iJit tlje ^&upretrYe (Court of ®bin
S"I'A-I'F. ex rel. OHIO CHRISTIAN . Case No. 2009-1648 ALLIANCE, et al., Original Action Relators,
vs.
TED STRICKLAND, et al.,
Respondents.
RESPONDRNTS' iYIO1'ION FOR J[JDGMEN'P ON THE PLEADINGS
1'INIOTHY J. GRENDELI,* (0005827) RICHARD CORDRAY (0038034) *C'ounsel ofRec•ord Attorne., General of Ohio 6640 Harris Road Broadview Heights, Ohio 44147 BENJAMIN C. MIZ.ER* (0083089) 440-729-6145 Solicitor General 614-220-0833 fax * Counsel qfRecord AL.EXANDRA T. SCHIMMER (0075732) Counsel for Relators Chief Deputy Solicitor General Ohio Clu•istian Alliance, Ronald Amstutz,, RICIIARD N. COGLIANESE (0066830) Jolm Adatns, and Seth Morgan PEARL M. CHIN (0078810) LUCAS R. BLOCHER (0079239) MICHAEL J. SCHULBR (0082390) ROBER"I' F. MCCARTIIY (0083829) Assistant Attonieys General 30 East Broad Street, 17th Floor Columbus, Ohio 43215 614-466-8980 614-466-5087 fax benjamin.rnizer@ohioattorneygeiieraLgov
Counsel for Respondetits ,ittt tfje *upreme Court o ® bio
S"I'A7'E ex rel. 01110 CIIRISTIAN Case No. 2009-1648 ALLIANCE, et al., Original Action Relators,
vs.
TED STRICKLAND, et al.,
Respondents.
RESPONDENTS' MOTION FOR JUDGMENT ON THE PLEADINGS
TIMO111Y J. GRENDELL* (0005827) RICHARD CORDRAY (0038034) *(.'ounsel of Record Attorney General of Ohio 6640 Harris Road Broadview Heights, Ohio 44147 BENJAMIN C. MIZER* (0083089) 440-729-6145 Solicitor General 614-220-0833 fax *Cozinsel of Record ALEXANDRA T. SCHIMMER (0075732) Counsel for Relators Chief Deputy Solicitor General Ohio Christian Alliance, Ronald Amstutz, RICHARD N. COGLIANESE (0066830) John Adanis, and Seth Morgan PEARL M. CHIN (0078810) LUCAS R. BLOCHER (0079239) MICIIAEL J. SCHULI:R (0082390) ROBERT P. MCCARTHY (0083829) Assistant Attorneys General 30 East Broad Street, 17th Floor Columbus, Ohio 43215 614-466-8980 614-466-5087 fax [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 General tCounsel of Record ALEXANDRA T. SCHIMMER (0075732) Chief Deputy Solicitor General RICIIARD N. COGLIAt^IESE ( 0066830) PEARL M. CHIN (0078810) LUCAS R. BLOCHER (0079239) MICHAEL J. SCIIULER (0082390) ROBERT F. MCCARTHY (0083829) Assistant Attorneys General 30 East Broad Street, 17th Floor Columbus, Ohio 43215 614-466-8980 614-466-5087 fax [email protected]
Counsel for Respondents 3iJT thE upreme Court 0 ®
STATE cx rel. ORIO CHRISTIAN Case No. 2009-1648 ALLIANCE, et al., Original Action Relators,
vs.
1'ED STRICKLAND, et al.,
Respondents.
MEMORANDUM IN SUPPORT OF RESPONDENTS' MOTION FOR JUD(:MENT ON THE PLEADINGS
TIMOTHY J. GRENDELL* (0005827) RICHARD CORDRAY (0038034) *C'ounsel ofRecorcd Attorney General of Ohio Grendell & Simon Co., LPA 6640 Harris Road BENJAMIN C. MIZER* (0083089) Broadview Heights, Ohio 44147 Solicitor General 440-729-6145 *Counsel ofRecord 614-220-0833 fax ALEXANDRA T. SCHIMMER (0075732) Chief Deputy Solicitor General Counsel for Relator•s. RICHARD N. COGLIANESE (0066830) Ohio Christian Alliance, Ronald Amshztz, PEARL M. CFIIN (0078810) John Adams, and Seth Morgan LUCAS R. BLOCIIER (0079239) MICIIAEL J. SCHULER (0082390) ROBERT F. MCCARTIIY (0083829) Assistant Attorneys General 30 East Broad Street, 17th Floor Columbus, Ohio 43215 614-466-8980 614-466-5087 fax benjamin.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 Ohioans have disfavored private gambling interests but approved of State-run lottery activities ...... 2
B. On a bipartisan vote, the General Assembly passed, and the Governor signed, the Budget Bill for fiscal years 2010-2011, which seeks to raise and appropriate revenue through 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 that VLT 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 of Article 11, § 15(C) when it cnacted the VLT Provisions ...... 16
1. The VL"1' Provisions dic( not vitally alter the Budget Bill's subject matter because they related to the same conunon ptiupose as the original appropriation measures ...... 17
2. 'I'he VLT Provisions are consistent with the purpose of the three-considerations ...... 21 rute because they were subject to vigorous public debate before their adoption.
C. The State's implementation of VI,Ts does not create an itnpeimissible lending of credit 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 in violation of the Ohio Constitution ...... 27
3. The VLT Provisions and regulations are consistent with the purpose of Article VIII, § 4 ...... 31
D. Relators cannot demonstrate that the Governor has violated his duty to "see that the laws are faithfully executed" tmder Article 111, § 6 ...... 32
E. The 50% commission payable to VLT agents is not derived from "net proceeds" and therefore 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, thereby freeing up general revenue funds for other purposes, does not violate Article XV, § 6 of 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 to Implement 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, 104 Ohio St.3d 466, 2004-Ohio-6777 ...... 13
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 Court has 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 in Relators' motion for expedited proceedings and stated thattlzeir Answer and responsive motion would 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 Ohioans have disfavored private gambling interests but approved of State-run lottery activities.
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, the Budget Bill for fiscal years 2010-2011, which seeks to raise and appropriate revenue through 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 Provisions to 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 that VLT 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 VLT implementation 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
(1977), 52 not have an adequate remedy at law. State ex rel. Nat'l C'ity Bank v. Bd. of Educ.
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
111 constitutionality. State ex rel. Ohio Congress o,f Parents & Teachers v. State Bd. of Fduc.,
Ohio St.3d 568, 2006-Ohio-5512, ¶ 20 (citing N. Ohio Patrolmen's Benevolent Assn. v. Parma
81 (1980), 61 Oliio St.2d 375, 377); State e.x re1. Taft v. Franklin Cly. Court of Common Pleas,
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 Article II, § 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-thirds of 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 shall be 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 appropriation measures.
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-considerations rule 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 of credit 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£, any individual association or corporation whatever; nor shall the state ever hereafter become a joint owner, or stockholder, in any company or association in this state, or elsewhere, 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 in violation 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, to engage in and earzy out a single business adventtu•e for joint profit, for which purpose they combine their efforts, property, money, skill and knowledge, without creating a partnership, and agree that there shall be a comniunity of interest among them as to the purpose of the undertaking, and that each coadventurer shall stand in the relation of 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 Article VIII, § 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 the laws 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" and therefore 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 must make at least $80 million in facility improvements, with at least $20 million of improvements in the first year alone. (O.A.C. 3770:2-3-01(B)(19)).
• VLT agents must secure performance and payment bonds, construction bonds, surety bonds (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, and service of VLTs aud must agree to hire and coinpensate adequate personnel to ensure compliance 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 vouchers and 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 problem gamblers. (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, to sell 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 the state treasury that shall consist solely of such proceeds and shall be used solely for the support of elementary, secondary, vocational, ancl special education progranrs as determined 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, thereby freeing 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 General RICHARD N. COGLIANESE (0066830) PEARL M. CHIN (0078810) LUCAS R. BLOCHER (0079239) MICHAEL J. SCHULER (0082390) ROBERT F. MCCARTHY (0083829) Assistant Attonreys Genei-al 30 East Broad Street, 17th Floor Colhm7bus, Ohio 43215 614-466-8980 614-466-5087 fax [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. Grendell Grendell & Siinon Co., LPA 6640 Harris Road Broadview Heights, Ohio 44147
Counsel for Relators Ohio Christian Alliance, Ronald Amstutz, John Adanis, and Seth Morgan
in C.4Mizer Solicitor 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 has caused many and substantial hardships for the people of Ohio. Many Ohioans rely on the health, safety and welfare services provided by the State. Declining employment and recessionary sales have led to declining tax revenues realized by the State, making it more and more challenging for the State to provide the educational, health and other services its people deserve. Without additional revenues, the State would be required to cut services even beyond the significant levels already undertaken and under consideration in current budget discussions.
2. The Implementation of Video Lottery Terminals (VLTs) is an Important Part of Ohio's Ba9a®eed Budget I°lan. The imtnediate implementation of VLTs by the Ohio Lottery is projected to generate approximately $933 million in net proceeds during the coming biennium. The dedication of that revenue to education programs is eritical to our continued efforts to strengthen Ohio's education system. Increased lottery revenues allow the state to dedicate scaree general revenue fnnds to critical progtams benefiting the healtb, safety and welfare of Ohio's citizens, avoiding devastating cuts to those programs.
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 the State to manage lottery games to support education programs. The General Assembly has established the Ohio Lottery as that agency and has enacted various statutes authorizing the lottery to conduct and operate lottery games in accordance with the Constitution. The General Assembly has indicated to me its intent to pass legislation which would expressly acknowledge that the Ohio Lottery has the authority to implement VLTs under the existing laws of the State of Ohio and that the implementation of VLTs does 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 an express acknowledgement of the General Assembly that the Ohio Lottery has the authority to implenient VLTs, I believe that the Ohio Lottery can, and I direct the Lottery Director to, adopt rules regarding the implementation of VLTs and immediately take steps to implement VLTs in accordance with the following requirements unless and until they are modified or rejected by the General Assembly:
a. VI.'1!'a Should Only Operate At Licensed I^3acetraek Facit►tie5, So as to limit the proliferation ofgambling activity to locations in which the local cornmunity has 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 at facilities 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 Lottery Director should assure that only seven licenses to operate VLTs are issued at any one time.
c i'I,Ts Licenses Shall Be Granted for aMini.mnm of'T'en Years. To assure effective regulatory oversight regarding those licensed to operate VLTs, licenses should be granted for a minimum of ten years and should be transferred only in accordance with strictly established guidelines.
d. Strict Background Checks of Prospective VLT Licensees SIaall Be Undertaken. Strict criminal and financiat background checks of all prospective VLT licensees shall be undertaken prior to the issuance of any such licenses and only those meeEing clearly articulated standards shall be granted such licenses.
e. VLTs Should Be Implemented Quickly, But Contracis Should Foltobv t4ll Standard Bidding Requirements. The Lottery should use any existing contracts it has which would pernrit the rapid implementation of VLTs, but any Lottery Commission eontraet for services associated with the implementation of VLTs must be awarded by competitive bidding unless competitive bidding requirements are waived by the Controlling Board.
t.AJIYLT Profits Should Benefit Education Programs in Ohio. In order to comply with the constitutional rcquirement regarding the use of lottery net proceeds, all VLT net proceeds shall be deposited and utilized to benefit education programs in Ohio in the same manner as all other lottery net proceeds.
5. Absense of Implementing Legislation. If the implementing legislation described in Paragraph 3 is not enacted into law as part of or prior to the FY10-13 biennial budget law and such law is not signed into law by me witbin five days of the issuance of this Directive, the Directive shall then be deemed immediately null and void.
