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Be it resolved by the people of the State of Ohio, that the Constitution of the State of Ohio be amended by adopting Section 12 of Article XV, to read as follows:

Section 12

“For the purpose of inspiring students to aspire to college at an early age, to improve students” academic preparation, and to make college affordable for students and their families, the Ohio Board of Regents shall award undergraduate higher education scholarships and tuition grants for United States citizens who are residents of this state commencing with the first high school class graduating two years following the approval of this amendment. Eligibility criteria for such scholarships and grants, and the amounts, shall be established solely by the Ohio Board of Regents. Such scholarships and grants shall include only the following:

(A) Individual learn and earn scholarship accounts for current and future students who, prior to enrolling in college, take core and advanced academic courses, participate in college readiness programs, assessment and testing at any accredited public or non-public high school in this state and contribute to public life through voluntary civic activity, and who attend any public or independent not-for-profit institution of higher education authorized by the Ohio Board of Regents and that has its principal office within this state.

(B) For the first twelve such high school graduation classes, uniform tuition grants, in an amount not to exceed the average undergraduate tuition charged by Ohio public universities, shall be awarded to the top five percent of students at each accredited public and non-public high school who attend any public or independent not-for-profit institution of higher education authorized by the Ohio Board of Regents and that has its principal office within this state. Such tuition grants shall be based solely on academic merit.

Notwithstanding any other provision of this Constitution, slot machines shall be permitted at seven permitted commercial horse racing tracks, at one location within the City of Cincinnati no more than three miles from Fountain Square, and at two locations each fronting on the existing channel of the Cuyahoga River in the City of Cleveland, one on the west bank with the area generally known as the Nautica Entertainment Complex and with frontage of approximately 1,430 feet in length, extending 560 feet to the northwest and 870 feet to the southeast of the intersection of the centerline of vacated Main Avenue and the Cuyahoga River, and one on the east bank within the area generally known as Tower City and starting at the northeast corner of West Third Street, where it meets the east bank of the Cuyahoga River and extending north and west along the east bank of the Cuyahoga River for not more than 1,700 feet and having a depth of not more than 460 feet from the east bank of the Cuyahoga River.

The games authorized in this section shall be conducted only at the locations authorized herein, and, in the discretion of the facility owner, may be conducted twenty-four hours each day. No more than three thousand such devices my be operated at any one facility, except that no more than four thousand such devices may be operated at the Tower City location and no more than three thousand four hundred such devices may be operated at the Nautica Entertainment Complex location, provided that facilities located at permitted commercial horse racing tracks within the same county or adjacent counties may, by agreement, provide for the transfer of such devices between such facilities.

Nothing in this section shall be interpreted to authorize live games associated with casinos, including, but not limited to roulette, card games, and dice games, except that such games may be conducted at a facility authorized in this section if the voters in the county in which that facility is located approve the conduct of such additional games by a majority vote. If a permitted commercial horse racing track is not situated wholly within a single county, then such vote shall be conducted in the most populous county in which such permitted commercial horse racing track is situated. No such vote may be conducted prior to the fourth general election following the approval of this amendment.

Thirty percent of the difference between the amount of wagers on slot machines and the amount payments to winning participants shall be paid t the state and shall be used, without necessity of appropriation by the General Assembly notwithstanding section 22 of Article II of the Ohio Constitution, solely for the scholarships and grants provided for in this section and the related administrative costs for administering such scholarships and grants.

In addition to the forgoing amount, an additional one percent of the difference between the amount of wagers on slot machines and the amount of payments to winning participants shall be paid to the state to pay for gambling addiction services; an additional six-tenths of one percent of such amount shall be paid to the municipality or township in which each facility is located; an additional two and six-tenths of such amount shall be divided equally and paid to the county in which each facility is located and the county seat of that county, which proceeds shall be expended for economic development projects; and additional one and two-tenths percent of such amount shall be paid t the counties in which each non-track facility is located in proportion to the number of non-track facilities in such county, which proceeds shall be expended for economic development projects; an additional one and two-tenths percent of such amount shall be paid t the cities in which each non-track facility is located in proportion to the number on non-track facilities located in such cities, which proceeds shall be expended for economic development projects and an additional two and four-tenths percent of such amount shall be paid to the state for distribution to all other counties pursuant to the local government revenue assistance fund, which proceeds shall be expended for economic development or capital improvement projects. In addition to the foregoing amounts, an additional six percent of the difference between the amount of wagers by individual participants and the amount of payments to winning participants at facilities located at each permitted commercial horse racing track shall be used by those tracks for purse money, and an additional six percent of the difference between the amount of wagers by individual participants and the amount of payments to winning participants at non-track facilities shall be deposited into the Ohio simulcast horse racing purse fund for distribution by law. The proceed of any additional games, if authorized by voters pursuant to this section, shall be distributed in the same manner as the proceeds from the operation of slot machines. No other fees or taxes may be applied to or levied against the amounts wagered or the proceeds of the gaming authorized by this section.

