As Reported by the House State Government Committee

126th General Assembly
Regular Session
2005-2006
Sub. S. B. No. 131


Senators Mumper, Dann, Zurz, Schuler 

Representative Stewart, D. 



A BILL
To amend sections 4301.17, 4301.62, 4301.69, 4301.99, 1
4303.29, and 4303.292, to enact section 4301.65, 2
and to repeal section 4303.273 of the Revised Code 3
to revise the laws governing liquor control.4


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

       Section 1. That sections 4301.17, 4301.62, 4301.69, 4301.99, 5
4303.29, and 4303.292 be amended and section 4301.65 of the 6
Revised Code be enacted to read as follows:7

       Sec. 4301.17.  (A)(1) Subject to local option as provided in8
sections 4301.32 to 4301.40 of the Revised Code, five state liquor9
stores or agencies may be established in each county. One10
additional store may be established in any county for each 11
twenty-five thousand of population of that county or major12
fraction thereof in excess of the first forty thousand, according13
to the last preceding federal decennial census or according to the14
population estimates certified by the department of development15
between decennial censuses. A person engaged in a mercantile16
business may act as the agent for the division of liquor control17
for the sale of spirituous liquor in a municipal corporation, in18
the unincorporated area of a township, or in an area designated19
and approved as a resort area under section 4303.262 of the20
Revised Code. The division shall fix the compensation for such an21
agent in the manner it considers best, but the compensation shall 22
not exceed seven per cent of the gross sales made by the agent in 23
any one year.24

       (2) The division shall adopt rules in accordance with Chapter 25
119. of the Revised Code governing the allocation and equitable 26
distribution of agency store contracts. The division shall comply 27
with the rules when awarding a contract under division (A)(1) of 28
this section.29

       (3) Except as otherwise provided in this section, no30
mercantile business that sells beer or intoxicating liquor for31
consumption on the premises under a permit issued by the division32
shall operate an agency store at the premises. An agency to which33
a D-1 permit has been issued may offer for sale tasting samples of34
beer, an agency to which a D-2 permit has been issued may offer35
for sale tasting samples of wine and mixed beverages, and an36
agency to which a D-5 permit has been issued may offer for sale37
tasting samples of beer, wine, and mixed beverages, but not38
spirituous liquor. A tasting sample shall not be sold for the39
purpose of general consumption. As used in this section, "tasting40
sample" means a small amount of beer, wine, or mixed beverages41
that is provided in not more than four servings of not more than42
two ounces each to an authorized purchaser and that allows the43
purchaser to determine, by tasting only, the quality and character44
of the beverage.45

       (B) When an agency contract is proposed or, when an existing46
agency contract is assigned, when an existing agency proposes to 47
relocate, or when an existing agency is relocated and assigned,48
before entering into any contract or, consenting to any 49
assignment, or consenting to any relocation, the division shall50
notify the legislative authority of the municipal corporation in51
which the agency store is to be located, or the board of county52
commissioners and the board of township trustees of the county and53
the township in which the agency store is to be located if the54
agency store is to be located outside the corporate limits of a55
municipal corporation, of the proposed contract or, assignment, or 56
relocation, and an opportunity shall be provided officials or57
employees of the municipal corporation or county and township for58
a complete hearing upon the advisability of entering into the 59
contract or consenting to the assignment or relocation. When the 60
division sends notice to the legislative authority of the 61
political subdivision, the division shall notify, by certified 62
mail or by personal service, the chief peace officer of the 63
political subdivision, who may appear and testify, either in 64
person or through a representative, at any hearing held on the 65
advisability of entering into the contract or consenting to the 66
assignment or relocation.67

       If the proposed agency store, the assignment of an agency 68
contract, or the relocation of an agency store would be located 69
within five hundred feet of a school, church, library, public 70
playground, or township park, the division shall not enter into an 71
agency contract until it has provided notice of the proposed 72
contract to the authorities in control of the school, church, 73
library, public playground, or township park and has provided 74
those authorities with an opportunity for a complete hearing upon 75
the advisability of entering into the contract. If an agency store 76
so located is operating under an agency contract, the division may 77
consent to relocation of the agency store or to the assignment of78
that contract to operate an agency store at the same location, but 79
the. The division may also consent to the assignment of an 80
existing agency contract simultaneously with the relocation of the 81
agency store. In any such assignment or relocation, the assignee 82
and the location shall be subject to the same requirements that 83
the existing location met at the time that the contract was first 84
entered into as well as any additional requirements imposed by the 85
division in rules adopted by the superintendent of liquor control. 86
The division shall not consent to an assignment or relocation of 87
an agency store until it has notified the authorities in control 88
of the school, church, library, public playground, or township 89
park and has provided those authorities with an opportunity for a 90
complete hearing upon the advisability of consenting to the91
assignment or relocation.92