Ted Strickland, Governor EXHIBIT Am. Sub. H. B. No. 1 128th G.A. 1796
hat has fled with theaunerintendent or authorizing the nrocedures deseribPd in diviRions (C1 and LD) of section 3929.86 of the Revised Code from receiving inaurance proaeeds under i section 3929.86 of the Revised Code. Sec. 3770.03. (A) The state lottery commission shall promnlgate rules under which a statewide lottery may be conducted whieh includes. and since thP nriginal enactment of this section has included.. the authority for the commission to operate video lotteIy temrinalgames Any reference in this 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 this chanter shall restrict the authorit.y^ of the commission to promulg at e nalcs related to the oneration of ea_mes utilizingvift otterv terminals as deccribed in section 3770.21 of the Revised Code. The rules shall be promulgated . pursnant to Chapter 119. of the Revised Code, except that instant game rules shall be promulgated pursuant to section 111.15 of the Revised Code but are not subject to division (I)) of that section. Subjects covered in these rules shall include, but need not be flmited to, the following: (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 be awarded to holders of wirming tickets. (B) The commission shall promulgate rules, in addition to those described in division (A) of this section, pursuant to Chapter 119. of the Revised Code under which a statewide lottery and statewide joint lottery games may be conducted. Subjects covered in these rules sball include, but not be limited to, the following: (1)'fhe locations at which lottery tickets may be sold and the manner in which they are to be sold. These rules may authorize the sale of lottery tickets by commission personnel or other licensed individuals from traveling show wagons at the state fair, and at any other expositions the. director of the commission considers acceptable. These rules shall prohibit commission personnel or other licensed individuals from soliciting from an exposition the right to sell lottery tickcts at that exposition, but shaH allow commission personnel or other licensed individuals to sell lottery riclcets at an exposition if the exposition requests commission personnel or flcensed individuals to do so. These rules may-also address the accessibility of sales agent locations to comniission products in accordance with the "Americans with Disabilities 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 by lottery sales agents to transfer revenues to the commission in a timely manner; (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 for revoking or suspending their licenses consistent with Chapter 119. of the Revised Code. If eireumstanees, such as the nonpayment of funds owed by a lottery sales agent, or other circumstances related to the public safety, convenience, or trust, require immediate action, the director may suspend a Iicense without affording an opportunity for a prior hearing under section 119.07 of the Revised Code. (5) Special game rules to implement any agreements signed by the governor that the director enters into with other lottery jurisdictions under division (J) of section 3770.02 of the Revised Code to conduct statewide joint lottery games. The rules shall require that the entire.net proceeds of those games that remain, after associated operating expenses, prize disbursements, lottery sales agent bonuses, commissions, and reimbursements, and any other expenses necessary to comply with the agreements or the rules are deducted from the gross proceeds of those games, be 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 the M,eration of video lottery terminal games, including the establishment of any fees, finv& or navment schedules. (C) Chavter 2915. of the Revised Code does not a ^ i n l v to affect or prahibit lotteries canducted nursuan to this chapter. 1M The commission may promulgate rules, in addition to those described in divisions (A) and (B) of this section, that establish standards governing the display af advertising and celebrity images on lottery tickets and on other items that are used in the conduct of, or to promote, the statewide lottery and statewide joint lottery games. Any revenue derived from the sale of advertising displayed on lottery tickets and on those other items sha11 be considered, for purposes of section 3770.06 of the Revised Code, to be related proceeds in connection with the statewide lottery or gross proceeds from statewide joint loitery games, as applicable. (B)(B^(l) The commission sball meet with the director at least once each 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 commission shall be binding unless at least five of the members present vote in favor of the action. A written record shall be made of the proceedings of each meeting and shall be transmitted forthwith to the govemor, the president of the senate, the senate minority leader, the speaker of the house of representatives, 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 of the state lottery for the preceding month. As soon as practicable after the end of each fiscal year, the commission sball prepare and transmit to the govemor and the general assembly a report of lottery revenues, prize disbursements, and operating expenses for the preceding fiscal year and any recommendafions 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 other combination of individtials meeting the requirements set forth in this section or established by rule or order of the state lottery commission. (13)1'he director of the state lottery commission may license any person as a lottery sales agent. No license shall be issued to any person or group of persons to engage in the sale of lottery tickets as the person's or group's sole occupation or business. Before issuing any license to a lottery sales agent, the director shall consider all of the following: (1) The financial responsibility and seeurity of the applicant and the applicant's business or activity; (2) The accessibility of the applicant's place of business or activity to the public; (3) The sufficiency of existing licensed agents to serve the public interest; (4) The volume of expected sales by the applicant; (5) Any other factors pertaining to the public interest, 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 shall suspend or revoke, a license if the applicant or licensee: (1) Has been convicted of a felony or bas been convicted of a crime involving 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 any connection; (4) Has been fovnd to have violated any rule or order of the commission; or (5) Has been ' convicted of- illegal trafficking in f"eee}--stsaips suxmiemental nutrition assistanee program benefits. (I)) Except as otherwise provided in division (F) of this section, the director of the state lottery commission shall refuse to grant, or shall suspend or revoke, a license if the applicant or licensee is a corporation and any of the following applies: (1) Any of the corporation's directors, officers, or controlling shareholders has been found guilty of any of the activities specified in divisions (C)(1) to (5) of this section; (2) It appears to the director of the state lottery commission that, due to the experience, charaeter, or general fitness of any director, officer, or controlling shareholder ofthe corporation, the granting of a license as a lottery 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 it would conduct a lottery sales agency pursuant to the license applied for; (4) Any person, firm, association, or corporation other than the applicant or licensee shares or will share in the profits of the applicant or licensee, other than receiving dividends or distributions as a shareholder, or participates or will participate in the management of the affairs of the applicant or licensee. (E)(1) The director of the state lottery commission shall refuse.to grant a license to an applicant for a lottery sales agent license and shall revoke a lottery sales agent license if the applicant or licensee is or has been convicted of a violation of division (A) or (C)(1) of section 2913.46 of the Revised Code. (2) The director shall• refuse to grant a license to an applicant for a lottery sales agent license that is a corporation and shall revoke the lottery sales agent license of a corporation if the corporation is or has been convicted of a violation of division (A) or (C)(1) of section 2913.46 of the Revised Code. (F) The director of the state lottery commission shall request the bureau of criminal identification and investigation, the department of public safety, or any other state, local, or federal agency to supply the director with the criminal records of any applicant for a lottery sales agent license, and may periodically request the criminal records of any person to whom a lottery 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 a request, the director shall require an applicant or licensee to obtain fingerprint impressions on fingerprint cards prescribed by the superintendent of the bureau of criminal identification and investigation at a qualified law enforcement agency, and the director shall cause those fingerprint cards to be forwarded to the bureau of criminal identification and investigation, to the federal bureau of investigation, or to both bureaus. The commission shall assume the cost of obtaining the fingerprint cards. The director shall pay to each agency supplying criminal records for each investigation a reasonable fee, as determined by the agency. The conunission may adopt uniform rales specifying time periods after whicb the persons described in divisions (C)(1) to (5) and (D)(1) to (4) of this section may be issued a license and estabiisbing requirements for those persons 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 of the following: (a) Pay to the state lottery commission, at the time the application is submitted, a fee in an amount that the director of the state lottery commission determines by rule adopted under Chapter 119. of the Revised Code and that the controlling board approves; (b) Prior to approval of the application, obtain a surety bond in an amount the director determines by rule adopted under Chapter 119. of the Revised Code or, alternatively, witb the director's approval, deposit the same amount into a dedicated account for the benefit of the state lottery. The director also may approve the obtaining of a surety bond to cover part of the amount required, together with a dedicated acxount deposit to cover the remainder of the amount required. A surety bond may be with any company that ec5mplies with the bonding and surety laws of tbis state and the requirements established by rules of the commission pursuant to this chapter. A dedicated account deposit shall be conducted in aeeordance with policies and procedures the director establishes. A surety bond, dedicated account, or both, as applicable, may be used to pay for the lottery sales agent's failure to make prompt and accuratc payments for lottery ticket sales, for missing or stolen lottery tickets, or for daunage to equipment or materials issued to the lottery sales agent, or to pay for expenses the commission incurs in connection with the lottery sales agent's license. (2) A lottery sales agent license 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 to the director that the surety bond, dedicated account deposit, or both, required under division (G)(1)(b) of this section has been renewed or is active, wbicbever applies. Before. the commission renews a Iottery sales agent license, the lottery sales agent shall subnvt a renewal fee to the commission in an amount that the director determines by rule adopted under Cbapter 119. of the Revised Code and that the controlling board approves. The renewal fee sball not exceed the actual cost of administering the license renewal and processing changes reflected in the renewal application. The renewal of the license is effective for up to one year. (3) A lottery sales agent license sball be complete, accurate, and current at all times during the term of the license. Any changes to an original license application or a renewal application may subject the applicant or lottery sales agent, as applicable, to paying an administrative fee that shall be in an t amount that the director determines by rule adopted under Chapter 139. of the Revised Code, that the controlling board approves, and that shall not exceed the actual cost of administering and processing the changes to an application. (4) The relationsbip between the commission and a lottery sales agent is one of trust. A lottery sales agent collects funds on behalf of the oonunission through the sale of lottery tickets for wbicb the agent receives a compemation. (H) Pending a final resolution of any question arising under this section, the director of the state lottery commission may issue a temporary lottery sales agent license, subject to the terms and conditions the director considers appropriate. (1) If a lottery sales agent's rental payments for the lottery sales agent's premises are determined, in wbole or in part, by the amount of retail sales the lottery sales agent makes, and if the rental agreement does not expressly provide that the amount of those retail sales includes the amounts the lottery sales agent receives from lottery ticket sales, only the amounts the lottery sales agent receives as compensation from the state lottery comrnission for selling lottery tickets shall be considcred to be amounts the lottery sales agent receives from the retail sales the lottery sales agent makes, for the purpose of computing the lottery sales agent's rental payments. See 377021 (A, "Video lotter,Xternunal' " meansanyclecironie devica approved bv the gtate lotterv commis%ion that nrovides immediate nrize determinations for participants on an electronic disnlav (B) The state Iottery commission shall inelude, in nny rules adopted Am. Sub. H. B. No.1 128th G.A. 1.802 concerning video lottery terminals, the lavel af minimum investments that must be made )?v video lottery terminal licensees in the bnildin g-s and, gcpmds at the facilities, includina temnorarv facilities in which the termin mdll be located, along wjth any stanar ds and timetabes for auch investments. Cl No license or e this section aball be assessed npon or cn ]ected from a vidoo lotter,y terminal licensee by anv county, townshin municipal corooration school diStriet or oter 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 authorized by section 3770.03 of the Revised Code. This division docs not prohibit the imposition of taxes er Chapter 71$ or 3769 . of the Revised Code U The suuTeme court Aall have exclusive original iurisdiction over anv claim asserting that this sect^section 3770 .63 of the Revised Code those le -adou3ed under-those secti violates any provision of the Ohio CAnstitution any claim as erting thatan^ acti by the gavernor or the lotta,fy commission bursuant to those cec ' ns violates anv nrovision of the Clhin Constitution or any nrovision of thc Revised Code, or, any claim assertin^hat t any portion of this section vvt,qlates anyn ro visio}t of the Ohio Constitutipn If^t nv claim over which the mpreme gonrt ig granted exclu5jve origM jiiiicdieYion by this division is filed in any to-wer court the claim shall be dismissed 8v the court on the yround that the court lac iurisdictjon to review it. fFl Shnuld any portion of th.t section or of sectiQn 3770 .03 of the Revise^C^Code be found to be unenforceabor invalid 'tt tallsl be severcd and the remainingpo^i iopsamain in full force and effect, Sec. 3773.35. Any person who wishes to conduct a public or private comnetition that involve boxing e% wrestling mixed ial arts kick hox^ rnan contests touzheuv contests^or an other form of boxing or martial arts shall apply to the Ohio atbletie commission for a promoter's license. Each application shall be fil.ed with the commission on forms provided by the comniission, and sball be accompanied by an application fee as prescribed in section 3773.43 of the Revised Code and witta the excaptian o^ stling events by a ees#-bend; surety bond of not less than €ti-a twen thousand dollars conditioned for compliance with sections 3773.31 to 3773.57 of the Revised Code and the rules of the commission. "' ^
The commission shall prescribe the forn of the application for the promoter'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 311,067 TOTAL ALL BUDGET FI7ND GROUPS $ 311,067 $ 311,067
SEcrtoN 263.10, CDR COMMISSION ON DISPUTE RESOLUTION AND CONFLICT MANAGEMENT General Revenue Fund GRF 145401 Commission Operations $ 250,000 $ 0 TOTAL GRF Genemt Revenue Fund $ 250,000 $ 0 TO"l'AL, ALL BUDGET FUND GROUPS $ 250,000 $ 0
SEcTIoN 265. 10. EDU DEPARTMENT OF EDUCATION General Revenue Fund GRF 200100 Personal Services $ 10,490,789 S 10,723,972 GRF 200320 Maintenance and Equipment $ 3,110,071 $ 3,144,897 GRF 200408 Early Childhood Education $ 23,268,341 $ 23,268,341 GRF 200416 Career-Technicat Education $ 2,233,195 $ 2,233,195 Match GRF 200420 Computcr/Application! $ 4,880,871 $ 4,880,871 Network Development GRF 200421 Altemative F..ducation $ 7,814,479 $ 7,918,749 Programs GRF 200422 School Management $ 1,950,521 $ 3,230,469 Assistance GRF 200424 Policy 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 Network GRF 200427 Academic Standards S 5,300,074 S 5,300,074 GRF 200431 Sehool Improvement 5 7,294,175 S 7,391,503 Initiatives GRF 200437 Student Assessment $ 55,954,648 $ 56,703,265 GRF 200439 Accountability(Report Cards S 3,804,673 $ 3,804,673 GRF 200442 Child Care Licensing $ 865,590 $ 877,140 G_RF 200446 EducationManagement s 13,199,152 $ 11 ,934,284 Information System GRF 200447 GED Testing $ 975,536 $ 988,553 GRF200448 EducatorPreparation $ 1,310,750$ 1,328,240 GRF 200455 Community Schools $ 1,000.000 s 1,000,000 GRF 200457 STEM Initiatives $ 5,000,000 $ 5,000,000 GRF 200458 School Employees 8ealth $ 800,000 $ 800,000 Care Board GRF 200502 Pupil 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 $ 111,979,388 GRF 200532 Nonpublic Administrativc $ 50,838;939 $ 50,838,939 Cost Reimbursement GRF200540 Special Education $ 134,150,233 S 135,820,668 Enhancements GRF 200545 Career-Technicat Education $ 7,752,662 $ 7,802,699 Enhancements Am. Sub. H. B. No. 1 128th G.A. 2796
GRF 200550 Foundation Funding S 5,130,669,418 S 4,746,289,372 GRF 20055€ FoundationFunding - Pederal S 387,583,913 $ 457,449,362 Stimulus GRF 200578 Violence Prevention and $ 200,000 $ 200,000 Scheol Safety GRF20090t PropertyTaxAllocafion - S 1,053,262,363 $ 1,020,655,157 Education TOTAL GRF Genera3 Revenue Fund S 7,504,569,256 S 7,175,533,593 Creneral Services Fund Group 1380 200606 Computer $ 7,600,091 $ 7,600,09! Servioes-Operational Support . 4520 200638 Miscellaneous Ed'ucational$ 275,000 S 275,000 Services 4L20 200681 'I'eacherCertiGcationand $ 8,013,206 S 8,147,756 Licensuro 5960 200656 Ohio Career InformaGon S 529,761 $ 529,761 System 5H30 200687 School District Soivency S 18,000,000 $ 18,000,000 Assistance TOTAL GSF General Services Fund Group $ 34,418,058 S 34,552,608 Federal Special Revenue Fund Group 3090 200601 Eduoationally Disadvantaged $ 8,405,512 $ 8,405,512 Programs 3670 200607 School Food Services $ 6,324,707 $ 6,577,695 3680 200614 Veterans Training $ 778,349 5 793,846 3690 200616 Career-Technicat Education $ 5,000,000 $ 5,000,000 Federal Enhancement 3700 200624 EducationofExceptional $ 2,664,000 $ 2,755,000 Children 3740 200647 Troops to Teachers $ 100,000 s 100,000 3780 200660 Leam and Serve $ 619,211 S 619,211 3AFO 200603 Schools Mediaaid $ 639,000 $ 639,000 Administrative Claims 3AN0 200671 School hnprovement Grants S 17,909,676 $ 17,936,675 3AXO 200698 Improving Health and $ 630,954 $ 630,954 Educational Outcomes of Young People 3BKO 200628 Longitudinal Data Systems $ t00,000 $ 0 3BV0 200636 CharacterEducation $ 700,000 $ 0 3C50 200661 Early Childhood Education $ 14,189,711 $ 14,554,749 3CFO 200644 ForeignLanguageAssistance $ 25,000 $ 0 3CGO 200646 Teacber Incentive Fund $ 3,007,975 $ 1,157,834 3D10 200664 DrugFreeSchools S 13,347,966 $ 13,347,966 3D20 200667 Honors Scholarship Program $ 6,990,000 $ 6,985,000 30J0 200699 TDEA Part B- Federet $ 218,868,026 $ 218,868,026 Stimulus 3DK0200642 'I'itielA -FederalStimulus $ i86,336,737 S i86,336,737 3DL0 200650 IDEAPreschool - Federal $ 6,679,679 $ 6,679,679 Stimulus .30M0200651 TitIeTlDTechnology - $ 11,951,000$ 11,951,000 Federal Stimulus 3DP0 200652 TitlelSchoo[Improvement - S 54,221,000 S 54,221,000 Am. Sub. H. B. No. i 129th G.A. 2791
Federal Stimulus 3H90 200605 Flead Start Collaboration $ 225,000 $ 225,000 Project 3L60 200617 Federal School Lunch $ 295,421,000 $ 310,150,675 3L70 200618 Federal School Breakfast $ 80,850,000 $ 84,892,500 3L80 200619 Child/Adult Food Programs $ 89,250,000 $ 93,712,500 3L90 200621 Career-Technical Education $ 48,029,701 $ 48,029,701 Basic Grant 3M00 200623 ESEA Title lA $ 530,000,000 5 530,010,000 3M10 200678 InnovativeEducation $ 1,000,000 $ 0 3M20 200680 Individuals with Disabilities $ 413,391,594 S 421,241,163 Education Act 3S20 200641 EducationTechnology $ 9,487,397 $ 9,487,397 3T40 200613 Public Charter Schools $ 14,275,618 $ 14,291,353 3Y20 200688 21st Century Community $ 36,000,000 $ 36,000,000 Lcaming Centers 3Y40 200632 Reading First $ 27,366,373 S 24,455,172 3Y60 200635 Improving Teacher Quality $ 101,778,397 $ 101,778,400 3Y70 200689 EnglishLanguagc $ 8,142,299 S 8,142,299 Acquisition 3Y80 200639 Rura1 and Low Income $ 1,500,000 $ 1,500,000 Technical Assistance 3Z20 200690 State Asscssments $ 12,923,799 $ 12,923,799 3Z30 200645 Consolidated Federal Grant $ 8,499,279 S 8,499,280 Administcation 3Z70 200697 General Supervisory $ 887,319 $ 0 Enhancement Grant TOTAL FED Federat Special RevunueFundGroup $ 2,238,516,279 $ 2,262,899,123 State Special Revenue Fund Group 4540 200610 GuidanceandTcsting $ 450,000 S 450,000 4550 200608 Commodity Foods $ 24,000,000 S 24,000,000 4R70 200695 Ind(n:ct Operational Support $ 6,050,000 S 6,250,000 4V70 200633 InteragancyOperational $ 1,111,838 $ 1,117,725 Support 5980 200659 Auxiliary Services $ 1,328,910 S 1,328,910 Reitn3nusement 5BB0 200696 State Action for Education $ 1,250,000 $ 600,000 Leadership 5B70 200626 Hatf-MitlMaintenance $ 16,100,000 $ 16,600,000 Equalization 5U20 200685 National Education Statistics $ 300,000 $ 300,000 5W20 200663 EarlyLearningInitiative $ 2,200,000 S 2,200,000 5X90 200911 NGA STEM - $ 100,000 $ 0 6200 200615 Educational Improvement $ 3,000,000 $ 3,000,000 Gmnts TOTAL SSR State Special Revenue Fur.d Group $ 55,890,7!!8 $ 55,846,635 Lottery Pmfits Education Fund Group 7017 200612 FoundationFunding $ 990,236,905 S 1,277,271,428 TOTAL LPE Lottery Profits EducationFundGroup $ 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 maintenance of the Hayes Presidential Center, in whole or in part, the Ohio Historical Society shall make arrangements with the National Park Service or other United States governmettt agency for the efficient transfer of operations or maintenance.
