Sub. H. B. No. 209 As Reported by the Senate Agriculture Committee

Representatives Combs, Carano, Chandler, C. Evans, Harwood, Martin, Perry, Trakas, Daniels, Fende, Yuko, Wolpert, Allen, Barrett, Blessing, Boccieri, Brown, Distel, Domenick, D. Evans, Flowers, Hughes, Kearns, Key, Otterman, Reidelbach, Schneider, Seaver, Seitz, Webster, Yates

A BILL

To amend sections 4301.24 and 4303.181 and to enact 1
section 4301.242 of the Revised Code to allow 2
manufacturers and wholesale distributors of 3
alcohol to provide to other manufacturers or 4
wholesale distributors travel, lodging, food, and 5
beverages and to liquor permit holders food, 6
beverages, and recreational activities, to qualify 7
the owner or operator of a community arts center 8
or a community theater meeting specified 9
qualifications for issuance of a D-5h liquor 10
permit, to exclude wine sales from the total gross 11
receipts requirement governing the issuance of a 12
D-5i liquor permit, to modify the population 13
requirements for the issuance of a D-5i liquor 14
permit, and to create an additional qualification 15
under which a D-5j liquor permit may be issued 16
within a community entertainment district. 17

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

       Section 1. That sections 4301.24 and 4303.181 be amended and 18
section 4301.242 of the Revised Code be enacted read as follows: 19

       Sec. 4301.24. NoExcept as provided in section 4301.242 of 20
the Revised Code, no manufacturer shall aid or assist the holder 21
of any permit for sale at wholesale, and no manufacturer or 22
wholesale distributor shall aid or assist the holder of any permit 23
for sale at retail, by gift or loan of any money or property of 24
any description or other valuable thing, or by giving premiums or 25
rebates. NoExcept as provided in section 4301.242 of the Revised 26
Code, no holder of any such permit shall accept the same, provided 27
that the manufacturer or wholesale distributor may furnish to a 28
retail permittee the inside signs or advertising and the tap signs 29
or devices authorized by divisions (E) and (F) of section 4301.22 30
of the Revised Code. 31

       No manufacturer shall have any financial interest, directly 32
or indirectly, by stock ownership, or through interlocking 33
directors in a corporation, or otherwise, in the establishment, 34
maintenance, or promotion in the business of any wholesale 35
distributor. No retail permit holder shall have any interest, 36
directly or indirectly, in the operation of, or any ownership in, 37
the business of any wholesale distributor or manufacturer. 38

       No manufacturer shall, except as authorized by section 39
4303.021 of the Revised Code, have any financial interest, 40
directly or indirectly, by stock ownership, or through 41
interlocking directors in a corporation, or otherwise, in the 42
establishment, maintenance, or promotion of the business of any 43
retail dealer. No wholesale distributor or employee of a wholesale 44
distributor shall have any financial interest, directly or 45
indirectly, by stock ownership, interlocking directors in a 46
corporation, or otherwise, in the establishment, maintenance, or 47
promotion of the business of any retail dealer. No manufacturer or 48
wholesale distributor or any stockholder of a manufacturer or 49
wholesale distributor shall acquire, by ownership in fee, 50
leasehold, mortgage, or otherwise, directly or indirectly, any 51
interest in the premises on which the business of any other person 52
engaged in the business of trafficking in beer or intoxicating 53
liquor is conducted. All contracts, covenants, conditions, and 54
limitations whereby any person engaged or proposing to engage in 55
the sale of beer or intoxicating liquors promises to confine the 56
person's sales of a particular kind or quality of beer or 57
intoxicating liquor to one or more products, or the products of a 58
specified manufacturer or wholesale distributor, or to give 59
preference to those products, shall to the extent of that promise 60
be void. The making of a promise in any such form shall be cause 61
for the revocation or suspension of any permit issued to any 62
party. This section does not prevent the holder of an A permit 63
from securing and holding a wholesale distributor's permit or 64
permits and operating as a wholesale distributor. 65

       No manufacturer shall sell or offer to sell to any wholesale 66
distributor or retail permit holder, no wholesale distributor 67
shall sell or offer to sell to any retail permit holder, and no 68
wholesale distributor or retail permit holder shall purchase or 69
receive from any manufacturer or wholesale distributor, any beer, 70
brewed beverages, or wine manufactured in the United States except 71
for cash. No right of action shall exist to collect any claims for 72
credit extended contrary to this section. This section does not 73
prohibit a licensee from crediting to a purchaser the actual 74
prices charged for packages or containers returned by the original 75
purchaser as a credit on any sale or from refunding to any 76
purchaser the amount paid by that purchaser for containers or as a 77
deposit on containers when title is retained by the vendor, if 78
those containers or packages have been returned to the 79
manufacturer or distributor. This section does not prohibit a 80
manufacturer from extending usual and customary credit for beer, 81
brewed beverages, or wine manufactured in the United States and 82
sold to customers who live or maintain places of business outside 83
this state when the beverages so sold are actually transported and 84
delivered to points outside this state. No wholesale or retail 85
permit shall be issued to an applicant unless the applicant has 86
paid in full all accounts for beer or wine, manufactured in the 87
United States, outstanding as of September 6, 1939. No beer or 88
wine manufactured in the United States shall be imported into the 89
state unless the beer or wine has been paid for in cash, and no 90
supplier registration for any such beer or wine manufactured in 91
the United States shall be issued by the division of liquor 92
control until the A-2, B-1, or B-5 permit holder establishes to 93
the satisfaction of the division that the beer or wine has been 94
paid for in cash. 95