The amounts paid to the state pursuant to this section do not diminish the General Assembly”s constitutional obligations. The moneys expended hereunder on scholarships and grants shall supplement, not supplant, per-student state resources appropriated for post-secondary educational programs and purposes prior to or after the approval of this amendment. The monies distributed to counties, townships and municipalities hereunder shall supplement, not supplant monies appropriated to those counties, townships, and municipalities prior t or after the approval of this amendment. The amounts paid to the state or any county, township, or municipality pursuant to this section shall not be subject to any tax or expenditure limitation. With the exception of the foregoing six-tenths of one percent that is paid to the municipality or township in which a facility is located, and notwithstanding the requirements, limitations, or prohibitions of Article VIII, or of Sections 5, 6, and 11 of Article XII of the Ohio Constitution, all of the monies distributed to counties and municipalities in which a facility at which slot machines are permitted shall be, and any of the monies distributed to any other counties, townships, and municipalities may be expended for or in support of, and be applied to any of the revitalization purposes under Section 2o of Article VIII, research and development purposes and development of sites and facilities in Ohio for and in support of industry, commerce, distribution, and research and development purposes under Section 2p of Article VIII, and any other economic development purposes authorized in Section 13 of Article VIII of the Ohio Constitution.

There is hereby created the Gaming Integrity Commission which shall regulate all gaming authorized by this section, and which shall consist of five members. Three members of the Gaming Integrity Commission shall be appointed by the governor, no more than two of whom shall be members of the same political party. One member of the Gaming Integrity Commission shall be appointed by the speaker of the house of representatives, and one member shall be appointed by the president of the senate, provided that the members appointed by the legislative leaders shall not be members of the same political party. Each facility authorized to conduct games pursuant to this section shall pay as a licensing fee an equal share of the reasonably-estimated cost of establishing the Gaming Integrity Commission, and no other licensing fees shall be imposed upon these facilities. The cost of operating the Gaming Integrity Commission shall be paid from the foregoing amounts to be paid to the counties, townships, and municipalities prior to the distribution to those counties, townships, and municipalities.

The General Assembly shall pass laws within six months of the effective date of this amendment to facilitate the operation of this amendment. If the General Assembly fails to pass such laws within six months of the effective date of this amendment, or the members of the Gaming Integrity Commission not been appointed as provided in this section, the games authorized in this section may be conducted on and after that date under the supervision of the Lottery Commission which shall retain such supervisory authority until the General Assembly has passed laws to facilitate the operation of this amendment and the members of the Gaming Integrity Commission have been appointed as provided in this section.

For purposes of this section, “slot machines” shall include any mechanical, electrical, or other device or machine which, upon a coin, token, or similar object, or upon payment of any consideration, is available to play or operate, the play or operation of which, whether by reason of the skill of the operator or application of the element of chance, or both, makes individual prize determinations for individual participants in cash, premiums, merchandise, tokens, or any thing of value, whether the payoff is made automatically from the machine or in any other manner. The slot machines authorized by this section may be linked by their operators with other such devices located at the facilities authorized by this section for the purpose of providing prizes based in whole or in part upon the play of such connected devices at the same or other authorized facilities.

For purposes of this section, “permitted commercial horse racing track” means any place, track, or enclosure where a permit holder conducted live horse racing for profit at a racing meeting during the two calendar years prior to approval of this amendment, and which continues to conduct live horse racing for profit following the approval of this amendment, and includes facilities on premises contiguous to, or separated only by a roadway from, those places, tracks, or enclosures, provided that a permit holder that currently conducts racing meetings on public land may relocate the facility authorized in this section if that permit holder relocates its permitted commercial horse racing track within the same county as provided by law.”