Sr•.cnorr 301.10. REP OHIO HOUSE OF REPRESENTATIVES General Revenue Fund GRF 025321 Operating Expensci $ 18,517,093 $ 18,517,093 TOTAL GRF General Revenue Fund $ 18,517,093 $ 18,517,093 General Services Fund Group 1030 025601 HouscReimbursemcnt $ 1,433,664 $ 1,433,664 4A40 025602 tVIlscellaneuus Sales $ 37,849 $ 37,849 TOTAL GSF General Setvices FundGroup $ 1,471,513 $ 1,471,513 TOTAL 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 the House of Representatives may certify to the Director of Budget and Management the amount of the unexpended,.unencumbered balance of the foregoing appropriation item 025321, Operating Expenses, at the end of fiscal year 2009 to be reappropriated to fiscal year 2010. The amount certified is hereby reappropriated to the same appropriation item for fiscal year2010. On July 1, 2010, or as soon as possible thereafter, the Clerk of the House of Representatives may certify to the Director of Budget and Management the amount of the unexpended, unencumbered balance of the foregoing appropriation item 025321, Opcrating Expenses, at the end of f7scal year 2010 to be reappropriated to fiscal year 2011. The amount certified is hereby reappropriated to the same appropriation item for fiscal year2011.
SEcT[orr 303.10. HFA OHIO HOUSING FINANCE AGENCY Agency Fund Group 5AZ099760I HousingFinanceAgency $ 8,614,627 $ 8,614,627 PersonalServices TOTAL AOY Agency Fund Group S 8,614,627 $ 8,614,627 TOTAL ALL BCJpGBT FUND GROUPS $ 8,614,627 $ 8,614,627
SECrtoN 305.10. IGO OFFICE OF THE INSPECTOR GF,NERAL General Revenue Fund Am. Sub. H. B. No. 1 128th G.A. 2866
GRF 965321 Operating Expenses $ 1,214,218 S 1,214,218 TOTAL GRF General Revenue Fund $ 1,214,218 $ 1,214,218 General Services Fund Group 5FAO 965603 Deputy Inspector General for S 400,000 S 400,000 ODOT 5F"C0 965604 Deputy Impector Gencral for $ 425,000 $ 425,000 BWClOIC TOTAL GSF General Services Fund Group $ 825,000 $ 825,000 TOTALAT.LBLIDGE"rFUNDGROUPS $ 2,039,218 $ 2,039,218 VIDEO LOTTERY TERMINAL OVERSIGHT Of the foregoing GRF appropriation item 965321, Operating Expenses, $50,000 in each fiscal year may be used to defray any expenses associated with the review of the operation of video lottery terminal opcrations as specified in Chapter 3770, of the Revised Code.
SECTION 347.10. tNS DEPARTMENT OF INSURANCE Federal Special Revenue Fund Group 3CXO 820608 State Coverage Initiative - $ 50,000,000 $ 100,000,000 Federal 3U50 820602 OSHIIP Operating Grant $ 1,770,000 $ 1,790,000 TOTAL F£D Federal Special Revenue Fund Group $ 51,770,000 $ 101,790,000 State Special Revenue Fund Group 5540 820601 OperatingExpenses - OSHIIP $ 200,000 $ 200,000 5540 820606 OperatingExpenses $ 22,884,736 $ 22,884,736 5540 820609 State Coverage Initiative $ 479,575 $ 479,575 Administmtion 5550 820605 Examination $ 9,275,768 $ 9,294,668 5AGO 820603 HealtfiInfonnation $ 10,116,272 S 0 Teehnology and Hcalth Care Covernge and Quality Councit TOTAL SSR Statc Special Revenue FundGroup $ 42,956,351 $ 32,858.979 TOTAL ALL BUDGET FUND GROIJPS $ 94,726,351 $ 134,648;979 HEALTH INFORMATION TECHNOLOGY AND HEALTH CARE COVERAGE AND QUALITY COUNCIL Notwithstanding section 3929.682 of the Revised Code, up to $8,000,000 of the foregoing appropriation item 820603, Health Information Technology and Health Care Coverage and Quality Council, shall be used for health information technology initiatives: to provide the central tools and support the electronic excbange ofhcalth information, to work witb industry associations to encourage and support providers in using electronic medical records, and to establish a loan program to help health care providers with the financial burden of buying and implementing electronic medical records. Notwithstanding section 3929.682 of the Revised Code, up to -OAHIBITE E 377Q:2-1-01 Authority and Purpose.
(A The rules set forth in division 3770:2 are promulgated under the autlloritv of Chapter 3770. of the Revised Codc.
Wl The puroose of division 3770:2 of the Administrative Code is to set fozth rules conceminp video lottervgaming_
(C^1?ivision 3770:2 of the Administrative Code pcrta.ins to video lottery gaming and unlcss specifically incorporatcd by reference in a iule under division 3770:2 . rules under Chapl:er 3770 including division 3770:1 shall not apply to video lotterv gxii^;an
(D) The lottery shall have exclusivc jurisd ction over all inatters within the scope of its authority and nothine contained in division 3770:2 shall be deemed to limit the authoritv_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 are incomorated and shall auplv to the provisions of division 3770:2 of the Administrative Code, uiiless otl7erwise speciYic^ excluded in division 3770:2 of the Administrative Code. 3770:2-2-01 Definitions of terms used in division 3770:2 of tlre Administrative Code.
(A) "Administrative Procedure Act" rneans ('hapter. 119 of the R.evised Code, and all amendments thereto.
$) °A " means anv verson a for a video icens
(C) "Applicatirnt fee" means the non-refundable fee paid by an apnlicant for a video lottery license at the time of submission of an application.
(D) "Associated equipment" means any hardware an d software that is utilized in connection with the operation of video lotteryeatning, but does not include telecommunication facilities and equinment of a public utilitv.
(E) "Cornmission" and "Ohio lottery commission" and "lotterti' mean the state lotterv cornmission created by the Lotterv Act.
F) "CommissQnex" means a member of the commission.
amine emulovee license" means a key gairiiiig eruplovee license issued to a key gaming employce license anc he director on a conditional basis on terns and conditions deemed alMronriate by the director. A conditional kev gamirtg eTuglovee license may be converted to a key gaming emplovee license but the conditionM key gaming emplovee license is subject to susuensio niodification 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 video lottery license spplicant who is apermit holder by the director on a conditional nd conditions deemed aLtpropriate by the director. A conditional video lotterv license ma,yr be converted to a video lottery license but the condifional video lottery license is subject to suspension . modification, revocatiori or fines as authori7ed by tlte Lottea Act, rule regulation, policy, order or directive of the comrnission or director.
(1)"Credit" means the value remaining to a video lotterv gami-fig customer usnallv denoted in units of plav that mav be used to continuc to play video lottcrv games or may be redeemed for cash or its monetary equivalent or othes prizes. Creclit balances are inereased by cash insered credit vouchers inserted prize winniu^s and value credit§.
(T) "Credit voucher" me uis the bearer jnstrument issued from a video lotter^ terminal for payment by a video lottcry aszent A credit voucher is a bearer insttttment.
(K) "llirector" mcans the executive director of the state lottery appointed in accordance with the Lotter^Act. 3770:2-2-01 2
(1) "F.llCS business enternrises" has the same mcaning as section 123.152 of the Revised Code.
"Flectronic displav" means the presentation of elements of video lottery eames includina but not limited to prize deterrninations which are visible on a video lottezy terminal and which may include but not be limited to meclaanical spinning reels 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 emnlay e e of a vendor or an emplovee of a management companv providinp services to a video lottery agent or the lottery in connection with video lottery gaming operations who is deterniined by the video lottery ageent or the director to be in a position of tnrst and confidence as it oertains to video lotterv _^g operatlans hut unless otherwise determined by the director to not be a key eaming etnployee shalI include those emplavees of a video lottery applicant or videa lotterv agent who are responsible for or oversee the secmitv or surveillance of a video lottery terminal. fle handlina. securina or auditi n ¢ of videolott nroceedsery and •iccessing tlet itlternal 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 modification revocation or fine as antlcirized by the J.ottery Act, rule, regulation. policv or directive of thecomn^ission or director All key eamina employee licenses shall Decernber 31 and e ther ter. A kev 2a lottery license mav be renewed in accordance with the applicable renewal nrocedures,
Licensi fee" means the fee to be r d by an apnlicaut that is a Lprovedr £ox a video lottery 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 the Revised Code.
a ement" me s a cement between licant for a video lotter^license or a yideo lottei^a^ent and a m'^ntaement compsmy which scts fbrth the duties and resroonsibilities of a management company as such duties pertain ta e handl ?ideo lotte agent's facilit^To be effective in connection with video lotter under authorit y of the commission, a managernent sereement is subject to ap^roval of 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 aming operations at a video lottery aeent's facilitv.
(V) "Ohio based business" means a business that pavs the tax levied under t'balrter 5733 of 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 Code that 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 a so 0 e n location association co 0 oration, limited iabilitv c On artnershin, club, tn.ist, estate, socictv, receiver, trustee n erson acting in a fiduciazy or representative capacitv, instrumentality of the state or anv of its political subdivisions or anyother corribination of individuals meeting the reauircments established bv ntle or order of the commission
(Z) "Princ^al" means each officer and director of a corporation g shareholder ownine five percent or more of voting stock, eachmneral partner of pa.rtnershiZ each member of anv other form of association. entity, organization or group of owners and each indiyidiial prontiet.or of a pronrietorship.
AA) "Settlement date" means eacb date specified by the director on which video lotte gents are to settle their transactions through dQosits in accordance witlr procedures established by the director.
BB) "Tee 0 0 m xovider" means a on or entitv,, includin but no ited to video lotte erminai or cer ri system manufacturer, distributor or provider, , ho 0 ose to contract t deo lotterv agents or the commission for the provisio of goods or services, relating to video lottery daming,
(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 monctary eauivalent not redeemed within the redemption period set forth in section 37702-7-02 of the Adrninistrative Code.
CEE) °Value" means the United States monetarv equivalent.
FF " alue credit" mearis a free play(s 0n_a video otte e ai that is provided to a, video lottery gam•mg participazt by a video ottery agent as authorized by the director.
(GG) "Video lottezv aEent" means a^erson who is a permit holder and wtko is anthorized bv the director to engage in video fottery gaming or video lotterv gaming related activitics 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 the Administrative Code.
HH,7 "Video lottery central system" means the computer svstem that defi.nes controls znonitor-, reports and commruiicates with the video lottery tezminals and associated eauinment and activities connected and/or associated therewith.
(li) "Video Yottery central svstemprovider" means the person that provides the video lottervi central psc t em and its component parts and equipment and activities connected and/or associated therewith.
'Video lotte a " mea: authorized bkthe director, commission commissioners, as agplicahle that provides immediate prize determinations and that is played on a video lottery terminal.
KKJ "Video lotterv ticYcet" means an eJectronie or vittual instrament to enable a participant to plav a video lottery game.
L) "Video lotterygaminv" means the operation of video lotteU eames through the use of video lottea tercninals central monitoring systems, control systems, communications proccsses and associated equipment and activities connected andtor associated therewith.
(1bllvYl "Video lotterV gamingVrize payment" rneans the Davmcnt by a video lotterv aaent for prizes won by a video lottery samingparticipant while eingaged in plav on a video lottery termiual.
(NNl "Video lottery glmingMize winnings" means the value of credits awarded that can be redeemed for cash or other desi ^n atiedprizes as a result of a video lotterv terminal 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 related activities apDrovecl by the director. A video lottery license shall cxpire in ten years fi•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 mav be renewed in accordance with the =licable renewal procedures for a term as establisl3ed b,y Lottcry Act or rule.
'P) "Video lottery terminal or VLT" is connected to a centralized computer svstem and encrates the outcome of each play using a randos-n niunber generator and communicates video lottex^gaming inforriiation to aIna-ticipant via an electronic dis 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 the director for this ^urnose At a minimum and without lirnitation, an application for a video lotterv license shall include the following reduirements which an apnlicant must 12rovide at the time of submission of the application or agree to comply with should a video lottery license be issued. The qpplication must be swom to or affirmed before a notarypublic l theuhcant or a person authorized to sign the application on behalf of the applicant if the apubcant is not an individual.