       This section does not prevent a manufacturer from securing 96
and holding any financial interest, directly or indirectly, by 97
stock ownership or through interlocking directors in a 98
corporation, or otherwise, in the establishment, maintenance, or 99
promotion of the business or premises of any C or D permit holder, 100
provided that the following conditions are met: 101

       (A) Either the manufacturer or one of its parent companies is 102
listed on a national securities exchange. 103

       (B) All purchases of alcoholic beverages by the C or D permit 104
holder are made from wholesale distributors in this state or 105
agency stores licensed by the division of liquor control. 106

       (C) If the C or D permit holder sells brands of alcoholic 107
beverages that are produced or distributed by the manufacturer 108
that holds the financial interest, the C or D permit holder also 109
sells other competing brands of alcoholic beverages produced by 110
other manufacturers, no preference is given to the products of the 111
manufacturer, and there is no exclusion, in whole or in part, of 112
products sold or offered for sale by other manufacturers, 113
suppliers, or importers of alcoholic beverages that constitutes a 114
substantial impairment of commerce. 115

       (D) The primary purpose of the C or D permit premises is a 116
purpose other than to sell alcoholic beverages, and the sale of 117
other goods and services exceeds fifty per cent of the total gross 118
receipts of the C or D permit holder at its premises. 119

       This section does not prevent a manufacturer from giving 120
financial assistance to the holder of a B permit for the purpose 121
of the holder purchasing an ownership interest in the business, 122
existing inventory and equipment, or property of another B permit 123
holder, including, but not limited to, participation in a limited 124
liability partnership, limited liability company, or any other 125
legal entity authorized to do business in this state. This section 126
does not permit a manufacturer to give financial assistance to the 127
holder of a B permit to purchase inventory or equipment used in 128
the daily operation of a B permit holder. 129

       Sec. 4301.242. (A) Notwithstanding the restrictions placed 130
on manufacturers, wholesale distributors, and holders of permits 131
for sale at retail or wholesale in section 4301.24 of the Revised 132
Code, a manufacturer or wholesale distributor may engage in the 133
following conduct, provided that the conduct does not lead to 134
control of a permit holder by another person: 135

        (1) A manufacturer or wholesale distributor may accept from 136
or provide to a manufacturer or wholesale distributor travel, 137
lodging, food, and beverages. 138

        (2) A manufacturer or wholesale distributor may provide to a 139
retail permit holder or the permit holder's employees or agents 140
food, beverages, and recreational activities under either of the 141
following circumstances: 142

        (a) Food and beverages are provided by the manufacturer or 143
wholesale distributor or the manufacturer's or wholesale 144
distributor's employees or agents during a business meeting with a 145
retail permit holder or the permit holder's employees or agents. 146

        (b) Recreational activities are enjoyed in the presence of 147
the retail permit holder or the permit holder's employees or 148
agents and the manufacturer or wholesale distributor or the 149
manufacturer's or wholesale distributor's employees or agents who 150
are paying for the recreational activities. 151

        (B) As used in this section, "recreational activities" 152
includes sporting events, concerts, theatrical performances, and 153
other forms of entertainment. 154

       Sec. 4303.181. (A) Permit D-5a may be issued either to the 155
owner or operator of a hotel or motel that is required to be 156
licensed under section 3731.03 of the Revised Code, that contains 157
at least fifty rooms for registered transient guests or is owned 158
by a state institution of higher education as defined in section 159
3345.011 of the Revised Code or a private college or university, 160
and that qualifies under the other requirements of this section, 161
or to the owner or operator of a restaurant specified under this 162
section, to sell beer and any intoxicating liquor at retail, only 163
by the individual drink in glass and from the container, for 164
consumption on the premises where sold, and to registered guests 165
in their rooms, which may be sold by means of a controlled access 166
alcohol and beverage cabinet in accordance with division (B) of 167
section 4301.21 of the Revised Code; and to sell the same products 168
in the same manner and amounts not for consumption on the premises 169
as may be sold by holders of D-1 and D-2 permits. The premises of 170
the hotel or motel shall include a retail food establishment or a 171
food service operation licensed pursuant to Chapter 3717. of the 172
Revised Code that operates as a restaurant for purposes of this 173
chapter and that is affiliated with the hotel or motel and within 174
or contiguous to the hotel or motel, and that serves food within 175
the hotel or motel, but the principal business of the owner or 176
operator of the hotel or motel shall be the accommodation of 177
transient guests. In addition to the privileges authorized in this 178
division, the holder of a D-5a permit may exercise the same 179
privileges as the holder of a D-5 permit. 180

       The owner or operator of a hotel, motel, or restaurant who 181
qualified for and held a D-5a permit on August 4, 1976, may, if 182
the owner or operator held another permit before holding a D-5a 183
permit, either retain a D-5a permit or apply for the permit 184
formerly held, and the division of liquor control shall issue the 185
permit for which the owner or operator applies and formerly held, 186
notwithstanding any quota. 187

       A D-5a permit shall not be transferred to another location. 188
No quota restriction shall be placed on the number of D-5a permits 189
that may be issued. 190