       Any hearing provided for in this division shall be held in93
the central office of the division, except that upon written94
request of the legislative authority of the municipal corporation,95
the board of county commissioners, the board of township trustees,96
or the authorities in control of the school, church, library, 97
public playground, or township park, the hearing shall be held in 98
the county seat of the county where the proposed agency store is 99
to be located.100

       (C) All agency contracts entered into by the division101
pursuant to this section shall be in writing and shall contain a102
clause providing for the termination of the contract at will by103
the division upon its giving ninety days' notice in writing to the 104
agent of its intention to do so. Any agency contract may include a 105
clause requiring the agent to report to the appropriate law 106
enforcement agency the name and address of any individual under 107
twenty-one years of age who attempts to make an illegal purchase.108

       An agent may engage in the selling of beer, mixed beverages,109
and wine pursuant to permits issued to the agent under Chapter110
4303. of the Revised Code.111

       The division shall issue a C-1 and C-2 permit to each agent112
who prior to November 1, 1994, had not been issued both of these113
permits, notwithstanding the population quota restrictions114
contained in section 4303.29 of the Revised Code or in any rule of115
the liquor control commission and notwithstanding the requirements116
of section 4303.31 of the Revised Code. The location of a C-1 or117
C-2 permit issued to such an agent shall not be transferred. The118
division shall revoke any C-1 or C-2 permit issued to an agent119
under this paragraph if the agent no longer operates an agency120
store.121

       The division may enter into agreements with the department of122
development to implement a minority loan program to provide123
low-interest loans to minority business enterprises, as defined in124
section 122.71 of the Revised Code, that are awarded liquor agency125
contracts or assignments.126

       (D) If the division closes a state liquor store and replaces127
that store with an agency store, any employees of the division128
employed at that state liquor store who lose their jobs at that129
store as a result shall be given preference by the agent who130
operates the agency store in filling any vacancies that occur131
among the agent's employees, if that preference does not conflict132
with the agent's obligations pursuant to a collective bargaining133
agreement.134

       If the division closes a state liquor store and replaces the135
store with an agency store, any employees of the division employed136
at the state liquor store who lose their jobs at that store as a137
result may displace other employees as provided in sections138
124.321 to 124.328 of the Revised Code. If an employee cannot139
displace other employees and is laid off, the employee shall be140
reinstated in another job as provided in sections 124.321 to141
124.328 of the Revised Code, except that the employee's rights of142
reinstatement in a job at a state liquor store shall continue for143
a period of two years after the date of the employee's layoff and144
shall apply to jobs at state liquor stores located in the145
employee's layoff jurisdiction and any layoff jurisdiction146
adjacent to the employee's layoff jurisdiction.147

       (E) The division shall require every agent to give bond with 148
surety to the satisfaction of the division, in the amount the 149
division fixes, conditioned for the faithful performance of the 150
agent's duties as prescribed by the division.151

       Sec. 4301.62.  (A) As used in this section:152

       (1) "Chauffeured limousine" means a vehicle registered under153
section 4503.24 of the Revised Code.154

       (2) "Street," "highway," and "motor vehicle" have the same155
meanings as in section 4511.01 of the Revised Code.156

       (B) No person shall have in the person's possession an opened 157
container of beer or intoxicating liquor in any of the following158
circumstances:159

       (1) In a state liquor store;160

       (2) Except as provided in division (C) of this section, on161
the premises of the holder of any permit issued by the division of162
liquor control;163

       (3) In any other public place;164

       (4) Except as provided in division (D) or (E) of this 165
section, while operating or being a passenger in or on a motor166
vehicle on any street, highway, or other public or private167
property open to the public for purposes of vehicular travel or168
parking;169