(1). An applicant must subini e anplicant's g I me.fo of ent c na addresses, ernplok_er identification numbers or 9ocial security nu^bers (i f auvlicable and dates of b as ag^ licable) of its principals and kev gamin er^nlovaes Disclosure of a nv lcrimina charges or convictions of all individuals or entities whose nanies must he -^vided must also be included in the application;
(2) An lpplicant must submit to the commission a non-refan,dable application fee in an amount to be detennined by the director, but not less than one-hundred thousand dollars
3) An applicant must subtnit^roof in the fonn retluired by the director, that the applicant is a Vermit holder
^} If more than one permit holder conducted horseracing meatinus at a traek during the previous ^eax the permit holders slaall design a te by a written agreement to be submitted prior to the issuance of a video lottery license one permit holder to be the actual video lottery agent in the event a video lottery license is issued:
5) Iu cant will employ or eneapa the services of a manag_ment companv to assist with or• haudle the operation of video lottery gamix^g at the applicant's facility, the annlicant shall provide the legal narne foim of entity, the names, addresses employer identification numbers or social securit^ number^if annlic•rble) and dates of birth (as applieable) offlte aeement com _anv's urineinals and key eamine emnlovees if knowu at e time of apnlication, alonp_ with a conv of the management agreement
in a foran acceptable to business plan for video lotterv aaming_at its facility which ma}> require the inelusion of docunlents relating to an annlicant's borrowing or financing of video ]ptter,ygarnine operations including but not limifed to the pa^mcnt of licensing fees. An applicant's business ^an shall eontemplate the openin era video otte atnin an.plicant's business plan may be deemed a trade secret under 1333.61(D) of 3770:2-3-01 2
the Revised Code and therefore mav not be Subjectto diselosure under section 149.43 of the Revised Code:
7 An applicant must agree to provide, in a form and by a date acceptable to the director its proposed security and surveillance plan for approval by the director or his desienee. An atqnlicant Qr video lotterv a^mnt's securitv and surveillance plan may not be deemed an infrastructure record and/or security record as set forth in section 149.433 of the Revised Code and therefore mav not subiect to disclosure under section 149.43 of the Revised Code:
(8) An annlicant must provide a listing of agy and all gaming licenses, reeistrations or certifications obtainedby the annlicant or a management comp.any that will ascist with or handle the operation of video lottery gaming at the annlicant's licensed 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, and the reason for suspension, termination expiration or cancellation, and the date of assessment imposition or pavment of anypenatties or fines•
9)Anaon can u st cc to. submit to criminal and ancial backuo-iind checks and r.eviews as re redby the directo he Dn licant or rine q a or ke ng e 0 e >f eaDn tcan and i qrin ls and k 2ain emRloyees of aL jy management company who will he operating under a manageinent aurecment witb the aMlicant and must asree to cornply with any 12rocess or procedure necessaryto conduct and complete the required criminal and £i.nancial background checks and review. If determined. bv the director to be necessary bacl^ground chccks for instifutionai investors. who are 12rincinals may be required:
(10) Within the time specified by the director an applicant must, in a form aecepta.ble to the director, obtain a dedicatcd non-revocable letter of credit, a surety bond, fimancial gi.ulrantee or other alternative form of credit annroved by the director in a minirnum amount of two million dollars or other amomt as 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 insurance deemed necessarv by the director. All certificates of insurance rnust be furnished 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 bond veiformance%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 approved bv the direetor• 37M2-3-01 3
(12) An applicant must agree to provide. at times requested by the lottery, a writtsn schedule that lists the installed cost of all fixtures and equioment sunulied or to 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 the contracts associated with tbe necessarv capital improvenrents and/or goods and services related to ongoi.nPQperations for the facilities at which video lottery teiminals are located to Ohio-based businesses , and set a goal to see that not less than fiftv vercent of the subcontracts of those contracts are awarded to Ohio-based businesses, unless the director determines, based on doctnnentation provided by a video lottery agent that the stated goals cannot be met•
(141 An annlicant must ag r ce to set a goal to see that not less than five percent of subcontracts described in division (8)(13) of this section are awarded to Ohio-based businesses that are EDGE enterprises in accordance with executive order 2008-13S;
(15) An annlicant must agree to set a goal to see that not less than ten percent of subcontracts described in division (B)(13) of this section are awarded to Ohio-based businesses that are MBE enterprises in accordance with executive order 2008-135;
(16) An applicant inust agree to set a goal that not less than filty percent of the personnel emgloyed by the applicant to perform duties related to video lottery gaming will be residents of the cotmty where the facility at which video lottery 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 to the 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 the facility licensed bv the racing commission to conduct live horse racing for grofit at a racing rneeting and includes nremi5es contigaous or adjacent to those facilities:
(19) An applicant must agree that within five years £ollowing commencement of video lottery gaming oper•ationg that it will matce not Iess than ei ht dollars.in innprovements to the bruldines and grgunds at the licensed faciIitv; including temporary facilities, with not less than twen million dollars in imnrovements to the buildings and $rounds being made in the first year of video lottery Xamina operations. which improvements sha11 be subject to review by the director:
(20) An applicant must a^ree to provide for a clear separation between the video lottery 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 capital improvements for facilities at which video lottery terniiirals are located^
(22) An applicant must aaree to be resnonsible for costs associated with supplving sufficient amount of paper or other media for credit vouchers tg ensure continued oneration of video lottery terniinals and to be responsible for the loading and replenishment of pMer dispetvsed &om video lottery terminals located at video lottery agent's licensed faeilitv:
^231 An annlicant must agree that any machuie installed to facilitate redemption of credit vouchers shall be the video lotteragent's responsibilitX•
(241 An agplicant must agree to have personnet available to facilitate the maintenance, reuair and service bkthe manufacturers aud/or distributors oP the video lottery terminal^ issued to the video lotteiy agent for its use to ensure continued operation of video lottery terminals:
(25) An applicant must agree to be responsible for the costs associated with providine technology nroviders and other personnel desiWatedbv the director, sufficicnt space, as deterniined bv the director, at the facility. where video lottery ternainals are located, to allow technologV providers and other personnel desianated by the d'u-ector to store eQLipment and conduct service, rQairs and maintenance of video lotterv terminats, video lottery central system and peril2herals associated therewith necessary to ensure continued oneration ofthe_video lottery centralswtem and video lotterv terminals;
(26) An applicant must agr-ee to renort to the director, or his designee and the video lottery tcr-minal manufacturer or distributor, anv malfunctions of the video lotter,y terminals or associated equinment or failures of the manufactprers distributors or service tec}rniciarrs to promptl service and re^air the vidco lottery terminals;
(27) An Mlicant must agree to hire nnd com^ensate adequate personnel to ensure compliance with the Lotterv Act, rules regulations policies and directives of the commission or director relating to video lottcrv gaming includin but not limited 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 video lotterX garning_facility and records:
(29) An applieant must apree to transfer by electronic fuud transfer or other method as approved by the director, the proceeds from video lotter sa es and unclaimed credit vouchers due the lottery on the days and times set fortll in the schedule issuecl by the director 3770:2-3-01 5
30) tii 00licant must a cc to pav and disbiirse video lottcrv gaming pa}nnents to w nninp video lotte aming +oarticinants and to withhold as required anolicable taxe& or othe deb 0 0 auations, as reuire and to 0 0 d all reouired tax and other required reportine Orms.t
^31 For applicants who are perntit holders on or before Septeniber 15 , 2009, and who apply for a video lotterv liccnse on or before September. 15. 2009, an aVnlicant must agree, that upon notice of intent to issue a conditional or video ery license, that aprolicant will gay to the coanmissian a licensing fee m the amount sixty-five million dollars which shalt be paid pursuant to the following schedule, unless otherwise modified by the director Failure to pav an installment pg,vment as required may result in imposition of a late fee in the amount of one hundred thousand doll,us per dav that fhe installment
(a) The first installment of the licensine fee in the amount of tliirteen million dollars shall be paid12rior to the issuance of a conditional or video lotteiv license In the event that,12rior to Segtember 15 2009 an annlicant has submitted an apnlicafion, and in the event that th e commission provides------notice of intent to issiie a conditional video lotterv license or video lottery license the frst instailment of the licensing fee must be paid on or beforc September 15 2009, or within a period of time thereafter as approved by the director. If an applicant has subrnitted an application priar to September 15 2009. and if the commission has notprovided notice of intent to issue a conditiaual video lottery license or video lotterv license prior to Septetnber 15 2009 the first installment of the licensing fee must be paid by the applicant within fourteen days of the commission's notice of intent to issue a conditional video lottery license or video lottery license, or within 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 the second installment be due before December 15, 2009:
(c)T'hc thircl installment of the licensing fee in the amount of thirteen tnillion dollars shallbe paid by the Mlicant qn March 15 , 2010, unless athPiwise 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 thirteen million dollars shall be paid by the applicant on June 15 2010 unless otherwise directed by the director. but in no event will the foiuth installment 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 million dollars shall be paid by the applicant on September 15 , 2010, unless otherwise directed by the director, but in no event will the fifth xns tallment be due before Sentember 15 2010_
(32) For appiicants who are not permit holders on or before Segtemher IS 2009 and who are licenseri as a nem it holder after May 1 2010 and who apply fo deo license after Mav 1, 2010 notice of intent to issue a conditional or video lotterv license, that aonlicant ill nav to the commission a licensing fee in the aniount sixtv-five million dollars which shall be paid pursuant to the following schedule unless otherwise modified by the director. b•ailure to pay an installment payment as required may result in imposition of a late fee in the amount of one hcmdred thousand dollar5 ger day that the instalhnent pavinent is latc, unless otlzerwise waived by th e director.
Th st installme e icens 'cc i he amo een million dollars shzll b- gaidprior to the issuance f a co diti al or video lottery licensa The first instalbnent of the sixty-five million dollar licensing fee sltall be thirteen million dollars and shall be paid by the aunlicant within foruteen davs of thexssions comm notice f intenta to issue a conditional video lottery license or video lottery licensc, or within aDeriod of time thereafter as annroved by the director•
The second installment of the IicensinQ fe amotUl[Of thirteep million dollars shall be naid by the applieant within ninety days of the first installment Lmless otherwise directed by the direcCor;
he third installment of the licensing fee in the amount of thirteen million dollars shall be paid by the ap^licant witlvin ninetvdays of the seeond installment, unless otherwise directed by the director:
(d} The fourth installment of the licensing fee in the amount of thirteen million dollars shall be paid b, t^applieant within ninety days of the third installment unless otherwisc directed h^the director• and
(e) The fiflh installment of the licensina £ee in the amount of thirteen million dollars shall be paid by the^nlicant within ninety days of the fourth installment unless otherwise directed by the director.
(33^For annlicants who are permit holders on or before September 15, 2009, and who apnly for a video lotterv licenge after September 15. 2009 a.n aronlicant must aar®e that upon notice of intent to issuc a conditional or video lotteiv license, that apphcant will nay to the commission a licensing fee in thc amount 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 the amocmt of one hundred th2us1itd dollars per day that the installment pavment is late, unless otherwise waived by the director.
(a) The first installment of the licensing fee in the amonnt of sixteen million do lars shall be 12aid prior to the issnance of a conditional or video lottery license. The first instalhnent of the eightv million dollar licensing fee shall be sixteen million dollars and shall be paid bv the annlicant witbin fourteen davs of the commission's notice of intent to ditional video lottcry license or video lot within a period of time tbereafter as approved by the director:
b) The second taliment of the licensiqR fee in the amount of sixte million dollars shall be aaid bv the annlicant within ninetv days o the first installment, unless otherwise directed bv the director;
(c) The third installment of the licensin2 fec in the amount of sixteen million dollars shall be paid by the agplicant within ninety days of the second installment unless otherwise directed by the director:
e fourth installment of the fee in the atnot: f s e n million dollars shalI be paid hy the afrplicant within ninety days of the third installment unless otherwise directed by the director and
(e) Tire fifth inst•illment of the licensing fee in the amount of sixteen million dollars shall be paid by the applicant within ninety davs of the fourth installment unless otherwise directecl by the director.
(34) An applicant must agree that any riehts remedies , causes of actions of an anplicant or video lottery aaent are contained within the Administrative Procedure Act and that no separate cause of action shall apply or be available to 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 all terms and conditions set forth in the video lotterv license Mplication, and mLlSt aaree to cooperate with the submission of any other records or documents deemed necessvy by the director and to subrnit to zmy other cheeks or revicwg deemed necessarxby the director.
All information re uirzd by to be submitted as part of an application fo lottery license pursuant to division 3770:2 niust be supplemented, with the uermission of and approvzl of the director, if updates or chan„ges occru- following the 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 applicant meets the reouirements of the Lotterv Act and the commission's rales and regulations petainingto video lottery gaming The director may consider those factors set forth in section 3770 , 05 of the Revised Code pertaining to lotterv sales aQents and shall consider the followine:
(1) The financial responsihility and seciu-itv of the apnlicant including the extent to which an an>Licant I has demonstrated its ability to finance the pronosed video lottery gamiug operations, as well as tihe ource ol'such financing;
e accessibilitv of the apnlican I lace of busines ie
j3ZThe volnmc of expected sales b^he t applicant;
4) T )e cri al backeround, if 0 cne ann licant of its q cz q als or ke amme em q1 or the cr iminalbackeround of any nrinciuals or k amma c D lo ee q fa mana 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 nlation policy directive or order:
(6) Whether an apjthcant has failed to comply another juiisdiction's lottery or amine Iaws, rr les. zefrulations, nofieies directives ar ordcrs;
of its priQciba or key Famine emolovees, o
apnlicant has designated, or the management compzny as designated is affiliated with a technology provider or other vendor to be enl;aeed in the eration of video lottery eamin¢ in the st•ite and if so affiliated, the natare of the affiliation
to which an nt has cooner•ited with the commission in the oeessIne Dut 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 surveillance r an (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 manafement eompM if gp,plicable as it reflects on the applicant's ability to conduct video lottery aming operations in accordance with the l.ottery Act. rules regulations, 12olicies directives and orders ^ert7inin^ to video lotterv uain operationsand 3770:2-3-02 2
f111 Any otber inforination that the director deems relevant to a determination ding and_arn^licant's abilztv to conduct video lottery eamm^ opexations in accordance with the les, reQUla ectives a orders pertaining to video lotteryl*aniing oneratiow.
Bl If an applicant has been licensed by another state lottery for the o q eration of video e am the rector b s not e a a cd 0 con id :r and rely upon any certifications obtained in cormection with an application subm. tted to another state lottM in connection with operation of video lotterv eaniine. 3770:2-3-03 Video lottery licenses: isauance of license.
A) I a erafullrev cw of an a lication and consideration of anv other facto deemed .elevant to theefficient and proT7 er adrniu n of video lotteiv samine, t ie director dete Li es tha a oalica has t he q ements fo su ce of a video lottery license the director mav issue the applicant a video lottery license on such terins and conditions deemed annronriate includine issuance of a conditional license if the director deterrnines that an applicant is likely to meet the requirements for issuance of a video lottery license.
o vicleo lottery license whether conditional or otherwise, shall be issued until the first installment of the licensing fee is paid in accordance with section 3770:2-3-01 of the Administrative Code.
(<) A conditional video lottery license tnay be converted to a video lottery, and if issued a video lottery license shall expire in ten years &oni the date of operation of video lo e a s i ideo lottery license or on May I. 2020, whichever occurs first Both a conditional video lotterv license and a video lottery license are subiect to 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 an annlication in accordance with section 3770:2-3-01 of the Administrative Code and the nrior ^vr tten consent of the directnr Upon re^uest b^an agplicant the director aive uirements se h in section_3770;2 0 as deemed a pDrUQ iate.
(E) Video lotterygarnes sotd and video lottery terminals operated by alicensed video lottery aeent must begpnroved by the director, commission or corrunissioners as auolicable.
deo lottery license shali authorize operation of video lottetv gaming onlv at facilities operated by video lotterv agents already licensed as a permit holder.
(G) tJpon issuance of a video lotterXlicense whether conditioinal or otherwise. a video lottey agent shall be obligated to comply with the applicable provisions of the Lottery Act, all rules, regulations. policies and directives of the commission or director and all terms and conditions of the license agieement as set forth in the aunlication or anv amendments or modifications thereto Failure to comnlv with aiiy and all obligations required of a video lottery a pen t may subject the video lottery aeent's video lottery license, whether eonditional or otherwise to susnension or 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 conditional license does not auarantee the issuanee of a video lotter^license_
icensesissued toi)c 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 deemed zelevant 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 a video lottery, llicense, the director ma^4 deny the,g2plication or may request that the annliSation be revised for further consideration.
{BI Excgpt as brovided below in section 3770:2-3-04(C) of the Administrative Code, in the event anv of the followinngare cletermined by the director, an =hcation for a video totterXlicense shall be denied:
A dete mination that an s or keyiz-a manag e mcnt coMany that an annlicant has designated in its application as the rnanagemant companv to assist with or handlc video lotte ea ine operations at the gnnlicant facility, have been convicted of anv of the followine 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.
determinatio ha an Dn lica or anv of its cinals or ke ar emnlovees, o 0 nc nals or ke amrne c ovees of a mana2ement n h a Dn 1 ca a d s nated or a a a emen co q an at i applicant has desianated is known to be affiliated with a technology provider or other vendor errgaged irz the oneration of video lotterX gaming in the state which has been detennined by the director to he an unacceptable affiliation wid an applicant has refused to divest itself of the affiliation with the technology provider or vendor.
31 A determination licant has rxiade-a misreoresentation regarding a fact material to an a.pplic7tion or has failed to disclose information ret*ardine a fact material to an application.
of its orincipals oz key eamine v^yees of 1 managetnent co npany that an applicant has designated in its applieation as the management company to assist with or handle video lottery gaming operations at the zgplicant facilitv that'have been 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 compctcnt iurisdiction to hzve the record of such offense sealed if such an order is not obtained durin the time specified by the director tbe director marefirse the annlication. If the record of an applieant or any of its princinals nr key gaminz emplovecs, 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 conip^a^ to assist 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 Code which is at least ten years old, the director may disregard the offense and mav license the annhcant. If a keY-aatzainhh enmiovee or any nrincinal or key ea des anplication as the. management companp to assist with or handle video lotter^ aayninv onerations at the agplicatit facility are deter•mined to be convicted of an offense set forth in section 3770:2-3-04(Cl of the Administrative Code, an Mplicant may provide the director with12roof in a form acceptable to the director that said kev eaminix-emnlovee or nrincival or key gatuizrg enployee o£ a has desianated in its annlication as the manaRement com^.,n,Lto assist with or handle video lottcry gaming operations a the a)plicant facilitv will not be emploved or engaeed in the lottery gaming operation. If such proof is not submitted as re the director may refuse the application.
(D) When reqnired to do so by the Administrative Procedure Act, the director shall afford a hearing to an applicant for a video lottery license affected by a decision to deny an application for a video lotte license Such hearings shall be conducted by the director or a hearing officer designated by the director and shall complv with the requirements 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 annlioation shall reduuire submission of a new applicrtion arl c 12ayment o licatio fee 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. The director may suspend or revoke a video lottery license of a video lottery agent who does not co=ty with the T.otteryAct all rules, terms and conditions, Qolicies orders and directives adopted, promulgated or issued bv the commission 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-revocable letter of credit or other form of credit authorized or required by the director:
(c) Failure to maintain the required insurance and bonds required by the director;
(d) Making a fraudldent representation in connection with the akrplication for a video lottery license or the video lottery agent's conduct
transactions and nav to the commission the amotmts due the commission from vidco lottery sales or unclaimed credit vouchers or other aniounts due the commission in accordance with the procedures established by the director:
eLmlatiort, nolicv, order or directive
(g) Allowing an individual under the age of ei teen tp ^p video latterv games or make a claim for navment of video lottery gaming prize navment:
h) Failure to maintain adequate and s the video lotte as e nt's licensed facility:
Offerin2 a video lotterv 2ame that has not be ed by the dirceto
tt^ Failure to co=ly with the terms and conditions of "The Amerieans with Disabilities 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 approval prior to relocation or transportation of a video lotterv terminal:
(1) Failure to make the capital improvements as required by conimission rule regulation, poliey, order or directive;
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(m) Aetuig in a manner that impacts or has the likelihood of impacting the efficient operation of or integrity of video lottery g iming•
Ln) Failure to adhere to all the terms and conditions as set forth in the licensing aareement including any amendments or modifications thereto.