       The fee for this permit is two thousand three hundred 191
forty-four dollars. 192

       (B) Permit D-5b may be issued to the owner, operator, tenant, 193
lessee, or occupant of an enclosed shopping center to sell beer 194
and intoxicating liquor at retail, only by the individual drink in 195
glass and from the container, for consumption on the premises 196
where sold; and to sell the same products in the same manner and 197
amount not for consumption on the premises as may be sold by 198
holders of D-1 and D-2 permits. In addition to the privileges 199
authorized in this division, the holder of a D-5b permit may 200
exercise the same privileges as a holder of a D-5 permit. 201

       A D-5b permit shall not be transferred to another location. 202

       One D-5b permit may be issued at an enclosed shopping center 203
containing at least two hundred twenty-five thousand, but less 204
than four hundred thousand, square feet of floor area. 205

       Two D-5b permits may be issued at an enclosed shopping center 206
containing at least four hundred thousand square feet of floor 207
area. No more than one D-5b permit may be issued at an enclosed 208
shopping center for each additional two hundred thousand square 209
feet of floor area or fraction of that floor area, up to a maximum 210
of five D-5b permits for each enclosed shopping center. The number 211
of D-5b permits that may be issued at an enclosed shopping center 212
shall be determined by subtracting the number of D-3 and D-5 213
permits issued in the enclosed shopping center from the number of 214
D-5b permits that otherwise may be issued at the enclosed shopping 215
center under the formulas provided in this division. Except as 216
provided in this section, no quota shall be placed on the number 217
of D-5b permits that may be issued. Notwithstanding any quota 218
provided in this section, the holder of any D-5b permit first 219
issued in accordance with this section is entitled to its renewal 220
in accordance with section 4303.271 of the Revised Code. 221

       The holder of a D-5b permit issued before April 4, 1984, 222
whose tenancy is terminated for a cause other than nonpayment of 223
rent, may return the D-5b permit to the division of liquor 224
control, and the division shall cancel that permit. Upon 225
cancellation of that permit and upon the permit holder's payment 226
of taxes, contributions, premiums, assessments, and other debts 227
owing or accrued upon the date of cancellation to this state and 228
its political subdivisions and a filing with the division of a 229
certification of that payment, the division shall issue to that 230
person either a D-5 permit, or a D-1, a D-2, and a D-3 permit, as 231
that person requests. The division shall issue the D-5 permit, or 232
the D-1, D-2, and D-3 permits, even if the number of D-1, D-2, 233
D-3, or D-5 permits currently issued in the municipal corporation 234
or in the unincorporated area of the township where that person's 235
proposed premises is located equals or exceeds the maximum number 236
of such permits that can be issued in that municipal corporation 237
or in the unincorporated area of that township under the 238
population quota restrictions contained in section 4303.29 of the 239
Revised Code. Any D-1, D-2, D-3, or D-5 permit so issued shall not 240
be transferred to another location. If a D-5b permit is canceled 241
under the provisions of this paragraph, the number of D-5b permits 242
that may be issued at the enclosed shopping center for which the 243
D-5b permit was issued, under the formula provided in this 244
division, shall be reduced by one if the enclosed shopping center 245
was entitled to more than one D-5b permit under the formula. 246

       The fee for this permit is two thousand three hundred 247
forty-four dollars. 248

       (C) Permit D-5c may be issued to the owner or operator of a 249
retail food establishment or a food service operation licensed 250
pursuant to Chapter 3717. of the Revised Code that operates as a 251
restaurant for purposes of this chapter and that qualifies under 252
the other requirements of this section to sell beer and any 253
intoxicating liquor at retail, only by the individual drink in 254
glass and from the container, for consumption on the premises 255
where sold, and to sell the same products in the same manner and 256
amounts not for consumption on the premises as may be sold by 257
holders of D-1 and D-2 permits. In addition to the privileges 258
authorized in this division, the holder of a D-5c permit may 259
exercise the same privileges as the holder of a D-5 permit. 260

       To qualify for a D-5c permit, the owner or operator of a 261
retail food establishment or a food service operation licensed 262
pursuant to Chapter 3717. of the Revised Code that operates as a 263
restaurant for purposes of this chapter, shall have operated the 264
restaurant at the proposed premises for not less than twenty-four 265
consecutive months immediately preceding the filing of the 266
application for the permit, have applied for a D-5 permit no later 267
than December 31, 1988, and appear on the division's quota waiting 268
list for not less than six months immediately preceding the filing 269
of the application for the permit. In addition to these 270
requirements, the proposed D-5c permit premises shall be located 271
within a municipal corporation and further within an election 272
precinct that, at the time of the application, has no more than 273
twenty-five per cent of its total land area zoned for residential 274
use. 275

       A D-5c permit shall not be transferred to another location. 276
No quota restriction shall be placed on the number of such permits 277
that may be issued. 278

       Any person who has held a D-5c permit for at least two years 279
may apply for a D-5 permit, and the division of liquor control 280
shall issue the D-5 permit notwithstanding the quota restrictions 281
contained in section 4303.29 of the Revised Code or in any rule of 282
the liquor control commission. 283

       The fee for this permit is one thousand five hundred 284
sixty-three dollars. 285

