nature of appropriafion measures wlren it comes
to the single-subject requireinent. 1'he Court has observed that "[a]ppropriations bills, of
necessity, encompass many items, all bound by the thread of appropriations." Sim7nons-Hai-ris
v. Goff, 86 Ohio St.3d 1, 16, 1999-Ohio-77. 1lierefore, a plurality of subjects within a budget
bill does not destroy unity so long as the provisions in question share the common thread of
appropriations. For exarnple, in ConaTech Sys•, Inc. v. Ldmbach (1991), 59 Ohio St.3d 96, 99, the
Court rejected a single-subject challenge to a tax provision, explaining that the law at issue was
"an appropriations bill and deal[t] with the operations of state government," and that the law
eould "contain a new object of taxation because the tax fundled] government operations
described elsewhere in the Act."
13
Other cases are even more squarely on point: In a case addressing the authority of the
Lottery Coinmission, the Tenth District Court of Appeals held that portions of a budget bill
authorizing Ohio's participation in the Multi-State Lottery Agreement ("Mega Millions^3^") did
not violate the single-subject rule. See State ex rel_ Ohio Roundtable v. Taft (10th Dist.), No.
02AP-911, 2003-Ohio-3340, discretionary appeal denied, State ex rel. Ohio Roundtable v. Taft,
100 Ohio St.3d 1484, 2003-Ohio-5992. Like the Budget Bill at issue here, Am. Sub. H.B. 405
was enacted in 2002 to address the State's worsening financial situation and to provide a strearn
of revenue through a budget correction bill. 2003-Ohio-3340, at,( 48. The legislation authorized
the Lottery Commission to enter into the multi-state lottery "with the expectation that it would
generate an estimated $41 million per year in aciditional revenue to Ohio schools." Id. ¶ 49.
Although Am. Sub II.B. 405 affected a "multiplicity of Revised Code sections and other topics,"
the appeals court found that Am. Sub. ILB. 405 did not violate the single-subject rule because
the lottery provisioris and the remaining provisions of the bill "revolve around the `common
thread of appropriation' and revenue, particularly enhancements to revenue." Id 9i 48. They
were "firmly related to the central appropriations core of the bill." Id.^ 49 (citation omitted).
The same is true here. The VLT Provisions are a critical piece in the massive biennial
Budget Bill. As explained in the Statement of Facts, the whole purpose of the VLT Provisions
was to help close a $3.2 billion budget shortfall. After making painful cuts in public services and
benefits, the Governor directed the Lottery Commission to implement immediately the program
to license VLTs at seven Ohio racetracks. The directive was followed by the General
Assembly's express acknowledgment in the Budget Bill that the Lottery Commission has, and
always lias had, the authority to implemcnt VLTs. And all of the net proceeds from V L'I's over
the biemiium a projected $933 million-will go to local schools.
14
The VLl' Provisions are therefore consistent with the single subject of the Budget Bill:
They "deal[] with the operations of the state government" and "fnnd[] government operations
described elsewhere in the Act." ComTech, 59 Ohio St.3d at 99. This legislation is not an
example of the kind of "logrolling" that the single-subject rule is desigiied to prevent, see id. at
99, because gross disunity in purpose and subject matter does not exist between the money raised
by VI,Ts and the appropriations to local schools. For that reason, this case does not implicate the
concerns raised in Simmons-Flarris, 86 Ohio St.3d 1, where the Court ruled that the school
voucher progranr introduced in the 1996-1997 biennial budget was a"rider" attached to an
appropriations bill. There was no record in the Sinzmons-Harris case that the school voucher
program was enacted to address a budget shortfall or to produce vital revenue for the State.
Rather, the substantive school voucher provisions were slipped into a budget bill with no relation
to spending. Id. at 16-17. The VLT Provisions, by contrast, merely recognize the Lottery
Comnvssion's preexisting authority to operate VLTs. Moreover, they create a stream of revenue
and are inextricably tied to appropriafions, and, thus, are a proper part of the Budget Bill.
Although Relators invoke State ex rel. Ohio Civil Service Brnployees Association, Local 11
v. SERB, 104 Ohio St.3d 122, 2004-Ohio-6363, that case does not help Relators' eause. There,
after collective bargaining negotiations between the Ohio Civil Service Employees Association
("OSCEA") and the Ohio School Facilities Commission broke down, the General Assembly
included an amendment to R.C. 3318.31 in Atn. Sub. H.B. 405 that excluded certain employees
from the collective bargaining process. Id. $¶ 1-3. SERB argued that "a provision that impacts
the state budget, even if only slightly, may be lawfully included in an appropriations bill." Id.
¶ 33. T'he Court disagreed and reiterated the test outlined above. Id. ¶ 30. 1'hen, applying that
standard, the Court found "no common purpose or relationship between the budget-related items
15
in Am. Sub. H.B. No. 405 and the exclusion of OSFC employees from the collective-bargaining
process." Id. ¶ 34. Unlike the colleetive-bargaining exclusion in OCSEA, however, the VLT
Provisions at issue here are inextricably related to the appropriations process. They directly raise
revenue through the implementation of VLT operations, and then appropriate that revenue for
primaiy and secondary education. Put simply, the Vi,T Provisions directly iniplicate the
common purpose t f the Budget Bill---to fund the current operations and obligations of state
govermnent.
This Court's case law therefore establishes that the VLT Provisions are consistent with the
single-subject requirement. 'I'he Court's recent decision in LetOhioVole.org does not affect that
conclusion, because Voinovich establishes that a provision inay satisfy the single-subject rule
even as it is subject to referendun. See Voinovich, 69 Ohio St.3d at 229, 236 (holding that
workers-cornpensation provisions contained in an appropriation bill complied with the single-
subject requirement even though they did not aniount to an "appropriation" for purposes of thc
referendum power under Article II, § ld of the Ohio Consfitution).
B. The General Assembly complied with the three-considerations requirement of ArticleII, § 15(C) when it enacted the VLT Provisions.
Relators' argument that Anr. Sub. I3.B. ] violates Section 15(C), Article II of the Ohio
Constitution, commonly referred to as the three-considerations or three-readings clause, is
meritless. The constitutional provision states in relevant part:
Every bill shall be considered by each house on three different days, unless two-thirdsof the members elected to the house in which it is pending suspend this requirement,and every individual consideration of a'oill or actior, suspending the requirement shallbe recorded in the journal o f the respective house.
Ohio Const. art. II, § 15(C). The clause therefore requires that a bill be considered by each house
on three different days, unless the provision is waived. The VLT Provisions comply with this
16
rcqturement because tbey did not vitally alter the subject matter of the Budget Bilt, and because
the purpose o1'the thr®e-readings clause is satisfied in this case.
1. The VLT Provisions did not vitally alter the Budget Bill's subject matter because
they related to the same common purpose as the original appropriationmeasures.
The IIouse and Senate journals reflect-and Relators do not dispute--that the Budget Bill
was considered on tllree different days in each chamber. As set forth in the legislative journal,
the Budget Bill was considered in the House on February 12, 2009; April 28, 2009; and April 29,
2009, -and in the Senate on April 30, 2009; June 2, 2009; and June 3, 2009. See House and
Senate Journals (attached as Ex. G. H). Relators contend, however, that the VLT Provisions
contained in the Conference Conmiittee Report and approved on July 13, 2009, by both IIouses
were new, non-appropriation provisions that re-triggered the three-cousiderations rule. The issue
in this original action, then, is not whether the Budget Bill had tlu•ee considerations in each house
on three clifferent days, but rather whether any of the changes to the Budget Bill during the
legislative process required tllree additional considerations by eacli chaniber.
When a bill undergoes changes during the legislative process, those changes trigger the
requirement of three additional considerations only if they "vitally alter the substance" of the
original bill. I3oover v_ Bd. ofCounty Comm'rs (1985), 19 Ohio St.3d 1, 5. Put another way, "a
legislative Act is valid if the requisite entries are made in the legislative journals and there is no
indication that the subject matter qf the original bill was 'vitally altered' such that there is no
longer a coarnmon purpose or relationship between the original bill and the bill as amended."
State ex rel. Ohio AP'L-CIO v. Voinovich (1994), 69 Ohio St.3d 225, 233. The "vital alteration"
requirement acconlmodates the need for the General Assembly to be able to amend a bill as it
makes its way through the legislative process. Indeed, as this Court has noted, the Ohio
Constitution "reserves to each house the right to freely alter, aniend or reject bills introduced by
17
either," id. at 233 (citing Art. lI, § 15(A)), and this Court accordingly has declined to invalidate
changes that fall short of a vital alteration. "To do otherwise would place this court in the
position of directly policing every detail of the legislative amendment process wlien bills are
passed containing a consistent theme." Id. at 234.
The amendments containing the VLT Provisions did not vitally alter the Budget Bill
because they closely relate to the bill's core substance and ptiu-pose-appropriations for the
government's operations during the 2010-2011 biennium. More specifically, the VLT
Provisions inextricably relate to a particular and critical piece of the Budget Bill--spending lbr
local schools. The VLT Provisions added a revenue source for a line-item appropriation that
existed from the Budget Bill's introduction until its final enactment. While the amount of that
appropriation changed during the course of the legislative process, the appropriation itself was
always part of the Budget Bill.
Before the VLT Provisions were introduced, the Budget Bill already contained an
appropriation line item dedicating nioney from the aetivities of the Lottery Commission to local
schools. Specifically, Section 265.10 of Am. Sub. I1.B, ]-as introduced in the I-Iouse and
passed by both the House and Senate before it was sent to Conference Committee-set fortli the
biennial appropriations for the Department of Education. Line 200612 of those appropriations
provided the following appropriation from the Lottery Profits Education Fund:
7017 200612 Foundation Funding $705,000,000 $711,000,000
TOTAL LPE Lottery Profits
Edneation Fund Group $705,000,000 $711,000,000
See, e.g., Sub. I3.B. No. 1(as introduced, LSC #0516-20), at 2820; Am. Sub. II.B. No. 1(as
passed by the House), at 3704; Arn. Sub. II.B. No. 1(as passed by the Senate), at 3037. lii other
words, before the VLT Provisions were added to the Budget Bill, the draft legislation already
18
allocated more than $1.4 billiott in the Lottery Profits Education Fund to local schools according
to the Foundation Funding Fornnula described in Title 33 of the Revised Code.
The VL`I' Provisions simply supplemented the appropriation in line item 200612 by adding
a source of revenne for the Lottery Profits Education Fund. Line 200612 exists in the final
version of thc Budget Bill as it did in the earlier versions; it just allocates more money.
Specifically, the final version provides:
LOTTERY PROFITS EDUCATION FUND GROUP
7017 200612 Foundation Funding $990,236,905 $1,277,271,428
See Am. Sub. H.B. No. 1, at 2797. "I'his line means that, over the next two fiscal years, all of the
nloney in the Lottery Profits Education Fund-approxinlately $2.3 billion-will go directly to
local school districts under the Foundation Funding formula described in Chapter 3317 of the
Ohio Revised Code. And a significant portion of tbe money in the Lottery Profits Education
Fund over that period-a projected $851.5 million-comes from VL"I's.
Therefore, the VLT Provisions did not change the nature of the bill or the appropriation
itsell: Rather, they provide the revenue-raising meclianism by which part of the Foundation
Funding will be generated. Without the VLT Provisions, the General Assembly would have had
to close the budget shortfall by some other means-likely, either tl2rough additional, devastating
cuts in services or a tax increase. In other words, the wlzole purpose of the VLT Provisions is to
help balance the biennial budget-the same overriding purpose as the original Budget Bill. The
VLT Provisions would not exist but for appropriation line 200612; and appropriation line
200612 camiot allocate nearly $2.3 billion to local schools without the VLI' Provisions. Because
this appropriation existed with every consideration of the Budget Bill by both the House and the
Senate, the amendments providing the means for that appropriation, while substantial, maintain a
common purpose with and relatiotzship to earlier versions of the bill.
19
This Court's prior decisions confirm that the amendments here did not vitally alter the
original Budget Bill. Like Relators here, the relators in Voinovich, 69 Ohio St.3d 225, argued
that amendnients to an appropriations bill, including those added during eonference committee,
vitally altered the bill such that three new considerations were required. Id at 231. The Court
rejected that challenge, finding that while the appropriations bill was "heavily amended" during
the entire legislative process and altered substantive sections of the Revised Code, the
amendments still "retain[ed] [the bill's] common purpose to modify workers' compensation
laws." Id. at 234. And that was true even though the Court held that the challenged provisions
were not an "appropriation" exempt from referendum. Id. at 233-34, 236. The same is true here.
Relators' reliance on Hoover v. Board of Coz.anry Commissioners (1985), 19 Ohio St.3d 1,
is similarly misplaced. (Relators' Br. in Supp. of Mot. for TRO at 11.) In that case, the original
bill introduced to the Senate amended statutes related to criminal non-support. Id. at 5. '1'he bill
passed the Senate with minor amendments. When the House received the bill, it referred the
legislation to the Judiciary Conimittee, which then reported back to the House a substitute bill
that, as this Court put it, was "completely diJ'ferent in content" from the bill passed by the Senate.
Id. The new version proposed amendments regarding the financing and construction of hospital
and healtli care facilities for the use of non-profit entities, and Ohio licensure of Canadian
physicians witliout exaniination. Id. Based on those facts, the Court held that the plaintiffs
complaint stated a claim for violation of the three-considerations rule. Id. at 5-6. As this Court
said in Voinovich, 69 Ohio St.3d at 233, "[t]he facts in Hoover demonstrate a bill that was in fact
`wholly changed."'
"I'he VLT Provisions did not "vitally alter" or "wholly changc" the nature, purpose, or
subject matter of the original Bndget Bill. The legislation began as a bill to provide for the
20
operations of state govermnent, ancl it irrcluded spending for local schools. The VLT Provisions
were added to fin-ther those ends. It is the natrn•e of the legislative process that changes will
occur. In the context of a budget bill in particular, it is natural that appropriations will increase
or decrease duiulg the coarse of the General Assembly's consideration, even while pending
before the Conference Connnittee. And that is what happened here: A new source of revenue
was identified in order to increase a particular appropriation. In arguing that this change
amounts to a vital alteration requiring three additional considerations, Relators are eflectively
requesting a "three readings after every anlendment" nile. This is a "dangerous and
impracticable preeedent" that would stymie the legislative process and unduly inject the courts
into appropriations deliberations, The Court should reject Relators' request and recognize that
the Budget Bill was considered the requisite tlu•ee times.
2. The VLT Provisions arc consistent with the purpose of the three-considerationsrule because they were subject to vigorous public debate before their adoption.
Relators further point to the put-pose of the three-readings requirement and argue that the
General Asseinbly's "last nlinute action" in adding the VLT Provisions "provided no time ior
publicity and discussion of the vitally altered bill." (Relators' Br. in Supp. of Mot. for TRO at
12-13.) This argument disregards the legislative record.
To be sure, the core concern of Article II, § 15(C)'s three-corLsiderations rule is to
"`provide[] time for more publicity and greater discussion."' Voinovich, 69 Ohio St.3d at 233
(quoting Hoover, 19 Obio St.3d at 8(Douglas, J., concurring)). The reqLurement "`affords each
legislator an opportunity to study the proposed legislation, communicate with his or her
constituents, note the comments of the press and become sensitive to public opinion."' Id. at
233-34 (quoting Hoover, 19 Ohio St.3d at 8 (Douglas, J., concurring)). With that purpose in
inind, the Court in Voinovich declined to find a violation of the three-considerations rule where
21
proposed legislative amendments were widely and publicly discussed before their adoption. Id.
at 234. Both houses in Voinovich deliberated on the amendments, hearings were held, issues
were openly debated, and the Governor stimulated discussion by clearly publ.icizing his intent to
veto the bill if certain reforms were not included. Id.
The VLT Provisions lilcewise satisfy the purpose behind the thrce-readings requiremcnt.
Although there is no constitutional requirement that vigorous public deliberation occur before a
law is enacted, such deiiberation occurred here. '1'he VLT Provisions were debated extensively
by the Governor, lawmakers, and the public at large before the Budget Bill's enactment. As set
forth in the Statement of Facts above, the Governor's Office initiated that discussion on June 19,
2009 by announcing the VLT Provisions as part of his proposed lramework to balance the
State's 2010-2011 budget. Gongwer Rep. No. 119, v. 78 (June 19, 2009). On July 1, 2009, the
Senate and Ilouse announced that the VLT Select Committee and the I3ouse Fuiance and
Appropriations Committee would hold hearings concerning the Governor's VLT proposal. Each
committee conducted hearings on at least three different days (July 2, 6, and 7) where the
cotnmittees heard testimony from government program stakeholdets and members of the general
public both in support and opposition to the VLT proposal. On July 10, 2009, at the conelusion
of these hearings, House Speaker Annond Budish and Senate President Bill Ilarris announced an
agreement authorizing VLTs through executive order and supportirig legislative language, thus
brealcing the weeks-long deadlock over the VLT proposal. Gongwer Rep. No. 133, v. 78 (July
10, 2009). 'I'his agreement paved the way for the Cotlference Committee Report on July 13,
2009, which contained the VLT provisions approved by both houses. For almost four weeks-
from June 19 to JLdy 13, 2009- the VLT proposal received close and widespread public scrutiny.
22
By the time the Budget Bill was put to a vote on July 13, legislators in both houses were well-
versed in the policy and budgetary implications of the VLT Provisions.
It is therefore disingenuous at best for Relators to suggest that the VLT proposal was
"never debated." (Relators' Br. in Supp. of Mot. for TRO at 13.) In fact, few recent legislative
enactinents received quite so much attention. Because the VhI' provisions were not a vital
alteration of previous versions of the Budget Bill and were the subject of legislative and pubtic
deliberation before their adoption, the Court should reject Relators' three-considerations
challenge to the Budget Bill.
C. The State's implementation of VLTs does not create an impermissible lending ofcredit or joint ownership under Article VIII, § 4 of the Ohio Constitution.
Relators' third cause of action alleges that the VLT Provisions and regulations violate
Article VIII, § 4 of the Ohio Constitution in four ways: (I) the Lottery Commission is sharing
revemle with seven private racetrack owners; (2) the State is extending credit to lease or
purchase both the VL"I' machines and space for the machines; (3) the State is sharing in the
maintenance, management, supervision, and operation of the VLTs; and (4) the State is entering
an impropef joint venture with private interests. (Compl. ¶ 50 & Prayer for Relief) But
Relators' allegations are founded on a flawed construction of the constitutional prohibition and
erroneous assumptions about the Commission's VLT regulations.
Arl.ic1e VIII, § 4 of the Ohio Constitution contains two prohibitions. Specifically, the
provision states:
The credit of ftae state shall not, in any manner, be given or loaned to, or in aid o£, anyindividual association or corporation whatever; nor shall the state ever hereafterbecome a joint owner, or stockholder, in any company or association in this state, orelsewhere, formed for any purpose whatever.
Under this Court's reading, the first clause of Articlc VIII, § 4 prohibits the State from "the
giving or loaning of the state's ci-edit to or in aid of a private business enterprise," Slate ex r-el.
23
Kataer v. Defenbacher (1950), 153 Ohio St. 268, 282, while the second clause bars joint
ownership between the State and a private cnteiprise, defined as "the union of public and private
capital or credit in any enterprise whatsoever," C'.I.V.LC. Grouh v. Warren (2000), 88 Ohio St.3d
37,40.
'fhe constitutional provision therefore precludes the State from doing two things:
(1) lending credit to private interests, or (2) entering a joint ownership arrangement with private
interests. Its overriding purposo---and that of its sister provision, Article V1II, § 6-"is to
prohibit private interests from tapping into public funds at the taxpayers' expense." Id;see also
David M. Gold, Public Aid to Private Enterprise under the Ohio Constitzstion: Sections 4, 6, and
13 ofArticle VIII in Historical Perspective (1984-1985), 16 U. Tol. L. Rev. 405, 460 (explaining
that courts treat case law interchangeably in constructing the two provisions).
As explained in more detail below, the VLT Provisions and accompanying regulations do
not offend the text or purpose of Article VIII, § 4 and Relators' third claim is therefore meritless.
The snechanism by which the Lottery Commission compensates VLT agents---the same type of
statutorily authorized commissions that are used for other lottery games-is not a lending of
credit. In no sense are V7,Ts jointly owned by the State and private vendors. And the purpose of
the constitutional prohibition is not implicated here.
1. The VLT Provisions and regulations do not lend credit to private interests.
The State's impleinentation of VLTs does not offend the first clause of Article VIII, § 4,
because neither VLT Provisions nor the Coinmission's regulations involve the lending of state
credit to aid private enterprise. Relators' allegations to the contrary misapprehend the Lottely
Commission's VL'C rules and the concept of credit lending.
First, Relators allege that the Lottery Commission will "acquire or lease space for the
location of those VLT's/slot niachines on private property" (Compl. Ji 47), but that is incorrect.
24
As with lottery terminals generally-those that disburse existing numbers-pick games, for
example-the Lottery Commission will lease VL'I's from a private vendor. The private
enterprises, in this case racetrack owners, niay apply for a license to host VLTs on their property.
O.A.C. 3770:2-3-01. The Lottery Conimission will not acquire or lease space for VLTs.
Second, although Relators are coirect that the Commission will lease the VLTs from a
third-party vendor (Compl. ¶ 10), that arrangement does not result in the lending of credit either
to those vendors or to the racetrack owners. "I'his Court has defined the lending of credit to
include "a loan of money" as well as offering "the ability to borrow or borrowing power." State
cx rel. Saxbe v. Brand (1964), 176 Ohio St. 44, 47. Credit lending also includes other
airangements that subject the State to potential liability based on private business fortunes, such
as the use of public funds to secure private obligations, State ex rel. Campbell v, Cincinnati St.
Ry. Co. (1918), 97 Ohio St. 283, and other agreements that amount to loans of State money to
private enterprises. City qf Cincinnati v. Harth (1920), 101 Ohio St. 344. In other words,
lending of credit occurs where, as in these cases, the State channels its resources for the benefit
of a private enterprise. The Commission's VLT regulations establish not a lending of credit, but
rather a straightforward compensation arrangement for licensed VLT agents.
As explained above, the Lottery Commission will license agents to host VL"i's. As part of
those agreements, the Commission will compensate VLT agents by means of commission and
reimburse VLT agents for expenses pre-approved by the Lottery Commission. O.A.C. 3770:2-3-
08. (The commissions are discussed further in Part E below in relation to Relators' fifth cause of
action.) The I,ottery Connnission will not, however, provide financing of any nature for VLT
agents--not through lending money, not tlirough assisting the VL1' agents in securing loans or
private obligations, and not through agreements that amount to loans. If VLT agents borrow
25
money to support their investment in VLTs, they do so neitlier with State support nor with any
potential recourse to the State. Far froin constituting the extension of a State loan or assistance
in aequiring a private loan based on State credit, then, the VLT rules simply outline how the
State wiIl compensate VLT agents for their service and reimburse VLT agents for eligible
expenses. Under such circumstances, no State credit is at risk, let alone at issue.
Tf it were otherwise-if Article VIII, § 4 prohibits the described relationship between the
Lottery Commission and its VI,T agents-then such a holding might call into question other
lottery activities. Many lottery games operate by a similar aiTangement, with the Commission
paying comrnissions to third-party agents consistent with the General Assenibly's express
authorization of those commissions in R.C. 3770.06. For that matter, other state agencies engage
eornniission-based agents to fulfill their legislative mandate, and Relators' theory would render
all of those arrangements constitutionally infirm. See R.C. 4301.17(A)(1) (enabling the Division
of Liqaor Control to "fix the compensation" for its agents "in the manner it considers best, but
the compensation shall not exceed seven per cent of the gross sales made by the agent in any one
year"); R.C. 109.08 (providing that special counsel hired to represent State agencies may be
compensated "for their services from fiuids collected by tliem"). Such an hitezpretation of
Article VIII, § 4 is both unwarranted and untenable.
Third, even if Relators were correct that the VLT' rules amount to the lending of state credit
in aid of a private enterprise-and they do not-the rules nonetheless satisfy Article VIII, § 4
because they serve the public purpose of generating revenue for the Lottery Profits Education
Fund. This Court has repeatedly held that "Sections 4 and 6 of Article VIII have not been
applied to programs undertaken for public welfare." State ex Nel. 7omino v. Br-own (1989), 47
Ohio St.3d 119, 122; see id. (finding that when the "lending of the city's credit [through the sale
26
of subsidized public housing] ... is for a public welfare purpose, and not a business purpose, it is
not prohibited by Section 6 of Article VIII"); State ex rel. McElroy v. Baron (1959), 169 Ohio St.
439, 444 (concluding that the Toledo Port Authority could acquire and then lease land to private
companies, without violating the lending credit provision, because the leases were "all made in
carrying out the public purpose of the Authority and to effectuate its plan of development of the
Port"). The VLT Provisions and rules serve a clear public purpose: As explained above in the
Stateinent of Facts, they generate sorely needed revenue for public schools. And the
determination by the General Assembly and Governor that VLTs serve a public puipose is
entitled to deference unless shown to be "`manifestiy arbitrary or unreasonable."' McElroy, 169
Ohio St. at 444 (quoting State ex rel. Gortlon v. Rhodes (1951), 156 Ohio St. 81, syl. ¶ 2).
The VL'f Provisions and rules therefore do not lend credit to private enterprise in violation
of the Ohio Constitution.
2. The VLT Provisions and regulations do not amount to joint ownership inviolation of the Ohio Constitution.
The VLT' Provisions and rules also comport with the second clause of Article VIII, § 4,
because the State is not entering a joint ownership arrangement as to VLTs with any private
enterprises. Relators' theories as to how the implementation of VLTs will amount to joint
ownership nlisunderstand the VLT regulations.
'I'o begin witli, the principal object of Article VIII, § 4's second clause is to bar joint
ownership between the State and private entities-not to preclude all relationships between the
government and private enterprise. See C.I. V. P.C. Group, 88 O1uo St.3d at 40 (explaiiling that it
is the "union of public and privatc capital or credit" that renders an arrangenrent
unconstitutional). The focus of the joint ownership provision is to prevent the State from "being
the owner of part of a property which is owned and controlled in part by a corporation or an
27
individual." Alter v. Cincinnati (1897), 56 Ohio St. 47, 64. Such an impermissible rmion occurs
when the State and a private enterprise joni their property rights to "produce the integral wliole"
prohibited by Article VIII, § 4. State ex rel. Eickenberger v. Neff (10th Dist. 1974), 42 Ohio
App. 2d 69, 75.
No joint ownership exists here. The manufacturers or distributors of VLTs will own the
machines. See O.A.C. 3770:2-2-01(BB). Only the Lottery Convnission, not the VLT agents,
has been granted the ability to lease VLT terminals. VI.T agents alone will hold licenses, subject
to Lottery Commission review, and retain sole ownership rights in the facilities where they host
VLTs. O.A.C. 3770:2-3-03(A), O.A.C. 3370:2-2-01(00), O.A.C. 3770:2-3-0](B)(t8), and
O.A.C. 3770:2-3-01(B)(21). In other words, the proper-ty riglits of the various public and private
sector actors in the VL1' under-Eaking are not conjoined or shared in any respect. As such, Article
VIII, § 4's joint ownership prohibition does not apply here.
Relators nonetheless offer several theories as to how the impleinentation of VLTs will
offend Article VIII, § 4's joint ownership clause. First, they allege that VL'I' "revenues shall be
shared and disl7ibuted equally bethveen the Commission and private racetrack owners." (Co1np1.
¶ 46.) "I'his claim assumes that Article VIII, § 4's prohibition on joint ownership also precludes
revenue sharing, but they are wrong. The Clause simply prohibits the State from "becom[ing] a
joint owner, or stockholder, in any [private] company." Ohio Const. art. VIII, § 4; see Grendell
v. Ohio EPA (9th Dist. 2001), 146 Ohio App. 3d 1, 12 (explaining, in the jonrt ownership
context, that "it is not unconstitutional for the state to enter into a coiztract and receive a
percentage of the future earnings as part of the sales price").
Lven assuming Article VIII, § 4 covers revenue sharing, the Lottery Commission's plan for
compensating VLT agents in exchange for hosting VI; Cs is not a revenue sharing arrangement.
28
Income flowing through VLTs follows a specified path under Lottery Commission direetion and
control. VLT agents collect money received by VLT machines, O.A.C. 3770:2-7-0 1 (C), and
transfer the collected money to the Lottery Coimnission according to a schedule that the
Commission dictates. O.A.C. 3770:2-3-O1(B)(29). The Lottery Cormnission then applies that
money to costs, including a comrnission paid to VLT agents that depends on the popularity of
their VLTs. O.A.C. 3770:2-3-08; see also R.C. 3770.03(B)(3) (authorizing the Lottery
Commission to set compensation for lottery agents); O.A.C. 3770:4-09 (promulgating such
cornmission arrangements). Some rernaining funds also are used to pay for other expenses of the
Lottery Commission, including the salaries of its employees and the like. Finally, the remaining
net VLT proceeds are deposited in the Lottery Profits Education Fund, in accordance witli
Article XV, § 6 of the Ohio Constitution. R.C. 3770.06(B). Put simply, any compensation to
VLT agents constitutes the payment of a reasonable commission given their expenses and the
Commission's desire to incentive VLT sales.
This arrangement mirrors the long established system through which the Lottery
Commission compensates other lottery agents in the state. The traditional approach, also applied
here, requires lottery sales agents to collect lottery sales revenue and transfer it, minus wim2ings
where appropriate, to the Lottery Commission. R.C. 3770.02(II)(1). 7'he Lottery Connnission
then compensates its agents through a colmnission schedule based on the agents' lottery ticket
sales. O.A.C. 3770-4-09. Like other vendors holding a contr2etual agreement with the State,
VLT agents will receive compensation for lheir services. O.A.C. 3770:2-3-08. They will not,
however, split revenue with the Lottery Commission bnt instead will receive a commission for
their seivices in the same way other lottery sales agents are compensated. At no point during this
29
process will revenues be distributed or shared between the Lottery Corninission and VLT agents.
Relators' allegation of shared revenues therel'ore is false.
Relators' second theory of joint ownership is that the VL1' agents "and the Commission,
jointly, will provide oversight, maintenance, and management" of the VLT's and the facilities
where they will be operated. (Compl. ^ 48.) But a licensing arrangement that requires the State
and a private enterprise to share responsibility for the completion of an endeavor does not offend
Article VIII, § 4's joint ownership clause. See Grendell, 146 Ohio App. 3d at I7-18 (concluding
that, in an arrangement where "[t]he objectives, roles, and responsibilities of each party are
separately struchrred," interaction between the State and private enterprise does not violate the
joint ownership provision). Even assuming such an arrangement runs afoul of the constitutional
provision, however, no such arrangement exists here. Instead, the Lottery Commission has
delineated a clear division of authority between the Commission and VLT agents that involves
no inutual responsibilities.
The Lottery Commission provides oversight for VL1's by issuing the licenses to VLT
agents, auditing VLT agents, and retaining the ability to revoke licenses and assess fines for
improper VLT activities. O.A.C. 3770:2-4-04, O.A.C. 3770:2-3-09, O.A.C. 3770:2-4-06, and
O.A.C. 3770:2-4-07. 'I'hird parties-manufacturers or distributors of VLTs-bear responsibility
for the maintenance of VLTs. O.A.C. 3770:2-6-02(B). And VLT agents tnanage the operation
of the VLTs. O.A.C. 3770:2-6-01, O.A.C. 3770:2-6-02, O.A.C. 3770:2-6-03, O.A.C. 3770:2-6-
04, and O.A.C. 3770:2-6-05. These duties do not overlap.
Relators appear to offer a third theory: that the Lottery Cornmission is entering a "joint
venture with the private owners of seven pari-mutuel racetracks in Ohio," and that such a joint
venture violates Article VIII, § 4. (Compl. Prayer for Relief, B.) The text of Article VIII, § 4
30
contains no prohibition on joint ventures. See Grendell, 146 Ohio App. 3d at 10 n.4 ("It is of
interest that the explicit language of neither Section 4 nor Section 6 of Artiele VITI oI'the Ohio
Constitution eniploys the terrn `joint venture."'). Instead, if any support for Relators' joint-
venture theory exists, it derives from scattered court decisions. See icl. ("[W]e have found only a
few court decisions that consider the term in regard to these sections."). Even assuming the
joint-venture theory is a viable one, the licensor-licensee relationship between the Lottery
Commission and VLT agents is not a joint venture.
The relationship between the Lottery Commission and VLTs does not nieet this Court's
definition of "joint venture." This Court defines a joint venture as:
au association of persons with intent, by way of eontract, express or implied, toengage in and earzy out a single business adventtu•e for joint profit, for which purposethey combine their efforts, property, money, skill and knowledge, without creating apartnership, and agree that there shall be a comniunity of interest among them as tothe purpose of the undertaking, and that each coadventurer shall stand in the relationof principal, as well as agent, as to each of the other coadventurers.
Al Johnson Constr. Co. v. Kosydar (1975), 42 Ohio St.2d 29 syl. 111. As described above, the
Lottery Commission's VLT regulations define separate and mutually exclusive roles for the
Lottery Commission, VLT agents, and mamlfaeturers or distiibutors providing VL"I' machines,
respectively-none of which overlap or intenningle. I urtherinore, the Lottery Commission and
VL1' agents hold separate property interests in the VLT arrangement. And O.A.C. 3770:2-3-
05(A) removes any doubt about the Lottery Commission's independence from the VL'I' agents
by explaining that the Commission retains the discretion to "suspend[]" or "revoke[]" the agents'
licenses in eerta.in circunistances.
3. The VLT Provisions and regulations are consistent with the purpose of ArticleVIII, § 4.
The Lottery Commission's plan to irnplement VLTs is eonsistent not only with the text of
both clauses of Article VIII, § 4, but also with the purpose of the constitutional provision as a
31
whole. The concern underlying Ohio's lending credit and joint ownership provisions is the
placement of "the state's money and credit at risk in business schemes" leading to "the public
losses incurxed when subsidized corporations fail[]." C.LV.LC. Group, 88 Ohio St.3d at 39-40.
The VLT Provisions and regulations do not implicate that concern.
1'o be sure, the more nioney that VLTs generate, the greater the financial benefit the State
will reap. And if VLTs are less popular than estimated, the State will lose anticipated revenue.
But under no circiunstances will a decrease in VLT revenue expose the State to any prospective
outlays. In other words, tmder no scenario will the Lottery Comniission or the State have to pay
VLT agents. See O.A.C. 3770:2-3-08(A) (setting payment schedule between Lottery
Coniniission and VLT agents such that Lottery Commission will compensate VLT agents when
VL`I's are profitable, but including no obligation for Lottery Commission to pay VLT agents
under any other circumstances). Moreover, unlike the risky turnpike, railroad, and canal
debacles that spawned the amendrnent containing Ar-ticle VIII, § 4, VLTs' relative success will
not jeopardize other public monies. The implementation of VLTs therefore coniports with the
spirit behind the lending credit and joint ownership provisions.
D. Relators cannot demonstrate that the Governor has violated his duty to "see that thelaws are faithftdly executed" under Article III, § 6.
In their fourth clann, Relatols argue that Govenior Strickland, "[b]y seeking to rmlawfidly
expand gambling and the Ohio Lottery," has "fail[ed] to perl2rrm his constitutional duty to see
that Ohio's laws are faithfully executed" in vioiation of Article III, § 6. Compl. 1^ 54. This
argument is frivolous.
Article III, § 6 directs the Governor to "see that the laws [of the State] are faithfully
executed." The provision is de6nitional. It acknowledges that the Governor is "the chief
executive officer of the state," nothnsg more. State ex rel. Dann v. laft, 109 Ohio St.3d 364,
32
2006-Ohio-1825, ^ 52. 'I'he language means only "that no other executive autliority is higher or
authorized to control his discretion." State ex rel. S. Monroe & Son Co. v. Baker (1925), 112
Ohio St. 356, 366.
Article 111, § 6 does not confer any legal duties upon the Governor that are enforceable in
inandamus, nor does it confer any substantive rights upon which Relators can invalidate
legislation. Indeed, the language contains no substantive prescription or proscription on the
executive branch. This explains why no Ohio court has ever applied Article III, § 6 in an
enforcement action against the Governor. To the extent that Relators argue that Governor
Strickland has unconstitutionally ordered implementation of VLTs, they must look to their other
constitutional claims. The remainder of this brief demonstrates that those argLiments lack merit.
E. The 50% commission payable to VLT agents is not derived from "net proceeds" andtherefore does not violate Article XV, § 6 of the Obio Constitution.