(2) The director may suspend or revoke a video lotterv license if a video lottery arent or any of its principals or kcv ¢amingemnlovees or anyprincipals or key gaming emplovees of a management company that an applicant has desi^ na ted in its application as the management company to assist with or handle video lottery gaming operations at the applicant facility, are convicted of any of the offenses set fos-th in section 3770-2-3-04(B)(1) of the A strative Code-
(3) 'he director ma suspend or revoke a video lotterv license if, at any time after issuance of a video lotteiy license the dii-ector detcrmines that a video lottery as (B) Anv suspension or revocation under this section nigy be in addition to or in lieu of the imnosition 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 afford a hearin,Q to a video lotterv agent affected by an order to suspend or revoke a video lottery license. Such hearings shall be conducted by the director or a hearing officer designated by the director and shall comply with the reqnirements for adjudication hearings set out in the Administrative Procedure Act. T'he requirement of the ive Procedure Act that adjndication hearings be afforded tlrior to a final decisionbv the director to suspend or revoke a video lottery license niay be waived rmcier eircumstanees such as non-pavment of funds owed by a video lotterv agent, for reasons related to the nublic safetX, convenience or trust whicli require insznediate action. The director, however, must continue to comply with the uirements of the Adrniaaistrative Procedure Act in afford agent a subsequent opportunity for an adjudication hearing. (D) If a video lottery agent's video lottcr y license is revoked, a video lottery a gen t may reapply, but anv subseyuent apoication shall require submission of a new Uplicatioti and payment of a separate application fee, and shall only be submitted afler any waiting-period for rea^plication if any^established b^e director has eXUll_ed 3770:2-3-06 Video lottery licenses; flnes. (A) determined by the director, the commission mav impose monetarv fines upon a video lotterv avent who does uot comnlv with the Lotterv Act, all rules regulations erms 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 a determination that a video lotterr agent has failed to comply with or violated any provisions 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 or revocation under section 3770:2-3-05 of the Administcative Code. (C) tiVhen required to do so by the Administrative Procedure Act, the director shall afford a licaring to a video lottery agent affected by an order imposing a fine Such hearings shall be conducted by the director or a hearing officer designated by the director and shall co=ly witli the requirements for adjudication hearings set out in the Adrninistrative Procedure Act. The requirement of the Administrative Procedure Act that adjudication hearings be afforded prior to a final decision by the director to suspend or revoke a video lottery license may be waived tmdcr ciretiunstances such as non-ilavruent of funds owed bv a video lotter^aaertfor ons related to thc public safet,y, convenience or tnzst which require immediate action. The director, however must continue to comply witlt the requirements of the Aministrative Procedure Act in affording the yideo lottery agent a subsequent onpor[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 which Qplicatiori to renew shall be subject to review and approval by the director in accordance with the Lottery Aet, rules, regulations polieies, orders and directives of the commission or director. (B) An application to renew a video lottery license must be filed on a fozn. approved by the director for this purnose. (C) An application to renew a video lotterv license must be filed six months prior to the exniration of the video lottery license, unless submission of a late renewal application is approved by the director. (I)) At the time of submission of an appiication to renew a video lottery license, a video lottery agent shalt submit a renewal application fee in an amount determined by the director. ^P^ U^on submission of art application to renew a video lotterv license, a video lottery agent seelcine renewal may be reuuired to submit or resubmit any records or documents including bnt not limited to those recfuired under section 3770:2-3-01 of the Administrative Code, and may be reguired to submit to any crirninal or financial checks , or other reviews as deemed aaprop n^ ate by the director. (F) If a video lottery license is approved for renewal by the director, the first renewal term of the video lotter^icense shall be for five vears and the second renewal term shall be for be for five year. The term of any renewals beyond the second renewal tei-m shall be established by the eommission An,y renewal shall be subject to roavment of a renewal licensing fee in an amount and in accordance with a pavment schedule as established by the commission . Any renewal license shall be u'ect to suspension modification , revocation or fine as reouired bv the Lottery Act, rnle resaulation, policy order or diz-ective of the commission or director. _:r; ^ 3770:2-3-08 Video lottery licenses: compensation. unclairned credit vouchers, value credits and reimbursement of expenses. (A) Conunission. U12on issuance of a video lottery license and operation of video lotterv ternninals, a. video lottery agent shall receive a commission in the amount of fittv nercent of the video lotter ^^terminal income. The director shall establish procedures for the phymcnt of commissions due to video lotterv agents. (b) Unclaimed credit vouchers Funds available as unclaimed credit vouchers as determined by the director, shall be owed to the commission in accordance with nrocedures established by the director. ^C) Value credits. As authorized by the director. a video lotterX^gent, may offer value credits to its video lott^ gaming customers. While a video lottery a^ent is not nrohibited from oFfering credit in excess of value credits as authorized by the director, if a video lottery acent offers credits in excess of value credits autlaorized by the director, the video lottery agent shall be fmancially responsible for payment to the commission for the value of the credits. (D) Reimbursement of expenses. The director may establish nrocedures for reitubursement of expcnses 12roperlv incurred by a video lotteLy agent as authorized by the director. 3770:2-3-09 Video lottery licenses; records and andits and inspection of video lottery agent,premises. (A) 1'he lottery and the auditor of the state may periodicallv examine 2ll records files and other documents, includine but not limited to elech-onic, naper and computcr records, files and other documents, of the video lottery agent as such records, files and other documents pertain to the video lottenv agent's activities for purposes of conducting authorized audits Video lotterv aaents shall maintain such records files and other doczunents complete and up to date. (Bl A video lottery agent shan allow inZ-ections of the licensed premises at W time as authorized by the director. The inspection may be niade without prior notice to the video lotterV agent. 3770:2-4-01 Key gaming employee licenses. fAl Anv key gaming employee is required to bold a conditional key gaming employce license or keygamina emplovee license prior to being involved in anv video lottery gaming licensed activity. (B) Any individual who holds a conditional key gaming emplovee license or a key gaming employee license may perform lhe duties anci responsibilities of auy position that reauires a key gaminu employee license provided that notice is provided to the commission that the person is or may be performing new or different duties than those duties set forth in the initial application for a keyVaming ezaploee license. (C) A kgv ganiing emplovee shall have all appropriate ?.nd necessarX identification at all times while performing duties and responsibilities of any position that requires a key gamigg employee license_ 3770:2-4-02 Keygaming employee licenses: gpplication. A) Ana individual whois eighteen vears of aec may a license. ($) Application for a key aming employee license shail be made on a forni anproved by the director for this ^uroose At a minimum and withont lnnitation an apphca.tion or a kev s4auainp- employee license shall include the followi an applicant must provide at the time of submission of the application or agree to comply with should a key gairiing emolovee license be issued. The application muet be sworn to or affirmed before a notzu-y pubhe. ubmit the ap_plicant's legal natne, address social see number, date of birth Disclosure of any criminal charges or convictions inu.st also be included in application: (2) If the applieant has applied for a position with or is employed by an applieant for a video lotterv license or a video lotterv agent the apphcant shall provide the 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 gaming industiy, wlaether operated by agovernment or private entity, and the dates of said affiliation or emplo nen • (4) Provide a listin^ of all prior or cnrrent affili ^tions or emplovmetit with a technolouv 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 the commission a non-refundable application fee in an amount to be deterrnined by the director, but not less than filtKdollars: (7) An al2i2licant must agree to subtnit to criminal aud financial background checks and reviews as recpiired by the director and complv with any process or proeedure neceSsary to conduct and eomplete the required criminal and financial background checks and review• 8 a applicant must apree to comply with all applicable provisions of the Lottezv Act, all lotteLy rules, regulations, policies and directives of thc commission or director relatinQ to video lotterygaming and must agree to cooperate with the snbmission of •rnv other rceords or documents deemed nccessary by the director and to submit to any other cbeeks or reviews decmed necessarv bv the director. C) All information re a ed b to be submitted as part o api icationfor a ke am h C. q ovee semusuant to division 3770:2 must be sunnl rented, with 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 amin>= emulovee liceases, annlication review nrocess. U q on receivin9 a nroper application, the dircctor, or his (lesiRnee, shall dc e i the q ica neets the re nirements of the Lo Act and the co muw sion's rules and reeulations mrtainina to video otterv gamina and key aamiw eniployees. Th director 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 r in 0 ation that the director deem vant to a determination reeardin an ant icant's suitabi a fo suan :e 0 a ke a i m e license accordance with applicabt12rovisions of the Lottety Act, rules, regufations. policies and directives of the commission or director pertaining to video lottery gaming operations. q B) If a qâ licant has been licensed q another state lottex asa kevgai e ovee other sunilar desi tion in connection vLith the eration of video lotte C) rmn director m-ays, but is not reauired to consider 0 rerv nnon an certifications obtained in connection with an aWlieation submitted to another state lotterv. 3770:2-4-04 Key gaming cmployee llcenses• issnance o f after a fnll review of an aMlication and consideration of any other factors deemed relevant to the issuance of a key gaming emp^vee I license the director or his designee determines that an agplicant has met the requirements for issuance of a key trng emplovee license the director may issue the applicant a key gamin emnlovice iicense on such tercns and. conditions deemed appropriate. includin issnance of a conditional license. (B) A key gaming emplovee license rnay not be assigned or tratisferred except that as set forth in section 3770:2-4-01 of the Adtninistrative Code provided the reqnired notice is provided, an individual who holds a key gaming emplovee license may perform the duties and responsibilities of any position that requires a key aming emnloyec &eense. C) A conditional kev eamine emnlove cmplovee license and if issued, a key gaming employee license shall be effective for a term of threeyears except th•rt all ka gaming emplovee licenses shall expire on Deceniber 31 2072 and every three vears thereaRer. Both a conditional kgy ae tningemLilovee license and a ke eaz-e sueeto susUension modification revocation or fine as required by the I ntterv Act rale regrdation 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 provisions of the T otterv Act nrles reguhtionspolicies and directives of the commission or director 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 ke gaming emplovee's key aming employee license, whether conditional or otherwise 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 section 3770:2-4-07. A conditional key gaming eniployee license does not tuarantee t^ie issnance of a ke gaming eut^loyce license. 3770:2-4-05 Keyyaming employee licenses: denial of license_ fAl If after a fnll revie w of an application and consideration of anv other factors deemed relevant to the issuance of a kev gaming em^lovee license the director determines that an aalicant has not met the requirements for issuance of a kev amine einplovee license, the director may deny the auplicatioa (B) Excent as provided below in section 3770:2-4-05(C) of the Administrative Code. in the event aqy of the following are determined by the director, an apnlication for a key gaming em^loyee license Shall be denied: (1) A determination that an ^licant has been convicted of any of the following offenses: (a) A felony, or a crime involving moral turpitude; (bl An offense involving illeeal^ a mbling: and (c) An offense involving fraud or misrepresentation. (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 state which has been determined by the director to be an unacceptable affiliation and an a^ficant hasrefi^sed to divest itseIf of the afaffiliation with the technolo^provider. C) The director m e an ?ljcant that has been convicted of anof anv of the offense setfo in ction 37702_4-(^5(Bi(l) of the Administrative Code to obtain an order fro a co of co e e urisd c 0 0 ve he record o s ense sealed. If such an order is not obtained during the time s ec fied b e dlrector director may refuse the a^plication I£the record of an applicant contains an offense listed in section 3770-2 3 04(13)(1) of the Adminiatrative Code which is at least ten years 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 afford a hearine to an 0plic-ant for a key gaming employee license affected by a decision to deny an =lication for a kgy aarning emplovee license Such hearings shall be conducted by the director or a hearine officer deeit e director comply with the recuirements for adiudication hearinas set out in the Administrative Procedure Act Nothing contained herein shall require the director to afford {he emplover or potential P=loyer of an anplicant for a key gamine emnlovee license a hearing or an oUortunity to be heard on anv decision relatine snecifieallv to an Wplication for a key gaming emplovee license. (E) If an application is denied an apVlicant mav reagl2lv hut any subsequent W.plication shall require submission of a new application and navment of a separate Wplication fee and shall only be submitted after anv waiting12eriod for reaanlication, if an established by the director, has expired. I nr r_,r r. o., _,1.:4;a0 1, 7003, W.-'r, nxia .. ducv., 2N ,71 ,.r_za,,^d 6:. 3770:2-4-06 Key gam n emolo ee lrcenses;. suspe sion or revocation. key ¢aming Mlovee license mav be snspended or revoked as set forth below: (1) Non-eompliance with I otterv Act nxles regulations policies or directives. The director may suspend or revoke a kev gaming emplovee license of a Ice gaming emplovice licensee who does not cornpjv with the Lottery Act, all rules te-ms and conditions, regulations, policies, orders and orders adopted mulgated or issued by the commission or the director including but not imited to tlie followine: Failure to pa.La video 1o rninz narticinant moner as mTy,,;re by commission rule regglation_ nolicvor order• and (b) Failure to adhere to all the terms and conditions as set forth in the key gaming employee license application including any amendments or modifications tbereto. (2) The director mav susncnd or revoke a video lottery licensce if a key aaining emplo}^ees is convicted of any of the offenses set forth in section 3774:2-405(B)(1) of tb.e Administrative Code. {3) The director may suspend or revoke a key saming employee licensee if, at any time after issuance of a video totterv license the director determines that a key ganung emplovee_no longer meets the recluirements and standards for nR emr2lovee license as set forth in the Lottery Ac comunission mle5 reeulations polioies and directives. BLAnv suspension or revocation undet this section may be in addition to or in licu of the imposition of a fine under section 3770:2-3-07 of the Administrative Code. (C) tiyhen rccuired to do so by the Administrative Procedure Act, the director shall afford a bearinRto a key oamine employee licensee affected by an orcler to suspend or e oke a video o ense. Such hearin s shall be conducted bv the di ctor or a heari officer desipnated bv the director and shall conr 0 ith the q ts for adjndicatio hearings set out in the Administrative Procedure Act. The r^q.uirement of tthe Administrative Procedure Act that adiudication hearings be afforded pri00 frinal t decisiona by ta thesnsend director or revoke a key g^gim n emplover license may be waived for reasons related to the ^ublic safetv, convenience or trust which regnire immediate action The director, however, must continue 'n eotrn^ly writh the reQuirPments of the Administrative Proc.ednre Act in affording the kevgaming emplovee a subseaaent o^porhmity for an adjudication hearine. Notliinu contained herein shall reauire the director to afford the emplo^ or notential etn o o er of a can a e in em 1c ee 1 cens a an o an o ono o be heard on anvslecision relatin ^ecilically to a ev_ ^amir employe e license. (D) If a kc,ygatning emplovice's license is revoked, a key^ing eniploy e e may reabnly gr"Ii;;?t_"9,.03fU ;.^:Sd43 J_b5oJ5.rvz^fh, c:2,NOI --- p•'^dm:Ckla^^A904.55P:h 3770-2-4-06 2 but^wysubsequent application shall require submission of a new application which shall require a new review and 12avment of a separate application fee and may only be submitted after any waiting 12eriod for rea.pplication, if anv, established by tbe director. has expired. 3770:2-4-07 Keygaming emplovee licenses; fines. (A) As determined by the director, the com_mission mav impose monetary fines upon a kev eamidg emplovee who does not comply with the Lotterv Act, all rules egrlations terms and conditions nolicies orders and directives adonted, nromuleated or issued by the commission or the director which may include but not be 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 (3Lf o the Administrative Code. Anv fines unde revocation under section 377072-4-06 of the Administrative Code. C W 0 en e quired to do so b Ad s~trative PrQccdti.r_e Act, the director sha d a he, to am e 1 ee lic s a ecteci bv an ordcrto rm ose afi e Such hearings shall be conducted by the director or a hearing officer designated bv the director and shall complv with the recluirenrents for adjudication hearinR-s set out in the Administrative Procedure Act The re^uirement of the Administrative Proeedure Act that acijndication hearings be afforded prior to a final decision b director to impose a fine may be waived for reasons rel t^d e to the public safetv. convenience or trust wbich reauire immediate aetion. The director, however, must the Administrative Procedure Act affording the ka gaming emplovee a subsequent onnortunity for an adjudication hearing. Nothing contained herein shall require the director to afford the emnlover or notential emploYer of an apiolicant for a keKaaming employee license a heari or an oPportunity to be heard on employee license. .lq ovino::n:,roolri:;..Odprv,10B3, tdr6, ,c5Ae>, m-,.