       (D) Permit D-5d may be issued to the owner or operator of a 286
retail food establishment or a food service operation licensed 287
pursuant to Chapter 3717. of the Revised Code that operates as a 288
restaurant for purposes of this chapter and that is located at an 289
airport operated by a board of county commissioners pursuant to 290
section 307.20 of the Revised Code, at an airport operated by a 291
port authority pursuant to Chapter 4582. of the Revised Code, or 292
at an airport operated by a regional airport authority pursuant to 293
Chapter 308. of the Revised Code. The holder of a D-5d permit may 294
sell beer and any intoxicating liquor at retail, only by the 295
individual drink in glass and from the container, for consumption 296
on the premises where sold, and may sell the same products in the 297
same manner and amounts not for consumption on the premises where 298
sold as may be sold by the holders of D-1 and D-2 permits. In 299
addition to the privileges authorized in this division, the holder 300
of a D-5d permit may exercise the same privileges as the holder of 301
a D-5 permit. 302

       A D-5d permit shall not be transferred to another location. 303
No quota restrictions shall be placed on the number of such 304
permits that may be issued. 305

       The fee for this permit is two thousand three hundred 306
forty-four dollars. 307

       (E) Permit D-5e may be issued to any nonprofit organization 308
that is exempt from federal income taxation under the "Internal 309
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 501(c)(3), as 310
amended, or that is a charitable organization under any chapter of 311
the Revised Code, and that owns or operates a riverboat that meets 312
all of the following: 313

       (1) Is permanently docked at one location; 314

       (2) Is designated as an historical riverboat by the Ohio 315
historical society; 316

       (3) Contains not less than fifteen hundred square feet of 317
floor area; 318

       (4) Has a seating capacity of fifty or more persons. 319

       The holder of a D-5e permit may sell beer and intoxicating 320
liquor at retail, only by the individual drink in glass and from 321
the container, for consumption on the premises where sold. 322

       A D-5e permit shall not be transferred to another location. 323
No quota restriction shall be placed on the number of such permits 324
that may be issued. The population quota restrictions contained in 325
section 4303.29 of the Revised Code or in any rule of the liquor 326
control commission shall not apply to this division, and the 327
division shall issue a D-5e permit to any applicant who meets the 328
requirements of this division. However, the division shall not 329
issue a D-5e permit if the permit premises or proposed permit 330
premises are located within an area in which the sale of 331
spirituous liquor by the glass is prohibited. 332

       The fee for this permit is one thousand two hundred nineteen 333
dollars. 334

       (F) Permit D-5f may be issued to the owner or operator of a 335
retail food establishment or a food service operation licensed 336
under Chapter 3717. of the Revised Code that operates as a 337
restaurant for purposes of this chapter and that meets all of the 338
following: 339

       (1) It contains not less than twenty-five hundred square feet 340
of floor area. 341

       (2) It is located on or in, or immediately adjacent to, the 342
shoreline of, a navigable river. 343

       (3) It provides docking space for twenty-five boats. 344

       (4) It provides entertainment and recreation, provided that 345
not less than fifty per cent of the business on the permit 346
premises shall be preparing and serving meals for a consideration. 347

       In addition, each application for a D-5f permit shall be 348
accompanied by a certification from the local legislative 349
authority that the issuance of the D-5f permit is not inconsistent 350
with that political subdivision's comprehensive development plan 351
or other economic development goal as officially established by 352
the local legislative authority. 353

       The holder of a D-5f permit may sell beer and intoxicating 354
liquor at retail, only by the individual drink in glass and from 355
the container, for consumption on the premises where sold. 356

       A D-5f permit shall not be transferred to another location. 357

       The division of liquor control shall not issue a D-5f permit 358
if the permit premises or proposed permit premises are located 359
within an area in which the sale of spirituous liquor by the glass 360
is prohibited. 361

       A fee for this permit is two thousand three hundred 362
forty-four dollars. 363

       As used in this division, "navigable river" means a river 364
that is also a "navigable water" as defined in the "Federal Power 365
Act," 94 Stat. 770 (1980), 16 U.S.C. 796. 366

       (G) Permit D-5g may be issued to a nonprofit corporation that 367
is either the owner or the operator of a national professional 368
sports museum. The holder of a D-5g permit may sell beer and any 369
intoxicating liquor at retail, only by the individual drink in 370
glass and from the container, for consumption on the premises 371
where sold. The holder of a D-5g permit shall sell no beer or 372
intoxicating liquor for consumption on the premises where sold 373
after one a.m. A D-5g permit shall not be transferred to another 374
location. No quota restrictions shall be placed on the number of 375
D-5g permits that may be issued. The fee for this permit is one 376
thousand eight hundred seventy-five dollars. 377

       (H)(1) Permit D-5h may be issued to any nonprofit 378
organization that is exempt from federal income taxation under the 379
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 380
501(c)(3), as amended, that owns or operates aany of the 381
following: 382

       (a) A fine arts museum ~~and~~, provided that the nonprofit 383
organization has no less than five thousand bona fide members 384
possessing full membership privileges~~. The~~; 385

       (b) A community arts center. As used in division (H)(1)(b) of 386
this section, "community arts center" means a facility that 387
provides arts programming to the community in more than one arts 388
discipline, including, but not limited to, exhibits of works of 389
art and performances by both professional and amateur artists. 390