In their fifth claim, Relators argue that the Lottery Commission intends to share the
proceeds from VLT implementation "on a 50/50 basis with the private ownels of the seven pari-
mutuel racetracks." Compl. ¶ 58. They claim that this arrangenlent violates Article XV, § 6 of
the Ohio Constitution, which requires that all "net proceeds" from the lottcry be paid into a
special fund to be used "solely for the support of elementary, secondary, vocational, and special
education programs."
This claim has no merit. Under the Lottery Cornmission's proposed rules, VLT licensees,
as compensation, "shall receive a coinmission in the amount of fifty percent of the video lottery
terminal income." O.A.C. 3770:2-3-08(A). But this commission is not deducted from the net
proceeds of VL.T operations, which are constitutionally dedicated to education. Rather, the
coinmissions are one of many deductions fi-om the gross proceeds of VLT operations. Relators'
33
arguinent ignores this definitional difference. That omission completely Lmdermines their claim
that the 50% commission inlproperly diverts net proceeds from education.
Although the Ohio Constitution does not define "net proceeds" for purposes of Article XV,
§ 6, the plain meaning of the term is clear: "Net proceeds" are "gross revenues less expenses."
Ohio Roundtable, 2003-Ohio-3340 at 1139. Moreover, in R.C. 3770.06, the General Assembly
inethodically lists the different expenses that are properly deducted from the Lottery's gross
revenues to arrive at the "net proceeds." That statute which Relators do not challenge, and
which has never been challenged-makes clear that commissions to licensed lottery agents are
expenses to be deducted from the gross revenues. These commissions are not part of the
lottery's "net proceeds," which must be earmarked to education under the Ohio Constitution.
The detailed calculation for net proceeds is as follows: First, "[a]ll gross revemzcs received
from sales of lottery tickets, fines, fees, and related proceeds in connection with the statewide
lottery" are deposited into the Lottery Gross Revenue Fund. R.C. 3770.06(A). Next, certain
expenses are subtracted from the Lottery Gross Revenue Fund the payment of prize money,
payments "to lottery sales agents in the ,form of bonuses, commissions, or reimbursements,"
payments to financial institutions to cover lottery agents' insufficient funds, and payments for
bonding services. Id. (emphasis added). The remaining revenue is then transferred to the State
Lottery Fund. Id. Finally, when the balance in the State Lottery Ftmd exceeds the amount
needed to meet the Lottery Connnission's own obligations and operational expenses, those
excess funds are transferred to the Lottery Profits Education Fund-the constitutionally
mandated special fund for the lottery's "net proceeds" dedicated to education. R.C. 3770.06(B).
In short, commissions to lottery agents (like prize payouts, bonding services, and
operational costs) are valid and statutorily authorized lottery expenses. They are first subtracted
34
frorn the Lottery Commission's gross revenues, and the remaining revenues constitute the "nct
proceeds" and are placed into a special fund earmarked for education. The operation of VLTs
follows this pathway to a tee. Gross lottery revenue (including VLT` revenue) flows into the
Commission's coffers, eligible expenses (including commissions to VLT licensees) are deducted,
and the remaining "net proceeds" are earmarked for education. In eveiy respect, the Lottery
Conimission's VLT rales confonn to the requirements in Article XV, § 6.
This Court's analysis of Relators' claiTn should end here. The Ohio Constitution controls
only the dedication of the lottery's "net proceeds"; it does not restrict the General Assembly's
authority to define appropriate lottery expenses (prize awards, comniissions, bonuses,
operational expenses, and the like), and then subtract those expenses from gross revenue to reach
the "net proceeds" figure. Indeed, the General Assembly has long authorized the Lottery
Commission to determine the specific aniount of compensation paid to lottery sales agents. R.C.
3770.03(13)(3). No court has ever held-nor do Relators even allege-this to be an
unconstitutional delegation of authority by the legislature, and no court has ever entertained a
constitutional attack on the Lottery Comniission's compensation rates. So long as all "net
proceeds" from lottery activities-gross revemies minus expenses-are used for education,
Article XV, § 6 is satisfied.
A more searching analysis of the Lottery Coinmission's compensation structures-
although unnecessary to resolve Relators' claim-simply confirms the absenee of any
constitutional infirmity. As just discussed, the General Assembly has authorized the Lottery
Commission to determine the commissions and bonuses paid to lottery agents, R.C.
3770.03(B)(3), and has long recognized commissions as valid lottery expenses, R.C. 3770.06
And the Commission has long offered commission-based incentives to its agents as a means to
35
promote lottery sales on their premises. See O.A.C. 3770:4-09(A). See generally Dalton v.
Pataki (2005), 5 N.Y.3d 243, 268-69 ("[A]n incentive for the vendor to offer lottery tickets for
sale on thevendor's premises, is a necessary administrative cost of operating the lottery."). As
with its traditional agents, the Conunission's decision to offer commissions to its VLT licensees
creates a symbiotic relationship. T'he licensees have an incentive to improve and enhance the
conditions of their properties in an effort to entice more visitors. And the more visitors, the more
players of VLTs, and, ultimately, the more net revenue generated for education.
Relators cannot demonstrate a constitutional infirmity in the Lottery Commission's
decision to adopt a 50% commission rate for VLT agents. First and foremost, Article XV, § 6
provides that "[t]he General Assembly may authorize an agency of the state to conduct lotteries,
[and] to sell rights to participate therein." It says nothing about how the lottery is to be
conducted. Expenses like prize structures, bonding requirements, commissions, and bonuses
were intentionally left to the General Assembly, which has in hun delegated that responsibility to
the Lottery Commission. See Dalton, 5 N.Y.3d at 267 ("It is for the Legislature to determine the
necessary expenses incurred in operation of the lottery and, thus, what remaining portion of the
total lottery revenue will constitute net proceeds.").
Second, a review of the VLT rules shows that the 50% commission is not um•easonable.
Contrary to Relators' suggestions (Coinpl. 9f 58), licensces are not entitled to a 50% commission
of every dollar inserted into a VLT on their premises. To the contrary, VLT agents shall receive
a commission "in the amolmt of fifty percent of the video lottery termiiial income." O.A.C.
3770:2-3-08(A). But the rules define "[v]ideo lottery terminal income" not as the total amount
expended by VLT players, but rather as the amount players expend to play VL'I's minus prize
payouts. O.A.C. 3770:2-2-01(QQ). And the new rules provide that "each video lottery gaine
36
shall provide an average minimtiun payout ol' eighty-five percent." O.A.C. 3770:2-10-60.
Therefore, "video lottery terminal income" will be, at most, 15% of total VLT sales (since at
least 85% of VLT revenue must be paid out in prize money). And the VLT licensee's 50%
commission comes fi•om that 15%. Therejbre, when properly cnntextualized the VLT agenl.s'
commission will be, at most, 7.5% af iheir total VLT s•ciles.2
By comparison, traditional lottery agents -for example, ticket agents and Keno agents--
receive a commission of 5.5% of their total ticket sales and an additional 1.5% depending on the
agent's cashing ratio. See http://www.ohiolottory.corn/agents/becoming.html. That VLT agents
will be paid a 7.5% commission-that is, a commission at most half a percent higher than all
other agents--is hardly excessive, especially in light of the significantly more cost burdens they
bear relative to traditional lottery agents, as discussed below.
Third, it is critical to remember that VLT sales are, themselves, only a fraction of the gross
revenue anticipated from VLTs by the State. For each VLT agent, the State will collect $65 to
$80 niillion in licensing fees. O.A.C. 3770:2-3-01(B)(31), (32), & (33). (By comparison, the
Lottery Commission collects a one-time licensing fee of $25 from each traditional lottery agent.)
These substantial licensing fees create guaranteed revenue for the Lottery Commission, wliich
will be directed to education. Requiring VLT licensees to make such substantial up-front
payments supports the Lottery Commission's decision to adopt modestly more generous
cornmissions at the back-end.
Fourth, VLT agents have significantly more burdens than traditional lottery agents.
Among other expenditures, the new VLT nrles require:
2 "fhe commission structure for horscracing is contextualized in the exact same fashion.Although horseracing permit holders receive a 50% commission, the 50% commission is taken
37
• Prospective VLT agents must pay a nonrefundable application fee of at least $100,000.(O.A.C.3370:2-3-01(B)(2)).
• Within five years following the commencement of VLT operations, each VI.T agent mustmake at least $80 million in facility improvements, with at least $20 million ofimprovements in the first year alone. (O.A.C. 3770:2-3-01(B)(19)).
• VLT agents must secure performance and payment bonds, construction bonds, suretybonds (a minirmim of $2 million), and fidelity bonds, and must obtain casualty, workers'
compensation, property, and liability insurance for VL"1' operations. (O.A.C. 3770:2-3-
01(B)(10)).
• VLT agents must fuimish 24-hour security and surveillance for the VLT play areas,including security and surveillance personnel. (O.A.C. 3770:2-3-01(B)(7), 3770:2-6-03).
• VLT agents must have personnel available to facilitate the maintenance, repair, andservice of VLTs aud must agree to hire and coinpensate adequate personnel to ensurecompliance with lottery laws and regulations, including but not limited to security,surveillance, financial, teclmical, and audit staff (O.A.C. 3770:2-3-O1(B)(24) & (27)).
• VLT agents must supply a sufficient amount of paper or other media for credit vouchersand are responsible for loading and replenishing the VLT paper supply. (O.A.C. 3770:2-
3-01(B)(22)).
• VL1' agents must establish a responsible gaming program for the benefit of problemgamblers. (O.A.C. 3770:2-8-01).
These expenditures far surpass the outlay required by ordinary lottery ticket agents and Keno
agents, whose expenses are a one-time $25 licensing fee, a $12 per week communication/satellite
fee, and a $20,000 bond (which ranges in cost from $150-$400). Accordingly, the modestly
more generous sales commission received by VLT agents---7.5% of sales after prize payouts-is
justified by the greater responsibilities imposed on them.
These tnany considerations eonfirm the wisdoin of the electorate in approving Article XV,
§ 6, to leave the opcration of the lottery to the discretion of policymakers, not the courts. Indeed,
New York's highest court disposed of an identical claim on these exact groands. In Dalton, 5
ou all wagers after state taxes, expenses, and prize payouts have been paid. See R.C.
3769.08(B).
38
N.Y.3d at 268, the court determined that the legislature (which was the lottery rulemaking body
in that state) "was entitled to deteimine ... that a revitalized racing industry would attract more
visitors to the racetracks-where VLTs were to be located-who would in turn participate in
increased video lottery ganiing, thus raising additional revenue for education." The court
concluded that a commission to VLT agents was "offered not only as reimbursement but also as
an incentive for the vendor to offer lottery tickets for sale on the vendors premises," and that this
commission "is a necessary administrative cost of operating the lottery." Id. Moreover,
plaintiffs in that case, like Relators here, challenged the specific percentage set for the
commission. But the couit recognized that "[i]t is gerlerally not for the courts to determine
whether a particular vendor's fee ... is reasonable: " Id at 269. Tho court then said that it would
police on1y "flagrant end run[s] around the requirement that the net proceeds of the lottery be
applied exchzsively to education." Id. But, after pointing out that every other lottery agent in the
state received a 6% commission, the court found no basis for conchiding that the VLT agents'
commission was "inflated" by comparison-let alone unconstitutionally so. Id. at 269-70.
Relators' fifth claim therefore fails. Ar-ticle XV, § 6 requires that "net proceeds" from
lottery activities be dedicated to education. Commissions and bonuses to lottery agents are not
now, nor have they ever been, part of that calculation. They are valid lottery expenses deducted
fi•om gross revenues. The remaining revenue, the lottery's "net procecds," is then dedicated to
education. And the Lottery Conimission's decision to adopt a 50% commission rate is entitled to
deference by this Court. It comprises only a small fraction of total VLT sales, which, in turn, are
only a fraction of total gross revenues expected from VLT operations. And the eommission was
calibrated to accotimt for the substantial fees and significant investments that licensees must
make before they can begin operating VLTs. Finally, the VI,T commission rate is comparable to
39
the rate for traditional lottery agents, which have never been challenged. Iu short, Relators bave
failed to plead and cannot demonstrate that O.A.C. 3770:2-3-08(A), on its face,
unconstitutionally diverts net proceeds from education.
F. Ohio Constitution Article XV, § 6 permits the operation of VLTs.
Relators' siYth claim is that the Lottery Commission has"timlawfully expand[ed] thc Ohio
Lottery to include the use of VLT's." (Compl. ¶ 12). The Ohio Constitution, they say, prevents
such action. Relators are wrong.
Article XV, § 6 of the Ohio Constitution provides in part:
Except as otherwise provided in this section, lotteries, and the sale of lottery tickets,for any purpose whatever, shall forever be prohibited in this State.
"t'he General Assembly may authorize an agency of the state to conduct lotteries, tosell rights to participate therein, and to award prizes by chance to participants,provided that the entire net proceeds of any such lottery are paid into a fund of thestate treasury that shall consist solely of such proceeds and shall be used solely forthe support of elementary, secondary, vocational, ancl special education progranrs asdetermined in appropriations made by the General Assembly.
The Constitution therefore bars "lottery" activities unless authorized by the General Assenzbly.
Therefore, the Constitution permits the Lottery Commission, as an authorized "agency of the
state," to operate VLTs if the VLTs qualify as a "lottery." And as the relevant case law
demonstrates, they do.
The delinition of "lottery"-whieh derives from case law interpreting both the Constitution
and similar statutory provisions-depends on the presence of three elenients: (1) consideration,
usually in the form of a price to play; (2) prize; and (3) chance. See Troy Amaisemeslt Co. v.
Attenweilef• (2d Dist. 1940), 64 Ohio App. 105, 117; YVishing Well Cda.rb v. Akron (C.P. Summit
County 1951), 66 Ohio Law Abs. 406, 112 N.E.2d 41, syl. ¶ 1. As one court has put it:
"Generally speaking a lottery is a scheme for the distribution of prizes by lot or chance. It is well
established that to constitute a lottery tliree elements must be present. There must be
40
consideration given, tliere must be a prize, and the wimiing of the prize must be cletermined by
chance." Fisher v. State (8th Dist. 1921), 14 Ohio App. 355, 357. This definition is consistent
with case law directly interpreting Section 6 of Article XV. See, e.g., Nadlin v. Starick (C.P.
Montgomery Cotmty 1963), 24 Ohio Op. 2d 272, 274; 1975 Op. Att'y Gen. No. 75-005 at 2-18.
A lottery is a subset of gambling. See 4tale ex rel. Gabalac v. New Universal Congregation of
Living Souls (9th Dist. 1977), 55 Ohio App. 2d 96 ("A lottery is a species of garnbling ....").
That is to say, "[t]he teirol `gambling' includes a lottery but is broader and may encompass more
than the tenn `lottery."' Weslerhaus v. Cincinnati ( 1956), 165 Ohio St. 327, syl. ¶ S.
VL"1's carry each of the tlu•ee required characteristics of a`9ottery." The VLT Provisions of
the Budget Bill define a VI,T as an "electronic device approved by the state lottery commission
that provides innnediate prize determinations for participants on an electronic display." Budget
Bill at 1801 (Ex. B). The Lottery Commission's regulations add that a VLT "is connected to a
centralized conlputer system and generates the outcome of each play using a random number
generator and communicates video lottery gaming information to a participant via an electronic
display." O.A.C. 3770:2-2-01(PP). 1'he regulations in turn define a "video lottery game" as
"any game authorized by the director, conimissioti or comnissioners, as applicable, that provides
iminediate prize determinations, and that is played on a video lottery terminal." O.A.C. 3770:2-
2-01(JJ). The VLTs entail the issuance of a "video lottery ticket," which "means an electronic or
virtual instrument to enable a participant to play a video lottery game." O.A.C. 3770:2-2-
0 1 (KK).
The games conducted on VL'Ts closely resemble the games that the Lottery Commission
has long operated. The lottery includes the more traditional number-nzatch games, such as Pick
Three, Pick Four, Rolling Cash Five, Classic Lotto, and Mega MilGons . To take one exainple,
41
in the "Classic Lotto" game, participants select six numbers, from one through 49, which are
then entered into a lottery terminal. O.A.C. 3770:1-9-53(B)(2). Alternatively, participants can
select the "auto pick" function, whereby the terminal generates six random numbers. Id. The
terminal then produces a ticket reprinting those nuinbers, which the participant purchases for $1.
O.A.C. 3770:1-9-53(B),(C). The Lottery Commission conduets regular drawings, selecting a
random assortment of numbers for each drawing. O.A.C. 3770:1-9-53(B)(3). If a partieipant's
ticket matches three or more numbers selected during the appropriate drawing, he is entitled to a
prize. O.A.C. 3770:1-9-53(D).
"I'he Commission also offers Keno, a more complex number-match game. A participant (or
the "auto pick" function) chooses anywhere froin oue to 10 numbers out of a pool of 80, O.A.C.
3770:1-9-55(B)(2), aaid the player then wagers between $1 and $20. O.A.C. 3770:1-9-55(C).
The Lottery Commission conducts a computer-assisted drawing every four minutes in which 20
of the 80 numbers are selected, O.A.C. 3770:1-9-55(B)(4), and it broactcasts the drawing on
monitors at locations across the State. The quantity of numbers matched deterniines the
participant's prize. O.A.C. 3770:1-9-55(D).
"I'he Lottery Commission also has used its constitutional and statutory authority to design
games that differ from traditional number-match games. For instance, the Commission offers
instant-win "scratch-off' games that resemble casino-type activities such as slots, blackjack, and
poker. Urnlike the traditional number-match garnes, no drawing occurs. Instead, the holder of an
instant gaine knows inunediately whether she has won a prize. For instance, in the $1 "Slots of
Luck" instant game, the participant has five "spins" on a printed slot machine. O.A.C. 3770:1-9-
668(B); Evidence of Inlervenor-Respondents, Ex. E, LetOhioVote.org v. Brunner, No. 2009-
1310. If the ticket reveals three identical symbols on the saine spin, or a"W1N" symbol, the
42
player wins a prize of between $1 and $100. The Lottery Connnission predetermines the number
of prizes in a given sales cycle for each game and then autllorizes the printing of a coiTesponding
nmimber of tickets using random techniques. See O.A.C. 3770:1-9-668(E).
The Commission also offers instant computer-based F,ZPLAYTM games. In one such
game, the participant pays $3 to the sales agent, and a computer terminal generates a ticket
consisting of nine poker "hands" and 24 playing cards. O.A.C. 3770:1-9-634(B). The
participant then attempts to create one of the nine "hands" from the group of cards. If the
participant succeeds in putting together one of the hands, he wins a piize. O.A.C. 3770:1-9-
634(D); Evidence of Intervenor-Respondents, Ex. F, LetOhiolVote.org v. Brunner, No. 2009-
1310. Uiilike the traditional instant scratch-off games, which use preprinted card stock, the
EZPLAYTM games are instantaneously generated by a lottery computer at the time of purchase.
These instant games are far different from the traditional number-match lotteries, but the
Lottery Commission has operated them since 1976 without challenge. That is so because the
Comntission has broad authority to operate any "type of lottery" and specify "the manner" in
which lottery tickets are sold. R.C. 3770.03(A)(1), (B)(1). Specifically, R.C. 3770.03(A) states
that "[tihe state lottery commission shall promulgate rules under which a statewide lottery may
be conducted." 'The General Assenibly did not place any restraint on the Commission in the
design of the lottery other than requiring the Conimission to enact rules goveming "(tlhe type of
lottery to be conducted ""[t]he prices of the tickets in the lottery," and "(tlhe number, nature,
and value of prize awards, the manner and frequency of prize drawings, and the manner in which
prizes shall be awarded to holders of winning tickets." Icl. As long as the game qualifies as a
lottery-"consideration given," "a prize," and "the winning of the prize ... deterrnined by
chance," Fisher, 14 Ohio App. at 357-the Lottery Commission can offer it.
43
VLTs operate in that vein. 1'he participant may insert coins, currency, or tokens itito the
VLT, which then creates an electronic game ticket that allows the participant to play the video
lottery game. The VLT then generates a gatne on an clectronic display-for instance, a slots-like
game. The participant interacts witli the game by touching the VLT screen or instruments on the
terminal. If a winning combination of cards, numbers, or symbols emerges, the VL1' will give
the participant a credit that can be used to purchase further games on the VLT, or he can redeem
credits for cash or other prizes. And, as it does now, the Lottery Commission would determine
the price of each ganie, the prize structure, and the frequency of the payouts on the VLTs.
The VLT is ftmctionally identical to an instant scratch-off or EZPLAYrM game. "I'ake, for
instance, the "Slots of Luck" instant game. A participant buys the ticket for $1 front a sales
agent; he scratches off his live hypothetical "spins" of the slot machine and learns inunediately
whether he has won a cash prize. Nothing the participant does after the point of sale will alter
the outcome. Months before the sale, the Lottery Commission adopted rules determaiing how
many prizes will be distributed in the game, see O.A.C. 3770:1-9-668(E), and it distributed the
wimiing instant tickets randotnly throughout the lottery system. The only question is whether the
participant was lucky enough to purchase a winner.
The same holds true for VLTs. A participant could insert, say, $1 into a VLT to generate a
video-based slots-like game. See O.A.C. 3770:2-7-01(C). His electronic display then shows
"spins" and the player learns wliether he has won. As with the instant scratch-off games, this
VLT game is predetertnined. As soon as the participant inserts his money, the compater
generates a game with a predetermined outcome. In other words, the eomputer issues the
equivalent of a virtual or electronic inistant scratch-off ticket, nothing more. 'The compater
randomly generates the games and their accornpanying prizes based on rules adopted by the
44
Commission and programmed into the VLT system. O.A.C. 3770:2-2-01(III1) & (PP). The
difference between a VLT and an instant scratch-off game is simply form, not substance. And
this is precisely why the machines are called video lottery tenninals.
VLTs are so similar to existing lottery games that the General Assembly, in enacting the
Budget Bill, treated VLTs not as a new type of lottery activity, but rather as the type of lottery
that the Commission was always authorized to conduct. Amended R.C. 3770.03(A) states that
"[t]he state lottery commission shall promulgate rules under which a statewide lottery may be
eonducted which includes, and since the original enactmcnt of this section has included, the
authority for the commission to operate video lottery termina] games." Am. Sub. IH.B. 1, at
1796. This legislative statement which confn•tns that VL"Ts are a traditional form of lottery
activity-is entitled to a "presumption of constitutionality," State ex rel. Taft v. Franklin Cly.
Court of Comrnon Pleas, 81 Ohio St.3d 480, 481, 1998-Ohio-333, and a party challeiging the
constitutionality of a statute bears the burden of proving that it is unconstitutional beyond a
reasonable doubt, State v. Ferguson, 120 Ohio St.3d 7, 2008-Ohio-4824, ^ 12. "[T]be courts
must apply all presumptions and pertinent rules of construction so as to uphold, i f at all possible,
a statute or ordinance assailed as unconstitutional." State ex r•el. PtiNdy v. Clermont Cty. Bd. of
Elections (1996), 77 Ohio St.3d 338, 345 (citation omitted). That heavy burden is not met here.
Case law from other jurisdictions eonfinns that VLTs amount to a"lottery." In Dalton v.
Pataki (2005), 5 N.Y.3d 243, 255, the New York high court, after reciting the same presumption
of constitutionality, conoluded that VLT's constitute a "lottery" under a New York constitutional
provision that is highly similar to Ohio's Article XV, § 6. Likewise, the Supreme Court of West
Virginia, using the same three-part definition of "lottery" as exists under the Ohio case law, held
that VL'I's constitute a "lottery" rather than "gambling." ,.4tate ex rel. Cities qf Charleston &
45
Huntington v. W Va. Fcon. Dev. Auth. (W.Va. 2003), 588 S.E.2d 655, 667-70. Moreover, to the
extent that VLTs resemble slot machines, other courts have confinned that such machines
constitute a"lottery." See State ex rel. Fvans v. Bhd of Ft•iends (Wash. 1952), 247 P.2d 787, 796;
State v. Marck (Mont. 1950), 220 P.2d 1017, 1018 (same).
All oP this goes to show that VLTs constitute a`lottery" authorized by the General
Assembly under § 6 of Article XV. But if the Court does not wish to decide the "lottery"
question, it need not do so. Put simply, the statutorily authorized implementation of VLTs is
constitutionally permissible regardless of whether VLTs are lottery games or not. If thcy are
lottery games, as the General Assembly asserts they are, then there are special constitutional
requirements with respect to their administration and the use of net profits they generate. Ohio
Const., art. XV, § 6. If they are not lottery games-a contention with which the State
disagrees-then they are simply another statutorily authoiized form of gambling, like charitable
gaining or horseracing, assigiied by the General Assembly to the Lottery Commission for
administration. 1'his Court has explained that "gainbling" is a broader category than "lotteries,"
Ylresterhaus, 165 Ohio St. 327 at syl. 9f 8, and the Constitution does not prohibit "gambling" more
generally--only "lotteries" not authorized by law. In other words, if VLTs do not constitute a
"lottery," then thcy necessarily fall within the broader category ol' "gambling," and the
Constitution does not prevent the General Assembly from authorizing "gambling" activities
more generally. Thus, nothing in the Constitution prohibits the General Asseinbly from
authorizing VLTs even if VLTs do not constitute a "lottery."
Relators' sixth claim therefore fails. The General Assembly has declared that VLTs are a
lottery, and that statement not only deserves deference, but it is consistent with the histoi-y of the
46
Lottery Conimission's authority and standard definitions of the teifin. But even if VLTs do not
amount to a "lottery," the Constitution permits the General Assembly to authorize VLTs.
G. The General Assenibly's decision to authorize VLTs in the Budget Bill, therebyfreeing up general revenue funds for other purposes, does not violate Article XV, § 6
of the Ohio Constitution.
In their final claim, Relators argue that the Geneal Assenlbly's decision to authorize VLTs
and then dedicate those revenues to Ohio schools violates Article XV, § 6 because the decision
allegedly "free[d] up [general revenue] fands in the state budget for social services." Compl.
1170. According to Relators, the General Assembly can use lottery revenue only to supplement,
not supplant, existing general revenue funding of Ohio schools. This argument is wrong, both on
the facts and the law.
As discussed in the Statement of Facts, the State has suffered significant declines in its tax
revenue collection due to the economic downturn. But consistent with DeRoiph, the State is
obligated to provide a minimwn amoturt of funding to Ohio schools irrespective ol' economie
conditions. In lieu of raising taxes or et4tting social services, the General Assembly decided to
expand the Lottery Commission's activities to include VLTs, tliereby appropriating $2.3 billion
in lotteiq revenues for Ohio schools and helping the State satisfy its DeRolph mandate. The
General Assembly then supplemented those lottery revenues by appropriating an additional $9.9
billion in general revenues and $845 million in federal grant money to Foundation Funding over
the current biennium. See An1. Sub. II.B. 1, at 2796.
1'hese appropriations do not, as Relators assert, violate Article XV, § 6. That provision
mandates that all net lottery proceeds be dedicated to education. Therefore, whenever the
General Assembly authorizes an expansion of lottery activities, any increase in profits 9Yom those
activities must go to Ohio schools. The VLT Provisions of the Budget Bill and the Lottery
Commission's regulations comply with that mandate. Of the expected $851.1 million in net
47
lottery proceeds generated by VLTs over the biennium, all of it will go directly to local school
districts under the Foundation Funding for-mrila.
Relators seem to believe that Article XV, § 6 also controls the General Assembly's
decisions with respect to appropriations from the general revenue fund. According to them, the
State is forever committed to spend not only the net lottery proceeds on education, but also to
maintain general revenue funding on education at a static level (regardless of any new revenue
froin the lottery or other som•ces). There is no support for such a theory. Article XV, § 6
governs only the appropriation of one revenue type-net lottery proceeds. It does not in any way
bind the General Assembly's decisions with respect to unrestricted general revenue fiuids.
The only authority even remotely relevant to Relators' argument is ,State ex. Ohio
Rountltable v. Taft (10th Dist.), 2003-Ohio-3340. In that case, the Ohio Roundtable argued that
the General Assembly's decision to authorize the Mega Millions® multi-state lottery game,
appropriate the additional lottery revenue from that game to Ohio schools, and then reallocate
general revenue fiurds to other purposes violated Article XV, § 6. Id. ¶9( 3, 4. "1'he Tenth District
agreed. The legislation was unconstitutional because it "simultaneously (1) authorize[d] the
lottery to undertake a new multi-state game to increase revenues and net proceeds,
constitutionally earinarked for education, and (2) in the same breath divert[ed] prevzously-
allocated education expenditures from the General Fund away from education and to otlier
purposes in an asnomlt equal to the anticipated revenues from the new lottery game." Id. 1(61
(emphasis added). In other words, the TenthDistrict concluded that the General Assembly could
not withdraw previously-allocated general fund revenue from Ohio schools and replace it, dollar
for dollar, with newly generated lottery revenue.
49
As a threshold matter, the Tenth District got it wrong. Without citation to the eonstitutional
text or to case law, the court interpreted Article XV, § 6 to restrict the legislature's decisions
with i-espect to general fund revenue. `1'his conclusion ignores the text of Article XV, § 6, which
addresses only the appropriation of lottery proceeds. The Constitution has no call on general
revenue fiinding for education beyond the State's broad obligation to assure a thorough and
efficient education.
But even if the Ohio Roundtable analysis had some currency, it does not support Relators'
claim. Unlike the law at issue in that case, the Budget Bill here does not "divert[] previously-
allocated educational expenditures frorn the General Pund away from education." Id. ^ 61
(emphasis added). Rather, the Budget Bill allocates general revenue fiinding to Ohio schools in
the first instance. The General Assembly adopt[edl "a general course of fiinding ... over a
period of many years" for Ohio schools, balancing expected increases in federal goverim-ient
educational grants and in lotteiy revcnue from VLT implementation with the additional strains
placed on the general revenue fund. Id.
This is the type of activity that is inlierent in the General Assembly's legislative authoiity
and exactly the type of activity that even the Tenth District recognized was off-limits to judicial
review. When crafting the biermial budget, the General Assenibly must "balance the always-
limited resources available to it with the multiple competing demands for governmental
programs and services." Td. 1160. The necessarily requires review and allocation of revenue
from the State's many (dwindling) funding sources to the State's many (increasing) fimding
obligations. So long as all net lottery proceeds are appropriated to Ohio schools (as the Budget
Bill does), Article XV, § 6 is not implicated.
49
CONCLUSION
For the above reasons, the Court should grant Respondents' motion for judgment on the
pleadings.
RICHARD A. CORDRAY (0038034)Att9rney General of Ohio
^
MINtC. MIZVR*)(0083089)Solicitor General*Coainsel ofRecord
ALEXANDRA T. SCHIMMER (0075732)Chief Deputy Solicitor GeneralRICHARD N. COGLIANESE (0066830)PEARL M. CHIN (0078810)LUCAS R. BLOCHER (0079239)MICHAEL J. SCHULER (0082390)ROBERT F. MCCARTHY (0083829)Assistant Attonreys Genei-al30 East Broad Street, 17th FloorColhm7bus, Ohio 43215614-466-8980614-466-5087 [email protected]
Counsel for Respondents
50
CERTITICATE OF SERVICF.
I certify that a copy of the above Motion for Judgment on the Pleadings and Memorandum
in Support was served by U.S. mail on this 22nd day of Septernber, 2009 upon the following
counsel:
Timothy J. GrendellGrendell & Siinon Co., LPA6640 Harris RoadBroadview Heights, Ohio 44147
Counsel for RelatorsOhio Christian Alliance, Ronald Amstutz,John Adanis, and Seth Morgan
in C.4MizerSolicitor General
'OL"XHIBIT A
Directive to the Ohio Lottery
July 13,2009
Implementing Video Lottery Terminals
1. Ohio is ]R'acing Sig '"icant Economic Challenges. The national economic recession hascaused many and substantial hardships for the people of Ohio. Many Ohioans rely on thehealth, safety and welfare services provided by the State. Declining employment andrecessionary sales have led to declining tax revenues realized by the State, making itmore and more challenging for the State to provide the educational, health and otherservices its people deserve. Without additional revenues, the State would be required tocut services even beyond the significant levels already undertaken and underconsideration in current budget discussions.
2. The Implementation of Video Lottery Terminals (VLTs) is an Important Part ofOhio's Ba9a®eed Budget I°lan. The imtnediate implementation of VLTs by the OhioLottery is projected to generate approximately $933 million in net proceeds during thecoming biennium. The dedication of that revenue to education programs is eritical to ourcontinued efforts to strengthen Ohio's education system. Increased lottery revenuesallow the state to dedicate scaree general revenue fnnds to critical progtams benefitingthe healtb, safety and welfare of Ohio's citizens, avoiding devastating cuts to thoseprograms.
3. Implementation of VLTs Shonld Only Be Undertaken With Strong Legal k'ooting.The Ohio Constitution authorizes the General Assembly to establish an agency of theState to manage lottery games to support education programs. The General Assemblyhas established the Ohio Lottery as that agency and has enacted various statutesauthorizing the lottery to conduct and operate lottery games in accordance with theConstitution. The General Assembly has indicated to me its intent to pass legislationwhich would expressly acknowledge that the Ohio Lottery has the authority to implementVLTs under the existing laws of the State of Ohio and that the implementation of VLTsdoes not violate auy provision of Ohio's separate prohibitions on gambling aetivity.
4. The Lottery Director Should Immediately Take Steps to Implement VI,Ts. With anexpress acknowledgement of the General Assembly that the Ohio Lottery has theauthority to implenient VLTs, I believe that the Ohio Lottery can, and I direct the LotteryDirector to, adopt rules regarding the implementation of VLTs and immediately takesteps to implement VLTs in accordance with the following requirements unless and untilthey are modified or rejected by the General Assembly:
a. VI.'1!'a Should Only Operate At Licensed I^3acetraek Facit ►tie5, So as to limitthe proliferation ofgambling activity to locations in which the local cornmunityhas expressed its support for such activity, the Lottery Director should assure that
licenses to operate VLTs are issued only to those who will operate the V I,Ts atfacilities operated by those already licensed to offer pari-mutuel betting,
b. VLTs Should Operate at Only Seven Racetrack Facilities at Any One Time.Again, in order to limit the proliferation of gambling in the state, the LotteryDirector should assure that only seven licenses to operate VLTs are issued at anyone time.
c i'I,Ts Licenses Shall Be Granted for aMini.mnm of'T'en Years. To assureeffective regulatory oversight regarding those licensed to operate VLTs, licensesshould be granted for a minimum of ten years and should be transferred only inaccordance with strictly established guidelines.
d. Strict Background Checks of Prospective VLT Licensees SIaall BeUndertaken. Strict criminal and financiat background checks of all prospectiveVLT licensees shall be undertaken prior to the issuance of any such licenses andonly those meeEing clearly articulated standards shall be granted such licenses.
e. VLTs Should Be Implemented Quickly, But Contracis Should Foltobv t4llStandard Bidding Requirements. The Lottery should use any existing contractsit has which would pernrit the rapid implementation of VLTs, but any LotteryCommission eontraet for services associated with the implementation of VLTsmust be awarded by competitive bidding unless competitive bidding requirementsare waived by the Controlling Board.
t.AJIYLT Profits Should Benefit Education Programs in Ohio. In order tocomply with the constitutional rcquirement regarding the use of lottery netproceeds, all VLT net proceeds shall be deposited and utilized to benefiteducation programs in Ohio in the same manner as all other lottery net proceeds.
5. Absense of Implementing Legislation. If the implementing legislation described inParagraph 3 is not enacted into law as part of or prior to the FY10-13 biennial budget lawand such law is not signed into law by me witbin five days of the issuance of thisDirective, the Directive shall then be deemed immediately null and void.
Ted Strickland, Governor
EXHIBIT
Am. Sub. H. B. No. 11796
128th G.A.
hat has fled with theaunerintendentor
authorizing the nrocedures deseribPd in diviRions (C1 and LD) of section3929.86 of the Revised Code from receiving inaurance proaeeds undersection 3929.86 of the Revised Code.
Sec. 3770.03. (A) The state lottery commission shall promnlgate rulesunder which a statewide lottery may be conducted whieh includes. and
forsince thP nriginal enactment of this section has included.. the authoritythe commission to operate video lotteIy temrinalgames Any reference inthis cbgpter to tickets shall not be construed to in any way limit the autha 'of the commission to operate video lott= terminal games Nothin in n thischanter shall restrict the authorit.y^ of the commission to promul atg e nalcsrelated to the oneration of ea_mes utilizingvift otterv terminals asdeccribed in section 3770 .21 of the Revised Code. The rules shall bepromulgated . pursnant to Chapter 119. of the Revised Code, except thatinstant game rules shall be promulgated pursuant to section 111.15 of theRevised Code but are not subject to division (I)) of that section. Subjectscovered in these rules shall include, but need not be flmited to, thefollowing:
(1) The type of lottery to be conducted;(2) The prices of tickets in the lottery:;(3) The number, nature, and value of prize awards, the manner and
frequency of prize drawings, and the manner in which prizes shall beawarded to holders of wirming tickets.