-512 LN6, u: 'fll7i aic; ^3 Ir ^_ara 1^9:5M1 f^d§ 3770:2-4-08 Keygaming emplovee licenses; renewal. Al A kev Raminaem 0 0 ema file an application to renew his/her kev gaming lovee license whi 0 aa] lication to rene l be subiect to review and a oLl oval b e director in accordance with c Lo erv Act, niles, reautations policies, orders and directives of the cotnruission or director. I^31 An aprrlication to renew a kev gaming emplovee licczise must be fiJed on a form apnroved by the director for this mrpose. (C) An application to renew a key gaming emplovee license must be filed ninety days ior 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 w video 1 icense sh a n oz hree years but shall be subject to suspension modification or revocation ac required b^ the Lottery Act, rule ion, nolicv order_or directive of the commission or director_ ( 1.lsdrvfese ^ucSorN^ ..[i'd0,fyr9,2h>31 . / i.,^'-L^a )717,eL'bl3.41J 3770:2-5-01 Technology provider contracts. (A) The director has the authority to enter into contracts for the oDeration and prornotion of all aspects of video lottery gamingand matter5 associated therewith in accordance with ap,plicable laws. (B) Video lotterv agents shall be required to coaperate with technology providers and technology nroviders shall be reqnired t.o cooperate with video lotterv agents in order to ensure continued vi.deo lottery ganring pperations. (C) Contracts betcveen the lottery and technology nroviders for the aperation of all aspects of video lottery*amine and matCers associated therewith shall include a requirement that principals and emnlovees of the technology providers assie n ed to work on the lotterv contract are subject to criminal background checks as required by the director. ll 3770:2-6-0]. Video lotterv g aming operations• hours of operation and num.ber and lyne of video lottery terminals. (A) Video lottery agents shall make their licensed facilities available for video lotterv aming 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 located at and operational at the licenseci facilitv will involve discussions between the video lottery anent and the director, but the actnal number of video lottery terminals, including the minimum number of video lottery terminals, located at and oneraGonal 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 more h 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 at and operational at the licensed facility will involve discussions between the video lotterv aeent and the director. but the specific types of vidco l.otterv terminals located at and operational at the licensed facrilitv shall be subject to final aoroval of the dircctor. With the director's approval if a video lottery aaent aQrees to pay costs in excess of the costs allocated for video lottery termiuals to be allocated to a video lotterX a ent for its facilitv, a video lottery aeent shall pay the excess eosts associated with additional or different video lottery terminals than those anuroved by the director for allocation to the video lotteraeent. p,p^PJO,rc:24l?fD,J}1:1, i/] P>iN4m:_SFIS.lL09fA;59ey1 3770:2-6-02 Video lotterygaming onerations• maintenance and repair of video lottery terminals. i11 Trainine. A video lotterv_terminal 0 0 eration in the manufacturer or distributor of the video lotterv terminal provides training in maintenance, repair and services to the service technicians that have been desipated bv the manufacturer or distributor to perform maintenance repair and service of video lottery terminals and until such time as the service technicians t.hat have been designated bv the manufactn.rer or distributor to perform maintenance enair and service of video lotterKterminals have campleted the reUuired trainin The video lottery agent sball facilitatc the maintenance repair and service of the video lottery terminals by providing access to the video lotterv terminals and facility as required to ensure continued operation. (B) Level of maintenance and service. Video lottery terminals and all video lotterv erminal peripheral equipment shalI be serviced, cleaned and maintained by the xnanufacturer or distribu.tor of video lottery terminals. The video lottery agent shall facilitate the service cleaning and maintenance of the video lottary terminals by providing access to the video lottery terminal^ znd facility as required to ensure continued operation. fll A maintenance log shall be kept in each video lottery terminal which shall be used to log each individual, including lo ery personnel. who gain entry into any internal space of a video lottery tenninal The log shall include the name of the individual, date and time of entrX, areas of the video lotterv terminal accessed. The logs shall be maintained for a minirnnm of five years and shall be made available to the director upon request. If') Repairs In addition to anyrenorts that may be required to be provided by manufactarers or distributors of video lotterv terminals as required by the director, video lottery agents sb.all provide reports regarding maintenance service and repairs to video lottery terminals. _ . ...^ __ _ ta _o42r_.ZOdJ ta.-.M t:a9v5 z+:'stvo.r,r 11m 1 -2y502)I r,iaamo fi.an1d.0 PM 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 surveillance plan(s). "I he securitv and surveillance plam m, ty be su mitted as one combined plan or as a separate securittiplan and a separate siuveillance lrlan. (1) The security and surveillance plan shall be submitted at such date prior to commencement of video lotter r gaming oncrations as required by the director. (?) The security and surveillance plan(s) shall address all a.^,pecta of securi.ty and surveillance, 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^ and surveillance plan(s) shall include but not be limited to the following: (a) The video lottery terminals shall be continuous^ monitored through the use of closed circuit television svstem, or otber sy^pproved s by the director, capable of ident 'nE nlayers and video l(tterv terminal screens nnd of recording activitv for a continuous twentv-four hour period. Al I video tQes or other recordin.^medirrm shall be retained for a 12eriod of at least sixtX davs and be available for viewing by an authorized representative of the conunission The cost of monitoring shall be the responsibilitv of the video lottery agent: th) The commission's office of secur& pprsonnel shall bave unrestricted access to all areas of video lottery terminal facilities. Each video lottery ?,,,ent and each member of a video lottery agent's security and surveillance department shall timely comply with all reducsts from the commission 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 clear separation between the video lottety eaming area and the racing wagenng area. (3) The secririty and surveillance plan(s) shall include emergency nrocedures and disaster recoverXprocedures. (4) The secw-itv and surveillance plan(s) mav be deemed an infrastructure record andlor sccurity record as set forth in section 149.433 of the Revised Code and therefore may not be subject to disclosure under section 149.43 of the Revised Code. (5) Any updates or changes to an approved securiiy and surveillance plan(s) rec^uire pr-ior ap.proval of the director unless otherwise waived by the director. (B) 3ecurity and surveillance personnel All security and surveillance personnel must fq lmiAmin, luul' i M h' for and be ganted a key gaming employee license in accordance with coznmis5i.on rules. reeulations volicies orders and directives 3770:2-6-04 Video lottery gaming operations: transporta relocation and certificarion an ortation of video lotte erm s Prio o transportation of a video lottery terminal within or out of the state, the tranaporter shall provide notification to the director and nbtain approval of the director. Notification and approval shall be provided 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 to a person or facility within the state until such tiine as a video lotterv license, either condirional or otherwise. has been issued to the person to whom the vfdeo lottery terminal.s arc being delivered. C) Relocatioii of v' lotterv tenninals within a video lotterv agent's facility. Prior to relocating a vi(leo lottery terminal within a video latterv aeent's facility, a video lot.tery agent shall Rrovide notification to the director and obtain apnroval by the director. Notification and approval shall be provided and obtained in a manner determined by the director to be acceptable. D)CertifisatiUn of video lottery terminals shall be conducted by a nerson aporoved t the director to yrovide certifications of video lottery terminals and certification shall be provided to the director in a form acceptable to the director prior to video lotter-,y terminals being offered for operation by participants. l ,v.e.xnl [i1Fvv^r. .J,zb.N'4,^l13 rf-x,e.*44v% Y (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 may initiate advertising and promotional 12roerams and may nrovide video lottery agents with such materials as deemed appronriate. l03rh..q,r:>,W.^+'.^85ntad.2.lg!"51] ..... p (A) Eacb individual plavins a. video lotterv pme shall be eighteen years of age and each individual claiming or redeeming a video lotterygamingprize winning or credit voucher shall be ei hteen years of age. In the event that an individual under the age of eiahteen plavs a video lottery game, the video lotter,agent shall treat the play of the same as void and the individual under the a eeighteen shall not be entitled to any prize won or a refund of amounts wa ge red. (B) The following individuals maY not plav video lottery games or claim, redeem or attempt to claim or redeem prizes won from video lotterv games played within the state: (1) An officer or employee of the state lottery commission, any ofricer or emplovee of the auditor of the state activclv coordinat.inaand certifving video lottery ganiing, or any blood relative or spouse of such an officer or emplovee of the commission or auditor of state living as a member of the officer's or employee's household; (2) Anyprincipal of a technology provider or vendor engaged in operation of video lotterZ^ gaming in the state and any employee of a technology provider or vendor engaged in operation of video lottery gaming in the state assigned to work in any manner on video lottery&axnins nroducts or services provided to the video lottery aeent or the commission, or an,v blood relative or spouse of such principal or employee living as a member of the principal's or emplovee's houschold. (C) Wae ers may be plaeed using bills. credit vouchers, replavs of credits awarded, value credits or any form of card which contains credit for plav on a video lottery terminaL (D) The minimum wager for eacb video lottery ticket may be one cent and the maximum wager paid for each video lottery ticket shall be established for each video lottexy game by the director or connnission in accordance with commission zules. (E) Each video lottery terminal shall displav the amount wagered and the amount awarded for each possible winnin¢ occorrence based on the amount or credits wag e reci. (F) Eaeh video lottery terminal shall provide a method for video lottery partieipants to view the payout tables for the video eame offered on the video lottery terminal being pla.ved. (Ci) Video lottery games offered by video lottery agents on the video lottery terminals in their f'acilities niust be apnroved by the director or commission in accordance with conanaission rules. (w:Ib, Aci 49Gf J+a+ffi1,CO, ro 201'4, ^i, L.H2dij y[Lidal M 1 9 100, I([03P)R 3770:2-7-02 Video lottery game requirements: video lottery gamingprize payments. (A) Within one hundred eighty dys of issuance of the credit voucher, a credit voucber must be redeemed for cash, or the tnonetary equivalent of cash, or other prizes by participant at the facility where the crcdit voucher was issued. (R) In comrection with video lotterygamine prize winnings and/or credit vouchers, video lottery agents and participants winnine video lottery gaming prize winnings andlor redeeming credit vouchers shall comply with all applicable laws regarding withholding 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 commission and/or a vidco lottery agent prior to issuance of a credit voucher or prior to iedemption of a credit voucher. A participant's submission of name, address and social secuaiiy number sha include authorization to the commission and/or a video lottery @gent to use said informaon for verification of debts or obligations owed and/or renortina reauirements.. (C) After anv required withboldingz,pa=ent and/ot redemntion of a valid credit voucher shall be made by the video lottery agent at the facility where the credit voucher was issucd. The lotterv and the state are not resnonsible for or liable for payment of any video 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 credit voucher and all such information is le ib e: (c) It is not mutilated, altered, tampered with or otherwise illegrble: ' (d) It has not Mcviously been oaid; (e) It meets all other rules, regulatiotrs policies. and directives of the commission or director regarding valid video lottery game plav and credit vouchers. j2LIn the event that the video lottery agent makes a deternzination that a credit voucher is not a yalid credit voucher sub'ec^ t to nayment, the particinant nresenting the credit voucher may submit a written. reauest, on a form approved by the director, or his designce. for a reconstruction of the credi voucher by the video lottery agent and a written determination of the video lott^-,Lagent'sdecision regard'ng tha.,,invalidity of the credit voucher.T:he commission shall be provided a copy of all such requests and shall be provided with a copy of the video lottery aaent's written determination. ^Y:r14 e,.,_(qead,Nfz¢ap:9,2103,.1i..-/2V-ss-an.S9ln.rr-412:.d-dJSU7i1 p;nie^" a I i,2r,4^91a 3770:2-7-02 2 D e state, the eotnnrissio and video lottervaaents and their off'icers, directo nartiLers,princ%pals shareholders, comrnissioners. and employees shall be discharged of any and all liability upon navment of a video lotterygaming prize including 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 resnonsible gaming proaram bv a date design a 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 the director. The director n-iay consult with the ohio department of alcohol and dmg addition services to determine whether a video lottery auent's responsible gaming nrn¢ram contains adequate measures to meet the minimum requirements set forth herein. At a minimum a video lottery agenfs responsible pamine nrogiam shall include: I 0 ounc ents and dis avs e res onsible videolotte ame nla (2) Posting of information at video lotter y agent facilities and on a video lotterv anent's website regarding problem eai nbling assistance available to video lo er,y customers including but not limited to hotlines and the availability of self 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's responsible gaming prog,am. r B S If exclusionlist. Any person may vol 1 ace himself or herse on sel exc usi DU st whi ould exclude the q erson from a video lot amin ac 1 in the state for a period of one, two or three years. The self exclusion list shall onlv be annlicable to video lottery gaming-- (1) Requests to be added to a self exclusion list may be submitted in person or by mail 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 be T 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 the commission, or any of its directors, commissioners employees agents renresentatives contractors, snbcontraetors or video lotterv agents under this division or sales agents under section 3770.05 of the Revised Code from any liability associated with anv self exclusion list establislied 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 [,,n"mr,ur: rtrie..,f 21a. a,nhurtn, r.ns rh 2, 0 Apr9, 2003, (err. 5, p: )t pdni Axte: oWiE^UO9 1 O^Di ro 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 individuals who have voluntarily added their names to a self exclusion list do not attem^t to play video lotterv aames at its facility, An individual who has placed himself or herself on a se[f exclusion list shall be escorted from a vidco lotterv gaming facilitv. (4) In the event that an individual wbo has voluntarilYplaced bimself or herself on a self cxclusion list, the video lottery agent may treat the play of the Qame as void and the individual who has voluntarilv placed himself or herself on a self exclusion list shall not be entitled to any prize won or a refund of amounts waucred. (C) Nothing eontained herein in these rules establishes or shall establish a cause of action, claim or other right whatsoever in favor of any person against the state, the commission, or any of its directors cozrAtnissioners emplovees agents, representatives, contractors, subcontractors, or video latteraeents under this division 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 Lottery Game Rule." and the individual video lottery games offered and operated pursuant to the authoritv of this Vidco Lotterv Game Riile shall he conducted at such times and for snch periods as the commission maydetermine. (B) General Design. (1) Game rule number sixty is a video lotterv game rule under which video lottery games may be offered and operated on video lottery tenninals as authorized by the director under division 3770:2 of the Administrative Code. (2) Fach video lotterv game offered and operated pursuant to the authority of this Video Lottery Game Rule shall provide tor immediate prize determinations which prize determinations shall be determined by a random number generator, as ap r^oved by director. (C) Price of video lotterv tickets. The wager amount for video lotterv tickets for each video lottery name shall be in amounts a,p,proved through resolution of five commissioners present at a meeting of the commission. (1)) Prize structure. `1'he value of video lotcerygainins nrize winnings and the number and t,Xpe of different winning prize combinations available for each video lotterv game shall be established and approved through resolution of five commissioners present at a meeting of the commission prior the video lotterygame being availablc to a video lottery agent for sale to participants, but each video lottery game shall provide for an avera2e minirnum Va,vout of eigh!y-five ercent. (1) The value of the video lotterv gamingprize winnings shall be displayed on the video lotterv term' a . (2) The winning12rize combination for a valid wager shall be displa yed on the video lottery terminal (El Video lo= amine prize patiment. Upon piesentation of a valid credit vouchcr navment for prizes won by a video lottery gaming participant while engaged in play of a video lotterZ^ gaxne on a video lottery terminal shall be paid by the video lottery agent 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^e director, there shall be no minimum nurnber of timcs cach individual video lotterv game offered ma be played by a paxticipant provided that vicleo lottery games may only be played during the hours of operation for video lottery gaming as established. (G) Validity of video lotkerv gamc plU. [rndz:lwetinle.oi2.[qnm'na5ngr.;^5UI2.0.AVr4,2003,(:A:??.(nit9V8.yo'25l40,ra:]fiUOl,d2.