       (c) A community theater, provided that the nonprofit 391
organization is a member of the Ohio arts council and the American 392
community theatre association and has been in existence for not 393
less than ten years. As used in division (H)(1)(c) of this 394
section, "community theater" means a facility that contains at 395
least one hundred fifty seats and has a primary function of 396
presenting live theatrical performances and providing recreational 397
opportunities to the community. 398

        (2) The holder of a D-5h permit may sell beer and any 399
intoxicating liquor at retail, only by the individual drink in 400
glass and from the container, for consumption on the premises 401
where sold. The holder of a D-5h permit shall sell no beer or 402
intoxicating liquor for consumption on the premises where sold 403
after one a.m. A D-5h permit shall not be transferred to another 404
location. No quota restrictions shall be placed on the number of 405
D-5h permits that may be issued. ~~The~~ 406

       (3) The fee for ~~this~~a D-5h permit is one thousand eight 407
hundred seventy-five dollars. 408

       (I) Permit D-5i may be issued to the owner or operator of a 409
retail food establishment or a food service operation licensed 410
under Chapter 3717. of the Revised Code that operates as a 411
restaurant for purposes of this chapter and that meets all of the 412
following requirements: 413

       (1) It is located in a municipal corporation or a township 414
with a population of ~~seventy-five~~one hundred thousand or less. 415

       (2) It has inside seating capacity for at least one hundred 416
forty persons. 417

       (3) It has at least four thousand square feet of floor area. 418

       (4) It offers full-course meals, appetizers, and sandwiches. 419

       (5) Its receipts from beer and liquor sales, excluding wine 420
sales, do not exceed twenty-five per cent of its total gross 421
receipts. 422

       (6) It has at least one of the following characteristics: 423

       (a) The value of its real and personal property exceeds seven 424
hundred twenty-five thousand dollars. 425

       (b) It is located on property that is owned or leased by the 426
state or a state agency, and its owner or operator has 427
authorization from the state or the state agency that owns or 428
leases the property to obtain a D-5i permit. 429

       The holder of a D-5i permit shall cause an independent audit 430
to be performed at the end of one full year of operation following 431
issuance of the permit in order to verify the requirements of 432
division (I)(5) of this section. The results of the independent 433
audit shall be transmitted to the division. Upon determining that 434
the receipts of the holder from beer and liquor sales, excluding 435
wine sales, exceeded twenty-five per cent of its total gross 436
receipts, the division shall suspend the permit of the permit 437
holder under section 4301.25 of the Revised Code and may allow the 438
permit holder to elect a forfeiture under section 4301.252 of the 439
Revised Code. 440

       The holder of a D-5i permit may sell beer and any 441
intoxicating liquor at retail, only by the individual drink in 442
glass and from the container, for consumption on the premises 443
where sold, and may sell the same products in the same manner and 444
amounts not for consumption on the premises where sold as may be 445
sold by the holders of D-1 and D-2 permits. The holder of a D-5i 446
permit shall sell no beer or intoxicating liquor for consumption 447
on the premises where sold after two-thirty a.m. In addition to 448
the privileges authorized in this division, the holder of a D-5i 449
permit may exercise the same privileges as the holder of a D-5 450
permit. 451

       A D-5i permit shall not be transferred to another location. 452
The division of liquor control shall not renew a D-5i permit 453
unless the retail food establishment or food service operation for 454
which it is issued continues to meet the requirements described in 455
divisions (I)(1) to (6) of this section. No quota restrictions 456
shall be placed on the number of D-5i permits that may be issued. 457
The fee for the D-5i permit is two thousand three hundred 458
forty-four dollars. 459

       (J)(1) Permit D-5j may be issued to the owner or the operator 460
of a retail food establishment or a food service operation 461
licensed under Chapter 3717. of the Revised Code to sell beer and 462
intoxicating liquor at retail, only by the individual drink in 463
glass and from the container, for consumption on the premises 464
where sold and to sell beer and intoxicating liquor in the same 465
manner and amounts not for consumption on the premises where sold 466
as may be sold by the holders of D-1 and D-2 permits. The holder 467
of a D-5j permit may exercise the same privileges, and shall 468
observe the same hours of operation, as the holder of a D-5 469
permit. 470

       (2) The D-5j permit shall be issued only within a community 471
entertainment district that is designated under section 4301.80 of 472
the Revised Code and that meets one of the following 473
qualifications: 474

       (a) It is located in a municipal corporation with a 475
population of at least one hundred thousand. 476

       (b) It is located in a municipal corporation with a 477
population of at least twenty thousand, and either of the 478
following applies: 479

       (i) It contains an amusement park the rides of which have 480
been issued a permit by the department of agriculture under 481
Chapter 1711. of the Revised Code. 482

       (ii) Not less than fifty million dollars will be invested in 483
development and construction in the community entertainment 484
district's area located in the municipal corporation. 485

       (c) It is located in a township with a population of at least 486
forty thousand. 487

       (d) It is located in a municipal corporation with a 488
population of at least ten thousand, and not less than seventy 489
million dollars will be invested in development and construction 490
in the community entertainment district's area located in the 491
municipal corporation. 492

       (3) The location of a D-5j permit may be transferred only 493
within the geographic boundaries of the community entertainment 494
district in which it was issued and shall not be transferred 495
outside the geographic boundaries of that district. 496