(B) The commission shall promulgate rules, in addition to thosedescribed in division (A) of this section, pursuant to Chapter 119. of theRevised Code under which a statewide lottery and statewide joint lotterygames may be conducted. Subjects covered in these rules sball include, butnot be limited to, the following:
(1)'fhe locations at which lottery tickets may be sold and the manner inwhich they are to be sold. These rules may authorize the sale of lotterytickets by commission personnel or other licensed individuals from travelingshow wagons at the state fair, and at any other expositions the. director of thecommission considers acceptable. These rules shall prohibit commissionpersonnel or other licensed individuals from soliciting from an expositionthe right to sell lottery tickcts at that exposition, but shaH allow commissionpersonnel or other licensed individuals to sell lottery riclcets at an expositionif the exposition requests commission personnel or flcensed individuals todo so. These rules may-also address the accessibility of sales agent locationsto comniission products in accordance with the "Americans with Disabilities
i
Am. Sub. H. B. No. I 128th G.A.1797
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 bylottery sales agents to transfer revenues to the commission in a timelymanner;
(3) 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 forrevoking or suspending their licenses consistent with Chapter 119. of theRevised Code. If eireumstanees, such as the nonpayment of funds owed by alottery sales agent, or other circumstances related to the public safety,convenience, or trust, require immediate action, the director may suspend aIicense without affording an opportunity for a prior hearing under section119.07 of the Revised Code.
(5) Special game rules to implement any agreements signed by thegovernor that the director enters into with other lottery jurisdictions underdivision (J) of section 3770.02 of the Revised Code to conduct statewidejoint lottery games. The rules shall require that the entire.net proceeds ofthose games that remain, after associated operating expenses, prizedisbursements, lottery sales agent bonuses, commissions, andreimbursements, and any other expenses necessary to comply with theagreements or the rules are deducted from the gross proceeds of thosegames, be transfen-ed to the lottery profits education fund under division (B)of section 3770.06 of the Revised Code.
t61 Any other subjects the commission determin^a are neoessarv for theM,eration of video lottery terminal games, including the establishment ofany fees, finv& or navment schedules.
(C) Chavter 2915 . of the Revised Code does not a ^ i n l v to affect orprahibit lotteries canducted nursuan to this chapter.
1M The commission may promulgate rules, in addition to thosedescribed in divisions (A) and (B) of this section, that establish standardsgoverning the display af advertising and celebrity images on lottery ticketsand on other items that are used in the conduct of, or to promote, thestatewide lottery and statewide joint lottery games. Any revenue derivedfrom the sale of advertising displayed on lottery tickets and on those otheritems sha11 be considered, for purposes of section 3770.06 of the RevisedCode, to be related proceeds in connection with the statewide lottery orgross proceeds from statewide joint loitery games, as applicable.
(B)(B^(l) The commission sball meet with the director at least onceeach month and sball convene other meetings at the request of the
Am. Sub. H. B. No. I 128th G.A.1798
chairperson or any five of the members. No action taken by the commissionshall be binding unless at least five of the members present vote in favor ofthe action. A written record shall be made of the proceedings of eachmeeting and shall be transmitted forthwith to the govemor, the president ofthe senate, the senate minority leader, the speaker of the house ofrepresentatives, and the house minority ieader.
(2) The director shall present to the commission a report each montb,showing the total revenues, prize disbursements, and operating expenses ofthe state lottery for the preceding month. As soon as practicable after theend of each fiscal year, the commission sball prepare and transmit to thegovemor and the general assembly a report of lottery revenues, prizedisbursements, and operating expenses for the preceding fiscal year and anyrecommendafions for legislation considered necessary by the commission.
Sec. 3770.05. (A) As used in this section, "person" means any person,association, corporation, partsiership, 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 othercombination of individtials meeting the requirements set forth in this sectionor established by rule or order of the state lottery commission.
(13)1'he director of the state lottery commission may license any personas a lottery sales agent. No license shall be issued to any person or group ofpersons to engage in the sale of lottery tickets as the person's or group's soleoccupation or business.
Before issuing any license to a lottery sales agent, the director shallconsider all of the following:
(1) The financial responsibility and seeurity of the applicant and theapplicant's business or activity;
(2) The accessibility of the applicant's place of business or activity tothe public;
(3) The sufficiency of existing licensed agents to serve the publicinterest;
(4) The volume of expected sales by the applicant;(5) Any other factors pertaining to the public interest, oonvenience, 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 shallsuspend or revoke, a license if the applicant or licensee:
(1) Has been convicted of a felony or bas been convicted of a crimeinvolving moral turpitude;
(2) Has been convicted of an offense that involves illegal gambling;
Am. 8ub. H. B. No. 1 128th G.A.1799
(3) Has been found guiity of fraud or misrepresentation in anyconnection;
(4) Has been fovnd to have violated any rule or order of thecommission; or
(5) Has been ' convicted of- illegal trafficking in f"eee}--stsaipssuxmiemental nutrition assistanee program benefits.
(I)) Except as otherwise provided in division (F) of this section, thedirector of the state lottery commission shall refuse to grant, or shallsuspend or revoke, a license if the applicant or licensee is a corporation andany of the following applies:
(1) Any of the corporation's directors, officers, or controllingshareholders has been found guilty of any of the activities specified indivisions (C)(1) to (5) of this section;
(2) It appears to the director of the state lottery commission that, due tothe experience, charaeter, or general fitness of any director, officer, orcontrolling shareholder ofthe corporation, the granting of a license as alottery sales agent would be inconsistent with the public interest,convenience, or trust; - ---
(3) The eorporation is not the owner or lessee of the business at which itwould conduct a lottery sales agency pursuant to the license applied for;
(4) Any person, firm, association, or corporation other than the applicantor licensee shares or will share in the profits of the applicant or licensee,other than receiving dividends or distributions as a shareholder, orparticipates or will participate in the management of the affairs of theapplicant or licensee.
(E)(1) The director of the state lottery commission shall refuse.to grant alicense to an applicant for a lottery sales agent license and shall revoke alottery sales agent license if the applicant or licensee is or has beenconvicted of a violation of division (A) or (C)(1) of section 2913.46 of theRevised Code.
(2) The director shall• refuse to grant a license to an applicant for alottery sales agent license that is a corporation and shall revoke the lotterysales agent license of a corporation if the corporation is or has beenconvicted of a violation of division (A) or (C)(1) of section 2913.46 of theRevised Code.
(F) The director of the state lottery commission shall request the bureauof criminal identification and investigation, the department of public safety,or any other state, local, or federal agency to supply the director with thecriminal records of any applicant for a lottery sales agent license, and mayperiodically request the criminal records of any person to whom a lottery
Am. Sub. Ii. B.No. I 128th G.A.1800
sales agent license has been issued. At or prior to the time of maldng such arequest, the director shall require an applicant or licensee to obtainfingerprint impressions on fingerprint cards prescribed by the superintendentof the bureau of criminal identification and investigation at a qualified lawenforcement agency, and the director shall cause those fingerprint cards tobe forwarded to the bureau of criminal identification and investigation, tothe federal bureau of investigation, or to both bureaus. The commission shallassume the cost of obtaining the fingerprint cards.
The director shall pay to each agency supplying criminal records foreach investigation a reasonable fee, as determined by the agency.
The conunission may adopt uniform rales specifying time periods afterwhicb the persons described in divisions (C)(1) to (5) and (D)(1) to (4) ofthis section may be issued a license and estabiisbing requirements for thosepersons to seek a court order to have records scaled in accordance with law.
(G)(1) Each applicant for a lottery sales agent license shall do both ofthe following:
(a) Pay to the state lottery commission, at the time the application issubmitted, a fee in an amount that the director of the state lotterycommission determines by rule adopted under Chapter 119. of the RevisedCode and that the controlling board approves;
(b) Prior to approval of the application, obtain a surety bond in anamount the director determines by rule adopted under Chapter 119. of theRevised Code or, alternatively, witb the director's approval, deposit thesame amount into a dedicated account for the benefit of the state lottery. Thedirector also may approve the obtaining of a surety bond to cover part of theamount required, together with a dedicated acxount deposit to cover theremainder of the amount required.
A surety bond may be with any company that ec5mplies with thebonding and surety laws of tbis state and the requirements established byrules of the commission pursuant to this chapter. A dedicated accountdeposit shall be conducted in aeeordance with policies and procedures thedirector establishes.
A surety bond, dedicated account, or both, as applicable, may be used topay for the lottery sales agent's failure to make prompt and accuratcpayments for lottery ticket sales, for missing or stolen lottery tickets, or fordaunage to equipment or materials issued to the lottery sales agent, or to payfor expenses the commission incurs in connection with the lottery salesagent's license.
(2) A lottery sales agent license is effective for one year.A licensed lottery sales agent, on or before the date established by the
Am. Sub. H. B. No. 1 128th G.A.1801
director, shall renew the agent's license and provide at that time evidence tothe director that the surety bond, dedicated account deposit, or both,required under division (G)(1)(b) of this section has been renewed or isactive, wbicbever applies.
Before. the commission renews a Iottery sales agent license, the lotterysales agent shall subnvt a renewal fee to the commission in an amount thatthe director determines by rule adopted under Cbapter 119. of the RevisedCode and that the controlling board approves. The renewal fee sball notexceed the actual cost of administering the license renewal and processingchanges reflected in the renewal application. The renewal of the license iseffective for up to one year.
(3) A lottery sales agent license sball be complete, accurate, and currentat all times during the term of the license. Any changes to an original licenseapplication or a renewal application may subject the applicant or lotterysales agent, as applicable, to paying an administrative fee that shall be in anamount that the director determines by rule adopted under Chapter 139. ofthe Revised Code, that the controlling board approves, and that shall notexceed the actual cost of administering and processing the changes to anapplication.
(4) The relationsbip between the commission and a lottery sales agent isone of trust. A lottery sales agent collects funds on behalf of the oonunissionthrough the sale of lottery tickets for wbicb the agent receives acompemation.
(H) Pending a final resolution of any question arising under this section,the director of the state lottery commission may issue a temporary lotterysales agent license, subject to the terms and conditions the director considersappropriate.
(1) If a lottery sales agent's rental payments for the lottery sales agent'spremises are determined, in wbole or in part, by the amount of retail salesthe lottery sales agent makes, and if the rental agreement does not expresslyprovide that the amount of those retail sales includes the amounts the lotterysales agent receives from lottery ticket sales, only the amounts the lotterysales agent receives as compensation from the state lottery comrnission forselling lottery tickets shall be considcred to be amounts the lottery salesagent receives from the retail sales the lottery sales agent makes, for thepurpose of computing the lottery sales agent's rental payments.
See 377021 (A, "Video lotter,Xternunal' " meansanyclecironie devicaapproved bv the gtate lotterv commis%ion that nrovides immediate nrizedeterminations for participants on an electronic disnlav
(B) The state Iottery commission shall inelude, in nny rules adopted
t
128th G.A.Am. Sub. H. B. No.11.802
concerning video lottery terminals, the lavel af minimum investments thatmust be made )?v video lottery terminal licensees in the bnildin sg-and,gcpmds at the facilities, includina temnorarv facilities in which thetermin mdll be located, along wjth any stanar ds and timetabes for auchinvestments.
Cl No license or ethis section aball be assessed npon or cn ]ected from a vidoo lotter,y terminallicensee by anv county, townshin municipal corooration school diStriet oroter poli ' gl subdivisi4n of the state that has autho 'rly to assess or collect a_tax or feek reason of the video lotterv terminal related candact authorizedby section 3770 .03 of the Revised Code. This division docs not prohibit theimposition of taxes er Chapter 71$ or 3769 . of the Revised Code
U The suuTeme court Aall have exclusive original iurisdiction overanv claim asserting that this sect^section 3770 .63 of the Revised Code
those le -adou3ed under-those sectiviolates any provision of the Ohio CAnstitution any claim as erting thatan^acti by the gavernor or the lotta,fy commission bursuant to thosecec ' ns violates anv nrovision of the Clhin Constitution or any nrovision ofthc Revised Code, or, any claim assertin t^hat any portion of this sectionvvt,qlates any ron visio}t of the Ohio Constitutipn If^t nv claim over which thempreme gonrt ig granted exclu5jve origM jiiiicdieYion by this division isfiled in any to-wer court the claim shall be dismissed 8v the court on theyround that the court lac iurisdictjon to review it.
fFl Shnuld any portion of th.t section or of sectiQn 3770 .03 of theRevise^C^Code be found to be unenforceabor invalid 't slt tall be severcdand the remainingpo^i iopsamain in full force and effect,
Sec. 3773.35. Any person who wishes to conduct a public or privatecomnetition that involve boxing e% wrestling mixed
ial arts kick hox^ rnan contests touzheuv contests^or another form of boxing or martial arts shall apply to the Ohio atbletiecommission for a promoter's license. Each application shall be fil.ed with thecommission on forms provided by the comniission, and sball beaccompanied by an application fee as prescribed in section 3773.43 of theRevised Code and witta the excaptian o^ stling events by a ees#-bend;
surety bond of not less than €ti-a twenthousand dollars conditioned for compliance with sections 3773.31 to3773.57 of the Revised Code and the rules of the commission. "' ^
The commission shall prescribe the forn of the application for thepromoter's license. The application sball include the name of the applicant,
r
EXHIBIT C
Am. Sub. H. B. No. 1 128th G.A.2795
Group $ 311,067 S 311,067TOTAL ALL BUDGET FI7ND GROUPS $ 311,067 $ 311,067
SEcrtoN 263.10, CDR COMMISSION ON DISPUTE RESOLUTIONAND CONFLICT MANAGEMENTGeneral Revenue FundGRF 145401 Commission Operations $ 250,000 $ 0TOTAL GRF Genemt Revenue Fund $ 250,000 $ 0TO"l'AL, ALL BUDGET FUND GROUPS $ 250,000 $ 0
SEcTIoN 265. 10. EDU DEPARTMENT OF EDUCATIONGeneral Revenue FundGRF 200100 Personal Services $ 10,490,789 S 10,723,972GRF 200320 Maintenance and Equipment $ 3,110,071 $ 3,144,897GRF 200408 Early Childhood Education $ 23,268,341 $ 23,268,341
GRF 200416 Career-Technicat Education $ 2,233,195 $ 2,233,195
GRF 200420MatchComputcr/Application! $ 4,880,871 $ 4,880,871
GRF 200421Network DevelopmentAltemative F..ducation $ 7,814,479 $ 7,918,749
GRF 200422ProgramsSchool Management $ 1,950,521 $ 3,230,469
GRF 200424AssistancePolicy Analysis $ 356,311 $ 361,065
GRF 200425 Tech Prep Consortia Support $ 1,243,943 $ 1,260,542
GRF 200426 Ohio Educational Computer $ 20,156,602 S 20,425,556
GRF 200427NetworkAcademic Standards S 5,300,074 S 5,300,074
GRF 200431 Sehool Improvement 5 7,294,175 S 7,391,503
GRF 200437InitiativesStudent Assessment $ 55,954,648 $ 56,703,265
GRF 200439 Accountability(Report Cards S 3,804,673 $ 3,804,673GRF 200442 Child Care Licensing $ 865,590 $ 877,140G_RF 200446 EducationManagement s 13,199,152 $ 11 ,934,284
GRF 200447Information SystemGED Testing $ 975,536 $ 988,553
GRF200448 EducatorPreparation $ 1,310,750$ 1,328,240GRF 200455 Community Schools $ 1,000.000 s 1,000,000GRF 200457 STEM Initiatives $ 5,000,000 $ 5,000,000
GRF 200458 School Employees 8ealth $ 800,000 $ 800,000
GRF 200502Care BoardPupil Transportation $448,022,619 $ 462,822,1519
GRF 200505 School Lunch Match $ 9,100,000 $ 9,100,000
GRF 209511 Auxilia.ryServices 5 111,979,388 $ 111,979,388GRF 200532 Nonpublic Administrativc $ 50,838;939 $ 50,838,939
GRF200540Cost ReimbursementSpecial Education $ 134,150,233 S 135,820,668Enhancements
GRF 200545 Career-Technicat Education $ 7,752,662 $ 7,802,699Enhancements
Am. Sub. H. B. No. 1 128th G.A.2796
GRF 200550 Foundation Funding S 5,130,669,418 S 4,746,289,372GRF 20055€ FoundationFunding - Pederal S 387,583,913 $ 457,449,362
StimulusGRF 200578 Violence Prevention and $ 200,000 $ 200,000
Scheol SafetyGRF20090t PropertyTaxAllocafion - S 1,053,262,363 $ 1,020,655,157
EducationTOTAL GRF Genera3 Revenue Fund S 7,504,569,256 S 7,175,533,593Creneral Services Fund Group1380 200606 Computer $ 7,600,091 $ 7,600,09!
Servioes-Operational Support .4520 200638 Miscellaneous Ed'ucational$ 275,000 S 275,000
Services4L20 200681 'I'eacherCertiGcationand $ 8,013,206 S 8,147,756
Licensuro5960 200656 Ohio Career InformaGon S 529,761 $ 529,761
System5H30 200687 School District Soivency S 18,000,000 $ 18,000,000
AssistanceTOTAL GSF General ServicesFund Group $ 34,418,058 S 34,552,608
Federal Special Revenue Fund Group3090 200601 Eduoationally Disadvantaged $ 8,405,512 $ 8,405,512
Programs3670 200607 School Food Services $ 6,324,707 $ 6,577,6953680 200614 Veterans Training $ 778,349 5 793,8463690 200616 Career-Technicat Education $ 5,000,000 $ 5,000,000
Federal Enhancement3700 200624 EducationofExceptional $ 2,664,000 $ 2,755,000
Children3740 200647 Troops to Teachers $ 100,000 s 100,0003780 200660 Leam and Serve $ 619,211 S 619,2113AFO 200603 Schools Mediaaid $ 639,000 $ 639,000
Administrative Claims3AN0 200671 School hnprovement Grants S 17,909,676 $ 17,936,6753AXO 200698 Improving Health and $ 630,954 $ 630,954
Educational Outcomes ofYoung People
3BKO 200628 Longitudinal Data Systems $ t00,000 $ 03BV0 200636 CharacterEducation $ 700,000 $ 03C50 200661 Early Childhood Education $ 14,189,711 $ 14,554,7493CFO 200644 ForeignLanguageAssistance $ 25,000 $ 03CGO 200646 Teacber Incentive Fund $ 3,007,975 $ 1,157,8343D10 200664 DrugFreeSchools S 13,347,966 $ 13,347,9663D20 200667 Honors Scholarship Program $ 6,990,000 $ 6,985,00030J0 200699 TDEA Part B- Federet $ 218,868,026 $ 218,868,026
Stimulus3DK0200642 'I'itielA -FederalStimulus $ i86,336,737 S i86,336,7373DL0 200650 IDEAPreschool - Federal $ 6,679,679 $ 6,679,679
Stimulus.30M0200651 TitIeTlDTechnology - $ 11,951,000$ 11,951,000
Federal Stimulus3DP0 200652 TitlelSchoo[Improvement - S 54,221,000 S 54,221,000
Am. Sub. H. B. No. i 129th G.A.2791
3H90 200605Federal StimulusFlead Start Collaboration $ 225,000 $ 225,000
3L60 200617ProjectFederal School Lunch $ 295,421,000 $ 310,150,675
3L70 200618 Federal School Breakfast $ 80,850,000 $ 84,892,5003L80 200619 Child/Adult Food Programs $ 89,250,000 $ 93,712,5003L90 200621 Career-Technical Education $ 48,029,701 $ 48,029,701
3M00 200623Basic GrantESEA Title lA $ 530,000,000 5 530,010,000
3M10 200678 InnovativeEducation $ 1,000,000 $ 03M20 200680 Individuals with Disabilities $ 413,391,594 S 421,241,163
3S20 200641Education ActEducationTechnology $ 9,487,397 $ 9,487,397
3T40 200613 Public Charter Schools $ 14,275,618 $ 14,291,3533Y20 200688 21st Century Community $ 36,000,000 $ 36,000,000
L i C3Y40 200632
cam entersngReading First $ 27,366,373 S 24,455,172
3Y60 200635 Improving Teacher Quality $ 101,778,397 $ 101,778,4003Y70 200689 EnglishLanguagc $ 8,142,299 S 8,142,299
i i3Y80 200639
sAcqu tionRura1 and Low Income $ 1,500,000 $ 1,500,000
h i l i3Z20 200690
Tec n ca Ass stanceState Asscssments $ 12,923,799 $ 12,923,799
3Z30 200645 Consolidated Federal Grant $ 8,499,279 S 8,499,280Ad i i i
3Z70 200697m n stcat on
General Supervisory $ 887,319 $ 0Enhancement Grant
TOTAL FED Federat SpecialRevunueFundGroup $ 2,238,516,279 $ 2,262,899,123
State Special Revenue Fund Group4540 200610 GuidanceandTcsting $ 450,000 S 450,0004550 200608 Commodity Foods $ 24,000,000 S 24,000,0004R70 200695 Ind(n:ct Operational Support $ 6,050,000 S 6,250,0004V70 200633 InteragancyOperational $ 1,111,838 $ 1,117,725
Support5980 200659 Auxiliary Services $ 1,328,910 S 1,328,910
Reitn3nusement5BB0 200696 State Action for Education $ 1,250,000 $ 600,000
Leadership5B70 200626 Hatf-MitlMaintenance $ 16,100,000 $ 16,600,000
Equalization5U20 200685 National Education Statistics $ 300,000 $ 300,0005W20 200663 EarlyLearningInitiative $ 2,200,000 S 2,200,0005X90 200911 NGA STEM - $ 100,000 $ 06200 200615 Educational Improvement $ 3,000,000 $ 3,000,000
GmntsTOTAL SSR State Special RevenueFur.d Group $ 55,890,7!!8 $ 55,846,635Lottery Pmfits Education Fund Group7017 200612 FoundationFunding $ 990,236,905 S 1,277,271,428TOTAL LPE Lottery ProfitsEducationFundGroup $ 990,236,905 $ 1,277,271,428
Revenue Distributian Fund Group
EXHIBIT D
Atn. Sub. PL B. No. I 128th G.A.2865
National Park Service, chooses to take over the operations or maintenanceof the Hayes Presidential Center, in whole or in part, the Ohio HistoricalSociety shall make arrangements with the National Park Service or otherUnited States governmettt agency for the efficient transfer of operations ormaintenance.
Sr•.cnorr 301.10. REP OHIO HOUSE OF REPRESENTATIVESGeneral Revenue FundGRF 025321 Operating ExpensciTOTAL GRF General Revenue FundGeneral Services Fund Group
$ 18,517,093 $ 18,517,093$ 18,517,093 $ 18,517,093
1030 025601 HouscReimbursemcnt $ 1,433,664 $ 1,433,6644A40 025602 tVIlscellaneuus Sales $ 37,849 $ 37,849TOTAL GSF General SetvicesFundGroup $ 1,471,513 $ 1,471,513TOTAL ALL BUDGET FUND GROUPS $ 19,988,606 $ 19,988,606
OPERATTNG EXPENSES
On July 1, 2009, or as soon as possible thereafter, the Clerk of theHouse of Representatives may certify to the Director of Budget andManagement the amount of the unexpended,.unencumbered balance of theforegoing appropriation item 025321, Operating Expenses, at the end offiscal year 2009 to be reappropriated to fiscal year 2010. The amountcertified is hereby reappropriated to the same appropriation item for fiscalyear2010.
On July 1, 2010, or as soon as possible thereafter, the Clerk of theHouse of Representatives may certify to the Director of Budget andManagement the amount of the unexpended, unencumbered balance of theforegoing appropriation item 025321, Opcrating Expenses, at the end off7scal year 2010 to be reappropriated to fiscal year 2011. The amountcertified is hereby reappropriated to the same appropriation item for fiscalyear2011.
SEcT[orr 303.10. HFA OHIO HOUSING FINANCE AGENCYAgency Fund Group5AZ099760I HousingFinanceAgency $ 8,614,627 $ 8,614,627
PersonalServicesTOTAL AOY Agency Fund Group S 8,614,627 $ 8,614,627TOTAL ALL BCJpGBT FUND GROUPS $ 8,614,627 $ 8,614,627
SECrtoN 305.10. IGO OFFICE OF THE INSPECTOR GF,NERALGeneral Revenue Fund
Am. Sub. H. B. No. 1 128th G.A.2866
GRF 965321 Operating Expenses $ 1,214,218 S 1,214,218TOTAL GRF General Revenue Fund $ 1,214,218 $ 1,214,218General Services Fund Group5FAO 965603 Deputy Inspector General for S 400,000 S 400,000
ODOT5F"C0 965604 Deputy Impector Gencral for $ 425,000 $ 425,000
BWClOICTOTAL GSF General Services Fund Group $ 825,000 $ 825,000TOTALAT.LBLIDGE"rFUNDGROUPS $ 2,039,218 $ 2,039,218
VIDEO LOTTERY TERMINAL OVERSIGHTOf the foregoing GRF appropriation item 965321, Operating Expenses,
$50,000 in each fiscal year may be used to defray any expenses associatedwith the review of the operation of video lottery terminal opcrations asspecified in Chapter 3770, of the Revised Code.
SECTION 347.10. tNS DEPARTMENT OF INSURANCEFederal Special Revenue Fund Group3CXO 820608 State Coverage Initiative -
Federal$ 50,000,000 $ 100,000,000
3U50 820602 OSHIIP Operating Grant $ 1,770,000 $ 1,790,000TOTAL F£D Federal SpecialRevenue Fund Group $ 51,770,000 $ 101,790,000
State Special Revenue Fund Group5540 820601 OperatingExpenses - OSHIIP $ 200,000 $ 200,0005540 820606 OperatingExpenses $ 22,884,736 $ 22,884,7365540 820609 State Coverage Initiative
d i i$ 479,575 $ 479,575
min onA stmt5550 820605 Examination $ 9,275,768 $ 9,294,6685AGO 820603 HealtfiInfonnation $ 10,116,272 S 0
Teehnology and Hcalth CareCovernge and QualityCouncit
TOTAL SSR Statc Special RevenueFundGroup $ 42,956,351 $ 32,858.979TOTAL ALL BUDGET FUND GROIJPS $ 94,726,351 $ 134,648;979
HEALTH INFORMATION TECHNOLOGY AND HEALTH CARECOVERAGE AND QUALITY COUNCIL
Notwithstanding section 3929.682 of the Revised Code, up to$8,000,000 of the foregoing appropriation item 820603, Health InformationTechnology and Health Care Coverage and Quality Council, shall be usedfor health information technology initiatives: to provide the central tools andsupport the electronic excbange ofhcalth information, to work witb industryassociations to encourage and support providers in using electronic medicalrecords, and to establish a loan program to help health care providers withthe financial burden of buying and implementing electronic medical records.
Notwithstanding section 3929.682 of the Revised Code, up to
-OAHIBIT EE
377Q:2-1-01 Authority and Purpose.
(A The rules set forth in division 3770:2 are promulgated under the autlloritv of Chapter3770. of the Revised Codc.
Wl The puroose of division 3770:2 of the Administrative Code is to set fozth rulesconceminp video lottervgaming_
(C^1?ivision 3770:2 of the Administrative Code pcrta.ins to video lottery gaming andunlcss specifically incorporatcd by reference in a iule under division 3770:2 . rulesunder Chapl:er 3770 including division 3770:1 shall not apply to video lottervangxii^;
(D) The lottery shall have exclusivc jurisd ction over all inatters within the scope of itsauthority and nothine contained in division 3770:2 shall be deemed to limit theauthoritv_Qr the abilitv oflae lottery to act hereunder.
3770:2-1-02 Incorporatitm of b- laws.
ions contained in c 2ter 3770:1-5 of the Administrative Code areincomorated and shall auplv to the provisions of division 3770:2 of theAdministrative Code, uiiless otl7erwise speciYic^ excluded in division 3770:2 ofthe Administrative Code.
3770:2-2-01 Definitions of terms used in division 3770:2 of tlreAdministrative Code.
(A) "Administrative Procedure Act" rneans ('hapter. 119 of the R.evised Code, and allamendments thereto.
$) °A " means anv verson a for a video icens
(C) "Applicatirnt fee" means the non-refundable fee paid by an apnlicant for a videolottery license at the time of submission of an application.
(D) "Associated equipment" means any hardware an d software that is utilized inconnection with the operation of video lotteryeatning, but does not includetelecommunication facilities and equinment of a public utilitv.
(E) "Cornmission" and "Ohio lottery commission" and "lotterti' mean the state lottervcornmission created by the Lotterv Act.
F) "CommissQnex" means a member of the commission.
gairiiiig eruplovee licenseamine emulovee license" means a keyissued to a key gaming employce license anc he director on a conditionalbasis on terns and conditions deemed alMronriate by the director. A conditionalkev gamirtg eTuglovee license may be converted to a key gaming emplovee licensebut the conditionM key gaming emplovee license is subject to susuensioniodification revocation or fincs as authorized by the Lottery Act r¢le, re ion.policyor directive of the conrmission or director.
(H) "Conditionat video lottery license" means a video otterv license issued to a videolottery license spplicant who is apermit holder by the director on a conditional
nd conditions deemed aLtpropriate by the director. A conditionalvideo lotterv license ma,yr be converted to a video lottery license but the condifionalvideo lottery license is subject to suspension . modification , revocatiori or fines asauthori7ed by tlte Lottea Act, rule regulation, policy, order or directive of thecomrnission or director.
(1)"Credit" means the value remaining to a video lotterv gami-fig customer usnallvdenoted in units of plav that mav be used to continuc to play video lottcrv games ormay be redeemed for cash or its monetary equivalent or othes prizes. Creclitbalances are inereased by cash insered credit vouchers inserted prize winniu^sand value credit§.
(T) "Credit voucher" me uis the bearer jnstrument issued from a video lotter^ terminal forpayment by a video lottcry aszent A credit voucher is a bearer insttttment.
(K) "llirector" mcans the executive director of the state lottery appointed in accordancewith the Lotter^Act.
3770:2-2-01 2
(1) "F.llCS business enternrises" has the same mcaning as section 123.152 of the RevisedCode.
"Flectronic displav" means the presentation of elements of video lottery eamesincludina but not limited to prize deterrninations which are visible on a videolottezy terminal and which may include but not be limited to meclaanical spinningreels andlor video displavs.
"Game" means a lottery game of'£ercd by the state lotte e to the public.
Cev eamingemnlovee" means an emplovee of a video lotterX agent , an emnla ey e ofa vendor or an emplovee of a management companv providinp services to a videolottery agent or the lottery in connection with video lottery gaming operations whois deterniined by the video lottery ageent or the director to be in a position of tnrstand confidence as it oertains to video lotterv _^g operatlans hut unlessotherwise determined by the director to not be a key eaming etnployee shalIinclude those emplavees of a video lottery applicant or videa lotterv agent who areresponsible for or oversee the secmitv or surveillance of a video lottery terminal.
tfle handlina. securina or auditi n¢ of video nroceeds and •iccessing tlelotteryitlternal worki s of video lotterv tcrrninals
P"Key^a emnlovee license" ^^s a key eaming emplovee license issued to a.key gaming em^loyee apolicant but is subject to susnension modificationrevocation or fine as antlcirized by the J.ottery Act, rule, regulation. policv ordirective of thecomn^ission or director All key eamina employee licenses shall
Decernber 31 and e ther ter. A kev 2alottery license mav be renewed in accordance with the applicable renewalnrocedures,
Licensi fee" means the fee to be r d by an apnlicaut that is a rLproved £ox a videolottery license or a conditional video lottery license,
R) "Lottery Act" eans Chanter 3770. 2£ the Revised Code nd all amendments thereto
(S) "Lottery fund" means the various latterv funds established in section 3770.06 of theRevised Code.
a ement" me as cement between licant for a videolotter^license or a yideo lottei^a^ent and a m'^ntaement compsmy which scts fbrththe duties and resroonsibilities of a management company as such duties pertain ta
e handl ?ideo lotteagent's facilit^To be effective in connection with video lotterunder authorit y of the commission, a managernent sereement is subject to ap^rovalof the diTector.
"Mana _^icnt comnanv" means a nerson who contracts with an a^plicant for a video
3770:2-2-01 3
lottery license or a video lottery agent to handle or assist with video lottery amingoperations at a video lottery aeent's facilitv.
(V) "Ohio based business" means a business that pavs the tax levied under t'balrter 5733of the Revised Code and that has a physical presence in this state.
(W) "Participant" means an individual who is over the a ge of ei hteen yeass of age.
X) "Permit holder" means a12erson as defined in section 1701 .01 of the Revised Codethat has been authorized bv the state racing cornmission to conduct one or more
orse raciny meetings under Chapter 3769 of the Revised Code.
Y) "Person" means aiabilitv c
gents are to settle their transactions through dQosits in accordance witlr
so ne0 location association coartnershin, club, tn.ist, estate, socictv, receiver, trustee ersonn
acting in a fiduciazy or representative capacitv, instrumentality of the state or anv ofits political subdivisions or anyother corribination of individuals meeting thereauircments established bv ntle or order of the commission
(Z) "Princ^al" means each officer and director of a corporation g shareholder owninefive percent or more of voting stock, eachmneral partner of pa.rtnershiZ eachmember of anv other form of association. entity, organization or group of ownersand each indiyidiial prontiet.or of a pronrietorship.
AA) "Settlement date" means eacb date specified by the director on which video lotte
procedures established by the director.
BB) "Teelotte0
0 m0
On
xovider" means aerminai or cer
ose to contract t
on or entitv,, includin
goods or services , relating to video lottery daming,
hoof
(CC) ""I'icket" means a lottery ticket issued bv the state lottery for sale to the public.
(DD) "Unclaimed credit vouchers" meaizs creclit vouchers for cash or its monctaryeauivalent not redeemed within the redemption period set forth in section37702-7-02 of the Adrninistrative Code.
CEE) °Value" means the United States monetarv equivalent.
FF " alue credit" mearis a free play(s n_a video0video lottery gam•mg participazt by a videodirector.
otte
0 oration, limited
ited to videori system manufacturer, distributor or provider, ,deo lotterv agents or the commission for the provisio
e
but no
ai that is provided to a,ottery agent as authorized by the
(GG) "Video lottezv aEent" means a^erson who is a permit holder and wtko is anthorizedbv the director to engage in video fottery gaming or video lotterv gaming relatedactivitics approved by the director, and does not include a sales apent licen5ed
3770:2-2-01 4
under section 3770.05 of the Revised Code and Chapter 3770-2 of theAdministrative Code.
HH,7 "Video lottery central system" means the computer svstem that defi.nes controlsznonitor-, reports and commruiicates with the video lottery tezminals and associatedeauinment and activities connected and/or associated therewith.
(li) "Video Yottery central svstemprovider" means the person that provides the videolottervi central c tps em and its component parts and equipment and activitiesconnected and/or associated therewith.
'Video lotte authorized bkthe director, commissiona " mea:commissioners, as agplicahle that provides immediate prize determinations andthat is played on a video lottery terminal.
KKJ "Video lotterv ticYcet" means an eJectronie or vittual instrament to enable aparticipant to plav a video lottery game.
L) "Video lotterygaminv" means the operation of video lotteU eames through the useof video lottea tercninals central monitoring systems, control systems,communications proccsses and associated equipment and activities connectedandtor associated therewith.
(1bllvYl "Video lotterV gamingVrize payment" rneans the Davmcnt by a video lottervaaent for prizes won by a video lottery samingparticipant while eingaged in plavon a video lottery termiual.
(NNl "Video lottery glmingMize winnings" means the value of credits awarded that canbe redeemed for cash or other desi n atiedprizes as a result of a video lottervterminal winninu,}gaine oatconie.
(OO) "Video lottery license" axaeans flze authorization provided by the director to an- ----------- -applicant to engage in video lottery gaminn or video lottery gaming relatedactivities apDrovecl by the director. A video lottery license shall cxpire in ten yearsfi•om the date of operation of video lottery terminals tnider a video lottet-v license,or on May 1. 2020 whichever occurs first, but is subject to suspension,modiflcation, revocation or fmes as authorizedhy the Lottery Act, rule, te ula 'on.policy order or directive of the commission or director. A video lotterv license mavbe renewed in accordance with the =licable renewal procedures for a term asestablisl3ed b,y Lottcry Act or rule.