       (5) Except as provided in division (D) or (E) of this 170
section, while being in or on a stationary motor vehicle on any 171
street, highway, or other public or private property open to the 172
public for purposes of vehicular travel or parking.173

       (C)(1) A person may have in the person's possession an opened 174
container of any of the following:175

       (a) Beer or intoxicating liquor that has been lawfully176
purchased for consumption on the premises where bought from the177
holder of an A-1-A, A-2, D-1, D-2, D-3, D-3a, D-4, D-4a, D-5,178
D-5a, D-5b, D-5c, D-5d, D-5e, D-5f, D-5g, D-5h, D-5i, D-5j, D-5k,179
D-7, D-8, E, F, F-2, or F-5 permit;180

       (b) Beer, wine, or mixed beverages served for consumption on181
the premises by the holder of an F-3 permit or wine served for182
consumption on the premises by the holder of an F-4 or F-6 permit;183

       (c) Beer or intoxicating liquor consumed on the premises of a 184
convention facility as provided in section 4303.201 of the Revised 185
Code;186

       (d) Beer or intoxicating liquor to be consumed during187
tastings and samplings approved by rule of the liquor control188
commission.189

       (2) A person may have in the person's possession on an F190
liquor permit premises an opened container of beer or intoxicating191
liquor that was not purchased from the holder of the F permit if192
the premises for which the F permit is issued is a music festival193
and the holder of the F permit grants permission for that194
possession on the premises during the period for which the F195
permit is issued. As used in this division, "music festival" means 196
a series of outdoor live musical performances, extending for a197
period of at least three consecutive days and located on an area198
of land of at least forty acres.199

       (3)(a) A person may have in the person's possession on a D-2 200
liquor permit premises an opened or unopened container of wine 201
that was not purchased from the holder of the D-2 permit if the 202
premises for which the D-2 permit is issued is an outdoor 203
performing arts center, the person is attending an orchestral 204
performance, and the holder of the D-2 permit grants permission 205
for the possession and consumption of wine in certain 206
predesignated areas of the premises during the period for which 207
the D-2 permit is issued.208

        (b) As used in division (C)(3)(a) of this section:209

        (i) "Orchestral performance" means a concert comprised of a 210
group of not fewer than forty musicians playing various musical 211
instruments.212

        (ii) "Outdoor performing arts center" means an outdoor 213
performing arts center that is located on not less than eight 214
hundred acres of land and that is open for performances from the 215
first day of April to the last day of October of each year.216

       (D) This section does not apply to a person who pays all or a217
portion of the fee imposed for the use of a chauffeured limousine 218
pursuant to a prearranged contract, or the guest of the person, 219
when all of the following apply:220

       (1) The person or guest is a passenger in the limousine.221

       (2) The person or guest is located in the limousine, but is222
not occupying a seat in the front compartment of the limousine223
where the operator of the limousine is located.224

       (3) The limousine is located on any street, highway, or other 225
public or private property open to the public for purposes of 226
vehicular travel or parking.227

       (E) An opened bottle of wine that was purchased from the 228
holder of a permit that authorizes the sale of wine for 229
consumption on the premises where sold is not an opened container 230
for the purposes of this section if both of the following apply:231

       (1) The opened bottle of wine is securely resealed by the 232
permit holder or an employee of the permit holder before the 233
bottle is removed from the premises. The bottle shall be secured 234
in such a manner that it is visibly apparent if the bottle has 235
been subsequently opened or tampered with.236

       (2) The opened bottle of wine that is resealed in accordance 237
with division (E)(1) of this section is stored in the trunk of a 238
motor vehicle or, if the motor vehicle does not have a trunk, 239
behind the last upright seat or in an area not normally occupied 240
by the driver or passengers and not easily accessible by the 241
driver.242

       Sec. 4301.65. (A) As used in this section, "alcohol 243
vaporizing device" means a machine or other device that mixes beer 244
or intoxicating liquor with pure oxygen or any other gas to 245
produce a vaporized product for the purpose of consumption by 246
inhalation.247

