As Introduced

124th General Assembly
Regular Session
2001-2002
H. B. No. 330


REPRESENTATIVE Peterson



A BILL
To amend section 4301.17 of the Revised Code to allow1
the Division of Liquor Control to base the2
population quota restrictions for agency stores3
that sell spirituous liquor on the Division's4
behalf on state population estimates determined by5
the Department of Development between federal6
decennial censuses; to change these population7
quota restrictions and the compensation paid to8
operators of agency stores; to allow the Division9
to enter into additional contracts for agency10
stores with certain class C permit holders11
notwithstanding these population quota or other12
restrictions; and to eliminate the restriction13
against the same person operating or having an14
interest in more than eight agency stores in the15
state or more than four agency stores in the same16
county.17


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That section 4301.17 of the Revised Code be18
amended to read as follows:19

       Sec. 4301.17.  (A)(1) Subject to local option as provided in20
sections 4301.32 to 4301.40 of the Revised Code and except as21
otherwise provided in division (A)(2) of this section, five state22
liquor stores or agencies may be established in each county. One23
Except as otherwise provided in division (A)(2) of this section,24
one additional store may be established in any county for each25
thirtytwenty-five thousand of population of suchthat county or26
major fraction thereof in excess of the first forty thousand,27
according to the last preceding federal decennial census or28
according to the population estimates certified by the department29
of development between decennial censuses. AExcept as otherwise30
provided in division (A)(2) of this section, a person engaged in a31
mercantile business may act as the agent for the division of32
liquor control for the sale of spirituous liquor in a municipal33
corporation, in the unincorporated area of a township of not less34
than two thousand population, or in an area designated and35
approved as a resort area under section 4303.262 of the Revised36
Code, provided that not more than one agency contract shall be37
awarded in the unincorporated area of a county for each fifty38
thousand population of the county. The division shall fix the39
compensation for such an agent in suchthe manner as it deems40
considers best, but suchthe compensation shall not be less than41
six and one-half per cent of, nor exceed seven and one-half per42
cent of, the gross sales made by suchthe agent in any one year.43

       Except as otherwise provided in this section, no mercantile44
business that sells beer or intoxicating liquor for consumption on45
the premises under a permit issued by the division shall operate46
an agency store at suchthe premises or at any adjacent premises.47
An agency to which a D-1 permit has been issued may offer for sale48
tasting samples of beer, an agency to which a D-2 permit has been49
issued may offer for sale tasting samples of wine and mixed50
beverages, and an agency to which a D-5 permit has been issued may51
offer for sale tasting samples of beer, wine, and mixed beverages,52
but not spirituous liquor. A tasting sample shall not be sold for53
the purpose of general consumption. As used in this section,54
"tasting sample" means a small amount of beer, wine, or mixed55
beverages that is provided in not more than four servings of not56
more than two ounces each to an authorized purchaser and that57
allows the purchaser to determine, by tasting only, the quality58
and character of the beverage.59

       (2) Notwithstanding the population quota or other60
restrictions contained in division (A)(1) of this section on the61
number of liquor stores or agencies that the division may62
establish in counties, the division may establish additional63
liquor stores or agencies in counties at any premises for which64
the division has issued both a C-1 permit and a C-2 permit and65
that has not less than thirty thousand square feet of retail66
space.67

       (B) When an agency contract is proposed or when an existing68
agency contract is assigned, before entering into any such69
contract or consenting to any assignment, the division shall70
notify the legislative authority of the municipal corporation in71
which the agency store is to be located, or the board of county72
commissioners and the board of township trustees of the county and73
the township in which the agency store is to be located if the74
agency store is to be located outside the corporate limits of a75
municipal corporation, of the proposed contract or assignment, and76
an opportunity shall be provided officials or employees of the77
municipal corporation or county and township for a complete78
hearing upon the advisability of entering into the agency contract79
or consenting to the assignment. When the division sends notice80
to the legislative authority of the political subdivision, the81
department shall notify, by certified mail or by personal service,82
the chief peace officer of the political subdivision, who may83
appear and testify, either in person or through a representative,84
at any hearing held on the advisability of entering into the85
agency contract or consenting to the assignment.86