'P) "Video lottery terminal or VLT" is connected to a centralized computer svstem andencrates the outcome of each play using a randos-n niunber generator and
communicates video lottex^gaming inforriiation to aIna-ticipant via an electronicdis la .
Video lotterv terminal inconze" ztxe^ns exeditfs) nlaved, less value credits, less.
3770:2-2-0I 5
video lottery eaming 12rize vcin.uines
3770:2-3-01 Video lottery licenses; applicafion.
A) AnY ^erson who is a ermit holder ma a 1 fo a vide lotte license.
^13Z Application for a video lotterv license shall be made on a form approved bv thedirector for this ^urnose At a minimum and without lirnitation, an application for avideo lotterv license shall include the following reduirements which an apnlicantmust 12rovide at the time of submission of the application or agree to comply withshould a video lottery license be issued. The qpplication must be swom to oraffirmed before a notarypublic l theuhcant or a person authorized to sign theapplication on behalf of the applicant if the apubcant is not an individual.
(1). An applicant must subiniaddresses, ernplok_er i
oesauvlicable and dater^nlovaes Disclosure of an criminaindividuals or entities whose nanies must he -^vided must also be includedin the application;
(2) An lpplicant must submit to the commission a non-refan,dable application fee inan amount to be detennined by the director, but not less than one-hundredthousand dollars
3) An applicant must subtnit^roof in the fonn retluired by the director, that theapplicant is a Vermit holder
^} If more than one permit holder conducted horseracing meatinus at a traek duringthe previous ^eax the permit holders slaall desi agn te by a written agreementto be submitted prior to the issuance of a video lottery license one permitholder to be the actual video lottery agent in the event a video lottery licenseis issued:
5) Iu
e anplicant's
cant will employ or eneapa the services of amanag_ment companv to assist with or• haudle the operation of video lotterygamix^g at the applicant's facility, the annlicant shall provide the legal narnefoim of entity, the names, addresses employer identification numbers orsocial securit^ number^if annlic•rble) and dates of birth (as applieable) offlte
aeement com _anv's urineinals and key eamine emnlovees if knowu ate time of apnlication, alonp_ with a conv of the management agreement
in a foran acceptable tobusiness plan for video lotterv aaming_at its facility which ma}> require theinelusion of docunlents relating to an annlicant's borrowing or financing ofvideo ]ptter,ygarnine operations including but not limifed to the pa^mcnt oflicensing fees. An applicant's business ^an shall eontemplate the openin
era video otte atninan.plicant's business plan may be deemed a trade secret under 1333.61(D) of
dentificaf b
g I me.fo of ent c nation numbers or 9ocial security nu^bers (ias ag li^ cable) of its principals and kev gaminv l charges or convictions of a
f
ll
3770:2-3-01
directo
the Revised Code and therefore mav not be Subjectto diselosure undersection 149.43 of the Revised Code:
7 An applicant must agree to provide, in a form and by a date acceptable to thedirector its proposed security and surveillance plan for approval by the
r or his desienee. An atqnlicant Qr video lotterv a^mnt's securitv andsurveillance plan may not be deemed an infrastructure record and/or securityrecord as set forth in section 149.433 of the Revised Code and therefore mavnot subiect to disclosure under section 149.43 of the Revised Code:
(8) An annlicant must provide a listing of agy and all gaming licenses, reeistrationsor certifications obtainedby the annlicant or a management comp.any that willascist with or handle the operation of video lottery gaming at the annlicant'slicensed facilitv from another jurisdiction including the type of license,registration, or certification, date of issuance, date of suspension termination,exj^jration or cancellation if suspended tenninated, expired or cancelled, andthe reason for suspension, termination expiration or cancellation, and thedate of assessment imposition or pavment of anypenatties or fines•
9)Anaon can stu
and r.eviews as reke
director to be necessary bacl^ground chccks for instifutionai investors. who
manageinent aurecment witb the aMlicant and must asree to cornply withany 12rocess or procedure necessaryto conduct and complete the requiredcriminal and £i.nancial background checks and review. If determined. bv the
ng e 0
cc to. submit to criminal andredby the directoe >f ea tcanDn
heand i
Dn
ancial backuo-iind checkslicant orrinq
rinels and k
q a2ain
2
or
emRloyees of aL jy management company who will he operating under a
are 12rincinals may be required:
(10) Within the time specified by the director an applicant must, in a formaecepta.ble to the director, obtain a dedicatcd non-revocable letter of credit, asurety bond, fimancial gi.ulrantee or other alternative form of credit annrovedby the director in a minirnum amount of two million dollars or other amomtas deter,cnined bv the director to ensure payznent of funds due the
tion an aunlieant must submit evidence of the abilitv to
instuance in amounts required by the director, and any other insurancedeemed necessarv by the director. All certificates of insurance rnust befurnished upon reoues-t of the director. An applicant must also obtain as
ed bv ahcf in a+'orrl acceptablF to the rli-rector, a constnrct.ion bondveiformance%ayznent hond fidelity bond and otl7er reqnized bonds^n otimts and with effectiye dates as designated bv the director
Mj An a^licant must submit a simed indenmification form in a fonu approvedbv the direetor•
37M2-3-01 3
(12) An applicant must agree to provide. at times requested by the lottery, a writtsnschedule that lists the installed cost of all fixtures and equioment sunulied orto be suWplied in connection with the conduct of video lotterv saniing;
LZAn ap^licant must aEree to set a goal to award not less than fiftv percent of thecontracts associated with tbe necessarv capital improvenrents and/or goodsand services related to ongoi.nPQperations for the facilities at which videolottery teiminals are located to Ohio-based businesses , and set a goal to seethat not less than fiftv vercent of the subcontracts of those contracts areawarded to Ohio-based businesses, unless the director determines, based ondoctnnentation provided by a video lottery agent that the stated goals cannotbe met•
(141 An annlicant must a rg ce to set a goal to see that not less than five percent ofsubcontracts described in division (8)(13) of this section are awarded toOhio-based businesses that are EDGE enterprises in accordance withexecutive order 2008-13S;
(15) An annlicant must agree to set a goal to see that not less than ten percent ofsubcontracts described in division (B)(13) of this section are awarded toOhio-based businesses that are MBE enterprises in accordance with executiveorder 2008-135;
(16) An applicant inust agree to set a goal that not less than filty percent of thepersonnel emgloyed by the applicant to perform duties related to video lotterygaming will be residents of the cotmty where the facility at which videolottery terminals is located or of an Ohio countv adjacent to that countv:
(17ZAn applicant must aeree to nrovide the lottery wit.h an annual report relative tothe goals set forth in divisions (B)(13 to U (IE^I of,this section:
(18) An applicant must agree that video lottery tennanals shall be located at thefacility licensed bv the racing commission to conduct live horse racing forgrofit at a racing rneeting and includes nremi5es contigaous or adjacent tothose facilities:
(19) An applicant must agree that within five years £ollowing commencement ofvideo lottery gaming oper•ationg that it will matce not Iess than ei htdollars.in innprovements to the bruldines and grgunds at the licensed faciIitv;including temporary facilities, with not less than twen million dollars inimnrovements to the buildings and $rounds being made in the first year ofvideo lottery Xamina operations. which improvements sha11 be subject toreview by the director:
(20) An applicant must a^ree to provide for a clear separation between the videolottery eamine area and the raoine wa^erine area No individual wzder the a^e
3770:2-3-01 4
qf eiehteen shall be allowed in the video lottcrv garning area:
(21) An apphcant must aLyree to make, maintain and repair necessnv capitalimprovements for facilities at which video lottery terniiirals are located^
(22) An applicant must aaree to be resnonsible for costs associated with supplvingsufficient amount of paper or other media for credit vouchers tg ensurecontinued oneration of video lottery terniinals and to be responsible for theloading and replenishment of pMer dispetvsed &om video lottery terminalslocated at video lottery agent's licensed faeilitv:
^231 An annlicant must agree that any machuie installed to facilitate redemption ofcredit vouchers shall be the video lotteragent's responsibilitX•
(241 An agplicant must agree to have personnet available to facilitate themaintenance, reuair and service bkthe manufacturers aud/or distributors oPthe video lottery terminal^ issued to the video lotteiy agent for its use toensure continued operation of video lottery terminals:
(25) An applicant must agree to be responsible for the costs associated withprovidine technology nroviders and other personnel desiWatedbv thedirector, sufficicnt space, as deterniined bv the director, at the facility. wherevideo lottery ternainals are located, to allow technologV providers and otherpersonnel desianated by the d'u-ector to store eQLipment and conduct service,rQairs and maintenance of video lotterv terminats, video lottery centralsystem and peril2herals associated therewith necessary to ensure continuedoneration ofthe_video lottery centralswtem and video lotterv terminals;
(26) An applicant must agr-ee to renort to the director, or his designee and the videolottery tcr-minal manufacturer or distributor, anv malfunctions of the videolotter,y terminals or associated equinment or failures of the manufactprersdistributors or service tec}rniciarrs to promptl service and re^air the vidcolottery terminals;
(27) An Mlicant must agree to hire nnd com^ensate adequate personnel to ensurecompliance with the Lotterv Act, rules regulations policies and directives ofthe commission or director relating to video lottcrv gaming includin but notlimited to security, surveillance, financial, tecluiical and audit staff:
(2^)-Ati app icant must a^'ee to allow the lotterv acce.ss to the a^licant's videolotterX garning_facility and records:
(29) An applieant must apree to transfer by electronic fuud transfer or othermethod as approved by the director, the proceeds from video lotter sa es andunclaimed credit vouchers due the lottery on the days and times set fortll inthe schedule issuecl by the director
3770:2-3-01
30) tiiw
00 licant must anninp video lotte
5
cc to pav and disbiirse video lottcrv gaming pa}nnents toaming +oarticinants and to withhold as required
anolicable taxe& or othe deb 00 auations, as reuirereouired tax and other required reportin te Orms.
and to 0 0 alld
^31 For applicants who are perntit holders on or before Septeniber 15 , 2009, and
amount sixty-five million dollars which shalt be paid pursuant to thefollowing schedule, unless otherwise modified by the director Failure to pavan installment pg,vment as required may result in imposition of a late fee inthe amount of one hundred thousand doll,us per dav that fhe installment
ery license, that aprolicant will gay to the coanmissian a licensing fee m the
anwho apply for a video lotterv liccnse on or before September. 15. 2009,aVnlicant must agree, that upon notice of intent to issue a conditional or video
(a) The first installment of the licensine fee in the amount of tliirteen milliondollars shall be paid12rior to the issuance of a conditional or videolotteiv license In the event that,12rior to Segtember 15 2009 an
eannlicant has submitted an apnlicafion, and in the event that thcommission provides notice of intent to issiie a conditional video lotterv--------------license or video lottery license the frst instailment of the licensing feemust be paid on or beforc September 15 2009, or within a period oftime thereafter as approved by the director. If an applicant hassubrnitted an application priar to September 15 2009 . and if thecommission has notprovided notice of intent to issue a conditiaualvideo lottery license or video lotterv license prior to Septetnber 152009 the first installment of the licensing fee must be paid by theapplicant within fourteen days of the commission's notice of intent toissue a conditional video lottery license or video lottery license, orwithin a neriod of tixne thereafter as ap,proved by the director
(b) fihe second installment of the licensing fee in the amount of thirteen,million doltars sllal] be paid by the applicant on December 15. 2009.unless otherwise directed by the director hut in no event will thesecond installment be due before December 15, 2009:
(c)T'hc thircl installment of the licensing fee in the amount of thirteen tnilliondollars shallbe paid by the Mlicant qn March 15 , 2010, unlessathPiwise directed by the director, but in no event will tLi^ third,insta[]mentbe due before Mareh 15 20i0I
,(d} The fourth installment of the licensing fee in the amount of thirteenmillion dollars shall be paid by the applicant on June 15 2010 unlessotherwise directed by the director. but in no event will the foiuthinstallment be clue before June 15 , 2010; and
3770:2-3-01 6
(e) The fifth installment of the licensing fee in the aniount of thirteen milliondollars shall be paid by the applicant on September 15 , 2010, unlessotherwise directed by the director, but in no event will the fifthnsx tallment be due before Sentember 15 2010_
(32) For appiicants who are not permit holders on or before Segtemher IS 2009and who are licenseri as a nem it holder after May 1 2010 and who apply fo
deo
dollars which shall be paid pursuant to the following schedule unlessotherwise modified by the director . b•ailure to pay an installment payment asrequired may result in imposition of a late fee in the amount of one hcmdredthousand dollar5 ger day that the instalhnent pavinent is latc, unless otlzerwisewaived by th e director.
ill nav to the commission a licensing fee in the aniount sixtv-five million
license after Mav 1, 2010notice of intent to issue a conditional or video lotterv license, that aonlicant
Thf a co diti
een millional or video
lottery licensa The first instalbnent of the sixty-five million dollarlicensing fee sltall be thirteen million dollars and shall be paid by the
xssions notice aaunlicant within foruteen davs of the comm f intent to
st installme e icens 'cc i he amodollars shzll b- gaidprior to the issuance
issue a conditional video lottery license or video lottery licensc, orwithin aDeriod of time thereafter as annroved by the director•
The second installment of the IicensinQ fe
dollars shall be paid by the^nlicant within ninety days of the fourth
(d} The fourth installment of the licensing fee in the amount of thirteenmillion dollars shall be paid b, t^applieant within ninety days of thethird installment unless otherwisc directed h^the director• and
(e) The fiflh installment of the licensina £ee in the amount of thirteen million
amotUl[Of thirteep
million dollars shall be naid by the applieant within ninety days of thefirst installment Lmless otherwise directed by the direcCor;
he third installment of the licensing fee in the amount of thirteen milliondollars shall be paid by the ap^licant witlvin ninetvdays of the seeondinstallment, unless otherwise directed by the director:
installment unless otherwise directed by the director.
(33^For annlicants who are permit holders on or before September 15, 2009, andwho apnly for a video lotterv licenge after September 15 . 2009 a.n aronlicantmust aar®e that upon notice of intent to issuc a conditional or video lotteivlicense , that apphcant will nay to the commission a licensing fee in thcamount eightv million dollars which shnll be paid pursuant to the foTlowin^schedule unless otherwise modified by the directot'- Failure to pay a
3770:2-3-01 7
installment gavment as required may result in imposition of a late fee in theamocmt of one hundred th2us1itd dollars per day that the installment pavmentis late, unless otherwise waived by the director.
(a) The first installment of the licensing fee in the amonnt of sixteen milliondo lars shall be 12aid prior to the issnance of a conditional or videolottery license. The first instalhnent of the eightv million dollarlicensing fee shall be sixteen million dollars and shall be paid bv theannlicant witbin fourteen davs of the commission's notice of intent to
ditional video lottcry license or video lotwithin a period of time tbereafter as approved by the director:
b) The second taliment of the licensiqR fee in the amount of sixtemillion dollars shall be aaid bv the annlicant within ninetv days ofirst installment, unless otherwise directed bv the director;
the
(c) The third installment of the licensin2 fec in the amount of sixteen milliondollars shall be paid by the agplicant within ninety days of the secondinstallment unless otherwise directed by the director:
e fourth installment of the fee in the atnot: f s e nmillion dollars shalI be paid hy the afrplicant within ninety days of thethird installment unless otherwise directed by the director and
(e) Tire fifth inst•illment of the licensing fee in the amount of sixteen milliondollars shall be paid by the applicant within ninety davs of the fourthinstallment unless otherwise directecl by the director.
(34) An applicant must agree that any riehts remedies , causes of actions of ananplicant or video lottery aaent are contained within the AdministrativeProcedure Act and that no separate cause of action shall apply or be availableto an anplicant or video lottery aeent and
An Qplicant must agrce to follow all provisions of the Lottery Act, all rnles_regulations, policies and directives of the commission or director, and allterms and conditions set forth in the video lotterv license Mplication, andmLlSt aaree to cooperate with the submission of any other records ordocuments deemed necessvy by the director and to subrnit to zmy othercheeks or revicwg deemed necessarxby the director.
All information re uirzd by to be submitted as part of an application folottery license pursuant to division 3770:2 niust be supplemented, with theuermission of and approvzl of the director, if updates or chan„ges occru- followingthe submission of an anplication.
3770:2-3-02 Video lotterylicenses application review process.
(A) 1Jpon receiving a prner annlication the director shall determine if thc applicantmeets the reouirements of the Lotterv Act and the commission's rales andregulations petainingto video lottery gaming The director may consider thosefactors set forth in section 3770 , 05 of the Revised Code pertaining to lotterv salesaQents and shall consider the followine:
(1) The financial responsihility and seciu-itv of the apnlicant including the extent towhich an an I>Licant has demonstrated its ability to finance the pronosed videolottery gamiug operations, as
al backeround, if
j3ZThe volnmc of expected sales b t^he applicant;
4) T
e accessibilitv of the apnlican
)e cri
eeamme emamma c
q 1
well as tihe
I
0
ource ol'such financing;
lace of busines
cne ann licant of its
ie
q cz als or keq
or the cr iminalbackeround of any nrinciuals or kfa manaD lo q ement comnanv eris;aved to assist with or handle
the operation of video lotteryzeaming at the video lotteryagent's facility.
(5) Whether an applicant has failed to comply with a commission rule. re nlationpolicy directive or order:
(6) Whether an apjthcant has failed to comply another juiisdiction's lottery oramine Iaws, rr les. zefrulations, nofieies directives ar ordcrs;
of its priQciba or key Famine emolovees, o
to which anoeessIne
nt has cooner•ited with the commission in theDut not limited to cooperation with criminal ancl
financial backgroit.nd checks and reviews;
(9) The adequacy of an applicant's business plan and securitv and surveillancer na (s as the plans reflect on an applicant's ability to conduct video lottery, aming operations in accordance with the Lottety Act, ntles regiilations,policies directives and orders pertaining to video lottey gaming operations;
^10) The adequacy of an ap„plicant's maement agreement with a manafementeompM if gp,plicable as it reflects on the applicant's ability to conductvideo lottery aming operations in accordance with the l.ottery Act. rulesregulations, 12olicies directives and orders ^ert7inin^ to video lotterv uainoperationsand
eration of video lottery eamin¢ in the st•ite and if so affiliated, the natare
apnlicant has designated, or the management compzny as designated isaffiliated with a technology provider or other vendor to be enl;aeed in the
of the affiliation
3770:2-3-02 2
f111 Any otber inforination that the director deems relevant to a determinationding and_arn^licant's abilztv to conduct video lottery eamm^ opexations
in accordance with the les, reQUlaorders pertaining to video lotteryl*aniing oneratiow.
Bl If an applicant has been licensed by another state lottery for the oe am the rector b s not ae a cd con0
ectives a
eration of videoq
:r and rely upon anytted to another state
idcertifications obtained in cormection with an application subm.lottM in connection with operation of video lotterv eaniine.
3770:2-3-03
A) I a erafullrev
Video lottery licenses: isauance of license.
cw of an a lication and consideration of anv other factoproT7 er adrniu.elevant to theefficient and
director dete
o vicleo lottery license whether conditional or otherwise, shall be issued until the
uirements se
oalica has het
deemedn of video lotteiv samine, t
q
video lottery license the director mav issue the applicant a video lottery license onsuch terins and conditions deemed annronriate includine issuance of a conditionallicense if the director deterrnines that an applicant is likely to meet the requirementsfor issuance of a video lottery license.
first installment of the licensing fee is paid in accordance with section 3770:2-3-01of the Administrative Code.
(<) A conditional video lottery license tnay be converted to a video lottery, and if issueda video lottery license shall expire in ten years &oni the date of operation of videolo e
es thaLi
ia sfirst Both a conditional video lotterv license and a video lottery license are subiectto suspension niodification revocation or fines as authorized by the Lot.terv Act.rule, regulation policy order or directive of the commission or director.
(D) A video lottorv license may not be assigned or tiansferred without submission of anannlication in accordance with section 3770:2-3-01 of the Administrative Code andthe nrior ^vr tten consent of the directnr Upon re^uest b^an agplicant the director
aive h in section_3770;2 0
ements fo
as deemed
su
a pDrUQ
ofce a
iate.
(E) Video lotterygarnes sotd and video lottery terminals operated by alicensed videolottery aeent must begpnroved by the director, commission or corrunissioners asauolicable.
facilities operated by video lotterv agents already licensed as a permit holder.deo lottery license shali authorize operation of video lottetv gaming onlv at
(G) tJpon issuance of a video lotterXlicense whether conditioinal or otherwise. a videolottey agent shall be obligated to comply with the applicable provisions of theLottery Act, all rules, regulations. policies and directives of the commission or
aiiy and all obligations required of a video lottery a enp t may subject the videolottery aeent's video lottery license, whether eonditional or otherwise to susnensionor revocation as set forth in section 377, 0:2-3-OS of the Administrative Code. or to
in ,mosition of monetm uenalties as sct forth in section 37702-3-06A conditionallicense does not auarantee the issuanee of a video lotter^license_
director and all terms and conditions of the license agieement as set forth in theaunlication or anv amendments or modifications thereto Failure to comnlv with
a
ideo lottery license or on May I. 2020, whichever occurs
icensesissued toi)c
ie
3770:2-3-04 Video lottery lieenses• denial of license.
(A) If after a full review of an application and eonsideration of anv other factors deemedzelevant to the efficient and proer administrative of video lottery yaini-ag the
irector determiua.es that anapplicant has not met the requirements for issuance of avideo lottery , llicense , the director ma^4 deny the,g2plication or may request that theannliSation be revised for further consideration.
{BI Excgpt as brovided below in section 3770:2-3-04(C) of the Administrative Code, inthe event anv of the followinngare cletermined by the director, an =hcation for avideo totterXlicense shall be denied:
A dete mination that anmana eg mcnt
coMany that an annlicant has designated in its application as thernanagemant companv to assist with or handlc video lotte ea ineoperations at the gnnlicant facility, have been convicted of anv of thefollowine offenses:
a) A felonv or a crnne involving moral turpitude:
(b) An offense involvin,gillegal gamblin :a .d
(c) An offense involvin¢ frutd or misrepresentation.
edeterminatiomnlovees, o
n
which has been detennined by the director to he an unacceptable affiliationwid an applicant has refused to divest itself of the affiliation with thetechnology provider or vendor.
or other vendor errgaged irz the oneration of video lotterX gaming in the state
h
ha0a
ann
licaDn
als or kenccaDn 1 da
or anv of itsamrne c
s nated or a
cinals
a
s or keyiz-a
or ke arovees of a mana2ement
emena co anq at iapplicant has desianated is known to be affiliated with a technology provider
31 A determination licant has rxiade-a misreoresentation regarding a factmaterial to an a.pplic7tion or has failed to disclose information ret*ardine afact material to an application.
of its orincipals oz key eaminev^yees of 1 managetnent co npany that
an applicant has designated in its applieation as the management company to assistwith or handle video lottery gaming operations at the zgplicant facilitv that'havebeen convicted of any of any gf the offenses set forth in section 3770:2-3-04(B)(1)of the Administ-rative Code to obtain an order fiom a court of compctcntiurisdiction to hzve the record of such offense sealed if such an order is notobtained durin the time specified by the director tbe director marefirse theannlication. If the record of an applieant or any of its princinals nr key gaminzemplovecs, or any principals or key oat>vna em^oyees af a managemeat companv
3770_2-3-04 2
that an applicant has desi2nated in its application as the management conipa^ toassist with or handte video lottery amina operations at the applicant facilitv,contains au offense listed in seetion 377072-3-04(B)(1) of the Administrative Codewhich is at least ten years old, the director may disregard the offense and mavlicense the annhcant. If a keY-aatzainhh enmiovee or any nrincinal or key ea
desanplication as the. management companp to assist with or handle video lotter^aayninv onerations at the agplicatit facility are deter•mined to be convicted of anoffense set forth in section 3770:2-3-04(Cl of the Administrative Code, anMplicant may provide the director with12roof in a form acceptable to the directorthat said kev eaminix-emnlovee or nrincival or key gatuizrg enployee o£ a
has desianated in its annlication as themanaRement com^.,n,Lto assist with or handle video lottcry gaming operations athe a)plicant facilitv will not be emploved or engaeed in thelottery gaming operation. If such proof is not submitted as rethe director may refuse the application.
(D) When reqnired to do so by the Administrative Procedure Act, the director shall afforda hearing to an applicant for a video lottery license affected by a decision to denyan application for a video lotte license Such hearings shall be conducted by thedirector or a hearing officer designated by the director and shall complv with therequirements for adj udicatioas hearings set out in the Administrative Procedure Act.
(E) if an annlication is denied. an annlicant mav reannlv, but anv subseni.cent annlioationshall reduuire submission of a new applicrtion a crl 12ayment o licatiofee and shall only be submitted after any waiting period for reapplication, if auy,established by the director, has exnired.
3770:2-3-05 Video lottery licenses: suspension or revocation.
A) A video lotterv license tn,•zy be suspended or revoked in the event as set forth bclow:
(1) Non-compliance with Lottery Act, n.iles regulation5 policies, or directives. Thedirector may suspend or revoke a video lottery license of a video lottery agentwho does not co=ty with the T.otteryAct all rules, terms and conditions,Qolicies orders and directives adopted, promulgated or issued bv thecommission or the director includins but not limited to the following:
(a) Failure to pav the required licensing fee:
(b) Failure to maintain the re uired surety bond, dedicated non-revocableletter of credit or other form of credit authorized or required by thedirector:
(c) Failure to maintain the required insurance and bonds required by thedirector;
(d) Making a fraudldent representation in connection with the akrplication fora video lottery license or the video lottery agent's conduct
transactions and nav to the commission the amotmts due thecommission from vidco lottery sales or unclaimed credit vouchers orother aniounts due the commission in accordance with the proceduresestablished by the director:
eLmlatiort, nolicv, order or directive
(g) Allowing an individual under the age of ei teen tp ^p video lattervgames or make a claim for navment of video lottery gaming prizenavment:
h) Failure to maintain adequate and sas e nt's licensed facility:
Offerin2 a video lotterv 2ame that has not be
the video lotte
ed by the dirceto
tt^ Failure to co=ly with the terms and conditions of "The Amerieans withDisabilities Act of i 490 " 104 Stat. 327,42 U.S.C A. 12101, et seu.:
(k) Failure to nrovifie the recuired notice and obtain the required approvalprior to relocation or transportation of a video lotterv terminal:
(1) Failure to make the capital improvements as required by conimission ruleregulation, poliey, order or directive;
r.i2n, v.`ro3.:i, 39. 1 :5017. t^,+9^YSC. zZMSJ', J:[eSNA)? ndiaervr.Ea=2::zr>)c
3770:2-3-05 2
(m) Aetuig in a manner that impacts or has the likelihood of impacting theefficient operation of or integrity of video lottery g iming•
Ln) Failure to adhere to all the terms and conditions as set forth in thelicensing aareement including any amendments or modificationsthereto.
(2) The director may suspend or revoke a video lotterv license if a video lotteryarent or any of its principals or kcv ¢amingemnlovees or anyprincipals orkey gaming emplovees of a management company that an applicant hasdesi na^ ted in its application as the management company to assist with orhandle video lottery gaming operations at the applicant facility, are convictedof any of the offenses set fos-th in section 3770-2-3-04(B)(1) of theA strative Code-
(3) 'he director ma suspend or revoke a video lotterv license if, at any time afterissuance of a video lotteiy license the dii-ector detcrmines that a video lotteryas<ent no longer meets the requirements and standards for issuance of a videolotterv license as set forth in the Lotterv Act, commission rules , re€nilationspolicies, orders and directives.
(B) Anv suspension or revocation under this section nigy be in addition to or in lieu of theimnosition of a fine under section 3770-2-3-06 of the.Administrative Code
^C) Whett required to do so bv the Administrative Procedure Act, the director shall afforda hearin,Q to a video lotterv agent affected by an order to suspend or revoke a videolottery license. Such hearings shall be conducted by the director or a hearing officerdesignated by the director and shall comply with the reqnirements for adjudicationhearings set out in the Administrative Procedure Act. T'he requirement of the
ive Procedure Act that adjndication hearings be afforded tlrior to a finaldecisionbv the director to suspend or revoke a video lottery license niay be waivedrmcier eircumstanees such as non-pavment of funds owed by a video lotterv agent,for reasons related to the nublic safetX, convenience or trust whicli requireinsznediate action. The director, however, must continue to comply with the
uirements of the Adrniaaistrative Procedure Act in affordagent a subsequent opportunity for an adjudication hearing.
(D) If a video lottery agent's video lottcr y license is revoked, a video lottery a eng t mayreapply, but anv subseyuent apoication shall require submission of a newUplicatioti and payment of a separate application fee, and shall only be submittedafler any waiting-period for rea^plication if any^established b^e director haseXUll_ed
3770:2-3-06 Video lottery licenses; flnes.
(A) determined by the director, the commission mav impose monetarv fines upon avideo lotterv avent who does uot comnlv with the Lotterv Act, all rules regulationserms and conditions, policies, orders and directives adopted promult>ated or issued
by the commission or the director which may include but not be limited to adetermination that a video lotterr agent has failed to comply with or violated anyprovisions set foi in section 3770-2-3-05(A)(1) to (3) of the Administxative Code .
B) Any fines rmder this section may be in addition to or in lien of a suspension orrevocation under section 3770:2-3-05 of the Administcative Code.
(C) tiVhen required to do so by the Administrative Procedure Act, the director shall afforda licaring to a video lottery agent affected by an order imposing a fine Suchhearings shall be conducted by the director or a hearing officer designated by thedirector and shall co=ly witli the requirements for adjudication hearings set out inthe Adrninistrative Procedure Act. The requirement of the AdministrativeProcedure Act that adjudication hearings be afforded prior to a final decision by thedirector to suspend or revoke a video lottery license may be waived tmdcrciretiunstances such as non-ilavruent of funds owed bv a video lotter^aaertfor
ons related to thc public safet,y, convenience or tnzst which require immediateaction. The director, however must continue to comply witlt the requirements ofthe Aministrative Procedure Act in affording the yideo lottery agent a subsequentonpor[unity for an adjudication hearing.
3770:2-3-07 Video lottery licenses: renewal.
(A) A video lottery agent may file an application to renew its video lottery ticense whichQplicatiori to renew shall be subject to review and approval by the director inaccordance with the Lottery Aet, rules, regulations polieies, orders and directivesof the commission or director.
(B) An application to renew a video lottery license must be filed on a fozn. approved bythe director for this purnose.
(C) An application to renew a video lotterv license must be filed six months prior to theexniration of the video lottery license, unless submission of a late renewalapplication is approved by the director.
(I)) At the time of submission of an appiication to renew a video lottery license, a videolottery agent shalt submit a renewal application fee in an amount determined by thedirector.
^P^ U^on submission of art application to renew a video lotterv license, a video lotteryagent seelcine renewal may be reuuired to submit or resubmit any records ordocuments including bnt not limited to those recfuired under section 3770:2-3-01 ofthe Administrative Code, and may be reguired to submit to any crirninal orfinancial checks , or other reviews as deemed aapro np ^ ate by the director.
(F) If a video lottery license is approved for renewal by the director, the first renewalterm of the video lotter^icense shall be for five vears and the second renewal termshall be for be for five year. The term of any renewals beyond the second renewaltei-m shall be established by the eommission An,y renewal shall be subject toroavment of a renewal licensing fee in an amount and in accordance with a pavmentschedule as established by the commission . Any renewal license shall be u'ect tosuspension modification , revocation or fine as reouired bv the Lottery Act, rnleresaulation, policy order or diz-ective of the commission or director.
_:r; ^
3770:2-3-08 Video lottery licenses: compensation. unclairned creditvouchers , value credits and reimbursement of expenses.
(A) Conunission. U12on issuance of a video lottery license and operation of video lottervternninals, a. video lottery agent shall receive a commission in the amount of fittvnercent of the video lotter ^^terminal income. The director shall establish proceduresfor the phymcnt of commissions due to video lotterv agents.
(b) Unclaimed credit vouchers Funds available as unclaimed credit vouchers asdetermined by the director, shall be owed to the commission in accordance withnrocedures established by the director.
^C) Value credits. As authorized by the director. a video lotterX^gent, may offer valuecredits to its video lott^ gaming customers. While a video lottery a^ent is notnrohibited from oFfering credit in excess of value credits as authorized by thedirector, if a video lottery acent offers credits in excess of value credits autlaorizedby the director, the video lottery agent shall be fmancially responsible for paymentto the commission for the value of the credits.
(D) Reimbursement of expenses. The director may establish nrocedures forreitubursement of expcnses 12roperlv incurred by a video lotteLy agent as authorizedby the director.
3770:2-3-09 Video lottery licenses; records and andits and inspection ofvideo lottery agent,premises.
(A) 1'he lottery and the auditor of the state may periodicallv examine 2ll records files andother documents, includine but not limited to elech-onic, naper and computcrrecords, files and other documents, of the video lottery agent as such records, filesand other documents pertain to the video lottenv agent's activities for purposes ofconducting authorized audits Video lotterv aaents shall maintain such records filesand other doczunents complete and up to date.
(Bl A video lottery agent shan allow inZ-ections of the licensed premises at W time asauthorized by the director. The inspection may be niade without prior notice to thevideo lotterV agent.
3770:2-4-01 Key gaming employee licenses.
fAl Anv key gaming employee is required to bold a conditional key gaming employcelicense or keygamina emplovee license prior to being involved in anv video lotterygaming licensed activity.
(B) Any individual who holds a conditional key gaming emplovee license or a keygaming employee license may perform lhe duties anci responsibilities of auyposition that reauires a key gaminu employee license provided that notice isprovided to the commission that the person is or may be performing new ordifferent duties than those duties set forth in the initial application for a keyVamingezaploee license.
(C) A kgv ganiing emplovee shall have all appropriate ?.nd necessarX identification at alltimes while performing duties and responsibilities of any position that requires akey gamigg employee license_
3770:2-4-02 Keygaming employee licenses: gpplication.
a individual whois eighteen vears of aec may aA) Anlicense.
($) Application for a key aming employee license shail be made on a forni anproved bythe director for this ^uroose At a minimum and withont lnnitation an apphca.tionor a kev s4auainp- employee license shall include the followi
an applicant must provide at the time of submission of the application or agree tocomply with should a key gairiing emolovee license be issued. The application muetbe sworn to or affirmed before a notzu-y pubhe.
ubmit the ap_plicant's legal natne, address social seenumber, date of birth Disclosure of any criminal charges or convictions inu.stalso be included in application:
(2) If the applieant has applied for a position with or is employed by an applieantfor a video lotterv license or a video lotterv agent the apphcant shall providethe name of the applicant for a video lotteiy licen.se or video lotte a>ent
3) Provide a listing of all prior oz current affiliations or employment in the gamingindustiy, wlaether operated by agovernment or private entity, and the dates ofsaid affiliation or emplo nen •
(4) Provide a listin^ of all prior or cnrrent affili ^tions or emplovmetit with atechnolouv provider, and the dates of said affiliation or employmentt
5) Submis.siora of leers_of references, as renuestcd or reouired by the directo
(6) At the tirne of vuhmission of an a^plication au appliclnt mu5t submit to thecommission a non-refundable application fee in an amount to be deterrninedby the director, but not less than filtKdollars:
(7) An al2i2licant must agree to subtnit to criminal aud financial background checksand reviews as recpiired by the director and complv with any process orproeedure neceSsary to conduct and eomplete the required criminal andfinancial background checks and review•
8 a applicant must apree to comply with all applicable provisions of the LottezvAct, all lotteLy rules, regulations, policies and directives of thc commission ordirector relatinQ to video lotterygaming and must agree to cooperate with thesnbmission of •rnv other rceords or documents deemed nccessary by thedirector and to submit to any other cbeeks or reviews decmed necessarv bvthe director.