        (B) No person shall sell or offer for sale an alcohol 248
vaporizing device.249

        (C) No person shall purchase or use an alcohol vaporizing 250
device.251

       Sec. 4301.69.  (A) Except as otherwise provided in this252
chapter, no person shall sell beer or intoxicating liquor to an253
underage person, shall buy beer or intoxicating liquor for an254
underage person, or shall furnish it to an underage person, unless255
given by a physician in the regular line of the physician's256
practice or given for established religious purposes or unless the257
underage person is accompaniedsupervised by a parent, spouse who 258
is not an underage person, or legal guardian.259

       In proceedings before the liquor control commission, no260
permit holder, or theno employee or agent of a permit holder,261
charged with a violation of this division shall be charged, for262
the same offense, with a violation of division (A)(1) of section263
4301.22 of the Revised Code.264

       (B) No person who is the owner or occupant of any public or265
private place shall knowingly allow any underage person to remain266
in or on the place while possessing or consuming beer or267
intoxicating liquor, unless the intoxicating liquor or beer is268
given to the person possessing or consuming it by that person's269
parent, spouse who is not an underage person, or legal guardian270
and the parent, spouse who is not an underage person, or legal271
guardian is present at the time of the person's possession or272
consumption of the beer or intoxicating liquor.273

       An owner of a public or private place is not liable for acts274
or omissions in violation of this division that are committed by a275
lessee of that place, unless the owner authorizes or acquiesces in276
the lessee's acts or omissions.277

       (C) No person shall engage or use accommodations at a hotel,278
inn, cabin, campground, or restaurant when the person knows or has279
reason to know either of the following:280

       (1) That beer or intoxicating liquor will be consumed by an281
underage person on the premises of the accommodations that the282
person engages or uses, unless the person engaging or using the283
accommodations is the spouse of the underage person and who is not284
an underage person, or is the parent or legal guardian of all of285
the underage persons, who consume beer or intoxicating liquor on286
the premises and that person is on the premises at all times when287
beer or intoxicating liquor is being consumed by an underage288
person;289

       (2) That a drug of abuse will be consumed on the premises of290
the accommodations by any person, except a person who obtained the291
drug of abuse pursuant to a prescription issued by a licensed292
health professional authorized to prescribe drugs and has the drug293
of abuse in the original container in which it was dispensed to294
the person.295

       (D)(1) No person is required to permit the engagement of296
accommodations at any hotel, inn, cabin, or campground by an297
underage person or for an underage person, if the person engaging298
the accommodations knows or has reason to know that the underage299
person is intoxicated, or that the underage person possesses any300
beer or intoxicating liquor and is not accompaniedsupervised by a 301
parent, spouse who is not an underage person, or legal guardian 302
who is or will be present at all times when the beer or 303
intoxicating liquor is being consumed by the underage person.304

       (2) No underage person shall knowingly engage or attempt to305
engage accommodations at any hotel, inn, cabin, or campground by306
presenting identification that falsely indicates that the underage307
person is twenty-one years of age or older for the purpose of308
violating this section.309

       (E)(1) No underage person shall knowingly order, pay for,310
share the cost of, attempt to purchase, possess, or consume any311
beer or intoxicating liquor in any public or private place. No312
underage person shall knowingly be under the influence of any beer313
or intoxicating liquor in any public place. The prohibitions set314
forth in division (E)(1) of this section against an underage315
person knowingly possessing, consuming, or being under the316
influence of any beer or intoxicating liquor shall not apply if317
the underage person is accompaniedsupervised by a parent, spouse318
who is not an underage person, or legal guardian, or the beer or319
intoxicating liquor is given by a physician in the regular line of320
the physician's practice or given for established religious321
purposes.322

       (2)(a) If a person is charged with violating division (E)(1)323
of this section in a complaint filed under section 2151.27 of the324
Revised Code, the court may order the child into a diversion325
program specified by the court and hold the complaint in abeyance326
pending successful completion of the diversion program. A child is 327
ineligible to enter into a diversion program under division328
(E)(2)(a) of this section if the child previously has been329
diverted pursuant to division (E)(2)(a) of this section. If the330
child completes the diversion program to the satisfaction of the331
court, the court shall dismiss the complaint and order the child's332
record in the case sealed under division (D)(3) of section333
2151.358 of the Revised Code. If the child fails to satisfactorily 334
complete the diversion program, the court shall proceed with the 335
complaint.336

