As Passed by the House

124th General Assembly
Regular Session
2001-2002
Sub. 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 to eliminate the8
restriction against the same person operating or9
having an interest in more than sixteen agency10
stores in the state or more than eight agency11
stores in the same county.12


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

       Section 1. That section 4301.17 of the Revised Code be13
amended to read as follows:14

       Sec. 4301.17.  (A) Subject to local option as provided in15
sections 4301.32 to 4301.40 of the Revised Code, five state liquor16
stores or agencies may be established in each county. One17
additional store may be established in any county for each thirty18
twenty-five thousand of population of that county or major19
fraction thereof in excess of the first forty thousand, according20
to the last preceding federal decennial census or according to the21
population estimates certified by the department of development22
between decennial censuses. A person engaged in a mercantile23
business may act as the agent for the division of liquor control24
for the sale of spirituous liquor in a municipal corporation, in25
the unincorporated area of a township of not less than two26
thousand population, or in an area designated and approved as a27
resort area under section 4303.262 of the Revised Code, provided28
that not more than one agency contract shall be awarded in the29
unincorporated area of a county for each fifty thousand population30
of the county. The division shall fix the compensation for such31
an agent in the manner it considers best, but the compensation32
shall not exceed seven per cent of the gross sales made by the33
agent in any one year.34

       Except as otherwise provided in this section, no mercantile35
business that sells beer or intoxicating liquor for consumption on36
the premises under a permit issued by the division shall operate37
an agency store at the premises or at any adjacent premises. An38
agency to which a D-1 permit has been issued may offer for sale39
tasting samples of beer, an agency to which a D-2 permit has been40
issued may offer for sale tasting samples of wine and mixed41
beverages, and an agency to which a D-5 permit has been issued may42
offer for sale tasting samples of beer, wine, and mixed beverages,43
but not spirituous liquor. A tasting sample shall not be sold for44
the purpose of general consumption. As used in this section,45
"tasting sample" means a small amount of beer, wine, or mixed46
beverages that is provided in not more than four servings of not47
more than two ounces each to an authorized purchaser and that48
allows the purchaser to determine, by tasting only, the quality49
and character of the beverage.50

       (B) When an agency contract is proposed or when an existing51
agency contract is assigned, before entering into any contract or52
consenting to any assignment, the division shall notify the53
legislative authority of the municipal corporation in which the54
agency store is to be located, or the board of county55
commissioners and the board of township trustees of the county and56
the township in which the agency store is to be located if the57
agency store is to be located outside the corporate limits of a58
municipal corporation, of the proposed contract or assignment, and59
an opportunity shall be provided officials or employees of the60
municipal corporation or county and township for a complete61
hearing upon the advisability of entering into the contract or62
consenting to the assignment. When the division sends notice to63
the legislative authority of the political subdivision, the64
department shall notify, by certified mail or by personal service,65
the chief peace officer of the political subdivision, who may66
appear and testify, either in person or through a representative,67
at any hearing held on the advisability of entering into the68
contract or consenting to the assignment.69

       If the proposed agency store would be located within five70
hundred feet of a school, church, library, public playground, or71
township park, the division shall not enter into an agency72
contract until it has provided notice of the proposed contract to73
the authorities in control of the school, church, library, public74
playground, or township park and has provided those authorities75
with an opportunity for a complete hearing upon the advisability76
of entering into the contract. If an agency store so located is77
operating under an agency contract, the division may consent to78
the assignment of that contract to operate an agency store at the79
same location, but the division shall not consent to an80
assignment until it has notified the authorities in control of the81
school, church, library, public playground, or township park and82
has provided those authorities with an opportunity for a complete83
hearing upon the advisability of consenting to the assignment.84

       Any hearing provided for in this division shall be held in85
the central office of the division, except that upon written86
request of the legislative authority of the municipal corporation,87
the board of county commissioners, orthe board of township88
trustees, or the authorities in control of the school, church,89
library, public playground, or township park, the hearing shall be90
held in the county seat of the county where the proposed agency91
store is to be located.92

       (C) All agency contracts entered into by the division93
pursuant to this section shall be in writing and shall contain a94
clause providing for the termination of the contract at will by95
the division upon its giving ninety days' notice in writing to 96
the agent of its intention to do so. Any agency contract may97
include a clause requiring the agent to report to the appropriate98
law enforcement agency the name and address of any individual99
under twenty-one years of age who attempts to make an illegal100
purchase.101

       An agent may engage in the selling of beer, mixed beverages,102
and wine pursuant to permits issued to the agent under Chapter103
4303. of the Revised Code.104

       The division shall issue a C-1 and C-2 permit to each agent105
who prior to November 1, 1994, had not been issued both of these106
permits, notwithstanding the population quota restrictions107
contained in section 4303.29 of the Revised Code or in any rule of108
the liquor control commission and notwithstanding the requirements109
of section 4303.31 of the Revised Code. The location of a C-1 or110
C-2 permit issued to such an agent shall not be transferred. The111
division shall revoke any C-1 or C-2 permit issued to an agent112
under this paragraph if the agent no longer operates an agency113
store.114

       No person shall operate, or have any interest, directly or115
indirectly, in more than eight state agencies in any one county116
or more than sixteen state agencies in the state for the sale of117
spirituous liquor. For purposes of this section, a person has an118
interest in a state agency if the person is a partner, member,119
officer, or director of, or a shareholder owning ten per cent or120
more of the capital stock of, any legal entity with which the121
department has entered into an agency contract.122

       The division may enter into agreements with the department of123
development to implement a minority loan program to provide124
low-interest loans to minority business enterprises, as defined in125
section 122.71 of the Revised Code, that are awarded liquor agency126
contracts or assignments.127

       (D) If the division closes a state liquor store and replaces128
that store with an agency store, any employees of the division129
employed at that state liquor store who lose their jobs at that130
store as a result shall be given preference by the agent who131
operates the agency store in filling any vacancies that occur132
among the agent's employees, if that preference does not conflict133
with the agent's obligations pursuant to a collective bargaining134
agreement.135

       If the division closes a state liquor store and replaces the136
store with an agency store, any employees of the division employed137
at the state liquor store who lose their jobs at that store as a138
result may displace other employees as provided in sections139
124.321 to 124.328 of the Revised Code. If an employee cannot140
displace other employees and is laid off, the employee shall be141
reinstated in another job as provided in sections 124.321 to142
124.328 of the Revised Code, except that the employee's rights of143
reinstatement in a job at a state liquor store shall continue for144
a period of two years after the date of the employee's layoff and145
shall apply to jobs at state liquor stores located in the146
employee's layoff jurisdiction and any layoff jurisdiction147
adjacent to the employee's layoff jurisdiction.148

       (E) The division shall require every agent to give bond149
with surety to the satisfaction of the division, in the amount 150
the division fixes, conditioned for the faithful performance of151
the agent's duties as prescribed by the division.152

       Section 2. That existing section 4301.17 of the Revised Code153
is hereby repealed.154