C) All information reC. oveeq
a ed b to be submitted as part o api icationfor a kesemusuant to division 3770:2 must be sunnl
amrented, with h
permisaion of and approval of the director, if updates or changes occur following
3770:2-4-02
thc submission of an application
3770:2-4-03
U on receivinq
the icaqand reeulations mrtainina to video otterv gamina and key aamiw eniployees. Thdirector shall consider the following:
(1) The criminaLbacksround. if any, of the Wplicant;
(2) The financial hackUound of the applicant, as apnronriate-
(3) Letters ofreferences.i£ applicable:
4) O
B) If a
r inantan
policies and directives of the commission or director pertaining to videolottery gaming operations.
toa nrop application, the dirccerneets the re nirements of the Lo
9
ation that the director deem0icant's suitabi a fo
0
0:e
vant to a determination reeardina ke
sion's rulese i
e licenseaccordance with applicabt12rovisions of the Lottety Act, rules, regufations.
qâ licant has been licensedother sunilar desirmn
lotterv.
q
Act and the co
a
tion in connection vLith the
i
asa kevgai
muw
m
eration of video lottedirector m-ays, but is not reauired to consider
e q oveeC)
rerv nnon ancertifications obtained in connection with an aWlieation submitted to another state
amin>= emulovee liceases, annlication review nrocess.
suan
another state lottex
r, or his (lesiRnee, shall dc
3770:2-4-04 Key gaming cmployee llcenses• issnance o
f after a fnll review of an aMlication and consideration of any other factors deemedrelevant to the issuance of a key gaming em Ip^vee license the director or hisdesignee determines that an agplicant has met the requirements for issuance of akey trng emplovee license the director may issue the applicant a key gaminemnlovice iicense on such tercns and. conditions deemed appropriate. includinissnance of a conditional license.
(B) A key gaming emplovee license rnay not be assigned or tratisferred except that as setforth in section 3770:2-4-01 of the Adtninistrative Code provided the reqnirednotice is provided, an individual who holds a key gaming emplovee license mayperform the duties and responsibilities of any position that requires a key amingemnloyec &eense.
C) A conditional kev eamine emnlovecmplovee license and if issued, a key gaming employee license shall be effectivefor a term of threeyears except th•rt all ka gaming emplovee licenses shall expireon Deceniber 31 2072 and every three vears thereaRer. Both a conditional kgy
ae tningemLilovee license and a ke eaz-e sueetosusUension modification revocation or fine as required by the I ntterv Act raleregrdation policv order or directive of the commission or director.
(D)1Juon issuance of a kev gaming employee license whether conditional or otbertivise,a key eamiug eniplovee shall be obligated to complv with all applicable provisionsof the T otterv Act nrles reguhtionspolicies and directives of the commission ordirector and all the terms and conditions of the license al=reement as set fortli in the=licatiou or any amendments or modl^cations thareto Failure to eomnly with
and all obligations required of a keLgaming employee may subject the kegaming emplovee's key aming employee license, whether conditional orotherwise to suspension or revocation as set forth in section 3770:2-4-06 of the
dminist[ative Code, or to nmosition of monet ,yr penalties as set forth in section3770:2-4-07. A conditional key gaming eniployee license does not tuarantee t^ieissnance of a ke gaming eut^loyce license.
3770:2-4-05 Keyyaming employee licenses: denial of license_
fAl If after a fnll revi w of an application and consideration of anv other factors deemederelevant to the issuance of a kev gaming em^lovee license the director determinesthat an aalicant has not met the requirements for issuance of a kev amineeinplovee license, the director may deny the auplicatioa
(B) Excent as provided below in section 3770:2-4-05(C) of the Administrative Code. inthe event aqy of the following are determined by the director, an apnlication for akey gaming em^loyee license Shall be denied:
(1) A determination that an ^licant has been convicted of any of the followingoffenses:
(a) A felony, or a crime involving moral turpitude;
(bl An offense involving illeeal a mbling: and
(c) An offense involving fraud or misrepresentation.
^technolo^provider.
C) The director m e an ?ljcant that has been convicted of anof anv of theoffense setfo in ction 37702_4-(^5(Bi(l) of the Administrative Code to obtainan order fro a co of co e e urisd c 0 0 ve he record o s ensesealed. If such an order is not obtained during the time s
(2) A determination that an applicant is affliated with a technology provider or.other vendor engaged in the operation of video lottery gamine in the statewhich has been determined by the director to be an unacceptable affiliation
affiliation with theficant hasrefi^sed to divest itseIf of the afand an a
ec fied b e dlrector
director may refuse the a^plication I£the record of an applicant contains an offenselisted in section 3770-2 3 04(13)(1) of the Adminiatrative Code which is at least tenyears old the director rrrav disregard the offense and may license the applicant.
(17) When reauired to do so by the Administrative Procedure Act the director shall afforda hearine to an 0plic-ant for a key gaming employee license affected by a decisionto deny an =lication for a kgy aarning emplovee license Such hearings shall beconducted by the director or a hearine officer deeit e directorcomply with the recuirements for adiudication hearinas set out in theAdministrative Procedure Act Nothing contained herein shall require the directorto afford {he emplover or potential P=loyer of an anplicant for a key gamineemnlovee license a hearing or an oUortunity to be heard on anv decision relatinesnecifieallv to an Wplication for a key gaming emplovee license.
(E) If an application is denied an apVlicant mav reagl2lv hut any subsequent W.plicationshall require submission of a new application and navment of a separate Wplicationfee and shall only be submitted after anv waiting12eriod for reaanlication, if anestablished by the director, has expired.
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3770:2-4-06 Key gam
o
(1) Non-eompliance with I otterv Act nxles regulations policies or directives. Thedirector may suspend or revoke a kev gaming emplovee license of a Icegaming emplovice licensee who does not cornpjv with the Lottery Act, allrules te-ms and conditions, regulations, policies, orders and orders adopted
inal
Failure to pa.La
emolo ee lrcenses;. suspe
key ¢aming Mlovee license mav be snspended or revoked as set forth below:
imited to tlie followine:
(b) Failure to adhere to all the terms and conditions as set forth in the keygaming employee license application including any amendments ormodifications tbereto.
(2) The director mav susncnd or revoke a video lottery licensce if a key aainingemplo}^ees is convicted of any of the offenses set forth in section3774:2-405(B)(1) of tb.e Administrative Code.
{3) The director may suspend or revoke a key saming employee licensee if, at anytime after issuance of a video totterv license the director determines that akey ganung emplovee_no longer meets the recluirements and standards for
AcnR emr2lovee license as set forth in the Lotterycomunission mle5 reeulations polioies and directives.
BLAnv suspension or revocation undet this section may be in addition to or in licu of theimposition of a fine under section 3770:2-3-07 of the Administrative Code.
mulgated or issued by the commission or the director including but not
sion or revocation.
rninz narticinant moner asvideo 1omTy,,;re by commission rule regglation_ nolicvor order• and
(C) tiyhen rccuired to do so by the Administrative Procedure Act, the director shall afford
e
o
a bearinRto a key oamine employee licensee affected by an orcler to suspend oroke
hearia video
er of
s shall be conducted bv the diofficer desipnated bv the director and shall conr
the Adr^q.uirement of tfor adjndicatio
or notential etnhearine. Notliinu contained herein shall reauire the director to afford the emplo^
convenience or trust which regnire immediate action The director, however, mustcontinue 'n eotrn^ly writh the reQuirPments of the Administrative Proc.ednre Act in
judicationaffording the kevgaming emplovee a subseaaent o^porhmity for an ad
im nafford pri0 r t a by ta snsend or revoke a key g^gthe directordecisionfed 0emplover license may be waived for reasons related to the ^ublic safetv,
an o oon
0Thehearings set out in the Administrative Procedure Act.
inistrative Procedure Act that adiudication hearings bem
o o
employe e license.
n
ense. Such
a
hearin
can a e in
o be heard on anvslecision relatinem
^
ith the
ee 11c cens
ctor or aq
a
ts
anecilically to a ev_ rami
(D) If a kc,ygatning emplovice's license is revoked, a key^ing eniplo ey e may reabnly
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3770-2-4-06 2
but^wysubsequent application shall require submission of a new application whichshall require a new review and 12avment of a separate application fee and may onlybe submitted after any waiting 12eriod for rea.pplication, if anv, established by tbedirector. has expired.
3770:2-4-07 Keygaming emplovee licenses; fines.
a(A) As determined by the director, the com_mission mav impose monetary fines uponkev eamidg emplovee who does not comply with the Lotterv Act, all rulesegrlations terms and conditions nolicies orders and directives adonted,nromuleated or issued by the commission or the director which may include but notbe limited to a determination that a key^aming emplovee has failed to wmpl^or violated any provisions set forth in section 3770,2-4-06(A)(1 to (3 oLf theAdministrative Code.
Anv fines underevocation under section 377072-4-06 of the Administrative Code.
C W 0ena he,
q uired to do so beto am
Ade 1
s~trative PrQccdti.r_e Act, the director shaee lic a ecteci bv an ordcrto rm ose afis
de
Such hearings shall be conducted by the director or a hearing officer designated bvthe director and shall complv with the recluirenrents for adjudication hearinR-s setout in the Administrative Procedure Act The re^uirement of the AdministrativeProeedure Act that acijndication hearings be afforded prior to a final decision bdirector to impose a fine may be waived for reasons rel t e^d to the public safetv.convenience or trust wbich reauire immediate aetion. The director, however, must
the Administrative Procedure Actaffording the ka gaming emplovee a subsequent onnortunity for an adjudicationhearing. Nothing contained herein shall require the director to afford the emnloveror notential emploYer of an apiolicant for a keKaaming employee license a hearior an oPportunity to be heard onemployee license.
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3770:2-4-08 Keygaming emplovee licenses; renewal.
Al A kev Raminaem
a
00lovee license whi
oLl oval b
ema0 aa]
file an application to renew his/her kev gaminglication to rene l be subiect to review and
e director in accordance with c Lo erv Act, niles, reautationspolicies, orders and directives of the cotnruission or director.
I^31 An aprrlication to renew a kev gaming emplovee licczise must be fiJed on a formapnroved by the director for this mrpose.
(C) An application to renew a key gaming emplovee license must be filed ninety daysior to the expiration of the kev eaming emplovee license , unless submission of a
late renewal upHcation is approved by the director.
At the time of submission of an WXlication to renew a kev gaming employee license,submit a renewal anulication fee in an amoun
established by the commission.
renewed e term o c re video 1w icense sh a n oz hreeyears but shall be subject to suspension modification or revocation ac required b^the Lottery Act, ruledirector_
ion, nolicv order_or directive of the commission or
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3770:2-5-01 Technology provider contracts.
(A) The director has the authority to enter into contracts for the oDeration and prornotionof all aspects of video lottery gamingand matter5 associated therewith inaccordance with ap,plicable laws.
(B) Video lotterv agents shall be required to coaperate with technology providers andtechnology nroviders shall be reqnired t.o cooperate with video lotterv agents inorder to ensure continued vi.deo lottery ganring pperations.
(C) Contracts betcveen the lottery and technology nroviders for the aperation of allaspects of video lottery*amine and matCers associated therewith shall include arequirement that principals and emnlovees of the technology providers assi ne ed towork on the lotterv contract are subject to criminal background checks as requiredby the director.
ll
3770:2-6-0]. Video lotterv gaming operations• hours of operation andnum.ber and lyne of video lottery terminals.
(A) Video lottery agents shall make their licensed facilities available for video lottervaming twe=-,oar hours, j2er day, seven davs per week, unless othetwise approved
by the director.
(B} A deteranination regarding the number of video lotterv terminals that shall be locatedat and operational at the licenseci facilitv will involve discussions between the videolottery anent and the director, but the actnal number of video lottery terminals,including the minimum number of video lottery terminals, located at andoneraGonal at the licensed facility shall be subject to final approval of the director.Unless otherwise aMToved by the director, no video lottery agent shall have moreh ousand five hundred video lottery terminals onerational at the licensed
facility.
(C) A determination regarding the type of video lottery terminals that shall be located atand operational at the licensed facility will involve discussions between the videolotterv aeent and the director. but the specific types of vidco l.otterv terminalslocated at and operational at the licensed facrilitv shall be subject to final aorovalof the dircctor.
With the director's approval if a video lottery aaent aQrees to pay costs in excess ofthe costs allocated for video lottery termiuals to be allocated to a video lotterX a entfor its facilitv, a video lottery aeent shall pay the excess eosts associated withadditional or different video lottery terminals than those anuroved by the directorfor allocation to the video lotteraeent.
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3770:2-6-02 Video lotterygaming onerations• maintenance and repair ofvideo lottery terminals.
i11 Trainine. A video lotterv_terminal 0 eration in0the manufacturer or distributor of the video lotterv terminal provides training inmaintenance, repair and services to the service technicians that have beendesipated bv the manufacturer or distributor to perform maintenance repair andservice of video lottery terminals and until such time as the service technicians t.hathave been designated bv the manufactn.rer or distributor to perform maintenanceenair and service of video lotterKterminals have campleted the reUuired trainin
The video lottery agent sball facilitatc the maintenance repair and service of thevideo lottery terminals by providing access to the video lotterv terminals andfacility as required to ensure continued operation.
(B) Level of maintenance and service. Video lottery terminals and all video lotterverminal peripheral equipment shalI be serviced, cleaned and maintained by thexnanufacturer or distribu.tor of video lottery terminals. The video lottery agent shallfacilitate the service cleaning and maintenance of the video lottary terminals byproviding access to the video lottery terminal^ znd facility as required to ensurecontinued operation.
fll A maintenance log shall be kept in each video lottery terminal which shall beused to log each individual, including lo ery personnel. who gain entry intoany internal space of a video lottery tenninal The log shall include the nameof the individual, date and time of entrX, areas of the video lotterv terminalaccessed. The logs shall be maintained for a minirnnm of five years and shallbe made available to the director upon request.
If') Repairs In addition to anyrenorts that may be required to be provided bymanufactarers or distributors of video lotterv terminals as required by the director,video lottery agents sb.all provide reports regarding maintenance service andrepairs to video lottery terminals.
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3770:2-6-03 Video lotter};aminuoperartions• security and snrveillance.
(A) Security and surveillance plan. Each video lotteryagent shall submit to the lottery for=rovaI by the director a description of itss proposed security and surveillanceplan(s). "I he securitv and surveillance plam m, ty be su mitted as one combined planor as a separate securittiplan and a separate siuveillance lrlan.
(1) The security and surveillance plan shall be submitted at such date prior tocommencement of video lotter r gaming oncrations as required by thedirector.
(?) The security and surveillance plan(s) shall address all a.^,pecta of securi.ty andsurveillance, whether nhysica7 and otberwise as required by the director.which may include but not be limited to facility security, data securite-financial securitv and disaster recovery. At a minimum the securit^ andsurveillance plan(s) shall include but not be limited to the following:
(a) The video lottery terminals shall be continuous^ monitored through theuse of closed circuit television svstem, or otber s sy^pproved by thedirector, capable of ident 'nE nlayers and video l(tterv terminalscreens nnd of recording activitv for a continuous twentv-four hourperiod. Al I video tQes or other recordin.^medirrm shall be retained fora 12eriod of at least sixtX davs and be available for viewing by anauthorized representative of the conunission The cost of monitoringshall be the responsibilitv of the video lottery agent:
th) The commission's office of secur& pprsonnel shall bave unrestrictedaccess to all areas of video lottery terminal facilities. Each video lottery?,,,ent and each member of a video lottery agent's security andsurveillance department shall timely comply with all reducsts from thecommission and or the commission's office of security nersonnel• and
(c) A designation as to how the video lotter^.7 aEent plans to provide for a clearseparation between the video lottety eaming area and the racingwagenng area.
(3) The secririty and surveillance plan(s) shall include emergency nrocedures anddisaster recoverXprocedures.
(4) The secw-itv and surveillance plan(s) mav be deemed an infrastructure recordandlor sccurity record as set forth in section 149.433 of the Revised Code andtherefore may not be subject to disclosure under section 149.43 of theRevised Code.
(5) Any updates or changes to an approved securiiy and surveillance plan(s) rec^uirepr-ior ap.proval of the director unless otherwise waived by the director.
(B) 3ecurity and surveillance personnel All security and surveillance personnel must
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3770:2-6-03 2
M h' for and be ganted a key gaming employee license in accordance withcoznmis5i.on rules . reeulations volicies orders and directives
3770:2-6-04 Video lottery gaming operations: transportarelocation and certificarion
an ortation of video lotte erm Prios o transportation of a video lotteryterminal within or out of the state, the tranaporter shall provide notification to thedirector and nbtain approval of the director. Notification and approval shall beprovided and obtained in a manner determined by the director to be acce ta6 e
B) Deliverv of video_lotterv terminals No nerson shall deliver a video lottery terminal toa person or facility within the state until such tiine as a video lotterv license, eithercondirional or otherwise. has been issued to the person to whom the vfdeo lotteryterminal.s arc being delivered.
C) Relocatioii of v' lotterv tenninals within a video lotterv agent's facility. Prior torelocating a vi(leo lottery terminal within a video latterv aeent's facility, a videolot.tery agent shall Rrovide notification to the director and obtain apnroval by thedirector. Notification and approval shall be provided and obtained in a mannerdetermined by the director to be acceptable.
D)CertifisatiUn of video lottery terminals shall be conducted by a nerson aporoved tthe director to yrovide certifications of video lottery terminals and certificationshall be provided to the director in a form acceptable to the director prior to videolotter-,y terminals being offered for operation by participants.
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3770:2-6-05 Video lottery_ gaming operations; advertising and promotion.
(A) "I'lie director mayprohibit video lotterv agents from enga-gine in certain advertisin^and promotions deemecl by the director to be inapgronriate The director mayinitiate advertising and promotional 12roerams and may nrovide video lottery agentswith such materials as deemed appronriate.
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377{):2-7-01 Video lotterv game requirements; video lottery game plav.
(A) Eacb individual plavins a. video lotterv pme shall be eighteen years of age and eachindividual claiming or redeeming a video lotterygamingprize winning or creditvoucher shall be ei hteen years of age. In the event that an individual under the ageof eiahteen plavs a video lottery game, the video lotter,agent shall treat the play ofthe same as void and the individual under the a eeighteen shall not be entitledto any prize won or a refund of amounts wa ge red.
(B) The following individuals maY not plav video lottery games or claim , redeem orattempt to claim or redeem prizes won from video lotterv games played within thestate:
(1) An officer or employee of the state lottery commission, any ofricer or emploveeof the auditor of the state activclv coordinat.inaand certifving video lotteryganiing, or any blood relative or spouse of such an officer or emplovee of thecommission or auditor of state living as a member of the officer's oremployee's household;
(2) Anyprincipal of a technology provider or vendor engaged in operation of videolotterZ^ gaming in the state and any employee of a technology provider orvendor engaged in operation of video lottery gaming in the state assigned towork in any manner on video lottery&axnins nroducts or services provided tothe video lottery aeent or the commission, or an,v blood relative or spouse ofsuch principal or employee living as a member of the principal's oremplovee's houschold.
(C) Wa ere s may be plaeed using bills. credit vouchers, replavs of credits awarded, valuecredits or any form of card which contains credit for plav on a video lotteryterminaL
(D) The minimum wager for eacb video lottery ticket may be one cent and the maximumwager paid for each video lottery ticket shall be established for each video lottexygame by the director or connnission in accordance with commission zules.
(E) Each video lottery terminal shall displav the amount wagered and the amountawarded for each possible winnin¢ occorrence based on the amount or creditswa eg reci.
(F) Eaeh video lottery terminal shall provide a method for video lottery partieipants toview the payout tables for the video eame offered on the video lottery terminalbeing pla.ved.
(Ci) Video lottery games offered by video lottery agents on the video lottery terminals intheir f'acilities niust be apnroved by the director or commission in accordance withconanaission rules.
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3770:2-7-02 Video lottery game requirements: video lottery gamingprizepayments.
(A) Within one hundred eighty dys of issuance of the credit voucher, a credit voucbermust be redeemed for cash, or the tnonetary equivalent of cash, or other prizes byparticipant at the facility where the crcdit voucher was issued.
(R) In comrection with video lotterygamine prize winnings and/or credit vouchers, videolottery agents and participants winnine video lottery gaming prize winnings andlorredeeming credit vouchers shall comply with all applicable laws regardingwithholding of taxes, debts, and obligations and reporting requirements.Compliance with the applicable laws may include but not be limited to submission,by a participant of name, address and social securi number. to the commissionand/or a vidco lottery agent prior to issuance of a credit voucher or prior toiedemption of a credit voucher. A participant's submission of name, address andsocial secuaiiy number sha include authorization to the commission and/or a videolottery @gent to use said informaon for verification of debts or obligations owedand/or renortina reauirements..
(C) After anv required withboldingz,pa=ent and/ot redemntion of a valid credit vouchershall be made by the video lottery agent at the facility where the credit voucher wasissucd. The lotterv and the state are not resnonsible for or liable for payment of anyvideo lotterv aame prize winnings including pavment on anv credit vouchers.
(1) A credit voucher shall be deemed to be valid provided that:
(a) It is presented on papcr or other media approved by the commission:
fbl It contains all information necessary to process payment of the creditvoucher and all such information is le ib e:
(c) It is not mutilated, altered, tampered with or otherwise ille 'grble:
(d) It has not Mcviously been oaid;
(e) It meets all other rules, regulatiotrs policies. and directives of thecommission or director regarding valid video lottery game plav andcredit vouchers.
j2LIn the event that the video lottery agent makes a deternzination that a creditvoucher is not a yalid credit voucher sub'ec^ t to nayment, the particinantnresenting the credit voucher may submit a written. reauest, on a formapproved by the director, or his designce. for a reconstruction of the credivoucher by the video lottery agent and a written determination of the videolott^-,Lagent'sdecision regard'ng tha.,,invalidity of the credit voucher.T:hecommission shall be provided a copy of all such requests and shall beprovided with a copy of the video lottery aaent's written determination.
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3770:2-7-02
D e state, the eotnnrissio and video lottervaaents and their off'icers, directo
2
nartiLers,princ%pals shareholders, comrnissioners. and employees shall bedischarged of any and all liability upon navment of a video lotterygaming prizeincluding but not limited to redemption and vavment of a credit voucher.
3770:2-8-01 Responsible Ganiina.
(A) Responsible ganain¢ nrogram Each video lottery agent shall establish a resnonsiblegaming proaram bv a date desi agn ted by the director which shall not be sooner than
imencement or cne saie or viaeo iouery games
ubiect to review and ap-prova and revision by thedirector. The director n-iay consult with the ohio department of alcohol and dmgaddition services to determine whether a video lottery auent's responsible gamingnrn¢ram contains adequate measures to meet the minimum requirements set forthherein. At a minimum a video lottery agenfs responsible pamine nrogiam shallinclude:
I
If exclusionlist. Any person may vol
ents and dis avs e
(2) Posting of information at video lotter y agent facilities and on a video lottervanent's website regarding problem aie nbling assistance available to videolo er,y customers including but not limited to hotlines and the availability ofself exclusion lists.
(3) Procedures for handling reauests to be addeid to a self exclusion list.
{4) Video lottery a en^employee training regardinl* the video lottery aPent'sresponsible gaming pro rg,am.
B Sexc
0
usi
ounc
DU st whi ould exclude the
res
q
1
onsible videolotte
ace himself or herseerson from a video lot
ame nla
amin acselon1
in the state for a period of one, two or three years. The self exclusion list shall onlvbe annlicable to video lottery gaming--
(1) Requests to be added to a self exclusion list may be submitted in person or bymail in accordance with proeedures and on forcns established by the director,which fonn shall at a minimum reauire the following:
(a) Name residence addreGS and date of birtb of individual seeking to beT placed on the self exclusion list:
(b) Length of time that the individual is seekirig to be excluded
c) A release of liabilitv wbich sball serve to release the state thecommission, or any of its directors, commissioners employees agentsrenresentatives contractors, snbcontraetors or video lotterv agentsunder this division or sales agents under section 3770.05 of the RevisedCode from any liability associated with anv self exclusion listestablislied hereunder.
,(d)7'he form must be sworn to or affimted before a notarv nubiic
ach video lotte that receivesa valid reauest from an individual to lie
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3770:2-8-01 2
placed on a self exclusion list shall forward the request to the commission.
(3) Each -6deo lottery agent shall talce reasonable steps to ensure that individualswho have voluntarily added their names to a self exclusion list do not attem^tto play video lotterv aames at its facility, An individual who has placedhimself or herself on a se[f exclusion list shall be escorted from a vidcolotterv gaming facilitv.
(4) In the event that an individual wbo has voluntarilYplaced bimself or herself ona self cxclusion list, the video lottery agent may treat the play of the Qame asvoid and the individual who has voluntarilv placed himself or herself on a selfexclusion list shall not be entitled to any prize won or a refund of amountswaucred.
(C) Nothing eontained herein in these rules establishes or shall establish a cause ofaction, claim or other right whatsoever in favor of any person against the state, thecommission, or any of its directors cozrAtnissioners emplovees agents,representatives, contractors, subcontractors, or video latteraeents under thisdivision or sales apents under section 3770.05 of the Revised Code.
3770:2-10-60 Came rule number sixtv_
(A) Title and term. Ohio lotter,y commission game rule niunber sixtv. "Video LotteryGame Rule." and the individual video lottery games offered and operated pursuantto the authoritv of this Vidco Lotterv Game Riile shall he conducted at such timesand for snch periods as the commission maydetermine.
(B) General Design.
(1) Game rule number sixty is a video lotterv game rule under which video lotterygames may be offered and operated on video lottery tenninals as authorizedby the director under division 3770:2 of the Administrative Code.
(2) Fach video lotterv game offered and operated pursuant to the authority of thisVideo Lottery Game Rule shall provide tor immediate prize determinationswhich prize determinations shall be determined by a random numbergenerator, as ap r^oved by director.
(C) Price of video lotterv tickets. The wager amount for video lotterv tickets for eachvideo lottery name shall be in amounts a,p,proved through resolution of fivecommissioners present at a meeting of the commission.
(1)) Prize structure. `1'he value of video lotcerygainins nrize winnings and the number andt,Xpe of different winning prize combinations available for each video lotterv gameshall be established and approved through resolution of five commissioners presentat a meeting of the commission prior the video lotterygame being availablc to avideo lottery agent for sale to participants, but each video lottery game shallprovide for an avera2e minirnum Va,vout of eigh!y-five ercent.
(1) The value of the video lotterv gamingprize winnings shall be displayed on thevideo lotterv term' a .
(2) The winning12rize combination for a valid wager shall be displa yed on thevideo lottery terminal
(El Video lo= amine prize patiment. Upon piesentation of a valid credit vouchcrnavment for prizes won by a video lottery gaming participant while engaged in playof a video lotterZ^ gaxne on a video lottery terminal shall be paid by the video lotteryagent at the same faci[itv from wbich the valid credit voucher was issued.
fF) Freauencv and period of video lotterv ^me ,play. Unless otherwise directed b-t^edirector, there shall be no minimum nurnber of timcs cach individual video lottervgame offered ma be played by a paxticipant provided that vicleo lottery gamesmay only be played during the hours of operation for video lottery gaming asestablished.
(G) Validity of video lotkerv gamc plU.
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3770:2-10-60
I shall be the sole resvideo lotterv eame
0onsibili 0 he iciOnce a video lo0
ant to ve0
2
rthe accuracy of theicustomer has initiated
game play on a video lottery terminal the wager may not be canceled
(2) All video lotterv aameDlav is subject to validation requirements test albd/orprocedures established by the lotterv includinE but not limited to validationby the video lottervi central system.
(3) Notwithstandingthe information displaved on a video lotM terminal, a videolottery gamiiig prize navment shall not be due and payable to a video lottervgaming participant until such time as a valid credit voucher is generated forand presented by a video lottery gaming participant for payznent.
(4) In addition to, but not in lirnitation of, all other power or authority conferred onthe director or the commission by commission rules, the director may declarea video lotter,v ticket, the play of a video lottery game a video lottery creditvoucher, or any other •.ispect of video lotterv eaming void if stolen not plavedor issued in accordance with commission rnles; if it is illegible, altered,mutilate or counterfeit: or if the video lotterv terminal on which a videolottery game was played or a credit voucher fails anv validation tests orprocedures established by the director. The lottery shall have no liabilit ^^forvideo lottery tickets, video lottery game play. credit voucher or any otheraspect of video Iqttery gaming (leclared bv the director to be void.
(5) The lottQly shall have no liability for errors in video lotterv &amine in anyre5nect including but not limited to errors on the disRlay or on the printing o'a credit voucher.
(H) Director's conduct of video lotterv games under game rule sixU.
(1) The director Sball offer and Werate video lotterygames and promotionsassociated herewith under the autbority of this Video Lottery Game Rule in amanner consistent with the Lottery Act, the rules of the commissionincluding without limitation this rule, any resolution of the commissionersadopted under this rule. As deemed necessarv or advisable, the director shalladopt management regulations orders or directives to offer, implement andonerate video lottery games under this Video Lottery Game Rule andassociated f,romotions.
(2) Names and definitions of elements of game rule number sixtv used in this ruleare considered generic terms used sotely for the p=ose of this rule, andmore than one video lotterv game may be offered by the commission or avideo lottery agent, if aul:horized by the director_or commission, under theauthority of this rule. In actuat ooeration, game rule number sijt)^, the nameof each inclividual video lottery game offered under the authoritv of gaine rulesixty, and these elements may be given names or titles chosen by the director
3770_2-10-60 3
or commission.
-u-'I -W 7v.,xHl-vu'hlT F
TE[] 57RiCKLAt+9b
GOVERNORSTATE OF OF3tO
Executive Order 2009 - 178
Immerlinte Adoption and Amendment ol'Rulesto Impiemen.t Video Itotteiy Tersvinals
a.. Lottery Revenues Are an important Component of the Stezte'e Contrilaution toLocal Edizcation. Programs. In the 5tate's recently enacted two-year budget; theState of Ohio dedicated more than $13 billion to eleirientary, secondary,vocational, and special education programs O"education programs"). Lottery netproceeds were projected to provide approYimately $2.3 billion of that sum.
2. The Implementation of Video I,ottea;y Terminals (VLTs) Will Itaise a SiguiiicazitPortion of the Lottery Net Proceeds Budgeted for kldueation Pxograms, Therapid implementation of VLTs by tlto Lottery Commission is pxojected togenerate approximatel,y $933 million in uet ,proceeds, Dnless continuing,sigxiificant efiTorts are undPrt.alten to inxplement VLTs as quickly as isresponsibl,y feasible, the projtoted VLT revenite 4vill not be realized,ziecess%tatiiig ctzts to education programs or the diversion of state resources froanalready underfuaided state services to education programs.
ig the Rules Effective nn:tlugust 18, 2009. `1`he Ohio Constitution and Ohio,stablish the Lottery f;ommission's authority to impletnent video lotteryinals. One critical element, of the VL'.E' implementation effort is tbn
adoption, as srx n as possible, of administrative rules uuthcrized by andamplifvizYgOliio law vvitb regard to VLTs.
4. Procedure for Immediate Enaetment of Ii,ule Changes. Section 119.03(F') of theOhio ltevised Code authorizes the Governor, on the request of a state agency, tosuspond the normal rule-nxalcing procedures with respect to a specific rule rvhenan emergency exists necessitating the iminediate adoption, anzentiment, orrescission of th.e rule. 4Vlten such a aeter;nination is made, the agency may
(I'age I of 2)
itumefliately adopt, amend, or rescind a rule, but the rule is only valid for ninety
(90) days.
5. I?etermination of an Emergency. I believe that an emergency exists justifyingthe suspension of the normal rule-making process when the failure to actimmedia.tely would negatively impact the citizens of Chio. The LotteryCommission bas asked me to determine; an{1 T have determined, that the failureto imrn.ediately adopt and amend rules necessary to the implementation of videolottery terminals will negatively impact t`7hioans because the failure to do so willresult in shortfalls in prajected state revenues dedicated to education programs,necessitating cuts in those or other crS.tical state funded programs. Thereforca, anemergency exists necessitating the immediate amencinaeiat of adzninz`strativerules in this regard.
6. Authorization for Immediate Rule Tmplementation. Accordingly, the normalrule-making procedures are suspended with respect to the adoption oramendment of Rules 3770:2-1-01, 3770:2-1•02, 3770:2-2-(}1, 3770:2-3-01, 3770:2-3-02, 3770:2-3-03, 3770:2-3-04, 3770:2-3•05. 3770:2°3-06, 3770:2-3-07, 3770;2-3-08, 3770:2-3-09, 3770:2-4-01, 3770:2-4-02, 3770:2-4•03, 3770:2-4-04, 3770-2-4-06,3770=2-4-06, 3770:2-4-07, 3770:2•4•08, 3770:2-6-01, 3770:2-6-01, 3770:2-6-02,3770-2-6-03, 3770:2-6-04, 3770:2-6-05, 3770-2-7-01, 8770:2-7•02, 8770:2-8-01,3770:2-9-01, 3770;2-10-60 of the 4hia Administrative Code regardizig theinrplenxentatiion andJor operation of video lottery teraninals. These rules will beelectronically filed by the Lottery Commission with the Ohio Secretary of State,the Directcir of the Legislative Serviee Comxnission, and the Joint; Committee onAgency Rule Review- 'Phe Lottery Commissiou may, thexufore, adopt andloramend tliose rules iinmediately:
7. 1 signed this Executive Order on August 18, 2009, in Columbus, Ohio, and it willexpire at the eiid of the ninetieth day it is isi effect, November 16, 2009.
AZ°l'
Jennifer Brunn.er, Secretary o
(Page 2 of 2)
EXHIBIT G
JOURNALS OF THE SENATE AND HOUSE OF REPRESENTATIVES
oHlo
House
ofRepresentatives
JOURNAL
THURSDAY, FEBRUARY 12, 2009
IlOUSE JOURNAL, THURSDAY, FEBRUARY 12, 2009 77
ELEVENTH DAYHall of the House of Representatives, Columbus, Ohio
Thursday, February 12, 2009,11:00 o'clock a.m.
The House met pursuant to adjoununent.
Pursuant to House Rule No. 23, the Deputy Clerk called the House to order.
Representative Heard was selected to preside under the Rule.
Thejoumal of the previous legislative day was read and approved.
INTRODUCTION OF BILLS
The following bills were introduced:
H. B. No. 1-Representative Sykes.
To make operating appropriations for the bietmium begitming July 1, 2009,and ending June 30, 2011, and to provide authorization and conditions for theoperation of state programs.
IL B. No. 2-Representative Ujvagi.
To amend sections 121.51,125.71, 133.52, 151.01, 151.09, 151.40,1548.14, 2949.094, 4501.01, 4501.03, 4501.044, 4501.06, 4501.34, 4503.04,4503.042, 4503.07, 4503.10, 4503.182, 4503.26, 4503.65, 4505.14, 4506.08,4507.05, 4507.071, 4507.23, 4507.24, 4509.05, 4511.093, 4513.263, 4519.63,4561.17, 4561.18, 4561.21, 5501.03, 5501.311, 5501.34, 5502.03, 5502.39,5502.67, 5502.68, 5515.01, 5515.07, 5517.011, 5525.15, 5531.09, 5537.07,5537.99, 5703.053, 5703.70, 5735.06, 5735.145, 5735.16, an<i 5735.23; toenact sections 5502.131, 5531.11, 5531.12, 5531.13, 5531.14, 5531.15,5531.16, 5531.17, 5531.18, 5531.99, 5539.01, 5539.02, 5539.03, 5539.04,5539.05, 5539.06, 5539.07, 5539.08, 5539.09, 5539.10, and 5539.11; to repealsection 5735.141 of the Reviscd Code; to amend Section 229.10 of Am. Sub.H.B. 67 of the 127flt General Assembly, as subsequently amcnded; to amendSections 217.10, 217.11, 239.10, 241.10, 243.10, and 243.11 of Am. Sub.II.B. 562 of thc 127th General Assembly; and to amend the version of section5703.70 of the Revised Code that is scheduled to take effect Janualy 1, 2010,to cotitinue the provisions of this act on and after that effective date to tnakeappropriations for programs related to transportation and public safety for thebiennium bcginning Jtdy 1, 2009, and ending Iune 30, 2011, and to provideauthorization and condifions for the operation of those programs.
Said bills were considered the first time.
JOURNALS OF THE SENATE AND HOUSE OF REPRESENTATIVES
OHIO
House
ofRepresentatives
JOURNAL
TUESDAY, APRIL 28, 2009
HOIISE JOURNAL, TUESDAY, APRIL 28, 2009 389
after receiving a visible or audible signal to stop.
H. B. No. 155-Representative Yuko.Cosponsors: Representatives I-iagan, Domenick, Ujvagi, Boyd.
To atnend sections 2915.01 and 2915_091 of the Revised Codc to chattgethe defmition of "instant bingo ticket dispenser" and to authorize a charitableorganization to purchase, lease, and use instant bingo ticket dispensers.
Said bills were considered the first time
REPORTS OF STANDING AND SELECT COMMITTEES AND BILLSFOR SECOND CONSIDERATION
Representative Morgan submitted the following report:
The standing connnittee on Finance and Appropiiations to which wasreferred H. B. No. 1-Representative Sykes, having had the same underconsideration, reports it back as a substitute bill and recoinmends its passage.