       (4) Not more than one D-5j permit shall be issued within each 497
community entertainment district for each five acres of land 498
located within the district. Not more than fifteen D-5j permits 499
may be issued within a single community entertainment district. 500
Except as otherwise provided in division (J)(4) of this section, 501
no quota restrictions shall be placed upon the number of D-5j 502
permits that may be issued. 503

       (5) The fee for a D-5j permit is two thousand three hundred 504
forty-four dollars. 505

       (K)(1) Permit D-5k may be issued to any nonprofit 506
organization that is exempt from federal income taxation under the 507
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 508
501(c)(3), as amended, that is the owner or operator of a 509
botanical garden recognized by the American association of 510
botanical gardens and arboreta, and that has not less than 511
twenty-five hundred bona fide members. 512

       (2) The holder of a D-5k permit may sell beer and any 513
intoxicating liquor at retail, only by the individual drink in 514
glass and from the container, on the premises where sold. 515

       (3) The holder of a D-5k permit shall sell no beer or 516
intoxicating liquor for consumption on the premises where sold 517
after one a.m. 518

       (4) A D-5k permit shall not be transferred to another 519
location. 520

       (5) No quota restrictions shall be placed on the number of 521
D-5k permits that may be issued. 522

       (6) The fee for the D-5k permit is one thousand eight hundred 523
seventy-five dollars. 524

       Section 2. That existing sections 4301.24 and 4303.181 of the 525
Revised Code are hereby repealed. 526

Section 1. That sections 4301.24 and 4303.181 be amended and	18
section 4301.242 of the Revised Code be enacted read as follows:	19

Sec. 4301.24. NoExcept as provided in section 4301.242 of	20
the Revised Code, no manufacturer shall aid or assist the holder	21
of any permit for sale at wholesale, and no manufacturer or	22
wholesale distributor shall aid or assist the holder of any permit	23
for sale at retail, by gift or loan of any money or property of	24
any description or other valuable thing, or by giving premiums or	25
rebates. NoExcept as provided in section 4301.242 of the Revised	26
Code, no holder of any such permit shall accept the same, provided	27
that the manufacturer or wholesale distributor may furnish to a	28
retail permittee the inside signs or advertising and the tap signs	29
or devices authorized by divisions (E) and (F) of section 4301.22	30
of the Revised Code.	31

No manufacturer shall have any financial interest, directly	32
or indirectly, by stock ownership, or through interlocking	33
directors in a corporation, or otherwise, in the establishment,	34
maintenance, or promotion in the business of any wholesale	35
distributor. No retail permit holder shall have any interest,	36
directly or indirectly, in the operation of, or any ownership in,	37
the business of any wholesale distributor or manufacturer.	38

No manufacturer shall, except as authorized by section	39
4303.021 of the Revised Code, have any financial interest,	40
directly or indirectly, by stock ownership, or through	41
interlocking directors in a corporation, or otherwise, in the	42
establishment, maintenance, or promotion of the business of any	43
retail dealer. No wholesale distributor or employee of a wholesale	44
distributor shall have any financial interest, directly or	45
indirectly, by stock ownership, interlocking directors in a	46
corporation, or otherwise, in the establishment, maintenance, or	47
promotion of the business of any retail dealer. No manufacturer or	48
wholesale distributor or any stockholder of a manufacturer or	49
wholesale distributor shall acquire, by ownership in fee,	50
leasehold, mortgage, or otherwise, directly or indirectly, any	51
interest in the premises on which the business of any other person	52
engaged in the business of trafficking in beer or intoxicating	53
liquor is conducted. All contracts, covenants, conditions, and	54
limitations whereby any person engaged or proposing to engage in	55
the sale of beer or intoxicating liquors promises to confine the	56
person's sales of a particular kind or quality of beer or	57
intoxicating liquor to one or more products, or the products of a	58
specified manufacturer or wholesale distributor, or to give	59
preference to those products, shall to the extent of that promise	60
be void. The making of a promise in any such form shall be cause	61
for the revocation or suspension of any permit issued to any	62
party. This section does not prevent the holder of an A permit	63
from securing and holding a wholesale distributor's permit or	64
permits and operating as a wholesale distributor.	65

No manufacturer shall sell or offer to sell to any wholesale	66
distributor or retail permit holder, no wholesale distributor	67
shall sell or offer to sell to any retail permit holder, and no	68
wholesale distributor or retail permit holder shall purchase or	69
receive from any manufacturer or wholesale distributor, any beer,	70
brewed beverages, or wine manufactured in the United States except	71
for cash. No right of action shall exist to collect any claims for	72
credit extended contrary to this section. This section does not	73
prohibit a licensee from crediting to a purchaser the actual	74
prices charged for packages or containers returned by the original	75
purchaser as a credit on any sale or from refunding to any	76
purchaser the amount paid by that purchaser for containers or as a	77
deposit on containers when title is retained by the vendor, if	78
those containers or packages have been returned to the	79
manufacturer or distributor. This section does not prohibit a	80
manufacturer from extending usual and customary credit for beer,	81
brewed beverages, or wine manufactured in the United States and	82
sold to customers who live or maintain places of business outside	83
this state when the beverages so sold are actually transported and	84
delivered to points outside this state. No wholesale or retail	85
permit shall be issued to an applicant unless the applicant has	86
paid in full all accounts for beer or wine, manufactured in the	87
United States, outstanding as of September 6, 1939. No beer or	88
wine manufactured in the United States shall be imported into the	89
state unless the beer or wine has been paid for in cash, and no	90
supplier registration for any such beer or wine manufactured in	91
the United States shall be issued by the division of liquor	92
control until the A-2, B-1, or B-5 permit holder establishes to	93
the satisfaction of the division that the beer or wine has been	94
paid for in cash.	95