       On or after July 21, 1986, ifIf the proposed agency store87
would be located within five hundred feet of a school, church,88
library, public playground, or township park, the division shall89
not enter into an agency contract until it has provided notice of90
the proposed contract to the authorities in control of the school,91
church, library, public playground, or township park and has92
provided such officialsthose authorities with an opportunity for93
a complete hearing upon the advisability of entering into the94
contract. If an agency store so located is operating under an95
agency contract, the division may consent to the assignment of96
that contract to operate an agency store at the same location,97
provided thatbut the division shall not consent to an assignment98
until it has notified the authorities in control of the school,99
church, library, public playground, or township park and has100
provided such officialsthose authorities with an opportunity for101
a complete hearing upon the advisability of consenting to the102
assignment.103

       Any hearing provided for in this division shall be held in104
the central office of the division, except that upon written105
request of the legislative authority of the municipal corporation,106
the board of county commissioners, or board of township trustees,107
or the autorities in control of the school, church, library,108
public playground, or township park, the hearing shall be held in109
the county seat of the county where the proposed agency store is110
to be located.111

       (C) All agency contracts entered into by the division112
pursuant to this section shall be in writing and shall contain a113
clause providing for the termination of the contract at will by114
the division upon its giving ninety days' notice in writing to115
suchthe agent of its intention to do so. Any agency contract may116
include a clause requiring the agent to report to the appropriate117
law enforcement agency the name and address of any individual118
under twenty-one years of age who attempts to make an illegal119
purchase.120

       An agent may engage in the selling of beer, mixed beverages,121
and wine pursuant to permits issued to the agent under Chapter122
4303. of the Revised Code.123

       The division shall issue a C-1 and C-2 permit to each agent124
who prior to November 1, 1994, had not been issued both of these125
permits, notwithstanding the population quota restrictions126
contained in section 4303.29 of the Revised Code or in any rule of127
the liquor control commission and notwithstanding the requirements128
of section 4303.31 of the Revised Code. The location of a C-1 or129
C-2 permit issued to such an agent shall not be transferred. The130
division shall revoke any C-1 or C-2 permit issued to an agent131
under this paragraph if the agent no longer operates an agency132
store.133

       No person shall operate, or have any interest, directly or134
indirectly, in more than four state agencies in any one county or135
more than eight state agencies in the state for the sale of136
spirituous liquor. For purposes of this section, a person has an137
interest in a state agency if the person is a partner, member,138
officer, or director of, or a shareholder owning ten per cent or139
more of the capital stock of, any legal entity with which the140
department has entered into an agency contract.141

       The division may enter into agreements with the department of142
development to implement a minority loan program to provide143
low-interest loans to minority business enterprises, as defined in144
section 122.71 of the Revised Code, that are awarded liquor agency145
contracts or assignments.146

       (D) If the division closes a state liquor store and replaces147
that store with an agency store, any employees of the division148
employed at that state liquor store who lose their jobs at that149
store as a result shall be given preference by the agent who150
operates the agency store in filling any vacancies that occur151
among the agent's employees, if suchthat preference does not152
conflict with the agent's obligations pursuant to a collective153
bargaining agreement.154

       If the division closes a state liquor store and replaces the155
store with an agency store, any employees of the division employed156
at the state liquor store who lose their jobs at that store as a157
result may displace other employees as provided in sections158
124.321 to 124.328 of the Revised Code. If an employee cannot159
displace other employees and is laid off, the employee shall be160
reinstated in another job as provided in sections 124.321 to161
124.328 of the Revised Code, except that the employee's rights of162
reinstatement in a job at a state liquor store shall continue for163
a period of two years after the date of the employee's layoff and164
shall apply to jobs at state liquor stores located in the165
employee's layoff jurisdiction and any layoff jurisdiction166
adjacent to the employee's layoff jurisdiction.167

       (E) The division shall require every such agent to give bond168
with surety to the satisfaction of the division, in suchthe169
amount as the division fixes, conditioned for the faithful170
performance of the agent's duties as prescribed by the division.171

       Section 2. That existing section 4301.17 of the Revised Code172
is hereby repealed.173