RE: OPERATING BUDGET FISCAL YEARS 2010-2011
Representative Sykes moved to amcnd the title as follows:
Add the names: "Chandler, Brown, Bolon."
VERNON SYKES LINDA S. BOLONBARBARA BOYD EDNA BROWNJOI IN PATRICK CARNF,Y TED CELE;STrKATHLEEN CIIANDLER DENISE DRIEHAUSSTEPHEN DYER LORRAINE M. FENDHJENNIFSR GARRISON JAY P. GOYALCLAYTON LUCKIE STEPHEN SLESNICKPETER S. UJVAGI TYRONE K. YATES
The following members voted "NO"
RON AMSTUTZ DAVE BURKE'MA'CfHEW J. DOLAN RANDY GARDNERBRUCE W. GOODWIN CLYDE EVANSCIIERYL GROSSMAN DAVE HALLRON MAAG JEFFREY MCCLAINROSS MCGREGOR ROBERT MECKLENBORGSE1'H MORGAN BARBARA R. SEARSMICHAEL J. SKINDELL
The report was agreed to.
The bill was ordered to be engrossed and placed on the calendar.
JOURNALS OF THE SENATE AND HOUSE OF REPRESENTATIVES
O H IO
House
ofRepresentatives
JouxNaL
WEDNESDAY, APRIL 29, 2009
394 HOUSE JOURNAL, WEDNESDAY, APRII. 29, 2009
consideration, reeommends its re-referral to the coimnittee on Rules andReference.
RE: HEALTH INSURANCE COVER DIABETES
ROSS MCGREGOR TOM LETSONDAN DODD JAY HO'1'TINGERJOHN ADAMS LYNN R. WACHTMANNROBERT HACKETT JOHN PATRICK CARNEYSANDRA STABILE HARWOOD JOSEPH KOZIURAMARK SCHNEIDER DEBBIE PHILLIPSKRJS JORDAN
The report was agreed to.
The bill was ordered to bc engrossed and rereferred to ttie committeeon Rules and Reference.
MOTIONS AND RESOLUTIONS
Representative Goyal moved that majority party members asking leave tobe absent or absent the week of Wednesday, April 29, 2009, be excused, soloug as a written request is on file in the majority lcadership offices.
The motion was agrced to.
Representative Adams, J. moved that minority party members askutg leaveto be absent or absent the week of Wednesday, Apri129, 2009, be excused, solong as a written request is on file in the minority leadership offices.
The motion was agreed to.
BILLS FOR THIRi) CONSIDERATION
H. B. No. 26-Represcntative Willianis, B.Cosponsors: Representatives Newcornb, Harris, Foley, Fende, Celeste, Okcy,Brown, Murray, Yuko, Skindell, Boyd, DeBose, Hagan, Stebelton, Luckie,Weddington.
'I'o amend sections 3314.03, 3319.088, 3319.41, and 3326.11 of the RevisedCode to prohibit cotporat punisliment in all public and chartered nonpublicschools, was taken up for consideration the third time.
The question being, "Shall the bill pass?"
Representative Williams, B. moved that H. B. No. 26-RepresentativeWilliams, B., et al., be rereferred to the conanittee on Rules and Refercnee.
The question being, "Shall the motiort to rerefer be agreed to?"
The motion was agreed to without objeetion.
On motion of Representative Szollosi, the House recessed.
IIOUSE JOURNAL, WEDNESDAY, APRTI„ 29, 2009 395
The House mct pursuant to recess.
Sub. H. B. No. 1-Representative Sykes.Cosponsors: Representatives Chandler, Brown, Bolon.
To amend sections 9.06, 9.314, ] 07.21, 109.572, 109.73, 109.742, 109.744,109.751, 109.767, 109.77, 109.802, 109.803, 118.05, 120.04, 120.08, 120.52,120.53, 121.04, 121.07, 121.08, 121.083, 121.084, 121.13, 121.31, 121.37,121.40, 121.401, 121.402, 122.05, 122.051, 122.075, 122.151, 122.17,122.171, 122.40, 122.603, 122.77, 122.751, 122.76, 122.89, 123.01, 123.152,124.03, 124.04, 124.07, 124.11, 124.134, 124.14, 124.15, 124.152, 124.18,124.181, 124.183, 124.22, 124.23, 124.27, 124.321, 124.324, 124.325, 124.34,124.381, 124.382, 124.385, 124.386, 124.392, 124.81, 125.081, 125.22,125.831, 126.05, 126.21, 126.35, 127.16, 131.33, 133.06, 135.03, 135.06,135.08, 135.32, 141.04, 145.012, 145.298, 148.02, 148.04, 149.43, 150.01,150.02, 150.03, 150.04, 150.05, 150.07, 152.09, 152.10, 152.12, 152.15,152.33, 156.01, 156.02, 156.03, 156.04, 166.07, 169.08, 173.08, 173.35,173.392, 173.40, 173.401, 173.42, 173.43, 173.50, 173.99, 174.02, 174.03,174.06, 176.05, 307.626, 307.629, 307.79, 311.17, 319.301, 319.302, 319.54,321.24, 323.156, 323.78, 329.03, 329.042, 329.06, 340.033, 343.01, 504.21,718.04, 721.15, 901.20, 901.32, 901.43, 903.082, 903.11, 903.25, 905.32,905.33, 905.331, 905.36, 905.50, 905,51, 905.52, 905.56, 907.13, 907.14,907.30, 907.31, 915.24, 918.08, 918.28, 921.02, 921.06, 921.09, 921.11,921.13, 921.16, 921.22, 921.27, 921.29, 923.44, 923.46, 927.51, 927.52,927.53, 927.56, 927.69, 927.70, 927.701, 927.71, 942.01, 942.02, 942.06,942.13, 943.01, 943.02, 943.04, 943.05, 943.06, 943.07, 943.13, 943.14,943.16, 953.21, 953.22, 953.23, 955.201, 1321.20, 1321.51, 1321.52, 1321.53,1321.54, 1321.55, 1321.551, 1321.57, 1321.59, 1321.60, 1321.99, 1322.01,1322.02, 1322.03, 1322.031, 1322.04, 1322.041, 7322A5, 1322.051,1322.052, 1322.06, 1322.061, 1322.062, 1322.063, 1322.064, 1322.07,1322.071, 1322.072, 1322.074, 1322.075, 1322.08, 1322.081, 1322.09,1322.10, 1322.11, 1327.46, 1327.50, 1327.51, 1327.511, 1327.52, 1327.54,1327.57, 1327.58, 1327.60, 1327.62, 1327.70, 1327.99, 1332.24, 1332.25,1343.011, 1345.01, 1345.05, 1345.09, 1347.08, 1349.31, 1349.43,1501.01,1501.05, 1501.07, 1501.30, 1502.12, 1506.01, 1507.01, 1511.01, 1511.02,7511.021,1511.022,1511.03,1511.04,1511.05,1511.06,1511.07,1511.077,1511.08, 1514_08, 1514.13, 1515.08, 1515.14, 1515.183, 1517.02, 1517.10,1517.11,1517.14,1517.16,1517.17,1517.18,1519.03,1520.02,1520.03,1521.03, 1521.031, 1521.04, 1521.05, 1521.06, 1521.061, 1521.062,1521.063, 1521.064, 1521.07, 1521.10, 1521.11, 1521.12, 1521.13, 1521.14,1521.15, 1521.16, 1521.18, 1521.19, 1523.01, 1523.02, 1523.03, 1523.04,1523.05,1523.06,1523.07,7523.08,1523.09,1523.10,1523.11,1523.12,1523.13, 1523.14, 1523.15, 1523.16, 1523.17, 1523.18, 1523.19, 1523.20,1531.01, 1533.10, 1533.11, 1541.03, 1547.01, 1547.51, 1547.52, 1547.531,1547.54, 1547.542, 1547.73, 1547.99, 1548.10, 1707.17, 1707.18, 1707.37,1710_01, 1710.02, 1710.03, 1710.04, 1710.06, 1710.10, 1710.13, 1724.04,1739.05, 1751.03, 1751.04, 1751.05, 1751.14, 1751.15, 1751.16, 1751.19,
396 IIOUSE JOURNAL, WEDNESDAY, APRIL 29, 2009
1751.32, 1751.321, 1751.34, 1751.35, 175136, 1751.45, 1751.46, 1751.48,1751.831,1751.84,1751.85,1753.09,1901.26,1901.31,1907.24,2101.01,2151.011, 2301-02, 2301.03, 2303.201, 2317.422, 2503.17, 2903.13, 2903.21,2903.211,2903.22,2903.33,2911.21,2913.46,2921.13,2937.22,2949.091,2949.111, 2949.17, 2981.13, 3105,87, 3119.01, 3121.037, 3121.0311,312119, 3121.20, 3121.898, 3123.952, 3125.25, 3301.07, 3301.073,3301.079, 3301.0710, 3301.071 1, 3301.0714, 3301.0715, 3301.0716, 3307.12,3301.16, 3301.42, 3301.55, 3301.68, 3302.01, 3302.02, 3302.021, 3302.03,3302.031, 3302.05, 3302.07, 3304.231, 3307.31, 3307.64, 3309.41, 3309.48,3309.51, 3310.03, 3310_08, 3310.09, 3310.11, 3310.14, 3310.41, 3311.06,3311.19, 3311.21, 3311.29, 3311.52, 3311.76, 3313.174, 3313.41, 3313.48,3313.481, 3313.482, 3313.483, 33 13.53, 3313.532, 3313.533, 3313.536,3313.55, 3313.60, 3313.603, 3313.605, 3313.607, 3313.608, 3313.61,3313.611, 3313.612, 3313.614, 3313.615, 3313.62, 3313.64, 3313.642,3313.6410, 3313.65, 3313.671, 3313.673, 3313.68, 3313.713, 3313.843,3313.976, 3313.978, 3313.98, 3313.981, 3314.012, 3314.015, 3314.016,3314.02, 3314.021, 3314.024, 3374.03, 3314.051, 3314.08, 3314.083,3314.084,3314.087,3314.091,3314_10,3314.19,3314.21,3314.25,3314.26,3314.35, 3314.36, 3315.17, 3315.37, 3316.041, 3316.06, 3316.20, 3317.01,3317.011, 3317.02, 3317.021, 3317.022, 3317.023, 3317.024, 3317.025,3317.0210, 3317.0211, 3317.0216, 3317.03, 3317.031, 3317.04, 3317.05,3317.051, 3317.053, 3317.067, 3317.063, 3317.08, 3317.081, 3317.082,3317.12, 3317.16, 3317.18, 3317.20, 3317.201, 3318.011, 3318.051,3318.061, 3318.08, 3318.36, 3318.38, 3318.44, 3319.073, 3319.08, 3319.081,3319.088, 3319.11, 3319.151, 3319.16, 3319.17, 3319.172, 3319.22,3319.221, 3319.233, 3319.234, 3319.235, 3319.24, 3319.25, 3319.26,3319.261, 3319.28, 3319.291, 3319.303, 3319.36, 3319.41, 3319.51, 3319.56,3319.57, 3319.60, 3319.61, 3319.63, 3321.01, 3321.05, 3323.05, 3323.091,3323.14, 3323.142, 3324.05, 3325.08, 3326.11, 3326.14, 3326.21, 3326.23,3326.31, 3326.32, 3326.33, 3326.34, 3326.36, 3326.37, 3326.38, 3326.51,3327.02, 3327.04, 3327.05, 3329.16, 3333.04, 3333.122, 3333.123, 3333.16,3333.28, 3333.35, 3333.38, 3333.61, 3333.62, 3333.66, 3333.73, 3333.83,3334.01, 3334.02, 3334.03, 3334.04, 3334.06, 3334.07, 3334.08, 3334.09,3334.10, 3334.11, 3334.12, 3334.16, 3334.17, 3334.18, 3334.19, 3334.20,3334.21, 3345.071, 3345.12, 3345.32, 3345.61, 3345.62,3345.63, 3345.64,3345.65, 3345.66, 3349.242, 3365.01, 3365.04, 3365.041, 3365.07, 3365.08,3365.09, 3365.10, 3501.17, 3701.024, 3701.045, 3701.07, 3701.344, 3701.71,3701.72, 3701.78, 3701.84, 3702.51, 3702.52, 3702.524, 3702.525, 3702.53,3702.532, 3702.54, 3702.544, 3702.55, 3702.57, 3702.59, 3702.60, 3702.61,3702.87, 3702.89, 3702.90, 3702.91, 3702.92, 3702.93, 3702.94, 3703.01,3703.03, 3703.04, 3703.05, 3703.06, 3703.07, 3703.08, 3703.10, 3703.21,3703.99, 3704.14, 3704.144, 3705.24, 3706_04, 3706.25, 3709.09, 3710.01,3710.04, 3710.05, 3710.051, 3710.06, 3710.07, 3710.08, 3710.12, 3710.13,3712.07,3712.03,37-13.01,3713.02,3713.03,3713.04,3713.05,3713.06,3713.07, 3713.08, 3713.09, 3713.10, 3714.07, 3714.073, 3717.07, 3717.23,3717.25, 3717.43, 3717.45, 3718.03, 3718.06, 3721.01, 3721.02, 3721.071,
HOUSE JOURNAL, R'EDNESDAY, APRIL 29, 2009 397
3721.23, 3721.50, 3721.51, 3721.53, 3721.55, 3721.56, 3722.01, 3722.011,3722.02, 3722.021, 3722.04, 3722.041, 3722.05, 3722.06, 3722.08, 3722.09,3722.10, 3722.13, 3722.14, 3722.15, 3722.16, 3722.17, 3722.18, 3722.99,3727.02, 3729.07, 3733.02, 3733.04, 3733.25, 3733.43, 3734.05, 3734.28,3734.281, 3734.53, 3734.57, 3734.573, 3734.82, 3734.901, 3734.9010,3737.71, 3743.04, 3743.25, 3745.015, 3745.11, 3748.01, 3748.04, 3748.07,3748.12, 3748.13, 3749.04, 3770.05, 3773.35, 3773.36, 3773.43, 3773.45,3773.53,3781.03,3781.10,3781.102,3781.11,3781.12,3781.19,3783.05,3791.02, 3791.04, 3791.05, 3791.07, 3793,02, 3793.04, 3901.38, 3901.383,3901.3812, 3901.3814, 3923.021, 3923.022, 3923.122, 3923.24, 3923.57,3923.58, 3923.581, 3923.66, 3923.67, 3923.68, 3923.75, 3923.76, 3923.77,3924.01, 3924.06, 3924.09, 3924.10, 3929.43, 3929.67, 3953.23, 3953.231,4104.01,4104.02,4104.06,4104.07,4104.08,4104.09,4104.10,4104.101,4104.12, 4104.15, 4104.16, 4104.17, 4104.18, 4104.19, 4104.21, 4104.33,4104.42, 4104_43, 4104.44, 4104_48, 4105.01, 4105.02, 4105.03, 4105.04,4105.05, 4105,06, 4105.09, 4105.11, 4105.12, 4105.13, 4105.15, 4105.16,4105.17, 4105.191, 4105.20, 4105.21, 4112.01, 4112.04, 4112.051, 4112.052,4117.01, 4117.02, 4117.07, 4117.12, 4117.24, 4121.125, 4123.442, 4141.08,4141.11, 4141.162, 4169.02, 4169.03, 4169.04, 4171.04, 4301.333, 4301.334,4301.351, 4301.354, 4301.355, 4301.356, 4301.361, 4301.364, 4301.365,4301.366, 4301.43, 4303.182, 4303.331, 4501.06, 4507 .24, 4503.068,4503.10, 4503.103, 4503.19, 4503.191, 4503.235, 4503.40, 4503.42, 4503.44,4505.01,4505.06,4505.062,4505.09,4505.111,4505.181,4505.20,4507.03,4507.24, 4507.45, 4509.101, 4510.22, 4511.191, 4511.81, 4513.021, 4513.03,4513.04, 4513.05, 4513.06, 4513.07, 4513.071, 4513.09, 4513.11, 4513.111,4513.12, 4513.13, 4513.14, 4513.15, 4513.16, 4513.17, 4513.171, 4513.18,4513.19, 4513.21, 4513.22, 4513.23, 4513.24, 4513.242, 4513.28, 4513.60,4513.65, 4513.99, 4517.01, 4517.02, 4517.03, 4517.30, 4517.33, 4517.43,4519.02, 4519.03, 4519.04, 4519.44, 4519.59, 4549.10, 4549.12, 4705.09,4705.10, 4709.12, 4713.28, 4713.32, 4713.63, 4713.64, 4731.10, 4731.26,4731.38, 4733.10, 4734.25, 4735.06, 4735.09, 4735.12, 4735.13, 4735.15,4740.03, 4740.11, 4740.14, 4741.41, 4741.44, 4741.45, 4741.46, 4755.06,4755.12, 4757.10, 4757.31, 4757.36, 4763.01, 4763.03, 4763.04, 4763.05,4763.07,4763.09,4763.11,4763.13,4763.14,4763.17,4766.09,4767.05,4767.07, 4767.08, 4781.01, 4781.02, 4781.04, 4781.05, 4781.06, 4781.07,4905.06, 4919.79, 4923.12, 4923.20, 4928.01, 5101.11, 5101.16, 5101.162,5101.26, 5101.33, 5101.34, 5101.47, 5101.50, 5101.5212, 5101.54, 5101.541,5101.544, 5101.571, 5101.573, 5101.60, 5101.61, 5101.83, 5101.84, 5104.01,5104.041, 5104.051, 5104.30, 5104.32, 5104.341, 5104.35, 5104.38, 5104.39,5104.42, 5107.05, 5107.16, 5107.17, 5107.58, 5111.01, 5111.015, 5111.028,5111.032, 5111.033, 5111.034, 5111.06, 5111.176, 5111.222, 5111.231,5111.232, 5111.24, 5111.25, 5111.261, 5111.65, 5111.651, 5111.688,5111.705,5111.85,5111.851,5111.874,5111.875,5111.89,5111.891,5111.894, 5111.971, 5112.30, 5112.31, 5112.37, 5112.371, 5115.03, 5119.16,5119.61, 5120.032, 5120.033, 5120.09, 5120.135, 5122.31, 5123.049,5123.0412,5123.0413,5126.044,5126.05,5126.054,5126.055,5126.0512,
398 HOUSE JOURNAL, WEDNLSDAY, APRIL 29, 2009
5126.19, 5126.24, 5139.43, 5501.04, 5502.01, 5502.12, 5502.14, 5502.15,5505.15, 5701.11, 5703.05, 5703.37, 5703.80, 5705.214, 5705.29, 5705.341,5705.37, 5709.62, 5709.63, 5709.632, 5711.33, 5715.02, 577 5.251, 5715.26,5717.03, 5717.04, 5725.18, 5725.98, 5727.84, 5728.12, 5729.03, 5729.98,5733.01, 5733.04, 5733.98, 5735.142, 5739.01, 5739.02, 5739.03, 5739.033,5739.09, 5739.131, 5743.15, 5743.61, 5747.01, 5747113, 5747.13, 5747.16,5747.98, 5748,02, 5748.03, 5749.02, 5749.12, 5751.01, 5751.011, 5751.012,5751.013, 5751.03, 5751.04, 5751.05, 5757.051, 5751.06, 5751.08, 5751.09,5751.20, 5751.21, 5911.70, 5913.051, 5913.09, 6103.01, 6103.02, 6109.21,6111.044, 6117.01, 6117.02, and 6119.011; to amend, for the purpose ofadopting new section numbers as indicated in parentheses, sections 173.43(173.422), 1517.14 (1547.81), 1517.16 (1547.82), 1517.17 (1547.83), 1517.18(1547.84), 3313.174 (3313.82), 3319.233 (3333.049), 3334.03 (3334.031),3701.71 (3727.05), 3701.72 (3727.051), 3727.04 (3727.053), 3727.05(3727.04), 5101.5110 (5101.5111), 5111.019 (5111.0120), and 5111.688(5111.689); to enact new sections 173.43, 3301.0712, 3319.222, 3334.03,5101.5110, and 5111.688 and sections 9.317, 111.26, 111.27, 117.54, 121.16,121.375, 122.042, 122.12, 122,121, 122.85, 123.154, 124.821, 124.822,124.86, 125.20, 125.24, 148.05, 149.308, 150.021, 150.051, 153.073, 173.28,173.402,173.403,173.421,173.423,173.424,171425,173.431,173.432,173.433, 173.434, 173.501, 173.70, 311.32, 737.39, 901.041, 901.91, 927.54,943.031, 1321.521, 1321.531, 1321,532, 1321.533, 1321.534, 1321.535,1327.536, 1321.552, 1321.591, 1321.592, 1321.593, 1321,594, 1321.595,1322.022, 1322.023, 1322.024, 1322.065, 1327.501, 1327.71, 1513.021,1547.02, 1547.85, 1547.86, 1547.87, 1751.68, 2315.50, 3119.371, 3301.122,3301.80, 3307.81, 3301.82, 3301.83, 3301.90, 3306.01, 3306.011, 3306.012,3306.02, 3306.03, 3306.031, 3306.04, 3306.05, 3306.051, 3306.052, 3306.06,3306.07, 3306.08, 3306.09, 3306.091, 3306.10, 3306.11, 3306.72, 3306.13,3306.14, 3306.15, 3306.16, 3306.17, 3306_18, 3306.19, 3306.191, 3306.192,3306.21, 3306.22, 3306.25, 3306.29, 3306.291, 3306.292, 3306.30, 3306,31,3306.32, 3306.321, 3306.33, 3306.34, 3306.35, 3306.40, 3306.50, 3306.5 1,3306.52, 3306.53, 3306.54, 3306.55, 3306.56, 3306.57, 3310.15, 3311.0510,3313.485, 3313.821, 3313.822, 3314.028, 3314A31, 3314.052, 3314.075,33 14.102, 3314.191, 3314.192, 3314.39, 3314.42, 3314.43, 3314.44,3317.018, 3318.312, 3319.223, 3319.611, 3319.612, 3319.70, 3319.71,3321.041, 3333.048, 3333.39, 3333.391, 3333.392, 3333.90, 3333.91,3334.032, 3334.111, 3345.36, 3353.09, 3353.20, 3354.24, 3365.12, 3375.79,3701.0211, 3701.136, 3701.611, 3702.592, 3702.593, 3706.35, 3709.092,3710.141, 3715.041, 3721.511, 3721.512, 3721.513, 3722.022, 3727.052,3734.282, 3793.21, 3903_77, 3923.241, 3923.84, 3923.90, 3923.91, 4113.11,4113.81, 4113.82, 4113.83, 4113.84, 4113.85, 4113.86, 4123.446, 4501.243,4501.29, 4503.563, 4582.71, 4781.16, 4781.17, 4781.18, 4781.19, 4781.20,4781.21, 4781.22, 4781.23, 4781.24, 4781.25, 4781.99, 4919.80, 5101.073,5101.504, 5107.5210, 5101.542, 5111.0121, 5111.236, 5111.861, 5111.88,5711$81, 5111.882, 5111.883, 5111.884, 5111.885, 5111.886, 5111.887,5111.888, 5111.889, 5111.8810, 5111.8811, 5112_372, 5112.40, 5112.41,
HOUSE JOURNAL, WL'DNFSDAY, APRIL 29, 2009 399
5112.42, 5112.43, 5112.44, 5112.45, 5112.451, 5112.46, 5112.47, 5112.48,5119.613, 5119.621, 5119.622, 5155.38, 5505.152, 5705.219, 5705.2110,5725.33, 5729.16, 5733.58, 5733.59, 5739.051, 5747.66, 5751.014, 5911.11,5919.20, 5919.36, and 6119.091; to repeal scctions 173.71, 173.72, 173.721,173.722,173.723,173.724,173.73,173-731,173.732,173.74,173.741,173.742, 173.75, 173.751, 173.752, 173.753, 173.76, 173.77, 173.771,173.772, 173.773, 173.78, 173.79, 173.791, 173.80, 173.801, 173.802,173.803, 173.81, 173.811, 173.812, 173.813, 173.814, 173.815, 173.82,173.83,173.831,173.832,173.833,173.84,173.85,173.86,173.861,173.87,173.871,173.872,173.873,173.874,173.875,173.876,173.88,173.89,173.891, 173.892, 173.90, 173.91, 905.38, 905.381, 905.66, 907.16, 927.74,1504.01, 1504.02, 1504.03, 1504.04, 1517,15, 1521.02, 1711.58, 3301.0712,3301.0718, 3301.43, 3302.032, 3314.026, 3314.085, 3314.13, 3317.10,3319.0810, 3319.222, 3319.23, 3319.302, 3319.304, 3333.27, 3701.73,3701.77, 3701.771, 3701.772, 3702.511, 3702.523, 3702.527, 3702.528,3702.529, 3702.542, 3704.143, 3724.01, 3724.02, 3724.021, 3724.03,3724.04, 3724.05, 3724.06, 3724.07, 3724.08, 3724.09, 3724.10, 3724.11,3724.12, 3724,13, 3724.99, 4517.052, 4517.27, 4735.22, 4735.23, 5101.072,5111.083, 5111.178, 5145.32, and 5923.141 of thc Revised Code; to amendSections 205.10, 321.10, 325.20, and 327.10 o£ Am. Sub. H.B. 2 of the 128thGeneral Assembly; to amend Section 269.60.60 of H.B. 119 of the 127thGeneral Assembly and to amend Section 269.60.60 of II.B. 119 of the 127thGeneral Assenibly to codify the Section as section 3314.38 of the RevisedCode; to amend Section 6 of H.B. 364 of the 124th General Assembly and toarnend Section 6 of H.B. 364 of the 124th General Assernbly to codify theSection as section 3314.027 of the Revised Code; to atnend Section 309.10 ofAm. Sub. H.B. 2 of the 128th General Assembly; to amend Scction 317.10 ofArn. Sub. I-I.B. 2 of the 128th General Asscmbly; to amend Sections103.80.80, 103.80.90, and 301.10.50 of H.B. 496 of the 127th GeneralAsseinbly; to amend Section 11 of Am. Sub. H.B. 554 of the 127th GeneralAssembly; to amend Sections 233.40.30, 233.50.80, and 701.20 of H.B. 562of the 127th Gcneral Assembly; to amend Section 831.06 of H.B. 530 of the126th General Assembly; to amend Section 4 of H.B. 516 of the 125thGeneral Assembly, as subsequently amendcd; to amend Section 153 of Arn.Sub. H.B. 117 of the 121st General Assembly, as subsequently amended; torepeal Section 325.05 of Ani. Sub- H.B. 2 of the 128th General Asseinbly; toamend the version of section 2949.111 of the Revised Code that is scheduledto take effect January 1, 2010, to continue the provisions of this act on andafter that effective date; to amend the version of section 5739.033 of theRevised Code that is scheduled to take effect January 1, 2010, to continue theprovisions of this act on and after that effective datc; to arnend sections5104.01 and 5104.38 of the Revised Code, effective July 1, 2011, to revive thelaw as it existed prior to this act; to repeal sections 5112.40, 5112.41, 5112.42,5112.43, 5112.44, 5112.45, 5112.451, 5112.46, 5112.47, and 5112.48 of theRevised Code, effective October 1, 2011; to make operating appropriations forthe biennium begiiming July 1, 2009, and ending June 30, 2011, and to
JOURNALS OF THE SENATE AND HOUSE OF REPRESENTATIVES
OHIO
Houseof
Representatives
JOURNAL
MONDAY, JULY 13, 2009
714 HOUSE JOURNAL, MONDAY, JULY 13, 2009
Mecklenborg, Ottet'man, Ruhl, Sears, Snitchler, Stautberg, Stebelton, Uecker,Wachttnaun, Wagner, Zehringer. Senators Hughes, Fedor, Grendell, Buelirer,Cafaro, Carey, Faber, Gibbs, Gillmor, Harris, Kearney, Miller, D., Miller, R.,Niehaus, Sawyer, Schaffer, Schiavoni, Smith, Stewart, Strahorn, Turner,Wagoner, Widcner, Wilson, Patton.
To enact section 5,2265 of the Revised Code to designate August as "OhioMilitary Family Month" and to make operating appropriations for the periodbeginning July 15, 2009, and end'nig July 21, 2009.
The question being, "Shall the Senate atvendments be concurred in?"
The yeas and nays were taken and resulted - yeas 99, nays 0, as follows:
Those who voted in the affirmative were: Representatives
Adams J. Adams R. Amstutz Bacon
Baker Balderson Batchelder BelcherBlair Blessing Bolon BookBoose Boyd Brown BubpBnrkc Camcy Celcste CtrandlorColey Cornbs Dauiels DeBoseDeGeeter Derickson Dodd DolanDomenick Drichaus Dyer Evans
Fendo Foley Gardner Gartand
Garrison Gerberry Goodwin GoyalGrossrnan Slackett fiagan Hall
Harris Harwood Heard Hite
Hottinger Huffman Joncs JordanKoziura Lehner Letson Luckic
Lundy Maag Maltory Mandel
Martin McClain McGregor Mccklenborg
Moran Morgan Murray Newcomb
Oelslager Okey Ottertnan PattenPhillips Pillich Pryor Ruhl
Sayre Schneider Sears SkindellSlesniek Suitchler Stautberg StebeltonStewatt Sykes Szollosi iJeeker
Ujvagi WachLnann Wagner Weddington
Williams B. WilliamsS. Winbum YatesYuko Lehringer Budish-99.
The Senate amendments were concurred in.
REPORTS OF CONFERENCE COMMITTEES
Representative Szollosi moved that Joiut Rule No. 20, pertaining to reportsof conference committees, be suspended and that the report of the committeeof Conference on Am. Sub. H. B. No. 1-Representative Sykes, et al. be takenup for imniediate consideration.
The motion was agreed to witltottt objection.
HOUSE JOURNAL, MONDAY, JULY 13, 2009 715
Representative Sykes submitted the following report:
The Committee of Conference to which the matters of difference betweenthe two houses were refen-ed on Am. Sub. H.B. 1, Rcpresentative Sykes - et al.,having llad the same under consideration, reeommends to the respeetive housesas follows:
The bill as passed by the Senate with the following amendments:
In line 335, after "1753.09," insert "1901.121,"; after "1901.31," insert"1907.14,"
Between lines 28540 and 28541, insert:
"See. 1901.121. (A)(1)(a) Subject to division (A)(2) of this section and inaccordance with the payment procedures specified in division (B) of this section,ajudge specified in division (A)(1)(b) of this section is entitled, on a per diembasis, to the compensation paid to the incumbentjudge of the municipal court inwhich the judge is appointed or designated to serve. If the ineumbentjudge iscompensated as described in division (A)(5) of section 141.04 of the RevisedCode, the appointed or desiguatedjudge is entitled to compensation at that rate.If the incumbent judge is compensated as described in division (A)(6) of section141.04 of the Revised Code, the appointed or designated judge is entitled tocompensation at that rate.
(b) The following judges shall receive compensation as described indivision (A)(1)(a) of this section:
(i) An acting jadge appointed pursuant to division (B) of section 1901.10of the Revised Code as a substitute judge because of the volume of casespending in the municipal court and the report of the chiefjustice of the supremecourt that no judge of another municipal court or county court is available toserve by designation;
(ii) A judge of another mmticipal court or eounty court designated by thechief justice of the suprene court pursuant to division (B) of seetion 1901.10 ofthe Revised Code because of the volume of cases pending in the municipal court;
(iii) An acting judge authorized by division (B) of section 1901.12 of theRevised Code and appointed pursuant to division (A)(2) of section 1901.10 ofthe Revised Code as a substitute for the judge of a municipal coutt that has onlyone judge ; who is on vacation;
(iv) An acting judge autliorized by ctivision (B) of section 1901.12 of theRevised Code and appointed by the presidingjudge of the municipal courtpursuant to that division as a substitute judge because an incumbentjudge is onvacation or not in attendance;
(v) A retired judge who has been assigned to active duty on the municipalcourt.
HOUSE JOURNAL, MONDAY, JULY 13, 2009 1813
(2) If the application is received on or after the effective date of thissection, the Director shall accept the application, for review under section3702.52 of the Revised Code, only if the proposed increase in long-term carebeds is attributable solely to a replacement or relocation of existing long-tenncare beds within the same county.
(3) If a certificate of need is granted to the applicant, the Director shallnot authorize additional beds beyond those being replaced or relocated.
(C) If pursuant to division (B)(1) of this section a certificate of needcannot be granted or pursuant to division (B)(2) of this section an applicationcannot be accepted, the Director shall return to the applicant both the applicationand the fee that aecompanied the application. This division applies to all pendingactions regarding applications received before the effective date of the actionstaken by this act to amend, enact, and repeal sections included within the rangeconsisting af sections 3702.51 to 3702.62 of the Revised Code.
(D) The provisions of this section are applicable to the Director and theCertificate of Need Program, notwithstanding any conflicting provision ofsections 3702_51 to 3702.62 of the Revised Code."
In line 371, after "3767.41," insert "3770.03,"
Lr line 445, after "3745.50," insert "3770.21,"
Between lines 58047 and 58048, insert:
"Sec. 3770.03. (A) The state lotteiy commission shall promulgate rulesunder which a statewide lottery may be conducted . which includes, and sincethe orieinal enactment of this section has included, the authority for thecoinmission to operate video lottery terniinal i4amcs Any reference in thischiuter to tickets shall not be construed to in any way limit the authority of thecommission to operate video lottery terininal games. Nothing in this chaptershall restrict the authority of the cornmission topromulgate nil.es related to theoperation of Zames utilizing video lottery teiniinpls as described in section3770.21 of the Revised Code. The iules shall be promulgated pursuant toChapter 119. of the Revised Code, except that instant game rulcs shall bepromulgated pursuant to section 111.15 of the Revised Code but are not subjectto division (D) of that section. Subjects covered in these rules sliall include, butneed not be limited to, the following:
(1) The type of lotteiy to be condueted;
(2) The prices of tickets in the lottery -;
(3) The number, nature, and value of prize awards, the manner andfrequency of prize drawings, and the manner in which prizes shall be awarded toholders of winning tickets.
(B) The eomrnission shall promulgate rules, in addition to thosedescribed in division (A) of this section, pursuant to Chapter 119. of the RevisedCode under which a statewide lottery and statewide joint lottery games may be
1814 HOUSE JOURNAL, MONDAY, JULY 13, 2009
conducted. Subjects covered in these rules shall include, but not be limited to,the following:
(1) The locations at which lottery tickets may be sold and the manner inwhich they are to be sold. These rules may authorize the sale of lotteiy tickets bycommission personnel or other licensed individuals from traveling show wagonsat the state fair, and at any other expositions the director of the commissionconsiders acceptable. These rules shall prohibit eonnnission personnel or otherlicensed individuals from soliciting from an exposition the right to sell lotterytickets at that exposition, but shall allow eotnmission personnel or other licensedindividuals to sell lottery tickets at an exposition if the exposition requestscommission personnel or licensed individuals to do so. These rules may alsoaddress the accessibility of sales agent locations to commission products inaccordance with the "Arnericans with Disabilities Act of 1990," 104 Stat. 327,42 U.S.C.A. 12101 et seq.
(2) The ma.umer in which lottery sales revenues are to be collected,including authorization for the director to impose penalties for failure by lotterysales agents to transfer revenues to the cotnniission in a timely rnanner;
(3) The amount of compensation to be paid licensed lottery sales agents;
(4) The substantive criteria for the licensing of lottery sales agentsconsistent with section 3770,05 of the Revised Code, and procedures forrevoking or suspending their licenses consistent with Chapter 119. of theRevised Code. If circumstances, such as the nonpayment of funds owed by alottery sales agent, or otlier circumstanees related to the public safety,convenience, or trust, require immediate action, the director may suspend alicense without affording an opportunity for a prior hearing under section 119.07of the Revised Code.
(5) Special game rules to implemeut any agreements signed by thegovernor that the director enters into with other lottery jurisdictions underdivision (J) of section 3770.02 of the Revised Code to conduct statewide jointlottery games. The rules shall require that the entire net proceeds of those ganiesthat remain, after associated operating expenses, prize disbursements, lotterysales agent bonuses, commissions, and reimbursements, and any other expetuesnecessary to comply with the agreements or the ntles are deducted from thegross proceeds of those games, be transferred to the lottery profits educationfund under division (B) of section 3770.06 of the Revised Code.
(61 Ank other subjeets the commission detemrines are nece.ssary for theoperation of video lottery terminal ganres includine the establishment o£anyfees, 6nes, or payment schedules.