(3Li%/7 PnotAam'OE.'1S?00 3770:2-10-60 2 I shall be the sole res0onsibili 0 he ici 0ant to ve i rthe accuracy of the video lotterv eame 0 Once a video lo customer 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/or procedures established by the lotterv includinE but not limited to validation by the video lottervi central system. (3) Notwithstandingthe information displaved on a video lotM terminal, a video lottery gamiiig prize navment shall not be due and payable to a video lotterv gaming participant until such time as a valid credit voucher is generated for and presented by a video lottery gaming participant for payznent. (4) In addition to, but not in lirnitation of, all other power or authority conferred on the director or the commission by commission rules, the director may declare a video lotter,v ticket, the play of a video lottery game a video lottery credit voucher, or any other •.ispect of video lotterv eaming void if stolen not plaved or issued in accordance with commission rnles; if it is illegible, altered, mutilate or counterfeit: or if the video lotterv terminal on which a video lottery game was played or a credit voucher fails anv validation tests or procedures established by the director. The lottery shall have no liabilit ^^for video lottery tickets, video lottery game play. credit voucher or any other aspect 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 any re5nect 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 promotions associated herewith under the autbority of this Video Lottery Game Rule in a manner consistent with the Lottery Act, the rules of the commission including without limitation this rule, any resolution of the commissioners adopted under this rule. As deemed necessarv or advisable, the director shall adopt management regulations orders or directives to offer, implement and onerate video lottery games under this Video Lottery Game Rule and associated f,romotions. (2) Names and definitions of elements of game rule number sixtv used in this rule are considered generic terms used sotely for the p=ose of this rule, and more than one video lotterv game may be offered by the commission or a video lottery agent, if aul:horized by the director_or commission, under the authority of this rule. In actuat ooeration, game rule number sijt)^, the name of each inclividual video lottery game offered under the authoritv of gaine rule sixty, and these elements may be given names or titles chosen by the director 3770_2-10-60 3 or commission. -u-'Iv.,xHl-vu'hlT -W 7 F TE[] 57RiCKLAt+9b GOVERNOR STATE OF OF3tO Executive Order 2009 - 178 Immerlinte Adoption and Amendment ol'Rules to Impiemen.t Video Itotteiy Tersvinals a.. Lottery Revenues Are an important Component of the Stezte'e Contrilaution to Local Edizcation. Programs. In the 5tate's recently enacted two-year budget; the State of Ohio dedicated more than $13 billion to eleirientary, secondary, vocational, and special education programs O"education programs"). Lottery net proceeds were projected to provide approYimately $2.3 billion of that sum. 2. The Implementation of Video I,ottea;y Terminals (VLTs) Will Itaise a Siguiiicazit Portion of the Lottery Net Proceeds Budgeted for kldueation Pxograms, The rapid implementation of VLTs by tlto Lottery Commission is pxojected to generate approximatel,y $933 million in uet ,proceeds, Dnless continuing, sigxiificant efiTorts are undPrt.alten to inxplement VLTs as quickly as is responsibl,y feasible, the projtoted VLT revenite 4vill not be realized, ziecess%tatiiig ctzts to education programs or the diversion of state resources froan already 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 lottery inals. One critical element, of the VL'.E' implementation effort is tbn adoption, as srx n as possible, of administrative rules uuthcrized by and amplifvizYgOliio law vvitb regard to VLTs. 4. Procedure for Immediate Enaetment of Ii,ule Changes. Section 119.03(F') of the Ohio ltevised Code authorizes the Governor, on the request of a state agency, to suspond the normal rule-nxalcing procedures with respect to a specific rule rvhen an emergency exists necessitating the iminediate adoption, anzentiment, or rescission 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 justifying the suspension of the normal rule-making process when the failure to act immedia.tely would negatively impact the citizens of Chio. The Lottery Commission bas asked me to determine; an{1 T have determined, that the failure to imrn.ediately adopt and amend rules necessary to the implementation of video lottery terminals will negatively impact t`7hioans because the failure to do so will result in shortfalls in prajected state revenues dedicated to education programs, necessitating cuts in those or other crS.tical state funded programs. Thereforca, an emergency exists necessitating the immediate amencinaeiat of adzninz`strative rules in this regard. 6. Authorization for Immediate Rule Tmplementation. Accordingly, the normal rule-making procedures are suspended with respect to the adoption or amendment 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 the inrplenxentatiion andJor operation of video lottery teraninals. These rules will be electronically filed by the Lottery Commission with the Ohio Secretary of State, the Directcir of the Legislative Serviee Comxnission, and the Joint; Committee on Agency Rule Review- 'Phe Lottery Commissiou may, thexufore, adopt andlor amend tliose rules iinmediately: 7. 1 signed this Executive Order on August 18, 2009, in Columbus, Ohio, and it will expire 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 of Representatives JOURNAL THURSDAY, FEBRUARY 12, 2009 IlOUSE JOURNAL, THURSDAY, FEBRUARY 12, 2009 77 ELEVENTH DAY Hall 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 the operation 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 Said bills were considered the first time. JOURNALS OF THE SENATE AND HOUSE OF REPRESENTATIVES OHIO House of Representatives JOU RNAL 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 chattge the defmition of "instant bingo ticket dispenser" and to authorize a charitable organization to purchase, lease, and use instant bingo ticket dispensers. Said bills were considered the first time REPORTS OF STANDING AND SELECT COMMITTEES AND BILLS FOR SECOND CONSIDERATION Representative Morgan submitted the following report: The standing connnittee on Finance and Appropiiations to which was referred H. B. No. 1-Representative Sykes, having had the same under consideration, 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. BOLON BARBARA BOYD EDNA BROWN JOI IN PATRICK CARNF,Y TED CELE;STr KATHLEEN CIIANDLER DENISE DRIEHAUS STEPHEN DYER LORRAINE M. FENDH JENNIFSR GARRISON JAY P. GOYAL CLAYTON LUCKIE STEPHEN SLESNICK PETER S. UJVAGI TYRONE K. YATES The following members voted "NO" RON AMSTUTZ DAVE BURKE' MA'CfHEW J. DOLAN RANDY GARDNER BRUCE W. GOODWIN CLYDE EVANS CIIERYL GROSSMAN DAVE HALL RON MAAG JEFFREY MCCLAIN ROSS MCGREGOR ROBERT MECKLENBORG SE1'H MORGAN BARBARA R. SEARS MICHAEL 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 of Representatives JouxNaL WEDNESDAY, APRIL 29, 2009 394 HOUSE JOURNAL, WEDNESDAY, APRII. 29, 2009 consideration, reeommends its re-referral to the coimnittee on Rules and Reference. RE: HEALTH INSURANCE COVER DIABETES ROSS MCGREGOR TOM LETSON DAN DODD JAY HO'1'TINGER JOHN ADAMS LYNN R. WACHTMANN ROBERT HACKETT JOHN PATRICK CARNEY SANDRA STABILE HARWOOD JOSEPH KOZIURA MARK SCHNEIDER DEBBIE PHILLIPS KRJS JORDAN The report was agreed to. The bill was ordered to bc engrossed and rereferred to ttie committee on Rules and Reference. MOTIONS AND RESOLUTIONS Representative Goyal moved that majority party members asking leave to be absent or absent the week of Wednesday, April 29, 2009, be excused, so loug 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 leave to be absent or absent the week of Wednesday, Apri129, 2009, be excused, so long 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 Revised Code to prohibit cotporat punisliment in all public and chartered nonpublic schools, was taken up for consideration the third time. The question being, "Shall the bill pass?" Representative Williams, B. moved that H. B. No. 26-Representative Williams, 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 of adopting 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 amend Sections 205.10, 321.10, 325.20, and 327.10 o£ Am. Sub. H.B. 2 of the 128th General Assembly; to amend Section 269.60.60 of H.B. 119 of the 127th General Assembly and to amend Section 269.60.60 of II.B. 119 of the 127th General Assenibly to codify the Section as section 3314.38 of the Revised Code; to amend Section 6 of H.B. 364 of the 124th General Assembly and to arnend Section 6 of H.B. 364 of the 124th General Assernbly to codify the Section as section 3314.027 of the Revised Code; to atnend Section 309.10 of Am. Sub. H.B. 2 of the 128th General Assembly; to amend Scction 317.10 of Arn. Sub. I-I.B. 2 of the 128th General Asscmbly; to amend Sections 103.80.80, 103.80.90, and 301.10.50 of H.B. 496 of the 127th General Asseinbly; to amend Section 11 of Am. Sub. H.B. 554 of the 127th General Assembly; to amend Sections 233.40.30, 233.50.80, and 701.20 of H.B. 562 of the 127th Gcneral Assembly; to amend Section 831.06 of H.B. 530 of the 126th General Assembly; to amend Section 4 of H.B. 516 of the 125th General Assembly, as subsequently amendcd; to amend Section 153 of Arn. Sub. H.B. 117 of the 121st General Assembly, as subsequently amended; to repeal Section 325.05 of Ani. Sub- H.B. 2 of the 128th General Asseinbly; to amend the version of section 2949.111 of the Revised Code that is scheduled to take effect January 1, 2010, to continue the provisions of this act on and after that effective date; to amend the version of section 5739.033 of the Revised Code that is scheduled to take effect January 1, 2010, to continue the provisions of this act on and after that effective datc; to arnend sections 5104.01 and 5104.38 of the Revised Code, effective July 1, 2011, to revive the law 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 the Revised Code, effective October 1, 2011; to make operating appropriations for the biennium begiiming July 1, 2009, and ending June 30, 2011, and to JOURNALS OF THE SENATE AND HOUSE OF REPRESENTATIVES OHIO House of 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 "Ohio Military Family Month" and to make operating appropriations for the period beginning 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 Belcher Blair Blessing Bolon Book Boose Boyd Brown Bubp Bnrkc Camcy Celcste Ctrandlor Coley Cornbs Dauiels DeBose DeGeeter Derickson Dodd Dolan Domenick Drichaus Dyer Evans Fendo Foley Gardner Gartand Garrison Gerberry Goodwin Goyal Grossrnan Slackett fiagan Hall Harris Harwood Heard Hite Hottinger Huffman Joncs Jordan Koziura Lehner Letson Luckic Lundy Maag Maltory Mandel Martin McClain McGregor Mccklenborg Moran Morgan Murray Newcomb Oelslager Okey Ottertnan Patten Phillips Pillich Pryor Ruhl Sayre Schneider Sears Skindell Slesniek Suitchler Stautberg Stebelton Stewatt Sykes Szollosi iJeeker Ujvagi WachLnann Wagner Weddington Williams B. WilliamsS. Winbum Yates Yuko Lehringer Budish-99. The Senate amendments were concurred in. REPORTS OF CONFERENCE COMMITTEES Representative Szollosi moved that Joiut Rule No. 20, pertaining to reports of conference committees, be suspended and that the report of the committee of Conference on Am. Sub. H. B. No. 1-Representative Sykes, et al. be taken up 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 between the 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 houses as 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 in accordance 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 diem basis, to the compensation paid to the incumbentjudge of the municipal court in which the judge is appointed or designated to serve. If the ineumbentjudge is compensated as described in division (A)(5) of section 141.04 of the Revised Code, the appointed or desiguatedjudge is entitled to compensation at that rate. If the incumbent judge is compensated as described in division (A)(6) of section 141.04 of the Revised Code, the appointed or designated judge is entitled to compensation at that rate. (b) The following judges shall receive compensation as described in division (A)(1)(a) of this section: (i) An acting jadge appointed pursuant to division (B) of section 1901.10 of the Revised Code as a substitute judge because of the volume of cases pending in the municipal court and the report of the chiefjustice of the supreme court that no judge of another municipal court or county court is available to serve by designation; (ii) A judge of another mmticipal court or eounty court designated by the chief justice of the suprene court pursuant to division (B) of seetion 1901.10 of the 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 the Revised Code and appointed pursuant to division (A)(2) of section 1901.10 of the Revised Code as a substitute for the judge of a municipal coutt that has only one judge ; who is on vacation; (iv) An acting judge autliorized by ctivision (B) of section 1901.12 of the Revised Code and appointed by the presidingjudge of the municipal court pursuant to that division as a substitute judge because an incumbentjudge is on vacation or not in attendance; (v) A retired judge who has been assigned to active duty on the municipal court. HOUSE JOURNAL, MONDAY, JULY 13, 2009 1813 (2) If the application is received on or after the effective date of this section, the Director shall accept the application, for review under section 3702.52 of the Revised Code, only if the proposed increase in long-term care beds is attributable solely to a replacement or relocation of existing long-tenn care beds within the same county. (3) If a certificate of need is granted to the applicant, the Director shall not authorize additional beds beyond those being replaced or relocated. (C) If pursuant to division (B)(1) of this section a certificate of need cannot be granted or pursuant to division (B)(2) of this section an application cannot be accepted, the Director shall return to the applicant both the application and the fee that aecompanied the application. This division applies to all pending actions regarding applications received before the effective date of the actions taken by this act to amend, enact, and repeal sections included within the range consisting af sections 3702.51 to 3702.62 of the Revised Code. (D) The provisions of this section are applicable to the Director and the Certificate of Need Program, notwithstanding any conflicting provision of sections 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 rules under which a statewide lottery may be conducted . which includes, and since the orieinal enactment of this section has included, the authority for the coinmission to operate video lottery terniinal i4amcs Any reference in this chiuter to tickets shall not be construed to in any way limit the authority of the commission to operate video lottery terininal games. Nothing in this chapter shall restrict the authority of the cornmission topromulgate nil.es related to the operation of Zames utilizing video lottery teiniinpls as described in section 3770.21 of the Revised Code. The iules shall be promulgated pursuant to Chapter 119. of the Revised Code, except that instant game rulcs shall be promulgated pursuant to section 111.15 of the Revised Code but are not subject to division (D) of that section. Subjects covered in these rules sliall include, but need 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 and frequency of prize drawings, and the manner in which prizes shall be awarded to holders of winning tickets. (B) The eomrnission shall promulgate rules, in addition to those described in division (A) of this section, pursuant to Chapter 119. of the Revised Code under which a statewide lottery and statewide joint lottery games may 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 in which they are to be sold. These rules may authorize the sale of lotteiy tickets by commission personnel or other licensed individuals from traveling show wagons at the state fair, and at any other expositions the director of the commission considers acceptable. These rules shall prohibit eonnnission personnel or other licensed individuals from soliciting from an exposition the right to sell lottery tickets at that exposition, but shall allow eotnmission personnel or other licensed individuals to sell lottery tickets at an exposition if the exposition requests commission personnel or licensed individuals to do so. These rules may also address the accessibility of sales agent locations to commission products in accordance with the "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 lottery sales 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 agents consistent with section 3770,05 of the Revised Code, and procedures for revoking or suspending their licenses consistent with Chapter 119. of the Revised Code. If circumstances, such as the nonpayment of funds owed by a lottery sales agent, or otlier circumstanees related to the public safety, convenience, or trust, require immediate action, the director may suspend a license without affording an opportunity for a prior hearing under section 119.07 of the Revised Code. (5) Special game rules to implemeut any agreements signed by the governor that the director enters into with other lottery jurisdictions under division (J) of section 3770.02 of the Revised Code to conduct statewide joint lottery games. The rules shall require that the entire net proceeds of those ganies that remain, after associated operating expenses, prize disbursements, lottery sales agent bonuses, commissions, and reimbursements, and any other expetues necessary to comply with the agreements or the ntles are deducted from the gross proceeds of those games, be transferred to the lottery profits education fund under division (B) of section 3770.06 of the Revised Code. (61 Ank other subjeets the commission detemrines are nece.ssary for the operation of video lottery terminal ganres includine the establishment o£any fees, 6nes, or payment schedules. (C) Chapter 2915 of thc Revised Code does not aplv to, affect, or nrohibit lotteries condticted tyLirsuant to this chanter. 