This section does not prevent a manufacturer from securing	96
and holding any financial interest, directly or indirectly, by	97
stock ownership or through interlocking directors in a	98
corporation, or otherwise, in the establishment, maintenance, or	99
promotion of the business or premises of any C or D permit holder,	100
provided that the following conditions are met:	101

(A) Either the manufacturer or one of its parent companies is	102
listed on a national securities exchange.	103

(B) All purchases of alcoholic beverages by the C or D permit	104
holder are made from wholesale distributors in this state or	105
agency stores licensed by the division of liquor control.	106

(C) If the C or D permit holder sells brands of alcoholic	107
beverages that are produced or distributed by the manufacturer	108
that holds the financial interest, the C or D permit holder also	109
sells other competing brands of alcoholic beverages produced by	110
other manufacturers, no preference is given to the products of the	111
manufacturer, and there is no exclusion, in whole or in part, of	112
products sold or offered for sale by other manufacturers,	113
suppliers, or importers of alcoholic beverages that constitutes a	114
substantial impairment of commerce.	115

(D) The primary purpose of the C or D permit premises is a	116
purpose other than to sell alcoholic beverages, and the sale of	117
other goods and services exceeds fifty per cent of the total gross	118
receipts of the C or D permit holder at its premises.	119

This section does not prevent a manufacturer from giving	120
financial assistance to the holder of a B permit for the purpose	121
of the holder purchasing an ownership interest in the business,	122
existing inventory and equipment, or property of another B permit	123
holder, including, but not limited to, participation in a limited	124
liability partnership, limited liability company, or any other	125
legal entity authorized to do business in this state. This section	126
does not permit a manufacturer to give financial assistance to the	127
holder of a B permit to purchase inventory or equipment used in	128
the daily operation of a B permit holder.	129

Sec. 4301.242. (A) Notwithstanding the restrictions placed	130
on manufacturers, wholesale distributors, and holders of permits	131
for sale at retail or wholesale in section 4301.24 of the Revised	132
Code, a manufacturer or wholesale distributor may engage in the	133
following conduct, provided that the conduct does not lead to	134
control of a permit holder by another person:	135

(1) A manufacturer or wholesale distributor may accept from	136
or provide to a manufacturer or wholesale distributor travel,	137
lodging, food, and beverages.	138

(2) A manufacturer or wholesale distributor may provide to a	139
retail permit holder or the permit holder's employees or agents	140
food, beverages, and recreational activities under either of the	141
following circumstances:	142

(a) Food and beverages are provided by the manufacturer or	143
wholesale distributor or the manufacturer's or wholesale	144
distributor's employees or agents during a business meeting with a	145
retail permit holder or the permit holder's employees or agents.	146

(b) Recreational activities are enjoyed in the presence of	147
the retail permit holder or the permit holder's employees or	148
agents and the manufacturer or wholesale distributor or the	149
manufacturer's or wholesale distributor's employees or agents who	150
are paying for the recreational activities.	151

(B) As used in this section, "recreational activities"	152
includes sporting events, concerts, theatrical performances, and	153
other forms of entertainment.	154

Sec. 4303.181. (A) Permit D-5a may be issued either to the	155
owner or operator of a hotel or motel that is required to be	156
licensed under section 3731.03 of the Revised Code, that contains	157
at least fifty rooms for registered transient guests or is owned	158
by a state institution of higher education as defined in section	159
3345.011 of the Revised Code or a private college or university,	160
and that qualifies under the other requirements of this section,	161
or to the owner or operator of a restaurant specified under this	162
section, to sell beer and any intoxicating liquor at retail, only	163
by the individual drink in glass and from the container, for	164
consumption on the premises where sold, and to registered guests	165
in their rooms, which may be sold by means of a controlled access	166
alcohol and beverage cabinet in accordance with division (B) of	167
section 4301.21 of the Revised Code; and to sell the same products	168
in the same manner and amounts not for consumption on the premises	169
as may be sold by holders of D-1 and D-2 permits. The premises of	170
the hotel or motel shall include a retail food establishment or a	171
food service operation licensed pursuant to Chapter 3717. of the	172
Revised Code that operates as a restaurant for purposes of this	173
chapter and that is affiliated with the hotel or motel and within	174
or contiguous to the hotel or motel, and that serves food within	175
the hotel or motel, but the principal business of the owner or	176
operator of the hotel or motel shall be the accommodation of	177
transient guests. In addition to the privileges authorized in this	178
division, the holder of a D-5a permit may exercise the same	179
privileges as the holder of a D-5 permit.	180

The owner or operator of a hotel, motel, or restaurant who	181
qualified for and held a D-5a permit on August 4, 1976, may, if	182
the owner or operator held another permit before holding a D-5a	183
permit, either retain a D-5a permit or apply for the permit	184
formerly held, and the division of liquor control shall issue the	185
permit for which the owner or operator applies and formerly held,	186
notwithstanding any quota.	187