(C) Chapter 2915 of thc Revised Code does not aplv to, affect, ornrohibit lotteries condticted tyLirsuant to this chanter.
1D The commission may promulgatc rules, in addition to those describedin divisions (A) and (B) of this section, that establish staadards governing the
HOUSE JOURNAL, MONDAY, JULY 13, 2009 1815
display of advertising and celebrity images on lottery tickets aud on other itemsthat are used in the conduct of, or to promote, the statewide lottery and statewidejoint lottery games. Any revenue derived from the sale of advertising displayedon lottery tickets and on those other items shall be considered, for puiposes ofsection 3770.06 of the Revised Code, to be related proceeds in connection withthe statewide lottery or gross proceeds from statewide joint lottery games, asapplicable.
{Bj LU(1) The commission shall meet with the director at least once eachmontlz and shall convene other ineetings at the request of the chairperson or anyfive of ttic meuibers. No action taken by the commission shall be binding unlessat least five of the members present vote in favor of the action. A written recordshall be made of the proceedings of each meeting and shall be transmittedforthwith to the governor, the president of the senate, the senate miuority leader,the speal<er 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 thestate lottery for the preceding month. As soon as practicable after the end of eachfiscal year, the commission shall prepare and transmit to the governor and thegeneral assembly a report of lottery revenues, prize disbursements, and operatingexpenses for the preceding fiscal year and any reeommendations for legislationconsi(lered necessary by the commission."
Between lines 58209 and 58210, insert:
" See. 3770 21 (A) "Video lottety terminal" means aa elech-onic deviceanorovedby the state lotterX commission that provides immediate prizedetsrminations for participants on 1n electronic disI2lay,
fB) The state lottery commission shall include in any ndes adol2tedconcerningvideo lottery terminals, the level of minimum investments that mustbe m2deby video lottery tern1in31 licensees in the buildings and grounds at tllgfacilities including temporary facilities, in which ttre terminals will be locatedalong witli any standards and timetables for such investments
(C) No license or excise tax or fee not in effect on the effective date ofthis section shitll be assessed upon or collected from a video lotter,y terminlllicenseeby any county, township municipal corporation, school district or otlrerooliticll subdivision of the state that has authority to assess or collect a tax or feeb}-eason of the video lottery terminal related conduct authorized by section3770 . 03 of the Revised Code. This division does not prohibit the imposition oftaxes uuder ChWter 718 or 3769 . of the Revised Code.
(D) The eupreme court shall have exclusive origin11 jijrisdiction overany elaiin assertiniz thlt this section or section 3770 . 03 of the Revised Code oranygnortion of those sections or anv rule adopted under those sections violatesanvm-nvi4ion of the Ohio Constitution •tny cllim assertin that any action taken¢y the governor or the lottery cotnrni5sion 12urguant to those sections violates anynrnvision of the Ohio Constitution or any.12rovision of the Revised Code. or any
1816 HOUSE JOURNAL, MONDAY, JULY 13, 2009
cl2im asserting ttiat any noition of this section violates any provision of the OhioConstitution. If any claim over which the supreme eoutt is granted exclusive,gr inal jurisdiction by this division is filed in any lower court, the elaim shall bedismissed by the court on the =round that the court lacks jurisdiction to review it.
(E) Shotild any portion of this section or of section 3770.03 of theRcvised Code be found to be nnenforceable or invalid, it shall be severed and theremainingportions remain in full force and effect."
In line 90873, after "3767.41," insert "3770.03,"
In lines 96920 and 96921, delete "$1,164,218 $1,164,218" and insert"$1,214,218 $1,214,218"
In line 96926, delete "$1,989,218 $1,989,218" and insert "$2,039,218$2,039,218"
Between lines 96926 and 96928, insert:
"VIDEO LOTTERY TERMINAL OVERSIGHT
Of the foregoing GRF appropriation item 965321, Operating Expenses,$50,000 ui each fiscal year may be used to defray any expenses associated withthe review of the operation of video lottery terminal operations as specified inChapter 3770. of the Revised Code."
Between lines 105448 and 105449, insert:
"Section 735._. It is the intent of the General Assembly to addresspolitical contribution issues by the end of the 128th General Assembly.
Section 737._. Notwithstanding any other provision to the contraty inChapter 3769. of the Revised Code, for a period of two years after the effectivedate of this section, any person holding a pemiit under the provisions of thatchapter to conduct live horse-raeing meetings at a facility owned by a politicalsubdivision may apply for, and the State Raeing Commission may grant, apermit to conduct horse-racing meetings at a location at which such meetingshave not previously been conducted, if the pennit application is accompanied bya resolution adopted by the board of county commissioners of the county of theproposed location, and of the local legislative authority, whether a municipalcorporation or township, of the proposed location, requesting that theCotnmission grant the permit. The Cotmnission may only grant such anapplication if the proposed location is in the same or a contiguous cotutty and iswithin fifty miles of the cutrent location associated with the permit, but is not inthe same county as another location at which live horse-racing niectings areconducted."
in line 106543, after "3718.03," insert "3770.03, 3770.21,"
In line 107 of the title, after "3767.41," inseit "3770.03,"
In line 205 of the title, after "3745.50," insert "3770.21,"
HOUSE JOURNAL, MONDAY, JULY 13, 2009 1843
General Revenue Frmd'1'otal $24,631,183,745 $25,888,526,989Managers on the Part of the Managers on the Part of theHouse of Representatives Senate
/S/ VBRNON BYKES L& JOHN A CARP.Y Jlt.VERNON SYKES JOHN A. CAREY, JR.
iy,v JAY P. GOYAL L$1 MARK D WAGONER 7RJAY P. GOYAL MARK D. WAGONER, JR.
Lsf DAiF MILLLR
RON AIv1STpTZ DALE MILLER
The question being, "Shall the report of the conunittee of Conference beagreed to?"
07/13/2009
The Honorable Armond Budish, SpeakerThe Ohio IIouse of RepresentativesColumbus, Ohio
Speaker Budish,
Pursuant to House Rule No. 57, 1 respectfully request that 1 be exeused fromvoting on the report of the conference committee on Am. Sub. H. B. No. 1-Representative Sykes, et al., becatlse it might be consttued that I have aninterest in the legislation.
Sincerely yours,
/s/ TERRY BLAIRState Representative38th House District
The request was granted.
The yeas and nays were taken and resulted - yeas 54, nays 44, as follows:
Those who voted in the affirmative were: Representatives
Belclrer Bolon Book BoydBrown Carney Celeste ChandlerDeBose DeGeeter Dodd DomcnickDrichaus Dyer Fende Foley
Garland Garrison Gerberry GoyalHagan Harris Harwood HeardKoziura Letson Luckie LundyMallory Moran Murray NewcombOolslager Okey Otternran PattenPhillips Pillich Pryor SayreSchneider Skindell Slesnick SteivartSykcs Szollosi Ujvagi WeddingtonWilliams B. WilliarnsS. Winburn Yates
Yuko Budish-54.
1844 HOUSE JOURNAL, MONDAY, JULY 13, 2009
Those who voted in the negative were: Representatives
Adams J. Adatns R. Amstnttz Bacon
Baker Balderson Batcheider Blcssing
Boosc Bubp Burke Coley
Cotnbs Daniels Derickson DolanEvans Gardner Goodwin GrossinanHackett Hall Hito HottingerHul7inan Jones Jordan LehnerMaag Mandel Martin McClainMcGregor Mecklenborg Morgan RtilrlSears Snitchler Stantberg StebeltonIJecker Waclrtmann Wagner Zeliringcr-44.
The report of the committee of Conference was agreed to.
MOTIONS AND RESOI,UTIONS
Representative Goyal moved that majority party members asking leave tobe absent or absent the week of Monday, July 13, 2009, be excused, so long asa written request is on file in the majority leadership offices.
The motion was agreed to.
Representative Adams, J. moved that minority party members asking leaveto be absent or absent the week of Monday, July 13, 2009, be excused, so longas a written request is on file in the minority leadership offices.
The motion was agreed to.
On motion of Representative Szollosi, the House recessed.
The House tnet pursuant to recess.
BILLS FOR TH1RD CONSIDERATION
Representative Szollosi moved that House Rules 86 and 87, be suspendedand that Am. Sub. S. J. R. No. 6-Senators Gibbs, Wilson, et al. be dischargedfrom the standing committee on Agriculture and Natural Resources.
The motion was agreed to without objection.
Representative Szollosi moved that the following joint resolution bebrought up for immediate adoption, read by title only, and spread upon thepages of the journal.
The motion was agreed to without objection.
The question being on the adoption of the joint resolution, reading asfollows:
IT H
JOURNALS OF THE SENATE AND HOUSE OF REPRESENTATIVES
OHIO
SENATE
JOURNAL
TAURSDAY, APRIL 30, 2009
SENATE JOURNAL, THURSDAY, APRIL 30,2009 405
S. B. No. 124-Senators Faber, Schiavoni.Cosponsors: Senators Seitz, Fedor, Schuler.
To amend sections 5302.01, 5302.02, 5302.22, 5302.221, 5302.23, and5815.36 and to enact sections 5302.222 and 5302.24 of the Revised Code tochange the transfer on death (TOD) designation instrument from a deed to anaffidavit, to allow real property owners holding titlc in survivorship tenancy toexecute such an affidavit, to clarify the status of a trustee of a ttust as a 1'ODbeneficiary and the dower rights of the spouse of the property owner, and tomake other changes pertaining to the transfer on deatli of real property.
OFFERING OF RESOLUTIONS
Pursnant to Senate Rule No. 54, the following resolution was offered:
S. R. No. 47-Senator Morano.
Honoring Kim Johnson as Ohio's VFW Middlc School Teacher of the Year.
The question being, "Shall the resolution listed under the President'sprerogative be adopted?"
So the resolution was adopted.
Message from the House of RepresentativesMr. President:
l atn directed to inform you that the House of Representatives has passedthe following bill in which the concnrrence of the Senate is requested:
Am. Sub. H. B. No. 1 -Representative SykesCosponsors: Representatives Chandler, Brown, Bolon, Book, Celeste,DeBose, DeGeeter, Domenick, Dyer, Hagan, Harris, Harwood, Heard,Kozii.tra, Lctson, Lucld.e, Mallory, Pryor, Stcwart, Szollosi, Ujvagi,Weddington, Williams, B., Williatns, S., Winburn, Yates, Yuko
To amend sections 9.06, 9.314, 107.21, 109.572, 109.73, 109.742, 109.744,109.751, 109.761, 109.77, 109.802, 109.803, 118.05, 120.04, 120.08, 120.52,120.53, 121.04, 121.07, 121.08, 121.083, 121.084, 121.13, 121.31, 121.37,121.40, 121.401, 127.402, 122.05, 122.051, 122.075, 122.151, 122.17,122.171, 122.40, 122.603, 122.71, 122.751, 122.76, 122.89, 123.01, 123.152,124.03, 124.04, 124.07, 124.11, 124.134, 124.14, 124,15, 124.152, 124.18,124.181, 124.183, 124.22, 124.23, 124.27, 124.321, 124,324, 124.325, 124.34,124.381, 124.382, 124.385, 124.386, 124.392, 124.81, 125.081, 125.22,125.831, 126.05, 126.21, 126.35, 127.16, 131.33, 133.06, 135.03, 135.06,135.08, 135.32, 141.04, 145A12, 145.298, 148.02, 148.04, 149.43, 150.01,150.02, 150.03, 150.04, 150.05, 150.07, 152.09, 152.10, 152.12, 152.15,152.33, 156.01, 156,02, 156.03, 156.04, 166_07, 169.08, 173.08, 173.35,
406 SENATE JOURNAL, TFIURSDAY, APRIL 30, 2009
173.392, 173.40, 173.401, 173.42, 173.43, 173.50, 173.99, 174.02, 174.03,174.06, 176A5, 307.626, 307.629, 307.79, 311.17, 319.301, 319.302, 319.54,321.24, 323.156, 323.78, 329.03, 329.042, 329,06, 340.033, 343.01, 504.21,718.04, 721.15, 901.20, 901.32, 901.43, 903.082, 903.1 1, 903.25, 905.32,905.33, 905.331, 905.36, 905.50, 905.51, 905.52, 905.56, 907.13, 907.14,907.30, 907.31, 915.24, 918.08, 918.28, 921.02, 921.06, 921.09, 921.11,921.13, 921.16, 921.22, 921.27, 921.29, 923.44, 923.46, 927.51, 927.52,927.53, 927.56, 927.69, 927.70, 927.701, 927.71, 942.01, 942.02, 942.06,942.13, 943.01, 943.02, 943.04, 943.05, 943.06, 943.07, 943.13, 943.14,943.16, 953.21, 953.22, 953.23, 955.201, 1321.20, 1321.51, 1321.52, 1321.53,1321.54, 1321.55, 1321.551, 1321.57, 1321.59, 1321.60, 1321.99, 1322.01,1322.02, 1322.03, 1322.031, 1322.04, 1322.041, 1322.05, 1322.057,1322.052, 1322.06, 1322.061, 1322.062, 1322.063, 1322.064, 1322.07,1322.071, 1322.072, 1321074, 1322.075, 1322.08, 1322.081, 1322.09,1322.10, 1322.11, 1327.46, 1327.50, 1327.51, 1327.511, 1327.52, 1327.54,1327.57, 1327.58, 1327.60, 1327.62, 1327.70, 1327.99, 1332.24, 1332.25,1343.011, 1345.01, 1345.05, 1345.09, 1347.08, 1349.31, 1349.43, 1501.01,1501,05, 1501.07, 1501.30, 1502.12, 1506.01, 1507.01, 1511.01, 1511.02,1511.021, 1511.022, 1511.03, 1511.04, 1511.05, 1511.06, 1511.07, 1511.071,1511A8, 1514.08, 1514.13, 1515.08, 1515.14, 1515.183, 1517.02, 1517.10,1517.11, 1517.14, 1517.16, 1517.17, 1517.18, 1519.03, 1520.02, 1520.03,1521.03, 1521.031, 1521.04, 1521.05, 1521.06, 1521.061, 1521.062,1521.063, 1521.064, 1521.07, 1521.10, 1521.11, 1521.12, 1521.13, 1521.14,1521.15, 1521.16, 1521.18, 1521.19, 1523.01, 1523.02, 1523.03, 1523.04,1523.05, 1523.06, 1523.07, 1523.08, 1523.09, 1523.10, 1523.11, 1523.12,1523.13, 1523.14, 1523.15, 1523.16, 1523.17, 1523.18, 1523.19, 1523.20,1531.01, 1533,10, 1541.03, 1547.01, 1547.51, 1547.52, 1547.531, 1547.54,1547.542, 1547.73, 1547.99, 1548.10, 1707.17, 1707.18, 1707.37, 1710.01,1710.02, 1710.03, 1710.04, 1710.06, 1710.10, 1710.13, 1724.04, 1739.05,1751.03, 1751.04, 1751.05, 1751.14, 1751.15, 1751.16, 1751.19, 1751.32,1751.321, 1751.34, 1751.35, 1751.36, 1751.45, 1751.46, 1751.48, 1751.831,1751.84, 1751.85, 1753.09, 1901.26, 1901.31, 1907.24, 2101.01, 2151A11;2301.02, 2301.03, 2303.201, 2317.422, 2503.17, 2903.13, 2903.21, 2903.211,2903.22, 2903.33, 2911.21, 2913.46, 2921.13, 2937.22, 2949.097, 2949.111,2949.17, 2981.13, 3105.87, 3119.01, 3121.037, 3121.0311, 3121.19, 3121.20,3121.898, 3123.952, 3125.25, 3301.07, 3301.073, 3301.079, 3301.0710,3301.0711, 3301.0714, 3301.0715, 3301.0716, 3301.12, 3301.16, 3301.42,3301.55, 3301.68, 3302.01, 3302.02, 3302.021, 3302.03, 3302.031, 3302.05,3302.07, 3304.231, 3307.31, 3307.64, 3309.41, 3309.48, 3309.51, 3310.03,3310.08, 3310.09, 3310.11, 3310.14, 3310.41, 3311.06, 3311.19, 3311.21,3311.29, 3311.52, 3311.76, 3313.174, 3313.41, 3313.48, 3313.481, 3313_482,3313.483, 3313.53, 3313.532, 3313.533, 3313.536, 3313.55, 3313.60,3313.603, 3313.605, 3313.607, 3313.608, 3313.61, 3313.611, 3313.612,3313.614, 3313.615, 3313.62, 3313.64, 3313.642, 3313.6410, 3313.65,3313.671, 3313.673, 3313.68, 3313.713, 3313.843, 3313.976, 3313.978,3313.98, 3313.981, 3314.012, 3314.015, 3314.016, 3314.02, 3314.021,
SE.NATE JOURNAL, THURSDAY, APRIL 30, 2009 407
3314.024, 3314.03, 3314,051, 3314.08, 3314.083, 3314.084, 3314.087,3314.091, 3314.10, 3314.19, 3314.21, 3314.25, 3314.26, 3314.35, 3314.36,3315.17, 3315.37, 3316.041, 3316.06, 3316.20, 3317.01, 3317.011, 3317.02,3317.021, 3317.022, 3317.023, 3317.024, 3317.025, 3317.0210, 3317.0211,3317.0216, 3317.03, 3317.031, 3317.04, 3317.05, 3317.051, 3317.053,3317.061, 3317.063, 3317.08, 3317.081, 3317.082, 3317.12, 3317.16,3317.18, 3317.20, 3317.201, 3318.011, 3318.051, 3318.061, 3318.08,337 8.36, 3318.38, 3318.44, 3319.073, 3319.08, 3319.081, 3319.088, 3319,11,3319.151, 3319.16, 3319.17, 3319.172, 3319.22, 3319.221, 3319.233,3319.234, 3319.235, 3319.24, 3319.25, 3319.26, 3319.261, 3319.28,3319.291, 3319.303, 3319.36, 3319.41, 3319.51, 3319.56, 3319.57, 3319.60,3319.61, 3319.63, 3321.01, 3321.05, 3323.05, 3323.091, 3323.14, 3323.142,3324.05, 3325.08, 3326.11, 3326.14, 3326.21, 3326.23, 3326.31, 3326.32,3326.33, 3326.34, 3326.36, 3326.37, 3326.38, 3326.51, 3327.02, 3327.04,3327.05, 3329.16, 3333.04, 3333.122, 3333.123, 3333.16, 3333.28, 3333.35,3333.38, 3333.61, 3333.62, 3333.66, 3333.73, 3333.83, 3334.01, 3334.02,3334.03, 3334.04, 3334.06, 3334.07, 3334.08, 3334.09, 3334.10, 3334.11,3334.12, 3334.16, 3334.17, 3334.18, 3334.19, 3334.20, 3334.21, 3345.011,3345.12, 3345.32, 3345.61, 3345.62, 3345.63, 3345.64, 3345.65, 3345.66,3349.242,3365.01,3365.04,3365.041,3365.07,3365.08,3365.09,3365.10,3501.17, 3701.024, 3701.045, 3701.07, 3701.344, 3701.71, 3701.72, 3701.78,3701.84, 3702.51, 3702.52, 3702.524, 3702.525, 3702.53, 3702.532, 3702.54,3702.544, 3702.55, 3702.57, 3702.59, 3702.60, 3702.61, 3702.87, 3702.89,3702.90, 3702.91, 3702.92, 3702.93, 3702.94, 3703.01, 3703.03, 3703.04,3703.05, 3703.06, 3703.07, 3703.08, 3703.10, 3703.21, 3703.99, 3704.14,3704.144, 3705.24, 3706.04, 3706.25, 3709.09, 3710.01, 3710.04, 3710.05,3710.051, 3710.06, 3710.07, 3710.08, 3710.12, 3710.13, 3712.01, 3712.03,3713.01, 3713.02, 3713.03, 3713.04, 3713.05, 3713_06, 3713.07, 3713.08,3713.09,3713.10,3714.07,3714.073,3717.07,3717.23,3717.25,3717.43,3717.45, 3718.03, 3718.06, 3721.01, 3721.02, 3721.071, 3721.23, 3721.50,3721.51, 3721.53, 3721.55, 3721.56, 3722.01, 3722.011,3722.02, 3722.021,3722,04, 3722.041, 3722.05, 3722.06, 3722.08,3722.09, 3722.10, 3722.13,3722.14, 3722.15, 3722.16, 3722.17, 3722.18, 3722.99, 3727.02, 3729.07,3733.02, 3733.04, 3733.25, 3733.43, 3734.05, 3734.28, 3734.281, 3734.53,3734.57, 3734.573, 3734.82, 3734.901, 3734.9010, 3737.71, 3743.04,3743.25, 3745.015, 3745.11, 3748.01, 3748.04, 3748.07, 3748.12, 3748.13,3749.04, 3770.05, 3773.35, 3773.36, 3773.43, 3773.45, 3773.53, 3781.03,3781.10, 3781.102, 3781.11, 3781.12, 3781.19, 3783.05, 3791.02, 3791.04,3791.05, 3791.07, 3793.02, 3793.04, 3901.38, 3901.383, 3901.3812,3901.3814, 3923.021, 3923.022, 3923.122, 3923.24, 3923.57, 3923.58,3923.581, 3923.66, 3923.67, 3923.68, 3923.75, 3923.76, 3923.77, 3924.01,3924.06, 3924.09, 3924,10, 3929.43, 3929.67, 3953.23, 3953.231, 4104.01,4104.02, 4104.06, 4104.07, 4104.08, 4104.09, 4104.10, 4104.101, 4104.12,4104.15, 4104.16, 4104.17, 4104.18, 4104.19, 4104.21, 4104.33, 4104.42,4104.43, 4104.44, 4104.48, 4105.01, 4105.02, 4105.03, 4105.04, 4105.05,4105.06, 4105.09, 4105.11, 4105.12, 4105.13, 4105.15, 4105.16, 4105.17,
408 SENATE JOURNAL, THURSDAY, APRIL 30, 2009
4105.191, 4105.20, 4105.21, 4112.01, 4112.04, 4112.05, 4112.051, 4112.052,4117.01, 4117.02, 4117.07, 4117.12, 4117.24, 4121.125, 4123.442, 4141.08,4141.11, 4141.162, 4169.02, 4169.03, 4169.04, 4171.04, 4301.333, 4301.334,4301.351, 4301.354, 4301.355, 4301.356, 4301.361, 4301.364, 4301.365,4301.366, 4301.43, 4303.182, 4303.331, 4501.06, 4501.24, 4503.068,4503.10, 4503.103, 4503.19, 4503.191, 4503.235, 4503.40, 4503.42, 4503.44,4505A1, 4505.06, 4505.062, 4505.09, 4505.111, 4505.181, 4505.20, 4507.03,4507.24, 4507.45, 4509.101, 4510.22, 4511.191, 4511.81, 4513.021, 4513.03,4513.04, 4513.05, 4513.06, 4513.07, 4513.071, 4513.09, 4513.1 1, 4513.111,4513.12, 4513.13, 4513.14, 4513.15, 4513.16, 4513.17, 4513.171, 4513.18,4513.19, 4513.21, 4513.22, 4513.23, 4513.24, 4513.242, 4513.28, 4513.60,4513.65, 4513.99, 4517.01, 4517.02, 4517.03, 4517.30, 4517.33, 4517.43,4519.02, 4519.03, 4519.04, 4519.44, 4519.59, 4549.10, 4549.12, 4705.09,4705.10, 4709.12, 4713.28, 4713.32, 4713.63, 4713.64, 4731.10, 4731.26,4731.38, 4733.10, 4734.25, 4735.06, 4735.09, 4735.12, 4735.13, 4735.15,4740.03, 4740.11, 4740.14, 4741.41, 4741.44, 4741.45, 4741.46, 4755.06,4755,12, 4757.10, 4757.31, 4757.36, 4763.01, 4763.03, 4763.04, 4763.05,4763.07, 4763.09, 4763.11, 4763.13, 4763.14, 4763.17, 4766.09, 4767.05,4767.07, 4767.08, 4781.01, 4781.02, 4781.04, 4781.05, 4781 A6, 4781.07,4905.06, 4919.79, 4923.12, 4923,20, 4928.01, 5101.11, 5101.16, 5101.162,5101.26, 5101.33, 5101.34, 5101.47, 5101.50, 5101.5212, 5101.54, 5101.541,5101.544, 5101.571, 5101.573, 5101.60, 510t.61, 5101.83, 5101.84, 5104.01,5104.041, 5104.051, 5104.30, 5104.32, 5104.341, 5104.35, 5104.38, 5104.39,5104.42, 5107.05, 5107.16, 5107.17, 5107.58, 51 L1.01, 5111.015, 5111.028,5111.032, 5111.033, 5111.034, 5111.06, 5111,176, 5111.222, 5111.231,5111.232, 5111.24, 5111.25, 5111.261, 5111.65, 5111.651, 5111.688,5111.705, 5111.85, 5111.851, 5111.874, 5111.875, 5111.89, 5111.891,5111.894, 5111.971, 5112.30, 5112.31, 5112.37, 5112.371, 5115.03, 5119.16,5119.61, 5120.032, 5120.033, 5120.09, 5120.135, 5122.31, 5123.049,5123.0412, 5123.0413, 5126.044, 5126.05, 5126.054, 5126.055, 5126.0512,5126.19, 5126.24, 5139.43, 5501.04, 5502.01, 5502.12, 5502.14, 5502.15,5505.15, 5701.11, 5703.05, 5703.37, 5703.80, 5705.214, 5705.29, 5705.341,5705.37, 5709.62, 5709.63, 5709.632, 5711.33, 5715,02, 5715.251, 5715.26,5717.03, 5717.04, 5725.18, 5725.98, 5727.84, 5728.12, 5729.03, 5729.98,5733.01, 5733.04, 5733.98, 5735_142, 5739.01, 5739.02, 5739.03, 5739.033,5739.09, 5739.131, 5743.15, 5743.61, 5747.01, 5747.113, 5747.13, 5747.16,5747.98, 5748.02, 5748.03, 5749.02, 5749.12, 5751.01, 5751.011, 5751.012,5751.013, 5751.03, 5751.04, 5751.05, 5751.051, 5751.06, 5751.08, 5751.09,5751.20, 5751.21, 5911.10, 5913.051, 5913.09, 6103.01, 6103.02, 6109.21,6111.044, 6117.01, 6117.02, and 6119.011; to amend, for the purposc; ofadopting new section numbers as indicated in parentheses, sections 173.43(173.422), 1517.14 (1547.81), 1517.16 (1547.82), 1517.17 (1547.83), 1517.18(1547.84), 3313.174 (3313_82), 3319.233 (3333.049), 3334.03 (3334.031),3701.71 (3727.05), 3701.72 (3727.051), 3727.04 (3727.053), 3727.05(3727.04), 5101.5110 (5101.5111), 5111.019 (5111.0120), and 5111.688(5111.689); to enact new sections 173.43, 3301.0712, 3319.222, 3334.03,
SENATE JOURNAL, TTIURSDAY, APRIL 30, 2009 409
5101.5110, and 5111.688 and sections 9.317, 111.26, 111.27, 117.54, 121.16,121.375, 122.042, 122.12, 122.121, 122.85, 123.154, 124.821, 124.822,124.86, 125.20, 125.24, 148.05, 149.308, 150.021, 150.051, 153.013, 173.28,173.402,173.403,173.421,173.423,173.424,173.425,173.431,173.432,173.433, 173.434, 173.501, 173.70, 311.32, 737.39, 901.041, 901.91, 927.54,943.031, 1321.521, 1321.531, 1321.532, 1321.533, 1321.534, 1321.535,1321.536, 1321.552, 1321.591,1322.022, 1322.023, 1322.024,
1321.592,1322.065,
1321.593, 1321.594, 1321.595,1327.501, 1327.71, 1513.021,
1547.02, 1547.85, 1547.86, 1547.87, 1751.68, 231550, 3119.371, 3301.122,3301.80, 3301.81, 3301.82, 3301.83, 3301.90, 3306.01, 3306.011, 3306A12,3306.02, 3306.03, 3306.031, 3306.04, 3306.05, 3306.051, 3306.052, 3306.06,3306.07, 3306.08, 3306.09, 3306.091, 3306.10, 3306.11, 3306.12, 3306.13,3306.14, 3306.15, 3306.16, 3306.17, 3306.18, 3306.19, 3306.191, 3306.192,3306.21, 3306.22, 3306.25, 3306.29, 3306.291, 3306.292, 3306.30, 3306.31,3306.32, 3306.321, 3306.33, 3306.34, 3306.35, 3306.40, 3306.50, 3306.51,3306.52, 3306.53, 3306.54, 3306.55, 3306.56, 3306.57, 3310.15, 3311.0510,3313.485, 3313.821, 3313_822, 3314.028, 3314.031, 3314.052, 3314.075,3314.102, 3314.191, 3314.192, 3314.39, 3314.42, 3314.43, 3314.44,3317.018, 3318.312, 3319.223, 3319.611, 3319.612, 3319.70, 3319.71,3321.041, 3333.048, 3333.39, 3333.391, 3333.392, 3333.90, 333391,3334.032, 3334.111, 3345.36, 3353.09, 3353.20, 3354.24, 3365.12; 3375.79,3701.0211, 3701.136, 3701.611, 3702.592, 3702.593, 3706.35, 3709.092,3710.141, 3715.041, 3721.511, 3721.512, 3721.513, 3722.022, 3727.052,3734.282, 3793.21, 3903.77, 3923.241, 3923.84, 3923.90, 3923.91, 4113.11,4113.81, 4113.82, 4113.83, 411184, 4113.85, 4113.86, 4123.446, 4501.243,450129, 4503.563, 4582.71, 4781.16, 4781.17, 4781.18, 4781.19, 4781.20,4781.21, 4781.22, 4781.23, 4781.24, 4781.25, 4781.99, 4919.80, 5101.073,5101.504, 5101.5210, 5101.542, 5111.0121, 5111.236, 5111.861, 5111.88,5111.881, 5111.882, 5111.883, 5111.884, 5111.885, 5111.886, 5111.887,5111.888; 511 1.889, 5111.8810, 5111.8811, 5112.372, 5112.40, 5112.41,5112.42, 5112.43, 5112.44, 5112.45, 5112.451, 5112.46, 5112.47, 5112.48,5119.613, 5119.621, 5119.622, 5155.38, 5505.152, 5705.219, 5705.2110,5725.33, 5729.16, 5733.58, 5733.59, 5739.051, 5747.66, 5751.014, 5911.11,5919.20, 5919.36, and 6119.091; to repeal sections 173.71, 173.72, 173.721,173.722,173.723,173.724,173.73,173.731,173.732,173.74,173.741,173.742, 173.75, 173.751, 173.752, 173.753, 173.76, 173.77, 173.771,173.772,173.773,173.78,173.79,173.791,173.80,173.801,173.802,173.803,173.81,173.871,173.812,173.813,173.814,173.815,173.82,173.83, 173.831, 173.832, 173.833, 173.84, 173.85, 173.86, 173.861, 173.87,173.871, 173.872, 173.873, 173.874, 173.875, 173.876, 173.88, 173.89,173.891, 173.892, 173.90, 173.91, 905.38, 905.381, 905,66, 907.16, 927.74,1504.01, 1504.02, 1504.03, 1504.04, 1517.15, 1521.02, 1711.58, 3301.0712,3301.0718, 3301.43, 3302.032, 3314.026, 3314.085, 3314.13, 3317.10,3319.0810, 3319.222, 3319.23, 3319.302, 3319.304, 3333.27, 3701.73,3701.77, 3701.771, 3701.772, 3702.511, 3702.523, 3702.527, 3702.528,3702.529, 3702.542, 3704.143, 3724.01, 3724.02, 3724.021, 3724.03,
410 SENATE JOURNAL, THURSDAY, APRIL 30, 2009
3724.04, 3724.05, 3724.06, 3724.07, 3724.08, 3724.09, 3724.10, 3724.11,3724.12, 3724,13, 3724.99, 4517.052, 4517.27, 4735.22, 4735.23, 5101.072,5111.083, 5111.178, 5145.32, and 5923.141 of the Rcvised Code; to amendSections 205_10, 321.10, 325.20, and 327.10 of Am. Sub. II.B. 2 of the 128thGcneral Assembly; to amend Section 269.60.60 of H.B. 119 of the 127thGeneral Assembly and to amend Section 269.60.60 of I3.B. 119 of the 127thGeneral Assembly to codify the Section as section 3314.38 of the RevisedCode; to amend Section 6 of H.B. 364 of the 124th General Assembly and toamend Section 6 of H.B. 364 of the 124th General Assembly to codify theSection as section 3314.027 of the Revised Code; to amend Section 309.10 ofAm. Sub. H.B. 2 of the 128th General Assembly; to amend Scction 317.10 ofAm. Sub. H.B. 2 of the 128th General. Assembly; to amend Sections103.80.80, 103.80.90, and 301.10.50 of H.B. 496 of the 127th GeneralAssembly; to amend Section 11 of Am. Sub. H.B. 554 of the 127th GeneralAssembly; to amend Sections 233.40.30, 233.50.80, and 701.20 of H.B. 562of the 127th General Assembly; to amend Section 831.06 of H.B. 530 of the126th General Assembly; to aniend Section 4 of H.B. 516 of the 125thGeneral Assembly, as subsequently atnended; to amend Section 153 of Am.Sub. II.B. 117 of the 121st General Assetnbly, as subsequently amended; torepeal Section 325.05 of Ain. Sub, H.B. 2 of the 128th Genoral Assembly; toamend the version of section 2949.111 of the Revised Code that is scheduledto take cffect January 1, 2010, to continue the provisions of this act on andafter that effective date; to amend the version of section 5739.033 of theRevised Code that is scheduled to talce effect January 1, 2010, to continue theprovisions of this act on and atter that effective date; to amend sections5104.01 and 5104.38 of thc Revised Code, effective July l, 2011, to revive thelaw as it existed prior to this act; to repeal sections 5112.40, 5112.41, 5112.42,5112.43, 5112.44, 5112.45, 5112.451, 5112.46, 5112.47, and 5112.48 of theRevised Code, effective October 1, 2011; to make opcrating appropriations forthe biemiium beginning July 1, 2009, and ending June 30, 2011, and toprovide authorization and concfitions for the operation of state programs.
Attest: Tom Shennan,Clerk.
Said bill was considered the first time.
CLERK'S NOTATION
Pursuant to Article IV, Section 5(B) of the Ohio Constihrti<nY, the OhioSenate received proposed amendments to the Ohio Rules of Civil Procedure,the Ohio Rules of Criminal Procedure, and the Ohio Rules of JuvenileProcedure from the Ohio Suprenre Court on Apri130, 2009.
JOURNALS OF THE SENATE AND HOUSE OF REPRESENTATIVES
OHIO
SENATE
JOURNAL
TUESDAY, JUNE 2, 2009
462 SENATE JOURNAL, TUESDAY, JUNE 2,2009
FIFTY-FOURTH DAYSenate Chamber, Columbus, OhioTuesday, June 2, 2009, 1:30 p.m.
'I'he Senate met pursuant to adjournment.
Pursuant to Senate Rule No. 3, the Clerlc called the Senate to order.
Senator Cates was selected to preside according to the rule.
The journal of the last legislative day was read and approved.
REPORTS OF STANDING AN'D SELECT COMMITTEES
Senator Carey submitted the following report:
The standing committee on Finance and Financial Institutions, to whichwas refeired Ant. Sub. H. B. No. 1-Representative Sykes, et al., having hadthe same under consideration, reports back a substitute bill and recomtnendsits passage.
YES - 9: KEITH L. FABER, CHRIS WIDENER, TOM NIEIIAUS,7'OM PATTON, MARK D. WAGONER, B1LL SEITZ,GARY W. CATES, JTivIMY STEWART, JOIIN A.CAREY.
NO - 4: DALE MILLER, SHIRLEY A. SMITH, RAY MILLER,JASON H. WILSON.
The question being, "Shall the report of the comtnittee be accepted?"
1'he report of the committee was accepted.
INTRODUCTION AND FIRST CONSIDERATION OF BILLS
The following bill was introduced and considered the first time:
S. B. No. 130-Senator Cafaro.Cosponsors: Senators Morano, Miller, R., Kcarney, Fedor, Miller, D_, Sawyer,Schiavoni, Smith, Strahotu, Turner, Wilson.
To amend sections 2950.01, 2950.11, 2950.13, 3721.99, 3722.06, 3722.08,3722.99, 5119.22, 5119.99, 5123.19, and 5123.99 and to enact sections2950.112, 3721.052, 3721.053, 3722.042, 3722.043, 5119.222, 5119.223,5123.199, and 5123.1910 of thc Revised Code to require a long-term carefacility to notify its residents when a sex ofFender or person who wasimprisoned out-of-statc: for a felony offense is adtnitted to the facility and toestablish immunity for eniployees of such facilities who report the facility'sfailure to comply with the notification requirements.