1D The commission may promulgatc rules, in addition to those described in 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 items that are used in the conduct of, or to promote, the statewide lottery and statewide joint lottery games. Any revenue derived from the sale of advertising displayed on lottery tickets and on those other items shall be considered, for puiposes of section 3770.06 of the Revised Code, to be related proceeds in connection with the statewide lottery or gross proceeds from statewide joint lottery games, as applicable. {Bj LU(1) The commission shall meet with the director at least once each montlz and shall convene other ineetings at the request of the chairperson or any five of ttic meuibers. No action taken by the commission shall be binding unless at least five of the members present vote in favor of the action. A written record shall be made of the proceedings of each meeting and shall be transmitted forthwith to the governor, the president of the senate, the senate miuority leader, the speal General Revenue Frmd'1'otal $24,631,183,745 $25,888,526,989 Managers on the Part of the Managers on the Part of the House 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 7R JAY P. GOYAL MARK D. WAGONER, JR. Lsf DAiF MILLLR RON AIv1STpTZ DALE MILLER The question being, "Shall the report of the conunittee of Conference be agreed to?" 07/13/2009 The Honorable Armond Budish, Speaker The Ohio IIouse of Representatives Columbus, Ohio Speaker Budish, Pursuant to House Rule No. 57, 1 respectfully request that 1 be exeused from voting 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 an interest in the legislation. Sincerely yours, /s/ TERRY BLAIR State Representative 38th 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 Boyd Brown Carney Celeste Chandler DeBose DeGeeter Dodd Domcnick Drichaus Dyer Fende Foley Garland Garrison Gerberry Goyal Hagan Harris Harwood Heard Koziura Letson Luckie Lundy Mallory Moran Murray Newcomb Oolslager Okey Otternran Patten Phillips Pillich Pryor Sayre Schneider Skindell Slesnick Steivart Sykcs Szollosi Ujvagi Weddington Williams 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 Dolan Evans Gardner Goodwin Grossinan Hackett Hall Hito Hottinger Hul7inan Jones Jordan Lehner Maag Mandel Martin McClain McGregor Mecklenborg Morgan Rtilrl Sears Snitchler Stantberg Stebelton IJecker 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 to be absent or absent the week of Monday, July 13, 2009, be excused, so long as a written request is on file in the majority leadership offices. The motion was agreed to. Representative Adams, J. moved that minority party members asking leave to be absent or absent the week of Monday, July 13, 2009, be excused, so long as 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 suspended and that Am. Sub. S. J. R. No. 6-Senators Gibbs, Wilson, et al. be discharged from the standing committee on Agriculture and Natural Resources. The motion was agreed to without objection. Representative Szollosi moved that the following joint resolution be brought up for immediate adoption, read by title only, and spread upon the pages of the journal. The motion was agreed to without objection. The question being on the adoption of the joint resolution, reading as follows: 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, and 5815.36 and to enact sections 5302.222 and 5302.24 of the Revised Code to change the transfer on death (TOD) designation instrument from a deed to an affidavit, to allow real property owners holding titlc in survivorship tenancy to execute such an affidavit, to clarify the status of a trustee of a ttust as a 1'OD beneficiary and the dower rights of the spouse of the property owner, and to make 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's prerogative be adopted?" So the resolution was adopted. Message from the House of Representatives Mr. President: l atn directed to inform you that the House of Representatives has passed the following bill in which the concnrrence of the Senate is requested: Am. Sub. H. B. No. 1 -Representative Sykes Cosponsors: 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; of adopting 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, 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, 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 amend Sections 205_10, 321.10, 325.20, and 327.10 of Am. Sub. II.B. 2 of the 128th Gcneral Assembly; to amend Section 269.60.60 of H.B. 119 of the 127th General Assembly and to amend Section 269.60.60 of I3.B. 119 of the 127th General Assembly to codify the Section as section 3314.38 of the Revised Code; to amend Section 6 of H.B. 364 of the 124th General Assembly and to amend Section 6 of H.B. 364 of the 124th General Assembly to codify the Section as section 3314.027 of the Revised Code; to amend Section 309.10 of Am. Sub. H.B. 2 of the 128th General Assembly; to amend Scction 317.10 of Am. Sub. H.B. 2 of the 128th General. Assembly; to amend Sections 103.80.80, 103.80.90, and 301.10.50 of H.B. 496 of the 127th General Assembly; to amend Section 11 of Am. Sub. H.B. 554 of the 127th General Assembly; to amend Sections 233.40.30, 233.50.80, and 701.20 of H.B. 562 of the 127th General Assembly; to amend Section 831.06 of H.B. 530 of the 126th General Assembly; to aniend Section 4 of H.B. 516 of the 125th General Assembly, as subsequently atnended; to amend Section 153 of Am. Sub. II.B. 117 of the 121st General Assetnbly, as subsequently amended; to repeal Section 325.05 of Ain. Sub, H.B. 2 of the 128th Genoral Assembly; to amend the version of section 2949.111 of the Revised Code that is scheduled to take cffect January 1, 2010, to continue the provisions of this act on and after that effective date; to amend the version of section 5739.033 of the Revised Code that is scheduled to talce effect January 1, 2010, to continue the provisions of this act on and atter that effective date; to amend sections 5104.01 and 5104.38 of thc Revised Code, effective July l, 2011, to revive the law 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 the Revised Code, effective October 1, 2011; to make opcrating appropriations for the biemiium beginning July 1, 2009, and ending June 30, 2011, and to provide 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 OHIO SENATE JOURNAL TUESDAY, JUNE 2, 2009 462 SENATE JOURNAL, TUESDAY, JUNE 2,2009 FIFTY-FOURTH DAY Senate Chamber, Columbus, Ohio Tuesday, 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 which was refeired Ant. Sub. H. B. No. 1-Representative Sykes, et al., having had the same under consideration, reports back a substitute bill and recomtnends its 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 sections 2950.112, 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 care facility to notify its residents when a sex ofFender or person who was imprisoned out-of-statc: for a felony offense is adtnitted to the facility and to establish immunity for eniployees of such facilities who report the facility's failure 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 the recotnmendation 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 the appointments 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 Cates Couglilin Faber Fedor Gibbs Gillmor Grendell Hughes Tiusted Keanmey Miller U Miller R Morano Niehaus Patton Sawyer Schaffer Sehiavoni Scitz Smith Stewart Strahorn 'hinrer Wagoner Widener Wi)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, for the 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); to enact new sections 173.43, 3319.222, 5101.5110, and 5111.688 and sections 5.2265, 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 repeat sections 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 amend Section 309.10 of Am. Sub, H.B. 2 of the 128th General Assembly; to atnend Section 317.10 of Am. Sub. H.B. 2 of the 128th General Assembly; to amend Sections 120.01, 120.02, and 120.05 of Atn. Sub. H.B. 119 of the 127th General Assembly; to amcnd Sections 103.80,80, 103.80.90, 301.20.50, and 301.30.30 of H.B. 496 of the 127th General Assembly; to amend Sections 201.30, 301.20.20, 301.20.80, and 301.60.50 of H.B. 496 of the 127th General Assembly, 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 amend Sections 227.10 and 233.50.80 of H.B. 562 of the 127th Generat Assembly, as subsequently amended; to amend Section 231.20.30 of Ain. Sub. H.B. 562 of the 127th General Assembly, as subsequentty aniended; to atnend Section 831.06 of H.B. 530 of the 126th General Assembly; to amend Section 4 of H.B. 516 of the 125th General Assembly, as subsequently ainended; to amend Section 153 of Ani. Sub. H.B. 117 of the 121st General Assembly, as subsequently ameuded; to repeal Section 3 of Atn. Sub. iI.B. 203 of the 126th General Assembly; to repeal Section 325.05 of Atn. Sub. H.B. 2 of the 128th General Assembly; to amend the version of section 2949.111 of the Revised Code that is scheduied to take effect January 1, 2010, to continue the provisions of this act on and after that effective date; to amend the version of section 5739.033 of the Revised Code that is schcduled to take effect January 1, 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, and ending June 30, 2011, and to provide authorization and conditions for the operation 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) VERSION MONDAY, 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 Ohio law from recent federal tax law changes, to require the Department of Job and Family Services to operate the Disability Medical Assistance Program in the saine manner the Program was operated as of June 30, 2009, and to make appropriations. On the motion of Senator Nieliaus the Senate reverted to the fourth order of business, Reports of Conference Committees. REPORTS OF CONFERENCE COMMITTEES The Conunittee of Conference to which the matters of difference between the two houses were referred on Am. Sub. H.B. 1, Representative Sykes - et al., having had the same under consideration, recommends to the respective houses as 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: "Sec. 1901.121. (A)(1)(a) Subject to division (A)(2) of this section and in accordance 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 diem basis, to the compensation paid to the incumbent judge of the municipal court in which the judge is appointed or designated to serve. If the incumbent judge is compensated as described in division (A)(5) of section 141.04 of the Revised Code, 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 section 141.04 of the Revised Code, the appointed or designated judge is entitled to compensation 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 rules under which a statewide lottery may be conducted . which inchtdes, and since the orit4inal enactment of this section has included the authority for the commission to operate video lottery terniinal games. Any referenee in this chapter to tickets shall not he consuued to in any wav limit the authoritL o f the cotnmission to operate video lottery ternrinal games. Nothine in this ehapter shall restrict the authority of the commission to promulgate niles related to the oneration of games utilizing video lottery terminals as described in section 3770.21 of the Revised Code. The niles shall be promulgated pnrsuant to Chapter 119. of the Revised Code, except that instant game nttes shall be promulgated pursuant to section 111.15 of the Revised Code but are not subject to division (D) of that section. Subjects covered in these rules shalt include, but need 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 and frequency of prize drawings, and the manner in which prizes shall be awarded to holders of winning tickets. (B) The commission shall promulgate rules, in addition to those described in division (A) of this section, pursuant to Chapter 119. of the Revised Code under which a statewide lottery and statewide joint lottery games may be conducted. 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 in which they are to be sold. These rules may authorize the sale of lottery tickets by commission personnel or other licensed individuals from traveling show wagons at the state fair, and at any other expositions the director of the commission considers acceptable. Tliese niles shall prohibit comtnission personnel or other licensed individuals from soliciting from an exposition the right to sell lottery tickets at that exposition, but shall allow commission persotwel or other lieensed individuals to selllottery tickets at an exposition if the exposition requests commission persounel or licensed individuals to do so. These t-ules may also address the accessibility of sales agent locations to commission products in accordance with the "Americans with Disabilities Act of 1990," 104 Stat. 327, 42 U.S.C.A. 12101 et seq. (2) The manner in which lottery sales revenues are to be collected, including authorization for the director to inipose penalties for failure by lottety sales 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 agents consistent with section 3770.05 of the Revised Code, and procetiures for revoking or suspending their licenses consistent witli Chapter 119. of the Revised Code. If circumstances, such as the nonpayment of fmids owed by a lottery sales agent, or othcr circumstances related to the public safety, convenience, or trust, require imtnediate action, the director may suspend a license without affording an oppottunity for a prior hearing under section 119-07 of the Revised Code. (5) Special game rules to implement any agrecinents signed by the governor that the director enters into with other lottery jurisdictions under division (J) of section 3770.02 of the Revised Code to conduet statewide joint lottery games. The rules shall require that the entire net proceeds of those games that remain, after associated operating expenses, prize disbursements, lottery sales agent bonuses, commissions, and reimbursements, and any other expenses necessary to comply with the agreements or the ndes are deducted from the gross proceeds of those games, be transferred to the lottery profits education fund under division (B) of section 3770.06 of the Revised Code. (^6 Ativ other subjects the commission determines are necessary for the oneration of video lottery terminal games including the establishment of 1ny fees, fines, or 12avment schedules. (C) Chlpter 2915 . of the Reviced Code does not apply to_ affect or prohibit lotteries condueted nursuant to this chapter jD) The commission may promulgate rules, in addition to those described in divisions (A) and (B) of this section, that establish standards governing the display of advertising and celebrity images on lottery tickets and on other items that are used in the conduct of, or to protnote; the statewide lottery and statewide joint lottery games. Any revenue derived fi-om the sale of advertising displayed on lottery tickets and on those other items shall be considered, for purposes of section 3770.06 of the Revised Code, to be related proceeds in eonnection with the statewide lottery or gross proceeds from statewide joint lottery gaines, as applicable. (Dj ^(1) The commission shall meet with the director at least once each month and shall convene other meetings at the request of the chairperson or any five of the members. No action taken by the commission shall be binding unless at least five of the members present vote in favor of the action. A written record shall be made of the proceedings of each meeting and shall be transmitted forthwith to the 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 the state lottery for the preceding month. As soon as practicable after the end of each fiscal 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 operating expenses for the preceding fiscal year aud any recommendations for lcgislation considered 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 grize determinations for par6cinants on an electronic display. (B) Thestlte lottery commission shall include, in any rules adopted concerning video lottery terminals the level of murirnum investments that must be made by video lottety tei-minal licensees in the buildings and grounds at the facilities, 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 of this section shall be assessed upon or collected from a video lotterv terminal licensee by any county, township municipal cornoration school district, or other political subdivision of the state that has authority to assess or collect a tax or fee bv reason of the video lottery terminal related conduct authorized by section 3770 .03 of the Revised Code This division does not prohibit the imoosition of taxes under Chapter 718 . or 3769 . of the Revised Code (D) The suWrene court shall have exclusive ori ginal iurisdiction over any claim •tsserting that this section or section 3770 . 03 of the Revised Code or anvnortion of those sections or arty rule adonted under those sections violates ariv nrovision of the Ohio Constitution, wy claim asserting that any action taken by the governor or the lotterv commission pursulnt to those sections violates any provision of the Ohio Constitution or any provision of the Revised Code, orativ claim asserting that anyportion of this section violates anv nrovision of the Ohio ConstitiRion [f any claim over which the supreme coutt is granted exchtsive original iurisdiction by this division is filed in any lower court, the claim shall be dismissed 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 the Revised Code be found to be unenforceable or invalid, it shall be severed and the remainingportions 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 with the review of the operation of video lottery terrninal operations as specified in Chapter 3770. of the Revised Code." Between lines 105448 and 105449, insert: "Section 735._. It is the intent of the General Assembly to address political contribution issues by the end of the 128th General Assembly. Section 737._. Notwithstanding any other provision to the contrary in Chapter 3769. of the Revised Code, for a period of two years after the effective date of this section, any person holding a permit under the provisions of that chapter to conduct live horse-racing meetings at a facility owned by a political subdivision may apply for, and the State Racing Commission may grant, a permit to conduct horse-racing meetings at a location at which such meetings have not previously been conducted, if the pennit application is aecompanied by a resolution adopted by the board of county commissioners of the county of the proposed location, and of the local legislative authority, whether a municipal corporation or townsltip, of the proposed location, requesting that the Commission grant the pennit. The Commission may only grant such an application if the proposed location is in the same or a contiguous county aud is within fifty miles of the current location associated with the permit, but is not in the same county as another location at which live horse-racing meetings are conducted." 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 ", and 5112.371" 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 Revised Code: 2002 SENATE JOURNAL, MONDAY, JULY 13, 2009 VTOVeterans' 753501 Atnvets $316,711 $316,711 Organizations VTOVeterans' 754501 Disabled $237,939 $237,939 Organizations Atnerioan Veterans VTOVctcrans' 756501 Mariac Corps $127,569 $127,569 Organizations League VTOVeterans' 757501 37lhDivA$P $6,541 $6,541 Organizations Veterans' Association VrOV eterans' 758501 Veterans of $271,277 $271,277 Organizations Foreign Wars DVSDepartmenlof 900100 Personal $25,219,282 $25,219,282 Veterans Services Services DVSDeparttnentof 900200 Maint,enance $4,427,264 $4,427,264 Vetcrans Services DVSDeparintentof 900402 HalloCFanrc $118,750 $118,750 Veterans Sctvices DVSDepartment of 900403 Veteran $40,631 $40,631 Vctcrans Record Services Cunversion DVSDepartment of 900408 Department of $2,054,790 $2,054,790 Veteran.c Veterans Services Services DYSDepartment of 470401 RECLAIM $196,288,874 $184,026,374 YouthServiees Oluo DYSDepartment of 470412 Lease Rental $22,863,300 $26,043,900 Yonth Services Payments DYSDepartment of 470510 Youth Services $16,702,728 $16,702,728 Youth Services DYSDepartment of 472321 Parole $11,400,020 $11,400,020 YouW Services (>f^erations DYSDepartmentof 477321 Administrative $13,342,557 $13,580,057 Youth Services Operntions General Revenue Fund Total $24,631,183,745 $25,888,526,989 Managers on the Palt of the Managers on the Part of the House of Representatives Senate iS/ VF'7LNON SYKL$ 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 MARK D. WAGONER, JR. LS' DAr R Mn i 172 RON AMSTUTZ DALE MILLER Senator Niehaus nioved that the report of the committee of conference on Am. Sub. 11. B. No. 1, be brought up for immediate consideration, pursuant to Senate 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 be agreed 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 Fedor Kearney Miller D Miller R Morano Niehaus Sawyer Schiavoni Smith Strahorn Turner Wagoncr Wilson Harris-17. Those who voted in the negative were: Senators Buchrer Cates Coughlin Gibbs Gilbnor Goodman Grendell Hugltes Husted Patton Schaffer Schuring Seitz 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 Representatives Mr. President: I am cGrected to inform you that the House of Representatives has concutxed in the adoption of the following joint resolution: Am. Sub. S. J. R. No. 6 -Senators Gibbs, Wilson Cosponsors: 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,