A D-5a permit shall not be transferred to another location.	188
No quota restriction shall be placed on the number of D-5a permits	189
that may be issued.	190

The fee for this permit is two thousand three hundred	191
forty-four dollars.	192

(B) Permit D-5b may be issued to the owner, operator, tenant,	193
lessee, or occupant of an enclosed shopping center to sell beer	194
and intoxicating liquor at retail, only by the individual drink in	195
glass and from the container, for consumption on the premises	196
where sold; and to sell the same products in the same manner and	197
amount not for consumption on the premises as may be sold by	198
holders of D-1 and D-2 permits. In addition to the privileges	199
authorized in this division, the holder of a D-5b permit may	200
exercise the same privileges as a holder of a D-5 permit.	201

One D-5b permit may be issued at an enclosed shopping center	203
containing at least two hundred twenty-five thousand, but less	204
than four hundred thousand, square feet of floor area.	205

Two D-5b permits may be issued at an enclosed shopping center	206
containing at least four hundred thousand square feet of floor	207
area. No more than one D-5b permit may be issued at an enclosed	208
shopping center for each additional two hundred thousand square	209
feet of floor area or fraction of that floor area, up to a maximum	210
of five D-5b permits for each enclosed shopping center. The number	211
of D-5b permits that may be issued at an enclosed shopping center	212
shall be determined by subtracting the number of D-3 and D-5	213
permits issued in the enclosed shopping center from the number of	214
D-5b permits that otherwise may be issued at the enclosed shopping	215
center under the formulas provided in this division. Except as	216
provided in this section, no quota shall be placed on the number	217
of D-5b permits that may be issued. Notwithstanding any quota	218
provided in this section, the holder of any D-5b permit first	219
issued in accordance with this section is entitled to its renewal	220
in accordance with section 4303.271 of the Revised Code.	221

The holder of a D-5b permit issued before April 4, 1984,	222
whose tenancy is terminated for a cause other than nonpayment of	223
rent, may return the D-5b permit to the division of liquor	224
control, and the division shall cancel that permit. Upon	225
cancellation of that permit and upon the permit holder's payment	226
of taxes, contributions, premiums, assessments, and other debts	227
owing or accrued upon the date of cancellation to this state and	228
its political subdivisions and a filing with the division of a	229
certification of that payment, the division shall issue to that	230
person either a D-5 permit, or a D-1, a D-2, and a D-3 permit, as	231
that person requests. The division shall issue the D-5 permit, or	232
the D-1, D-2, and D-3 permits, even if the number of D-1, D-2,	233
D-3, or D-5 permits currently issued in the municipal corporation	234
or in the unincorporated area of the township where that person's	235
proposed premises is located equals or exceeds the maximum number	236
of such permits that can be issued in that municipal corporation	237
or in the unincorporated area of that township under the	238
population quota restrictions contained in section 4303.29 of the	239
Revised Code. Any D-1, D-2, D-3, or D-5 permit so issued shall not	240
be transferred to another location. If a D-5b permit is canceled	241
under the provisions of this paragraph, the number of D-5b permits	242
that may be issued at the enclosed shopping center for which the	243
D-5b permit was issued, under the formula provided in this	244
division, shall be reduced by one if the enclosed shopping center	245
was entitled to more than one D-5b permit under the formula.	246

(C) Permit D-5c may be issued to the owner or operator of a	249
retail food establishment or a food service operation licensed	250
pursuant to Chapter 3717. of the Revised Code that operates as a	251
restaurant for purposes of this chapter and that qualifies under	252
the other requirements of this section to sell beer and any	253
intoxicating liquor at retail, only by the individual drink in	254
glass and from the container, for consumption on the premises	255
where sold, and to sell the same products in the same manner and	256
amounts not for consumption on the premises as may be sold by	257
holders of D-1 and D-2 permits. In addition to the privileges	258
authorized in this division, the holder of a D-5c permit may	259
exercise the same privileges as the holder of a D-5 permit.	260

To qualify for a D-5c permit, the owner or operator of a	261
retail food establishment or a food service operation licensed	262
pursuant to Chapter 3717. of the Revised Code that operates as a	263
restaurant for purposes of this chapter, shall have operated the	264
restaurant at the proposed premises for not less than twenty-four	265
consecutive months immediately preceding the filing of the	266
application for the permit, have applied for a D-5 permit no later	267
than December 31, 1988, and appear on the division's quota waiting	268
list for not less than six months immediately preceding the filing	269
of the application for the permit. In addition to these	270
requirements, the proposed D-5c permit premises shall be located	271
within a municipal corporation and further within an election	272
precinct that, at the time of the application, has no more than	273
twenty-five per cent of its total land area zoned for residential	274
use.	275

A D-5c permit shall not be transferred to another location.	276
No quota restriction shall be placed on the number of such permits	277
that may be issued.	278

Any person who has held a D-5c permit for at least two years	279
may apply for a D-5 permit, and the division of liquor control	280
shall issue the D-5 permit notwithstanding the quota restrictions	281
contained in section 4303.29 of the Revised Code or in any rule of	282
the liquor control commission.	283

The fee for this permit is one thousand five hundred	284
sixty-three dollars.	285