JOURNALS OF THE SENATE AND HOUSE OF REPRESENTATIVES
OHIO
SENATE
JOURNAL
WEI)NESDAY, JUNE 3, 2009
SENATF. JOURNAL, WEDNESDAY, JUNE 3, 2009 469
beginning Febiuary 13, 2009 and ending at the close of business Jannaiy 13,2011.
Having had the same under consideration, reports back therecotnmendation that the Senate advise and consent to said appointments.
YES - l0: BILL HARRIS, TOM NIEHAUS, KEITH L. FABER,MARK D. WAGONER, JOHN A. CAREY, JON A.HUSTED, JASON H. WILSON, RAY MILLER,SHIRLEY A. SMITH, CAPRI S. CAFARO.
NO-0.
'hhe question being, "Shall the Senate advise and consent to theappointments by the Govemor?"
The yeas and nays were taken and resulted - yeas 30, nays 0, as follows:
Those who voted in the affirmative were: Senators
Buehror CaCaro Carey CatesCouglilin Faber Fedor GibbsGillmor Grendell Hughes TiustedKeanmey Miller U Miller R MoranoNiehaus Patton Sawyer SchafferSehiavoni Scitz Smith StewartStrahorn 'hinrer Wagoner WidenerWi)son Harris-30.
So the Senate advised and consented to said appointments.
BILLS FOR THIRD CONSiDERATION
Sub. H. B. No. 1-Representative Sykes.Cosponsors: RepresenM.tives Chandler, Brown, Bolon, Book, Celeste,DeBose, DeGeeter, Domenick,l7yer, Ilagan, Harris, Harwood, I3eard,Koziura, Letson, Luckie, Mallory, Pryor, Stewart, Szollosi, Ujvagi,Weddington, Williams, B., Williams, S., Winburn, Yates, Yuko.
To amend sections 7.12, 9.03, 9314, 101.34, 101.35, 101.72, 102.02,103.0511, 105.41, 107.21, 107.40, 109.57, 109.572, 109.73, 109.731, 109.742,109.744, 109.751, 109.761, 109.77, 109.802, 109.803, 111.15, 117.13, 117.16,117.20, 118.05, 119.03, 120.03, 120.04, 120.08, 120.52, 120.53, 121.04,121.07, 121.37, 121.39, 121.40, 121.401, 121.402, 122.05, 122.051, 122.075,122.08, 122.081, 122.151, 122.17, 122.171, 122.40, 122.603, 122.71, 122.751,122.76,122.89,122.94,123.01,124.03,124.04,124.07,124.11,124,134,124.14, 124.15, 124.152, 124.18, 124.181, 124.183, 124.23, 124.27, 124.321,124.324, 124.325, 124.34, 124.381, 124.382, 124.385, 124.386, 124.392,
470 SHNATEJOURNAL,WEDNESDAY,JUNE3,2009
124.81, 125.11, 125.18, 125.831, 126.05, 126.35, 127.16, 131.33, 133.06,133.20, 135.03, 135_06, 135.08, 135.32, 141.04, 145.012, 145.298, 148.02,148.04, 149.43, 149.45, 150.01, 150.02, 150.03, 150.04, 150.07, 152.09,152.10, 152.12, 152.15, 152.33, 156.01, 156.02, 156.03, 156.04, 166.07,169.08,173.08,173.35,173.392,173.40,173.401,173.42,173.43,173.50,173.99, 174.02, 174.03, 175.01, 175.04, 176.05, 302.02, 302.03, 302_05,302.081, 302.082, 302.09, 302.10, 302.11, 302.12, 302.13, 302.14, 302.17,302.18, 302.19, 302.201, 302.202, 302.204, 302.21, 302.22, 302.24, 303.213,307.12, 307.626, 307.629, 307.79, 311.17, 311.42, 319.28, 319.301, 319.302,319.54, 321.24, 321.261, 323.156, 329.03, 329.042, 329.06, 340.033, 351.021,504.21, 718.04, 721.15, 723.52, 723.53, 901.20, 901.32, 903.082, 903.11,903.25, 905.32, 905.33, 905.331, 905.36, 905.50, 905.51, 905.52, 905.56,907.13, 907.14, 907.30, 907.31, 915.24, 921.02, 921.06, 921.09, 921.11,921.13, 921.16, 921.22, 921.27, 921.29, 923.44, 923,46, 927.51, 927.52,927.53, 927.56, 927.69, 927.70, 927.701, 927.71, 955.201, 1322.03, 1322.031,1322.04, 1322.041, 1332.24, 1332.25, 1349.20, 1349.22, 1501.01, 1501.05,1501.07, 1501.30, 1502.12, 1505.07, 1506.01, 1507.01, 1511.01, 1511.02,1511.021, 1511.022, 1511.03, 1511.04, 1511.05, 1511.06, 1511.07, 1511.071,1511.08, 1514.08, 1514.13, 1515.08, 1515.14, 1515,183, 1519.03, 1520.02,1520.03, 1521.03, 1521.031, 1521.04, 1521,05, 1521.06, 1521.061, 1521.062,1521.063, 1521.064, 1521.07, 1521.10, 1521.11, 1521.12, 1521.13, 1521.14,1521.15, 1521.16, 1521.18, 1521.19, 1523.01, 1523.02, 1523.03, 1523.04,1523.05, 1523.06, 1523.07, 1523.08, 1523.09, 1523.10, 1523.11, 1523.12,1523.13, 1523.14, 1523.15, 1523.16, 1523.17, 1523.18, 1523.19, 1523.20,1531.01, 1531.06, 1533.10, 1533_11, 1533.12, 1541.03, 1548.10, 1707.17,1710.02,1721.211,1739.05,1751.03,1751.04,1751.05,1751.19,1751.32,1751.321, 1751.34, 1751.35, 1751.36, 1751.45, 1751.46, 1751.48, 1751.831,1751.84,1751.85,1753.09,1901.26,1901.31,1907.24,2303.201,2317.422,2503.17, 2505.09, 2505.12, 2743.51, 2903.214, 2903,33, 2907.27, 2911.21,2913.46, 2915.01, 2921.13, 2921.51, 2923.125, 2923.1213, 2937.22,2949.091, 2949.111, 2949.17, 2981.13, 3105.87, 3119.01, 3121.03, 3121.035,3121.037,3121.0311,3121.19,3121.20,3121.898,3123.952,3125.25,3301.07, 3301.075, 3301.0714, 3301.12, 3301.42, 3301.56, 3302.021,3302.03, 3304.16, 3304.231, 3310.03, 3310.14, 3311.059, 3313.46, 3313.53,3313.536, 3313.60, 3313.602, 3313.603, 3313.64, 3313.642, 3313.65,3313.843, 3313.976, 3313.978, 3314.02, 3314.03, 3314.08, 3314.085,3314.26, 3314.35, 3315.37, 3317.013, 3317.02, 3317.021, 3317.022, 3317.03,3317.063, 3317.08, 3318.011, 3318.37, 3318.44, 3319.073, 3319.08, 3319.11,3319.16,3319.161, 3319.22, 3319.233, 3319.234, 3319.235, 3319.24,3319.25, 3319.26, 3319.28, 3319.291, 3319.303, 3319.36, 3319.391, 3319.51,3319.56, 3319.60, 3319.61, 3319.63, 3321.07, 3323.05, 3326_11, 3326.36,3327.10, 3333.04, 3333.122, 3333_16, 3333.28, 3333.35, 3333.38, 3333.42,3333.61, 3333.62, 3333.66, 3334.03, 3334.07, 3334.08, 3334.11, 3334.12,3343.04,3345.011,3345.12,3345.32,3345.61,3345.62,3345.63,3345.64,3345.65, 3345.66, 3351.07, 3354.26, 3365.04, 3365.041, 3365.07, 3365.08,3365.09, 3365.10, 3501.17, 3503.15, 3503.18, 3503.21, 3701.021, 3701.045,
SENATE JOURNAL,, WEDNESDAY, JUNE 3, 2009 471
3701.07, 3701.242, 3701.247, 3701.344, 3701.78, 3701.83, 3702.30, 3702.51,3702.52, 3702.524, 3702.525, 3702.53, 3702.532, 3702.54, 3702.544,3702.55, 3702.57, 3702.59, 3702.60, 3702_61, 3702.87, 3702.89, 3702.90,3702.91, 3702.92, 3702.93, 3702.94, 3704.14, 3704.144, 3705.03, 3706.01,3706.25, 3707.26, 3712.03, 37141)1, 3714,02, 3714.07, 3714.073, 3714.081,3714.083, 3715.87, 3715.871, 3715.873, 3717.01, 3717.02, 3717.03, 3717,04,3717.041, 3717.05, 3717.06, 3717.07, 3717.071, 3717.08, 3717.11, 3717.111,3717.22, 3717.221, 3717.23, 3717.25, 3717.27, 3717.28, 3717.29, 3717.30,3717.31, 3717.32, 3717,33, 3717.48, 3718.03, 3721.01, 3721.02, 3721.50,3721.51, 3721.53, 3721.55, 3721.56, 3722.01, 3722.011, 3722.02, 3722.021,3722.04, 3722.05, 37221)6, 3722.08, 3722.09, 372210, 3722.13, 3722.14,3722.15, 3722.16, 3722.17, 3722.18, 3722.99, 3727.02, 3733.02, 3734.05,3734.28, 3734.281, 3734.57, 3734.573, 3734.82, 3734.901, 3734.9010,3737.71, 3745.11, 3745.31, 3767.41, 3770.05, 3773.35, 3773.36, 3773.43,3773.45, 3773.53, 3781.01, 3781.10, 3781.12, 3781.19, 3793.02, 3793.04,3901.381, 3901.3812, 3923.021, 3923.11, 3923.66, 3923.67, 3923.68,3923.75, 3923.76, 3923.77, 3924.06, 3929.43, 3937.41, 3953.231, 4104.07,4104.101, 4104.18, 4105.17, 4115.04, 4117.01, 4117.02, 4117.07, 4117.12,4117.24,4141.08,4141.162,4301.43,4303.181,4303.182,4303.331,4501.06,4501.271,4503.068,4503.10,4501103,4503.182,4503.19,4503.235,4503.40,4503.42,4503.44,4505.01,4505.06,4505.062,4505.09,4505.111, 4505.181, 4505.20, 4507.02, 4507.03, 4507.23, 4507.24, 4507.45,4509.101, 451011, 4510.12, 4510.16, 4510.22, 4511.191, 4511.69, 4513.021,4513.03, 4513.04, 4513.05, 4513.06, 4513.07, 4513.071, 4513.09, 4513.11,4513.111,4513.12,4513.13,4513.14,4513.15,4513.16,4513.17,4513.171,4513.18, 4513.19, 4513.21, 4513.22, 4513.23, 4513.24, 4513.242, 4513.28,4513.60,4513.65,4513.99,4517.01,4517.02,4517.03,4517.30,4517.33,4517.43, 4519.02, 4519.04, 4519.59, 4549.10, 4549.12, 4582.07, 4582.08,4582.32, 4582.33, 4713.63, 4713.64, 4717.31, 4729.42, 4729.99, 4731.10,4731.26, 4731.38, 4733.10, 4734.25, 4735.06, 4735.09, 4735.12, 4735.13,4735.15, 4736.01, 4740.14, 4741.41, 4741.44, 4741.45, 4741.46, 4753.02,4753.05,4753.073,4753.11,4755.06,4755.12,4757.10,4757.31,4757.36,4763.01, 4763.03, 4763.04, 4763.05, 476106, 4763.07, 4763.09, 4763.11,4763.13, 4763.14, 4763.17, 4765.11, 4765.17, 4765.23, 4765.30, 4766.09,4767.05, 4767.07, 4767.08, 4774.02, 4776.01, 4776.02, 4781.01, 4781.02,4781.04, 4781.05, 4781.06, 4781.07, 4928.01, 4928.64, 5101.11, 5101.16,5101.162, 5101.26, 5101.33, 5101.34, 5101.47, 5101.50, 5101.5212,5101.5213, 5101.54, 5101.541, 5101.544, 5101.571, 5101.573, 5101.60,5101.61, 5101.84, 5104.041, 5107.05, 5107.16, 5107.17, 5111.01, 5111.023,5111.028, 5111.032, 5111.033, 5111.034, 5111.06, 5111.071, 5111A81,517 1.083, 5111.084, 5111.16, 5111.176, 5111.21, 5111.211, 5111.222,5111.231, 5111,232, 5111.24, 5111.25, 5111.261, 5111.65, 5111.651,5111.68, 51 11.681, 5111.685, 5111.686, 5111.688, 5111.705, 5111.85,5111.851, 5111.874, 5111.875, 5111.89, 5111.891, 5111.894, 5111.912,5111.913, 5111.971, 5112.30, 5112.31, 5112.37, 5112.371, 5119.16, 5119_61,5120.09, 5122.31, 5123.049, 5123.0412, 5123.0413, 5123.19, 5126.044,
472 SENATE JOURNAL, WEDNESDAY, JUNE 3, 20)9
5126.054, 5126.055, 5126.0512, 5126.19, 5139.43, 5502.01, 5502.12,5502.14, 5502.15, 5517.02, 5543.19, 5575.01, 5701.11, 5703.21, 5703.37,5703.80, 5705.214, 5705.29, 5705.341, 5705.37, 5709.62, 5709.63, 5709.632,5711.33, 5715,02, 5715.251, 5717.03, 5717.04, 5721.01, 5721.03, 5725.151,5725.18, 5725.98, 5727.811, 5727.84, 5728.12, 5729.03, 5729.98, 5733.01,5733.04, 5733.98, 5735.142, 5739.01, 5739.011, 5739.02, 5739.03, 5739.033,5739.131, 5743.15, 5743.61, 5747.113, 5747.13, 5747.16, 5747.18, 5747.76,5747.98, 5748.02, 5748.03, 5749.12, 5751.01, 5751.011, 5751.012, 5751.013,5751.03, 5751.04, 5751.05, 5751.051, 5751.06, 5751.08, 5751.09, 5751.20,5751.21, 5751.22, 5751.23, 5911.10, 5913.051, 5913.09, 6103.01, 6103.02,6109.21, 6111.044, 6117.01, 6117.02, 6119.011, and 6301.03; to amend, forthe purpose of adopting new section numbers as indicated in parentheses,sections 173.43 (173.422), 3319.233 (3333.049), 4753.073 (3319.227),5101.5110 (5101.5111), 5111.019 (5111.0120), and 5111.688 (5111.689); toenact new sections 173.43, 3319.222, 5101.5110, and 5111.688 and sections5.2265, 7.16, 9.317, 103.24, 107.19, 11126, 111.27, 117.162, 121.021,121.25, 121.251, 121.252, 121.253, 121.254, 121.255, 121.256, 121.257,121.375, 121.376, 122.85, 124.393, 124.821, 124.822, 124.86, 124.95,125.181, 125.182, 125.183, 125.184, 125.20, 126.10, 126.50, 126.501,126.502, 126.503, 126.504, 126.505, 126.506, 126.507, 131.38, 148.05,149.308, 166.061, 167.081, 173.28, 173.402, 173.403, 173.421, 173.423,173.424, 173.425, 173.431, 173.432, 173.433, 173.434, 173.501, 175.052,175.30, 17531, 175.32, 175.33, 175.34, 175_35, 302.011, 302.012, 302.013,302.014, 302.015, 305.20, 307.121, 319.24, 717.25, 901.041, 927.54, 1501.50,1501.51, 1545.073, 2315.50, 2505.122, 3119.371, 3301.041, 3301.076,3301.0719, 3301.122, 3301.163, 3301.764, 3301.60, 3301.61, 3301.62,3301.63, 3301.64, 3301.90, 3301.95, 3304.181, 3304.182, 3310.15, 3310.51,3310.52, 3310.521, 3310.53 to 3310.64, 3311.0510, 3313.461, 3313.719,3313.86, 3314.028, 3314.44, 3319.223, 3319.61 l, 3319.612, 3323.052,3333.048, 3333.39, 3333.90, 3333.91, 3354.24, 3365.12, 3375_79, 3701.0212,3701.611, 3702.592, 3702.593, 3702.594, 3705.031, 3714.011, 3714.074,3721.511, 3721.512, 3721.513, 3722,022, 3734.282, 3745.50, 3903.77,3923.90, 3923.91, 4301.85, 4501.243, 4501.29, 4503.548, 4503.563, 4582.71,4755.061, 4781.16, 4781.17, 4781.18, 4781.19, 4781.20, 4781.21, 4781.22,4781.23, 4781.24, 4781.25, 4781.99, 4928.207, 4929.261, 5101.073,5101.504, 5101.5210, 5101.542, 5111.0121, 511 L0210, 5111.0211, 5111.035,5111.085, 5111.092, 5111.093, 5111.141, 5111.142, 5111.165, 5111.233,5111.236, 5111.861, 5111.88, 5111.881, 5111.882, 5111.883, 5111.884,5111.885, 5111.886, 5111.887, 5111.888, 5111.889, 5111.8810, 5111.8811,5112.372, 5119.613, 5123.193, 5155.38, 5537.051, 5579.10, 5705.219,5705.2110, 5721.012, 5725.33, 5729.16, 5733.58, 5739.051, 5747.66,5751.014, 5907.111, 5911.11, 5919.20, 5919.36, and 6119.091; to repeatsections 117.102, 119.031, 121:24, 173.71, 173.72, 173_721, 173.722,173.723, 173.724, 173.73, 173.731, 173.732, 173.74, 173.741, 171742,173.75, 173.751, 173.752, 173_753, 17176, 173.77, 173.771, 173.772,173.773, 173.78, 173.79, 173.791, 173.80, 173.801, 173.802, 173.803, 173.81,
SENATE JOURNAL, WEDNESDAY, JUNE 3, 2009 473
173.811,173.812,173.813,173.814,173.815,173.82,173.83,173.831,173.832,173.833,173.84,173.85,173.86,173.861,173.87,173.871,173.872,173.873,173.874,173.875,173.876,173.88,173.89,173.891,173.892,173.90, 173.91, 905.38, 905.381, 905.66, 907.16, 927.74, 1504.01, 1504.02,1504.03, 1504.04, 1521.02, 1711.58, 3301.43, 3313.473, 3314.15, 3319.222,3319.23, 3319.261, 3319.302, 3319-304, 3333.27, 3701.77, 3701.771,3701.772, 3701.93, 3701.931, 3701.932, 3701.933, 3701.934, 3701.935,3701.936, 3702.51 1, 3702.523, 3702.527, 3702.528, 3702.529, 3702.542,3704.143, 3724.01, 3724.02, 3724.021, 3724.03, 3724.04, 3724.05, 3724.06,3724.07, 3724.08, 3724.09, 3724.10, 3724.11, 3724.12, 3724.13, 3724.99,4517.052, 4517.27, 4735.22, 4735.23, 4753.101, 5101.072, 5119.40, 5120.12,and 5123.23 of the Revised Code; to amend Sections 205.10, 321.10, 325.20,and 327.10 of Am. Sub. H.B. 2 of the 128th General Assernbly; to amendSection 309.10 of Am. Sub, H.B. 2 of the 128th General Assembly; to atnendSection 317.10 of Am. Sub. H.B. 2 of the 128th General Assembly; to amendSections 120.01, 120.02, and 120.05 of Atn. Sub. H.B. 119 of the 127thGeneral Assembly; to amcnd Sections 103.80,80, 103.80.90, 301.20.50, and301.30.30 of H.B. 496 of the 127th General Assembly; to amend Sections201.30, 301.20.20, 301.20.80, and 301.60.50 of H.B. 496 of the 127th GeneralAssembly, as subsequently amended; to amend Section 11 of Am. Sub. H.B.554 of the 127t1i General Assembly; to amend Sections 233.30.20, 233.30.50,233.40.30, and 235.10 of H.B. 562 of the 127th General Assembly; to amendSections 227.10 and 233.50.80 of H.B. 562 of the 127th Generat Assembly, assubsequently amended; to amend Section 231.20.30 of Ain. Sub. H.B. 562 ofthe 127th General Assembly, as subsequentty aniended; to atnend Section831.06 of H.B. 530 of the 126th General Assembly; to amend Section 4 ofH.B. 516 of the 125th General Assembly, as subsequently ainended; to amendSection 153 of Ani. Sub. H.B. 117 of the 121st General Assembly, assubsequently ameuded; to repeal Section 3 of Atn. Sub. iI.B. 203 of the 126thGeneral Assembly; to repeal Section 325.05 of Atn. Sub. H.B. 2 of the 128thGeneral Assembly; to amend the version of section 2949.111 of the RevisedCode that is scheduied to take effect January 1, 2010, to continue theprovisions of this act on and after that effective date; to amend the version ofsection 5739.033 of the Revised Code that is schcduled to take effect January1, 2010, to continue the provisions of this act on tmd after that effcctive date;to make operating appropriations for the bicnnium beginning July 1, 2009, andending June 30, 2011, and to provide authorization and conditions for theoperation of state programs, was considered the third time.
The question being, "Shall the bill, Sub. H. B. No. 1, pass?"
On the motion of Senator Nichaas, the Senate recessed until 11:12 a.m.
The Senate met pursuant to the recess.
JOURNALS OF THE SENATE AND HOUSE OF REPRESENTATIVES
OHIO
SENATE
JOURNAL
CORRECTEI) VERSIONMONDAY, JULY 13, 2009
874 SENATEJOURNAL, MONDAY, JULY 13, 2009
On the motion of Senator Niehaus, the Senate recessed unti16:37 p.m.
The Senate met pursuant to the recess.
INTRODUCTION AND FIRST CONSIDERATION OF BILLS
The following bill was introduced and considered the first time:
S. B. No. 155-Senators Carey, Miller, D.
To ainend section 5747.01 of the Revised Code to partially decouple Ohiolaw from recent federal tax law changes, to require the Department of Job andFamily Services to operate the Disability Medical Assistance Program in thesaine manner the Program was operated as of June 30, 2009, and to makeappropriations.
On the motion of Senator Nieliaus the Senate reverted to the fourth order ofbusiness, Reports of Conference Committees.
REPORTS OF CONFERENCE COMMITTEES
The Conunittee of Conference to which the matters of difference betweenthe two houses were referred on Am. Sub. H.B. 1, Representative Sykes - et al.,having had the same under consideration, recommends to the respective housesas follows:
The bill as passed by the Senate with the following amendments:
In line 335, after "1753.09," insert "1901.121;'; after "1901.31;' insert1907.14,"
Between lines 28540 and 28541, insert:
"Sec. 1901.121. (A)(1)(a) Subject to division (A)(2) of this section and inaccordance witli the payment procedures specified in division (B) of this section,a judge specified in division (A)(1)(b) of this section is entitled, on a per diembasis, to the compensation paid to the incumbent judge of the municipal court inwhich the judge is appointed or designated to serve. If the incumbent judge iscompensated as described in division (A)(5) of section 141.04 of the RevisedCode, the appointed or designated judge is entitled to compensation at that rate.If the ineumbent judge is compensated as described in division (A)(6) of section141.04 of the Revised Code, the appointed or designated judge is entitled tocompensation at that rate.
(b) The followingjadges shall receive compensation as described in
SLNATE JOURNAL, MONDAY, JULY 13, 2009 1973
Tn line 371, after "3767.41," insert "3770.03,"
In line 445, after "3745.50," insert "3770.21,"
Between lines 58047 and 58048, insert:
"Sec. 3770.03. (A) The state lottery commission shall promulgate rulesunder which a statewide lottery may be conducted . which inchtdes, and sincethe orit4inal enactment of this section has included the authority for thecommission to operate video lottery terniinal games. Any referenee in thischapter to tickets shall not he consuued to in any wav limit the authorit oL f thecotnmission to operate video lottery ternrinal games. Nothine in this ehaptershall restrict the authority of the commission to promulgate niles related to theoneration of games utilizing video lottery terminals as described in section3770.21 of the Revised Code. The niles shall be promulgated pnrsuant toChapter 119. of the Revised Code, except that instant game nttes shall bepromulgated pursuant to section 111.15 of the Revised Code but are not subjectto division (D) of that section. Subjects covered in these rules shalt include, butneed not be limited to, the following:
(1) The type of lottety to bc conducted;
(2) The prices of tickets in the lottery -
(3) The nuinber, natttire, and value of prize awards, the manner andfrequency of prize drawings, and the manner in which prizes shall be awarded toholders of winning tickets.
(B) The commission shall promulgate rules, in addition to thosedescribed in division (A) of this section, pursuant to Chapter 119. of the RevisedCode under which a statewide lottery and statewide joint lottery games may beconducted. Subjects covered in these rules shall include, but not be limited to,the following:
(1) The locations at which lottery tickets tnay be sold and the manner inwhich they are to be sold. These rules may authorize the sale of lottery tickets bycommission personnel or other licensed individuals from traveling show wagonsat the state fair, and at any other expositions the director of the commissionconsiders acceptable. Tliese niles shall prohibit comtnission personnel or otherlicensed individuals from soliciting from an exposition the right to sell lotterytickets at that exposition, but shall allow commission persotwel or other lieensedindividuals to selllottery tickets at an exposition if the exposition requestscommission persounel or licensed individuals to do so. These t-ules may alsoaddress the accessibility of sales agent locations to commission products inaccordance 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 inipose penalties for failure by lottetysales agents to transfer revenues to the eonnnission in a timely manner;
1974 SENATF.. JOURNAL, MONDAY, JULY 13, 2009
(3) The amount of compensation to be paid licensed lottery sales agents;
(4) The substantive criteria for the licensing of lottery sales agentsconsistent with section 3770.05 of the Revised Code, and procetiures forrevoking or suspending their licenses consistent witli Chapter 119. of theRevised Code. If circumstances, such as the nonpayment of fmids owed by alottery sales agent, or othcr circumstances related to the public safety,convenience, or trust, require imtnediate action, the director may suspend alicense without affording an oppottunity for a prior hearing under section 119-07of the Revised Code.
(5) Special game rules to implement any agrecinents signed by thegovernor that the director enters into with other lottery jurisdictions underdivision (J) of section 3770.02 of the Revised Code to conduet statewide jointlottery games. The rules shall require that the entire net proceeds of those gamesthat remain, after associated operating expenses, prize disbursements, lotterysales agent bonuses, commissions, and reimbursements, and any other expensesnecessary to comply with the agreements or the ndes are deducted from thegross proceeds of those games, be transferred to the lottery profits educationfund under division (B) of section 3770.06 of the Revised Code.
(6 Ativ other subjects the commission determines are necessary for theoneration of video lottery terminal games including the establishment of 1nyfees, fines, or 12avment schedules.
(C) Chlpter 2915 . of the Reviced Code does not apply to_ affect orprohibit lotteries condueted nursuant to this chapter
jD) The commission may promulgate rules, in addition to those describedin divisions (A) and (B) of this section, that establish standards governing thedisplay of advertising and celebrity images on lottery tickets and on other itemsthat are used in the conduct of, or to protnote; the statewide lottery and statewidejoint lottery games. Any revenue derived fi-om the sale of advertising displayedon lottery tickets and on those other items shall be considered, for purposes ofsection 3770.06 of the Revised Code, to be related proceeds in eonnection withthe statewide lottery or gross proceeds from statewide joint lottery gaines, asapplicable.
(Dj ^(1) The commission shall meet with the director at least once eachmonth and shall convene other meetings at the request of the chairperson or anyfive of the members. No action taken by the commission shall be binding unlessat least five of the members present vote in favor of the action. A written recordshall be made of the proceedings of each meeting and shall be transmittedforthwith to the govemor, 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 cotnmission a report each month,showing the total revenues, prize disbursements, and operating expenses of thestate lottery for the preceding month. As soon as practicable after the end of eachfiscal year, the oonunission shall prepare and transmit to the govei-nor and the
SENATE JOURNAL, MONDAY, JULY 13, 2009 1975
general assembly a report of lottery revenues, prize disbursements, and operatingexpenses for the preceding fiscal year aud any recommendations for lcgislationconsidered necessary by the commission,"
Between lines 58209 and 58210, insert:
" See 3770 21. (A) "Video lottery terminal" means any electronic device-,nnroved by the state lottery comniission that plovides immediate grizedeterminations for par6cinants on an electronic display.
(B) Thestlte lottery commission shall include, in any rules adoptedconcerning video lottery terminals the level of murirnum investments that mustbe made by video lottety tei-minal licensees in the buildings and grounds at thefacilities, includin *ylerc^ora.n, facilities, in which the terminals will be located.aleng witl any standards and tiinetables for such investments
(Cl No license or excise tax or fee not in effect on the effective date ofthis section shall be assessed upon or collected from a video lotterv terminallicensee by any county, township municipal cornoration school district, or otherpolitical subdivision of the state that has authority to assess or collect a tax or feebv reason of the video lottery terminal related conduct authorized by section3770 . 03 of the Revised Code This division does not prohibit the imoosition oftaxes under Chapter 718 . or 3769 . of the Revised Code
(D) The suWrene court shall have exclusive ori ginal iurisdiction overany claim •tsserting that this section or section 3770 . 03 of the Revised Code oranvnortion of those sections or arty rule adonted under those sections violatesariv nrovision of the Ohio Constitution, wy claim asserting that any action takenby the governor or the lotterv commission pursulnt to those sections violates anyprovision of the Ohio Constitution or any provision of the Revised Code, orativclaim asserting that anyportion of this section violates anv nrovision of the OhioConstitiRion [f any claim over which the supreme coutt is granted exchtsiveoriginal iurisdiction by this division is filed in any lower court, the claim shall bedismissed b^t e court on the Qronnd that the court lacks jurisdiction to review it.
(F) Should anv nortion of this section or of seetion 3770 . 03 of theRevised Code be found to be unenforceable or invalid, it shall be severed and theremainingportions remain in full force and effect."
In line 90873, after "3767.41," insert "3770.03,"
In lines 96920 and96921, delete "$1,164,218 $1,164,218" andinsert"$1,214,218 $1,214,218"
In line 96926, delete "$1,989,218 $1,989,218" and insert "$2,039,218$2,039,218"
Between lines 96926 and 96928, insett:
"VIDEO LOTTERY TERMINAL, OVERSIGIIT
Of the foregoing GRF appropriation item 965321, Operating Expenses,
1976 SENATE JOURNAL, MONDAY, JULY 13, 2009
$50,000 in each fiscal year may be used to defray any expenses associated withthe review of the operation of video lottery terrninal operations as specified inChapter 3770. of the Revised Code."
Between lines 105448 and 105449, insert:
"Section 735._. It is the intent of the General Assembly to addresspolitical contribution issues by the end of the 128th General Assembly.
Section 737._. Notwithstanding any other provision to the contrary inChapter 3769. of the Revised Code, for a period of two years after the effectivedate of this section, any person holding a permit under the provisions of thatchapter to conduct live horse-racing meetings at a facility owned by a politicalsubdivision may apply for, and the State Racing Commission may grant, apermit to conduct horse-racing meetings at a location at which such meetingshave not previously been conducted, if the pennit application is aecompanied bya resolution adopted by the board of county commissioners of the county of theproposed location, and of the local legislative authority, whether a municipalcorporation or townsltip, of the proposed location, requesting that theCommission grant the pennit. The Commission may only grant such anapplication if the proposed location is in the same or a contiguous county aud iswithin fifty miles of the current location associated with the permit, but is not inthe same county as another location at which live horse-racing meetings areconducted."
ln line 106543, after "3718.03," insert "3770.03, 3770.21,"
hi line 107 of the title, after "3767.41," insert "3770.03,"
In line 205 of the title, after "3745.50," insert "3770.21,"
Delete line 103788
In line 103790, reinsert "25,777,964"
Delete line 103790a
Delete lines 103991 through 104190
In 1'nte 255 of the title, deletc "301.20.80,"
In line 406, delete "5112.371,"
In line 407, after "5123.0413," insert "5123.0417,"
In line 424, delete the first "and"; afte- "5111.688" inserY ", and5112.371"
In line 453, delete "5112.372,"
Delete lines 78314 through 78394 and insert:
"Sec. 5112.30. As used in sections 5112.30 to 5112.39 of the RevisedCode:
2002 SENATE JOURNAL, MONDAY, JULY 13, 2009
VTOVeterans'Organizations
753501 Atnvets $316,711 $316,711
VTOVeterans' 754501 Disabled $237,939 $237,939Organizations Atnerioan
VeteransVTOVctcrans' 756501 Mariac Corps $127,569 $127,569
Organizations LeagueVTOVeterans' 757501 37lhDivA$P $6,541 $6,541
Organizations Veterans'Association
VrOV eterans' 758501 Veterans of $271,277 $271,277Organizations Foreign Wars
DVSDepartmenlof 900100 Personal $25,219,282 $25,219,282VeteransServices
Services
DVSDeparttnentof
Vetcrans
Services
900200 Maint,enance $4,427,264 $4,427,264
DVSDeparintentof 900402 HalloCFanrc $118,750 $118,750Veterans
Sctvices
DVSDepartment of 900403VctcransServices
VeteranRecordCunversion
$40,631 $40,631
DVSDepartment of 900408Veteran.cServices
Department ofVeteransServices
$2,054,790 $2,054,790
DYSDepartment of 470401YouthServiees
RECLAIMOluo
$196,288,874 $184,026,374
DYSDepartment of 470412Yonth Services
Lease RentalPayments
$22,863,300 $26,043,900
DYSDepartment of 470510Youth Services
Youth Services $16,702,728 $16,702,728
DYSDepartment of 472321YouW Services
Parole(>f^erations
$11,400,020 $11,400,020
DYSDepartmentof 477321Youth Services
AdministrativeOperntions
$13,342,557 $13,580,057
General Revenue Fund Total $24,631,183,745 $25,888,526,989
Managers on the Palt of theHouse of Representatives
Managers on the Part of theSenate
iS/ VF'7LNON SYKL$ L$1 JOHN A CARBY JR
VERNON SYKES JOHN A. CAREY, JR.
L4/ 1AY P GOYAL cs , MARI{p,NrA[,,ONP.R 1R.
JAY P. GOYAL.
LS'
MARK D. WAGONER, JR.
DAr R Mn i 172
RON AMSTUTZ DALE MILLER
Senator Niehaus nioved that the report of the committee of conference onAm. Sub. 11. B. No. 1, be brought up for immediate consideration, pursuant toSenate Rule No. 44.
The question being, "Shall the motion be agreed to?"
The motion was agreed to_
SENATE JOURNAL, MONDAY, JULY 13, 2009 2003
The question being, "Shall the report of the Conmiittee of Conference beagreed to?"
The yeas and nays were taken and resulted - yeas 17, nays 15, as follows:
Those who voted in the affirmative were: Senators
Cafaro Carey Faber FedorKearney Miller D Miller R MoranoNiehaus Sawyer Schiavoni SmithStrahorn Turner Wagoncr Wilson
Harris-17.
Those who voted in the negative were: Senators
Buchrer Cates Coughlin GibbsGilbnor Goodman Grendell HugltesHusted Patton Schaffer SchuringSeitz Stewart Widener-t5,
So the report of Committee of Conference was agreed to.
The question being, "Shall the title be agreed to?"
Senator Carey moved to amend the title as follows:
Remove the names: "Grendell, Gillmor, Patton."
The question being, "Shall the motion be agreed to?"
T'he motion was agreed to and the title so amended.
On the motion of Senator Niehaus, the Senate recessed until 7:27 p.m.
The Senate met pursuant to the recess.
Message from the House of RepresentativesMr. President:
I am cGrected to inform you that the House of Representatives has concutxedin the adoption of the following joint resolution:
Am. Sub. S. J. R. No. 6 -Senators Gibbs, WilsonCosponsors: Senators Faber, Grendell, Morano, Buehrer, Cafaro, Carey,Fedor, Gillmor, Goodman, Hairis, Husted, Niehaus, Sawyer, Schaffer, Seitz,Stewart, Strahorn, Wagoner, Widener, Patton Representatives Adams, J.,Adams, R., Amstutz, Bacon, Baker, Balderson, Batchelder, Blair, Blessing,Bolon, Book, Boose, Bubp, Burke, Carney, Coley, Combs, Daniels,Derickson, Dodd, Dolan, Domenick, Dyer, Evans, Fende, Gardner, Garlatid,Garrison, Gerben'y, Goodwin, Goyal, Grossman, Hackett, Hall, Heard, Hite,Hottinger, Huffinan, Jones, Jordan, Lehner, Letson, Luckie, Lundy, Maag,
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