       (b) If a person is charged in a criminal complaint with337
violating division (E)(1) of this section, section 2935.36 of the338
Revised Code shall apply to the offense, except that a person is339
ineligible for diversion under that section if the person340
previously has been diverted pursuant to division (E)(2)(a) or (b)341
of this section. If the person completes the diversion program to342
the satisfaction of the court, the court shall dismiss the343
complaint and order the record in the case sealed under section344
2953.52 of the Revised Code. If the person fails to satisfactorily 345
complete the diversion program, the court shall proceed with the 346
complaint.347

       (F) No parent, spouse who is not an underage person, or legal 348
guardian of a minor shall knowingly permit the minor to violate 349
this section or section 4301.63, 4301.633, or 4301.634 of the 350
Revised Code.351

       (G) The operator of any hotel, inn, cabin, or campground352
shall make the provisions of this section available in writing to353
any person engaging or using accommodations at the hotel, inn,354
cabin, or campground.355

       (H) As used in this section:356

       (1) "Drug of abuse" has the same meaning as in section357
3719.011 of the Revised Code.358

       (2) "Hotel" has the same meaning as in section 3731.01 of the 359
Revised Code.360

       (3) "Licensed health professional authorized to prescribe361
drugs" and "prescription" have the same meanings as in section362
4729.01 of the Revised Code.363

       (4) "Minor" means a person under the age of eighteen years.364

       (5) "Underage person" means a person under the age of365
twenty-one years.366

       Sec. 4301.99.  (A) Whoever violates section 4301.47, 4301.48, 367
4301.49, 4301.62, or 4301.70 or division (C) of section 4301.65 or368
division (B) of section 4301.691 of the Revised Code is guilty of 369
a minor misdemeanor.370

       (B) Whoever violates section 4301.15, division (A)(2) or (C)371
of section 4301.22, division (C), (D), (E), (F), (G), (H), or (I)372
of section 4301.631, or section 4301.64 or 4301.67 of the Revised373
Code is guilty of a misdemeanor of the fourth degree.374

       If an offender who violates section 4301.64 of the Revised375
Code was under the age of eighteen years at the time of the376
offense, the court, in addition to any other penalties it imposes377
upon the offender, shall suspend the offender's temporary378
instruction permit, probationary driver's license, or driver's379
license for a period of not less than six months and not more than380
one year. If the offender is fifteen years and six months of age381
or older and has not been issued a temporary instruction permit or382
probationary driver's license, the offender shall not be eligible383
to be issued such a license or permit for a period of six months.384
If the offender has not attained the age of fifteen years and six385
months, the offender shall not be eligible to be issued a386
temporary instruction permit until the offender attains the age of387
sixteen years.388

       (C) Whoever violates division (D) of section 4301.21, 389
section 4301.251, 4301.58, 4301.59, 4301.60, 4301.633, 4301.66,390
4301.68, or 4301.74, division (B), (C), (D), (E)(1), or (F) of391
section 4301.69, or division (C), (D), (E), (F), (G), or (I) of 392
section 4301.691 of the Revised Code is guilty of a misdemeanor of 393
the first degree.394

       If an offender who violates division (E)(1) of section395
4301.69 of the Revised Code was under the age of eighteen years at396
the time of the offense and the offense occurred while the397
offender was the operator of or a passenger in a motor vehicle,398
the court, in addition to any other penalties it imposes upon the399
offender, shall suspend the offender's temporary instruction400
permit or probationary driver's license for a period of not less401
than six months and not more than one year. If the offender is402
fifteen years and six months of age or older and has not been403
issued a temporary instruction permit or probationary driver's404
license, the offender shall not be eligible to be issued such a405
license or permit for a period of six months. If the offender has406
not attained the age of fifteen years and six months, the offender407
shall not be eligible to be issued a temporary instruction permit408
until the offender attains the age of sixteen years.409

       (D) Whoever violates division (B) of section 4301.14, or410
division (A)(1) or (3) or (B) of section 4301.22 of the Revised 411
Code is guilty of a misdemeanor of the third degree.412

       (E) Whoever violates section 4301.63 or division (B) of413
section 4301.631 of the Revised Code shall be fined not less than414
twenty-five nor more than one hundred dollars. The court imposing415
a fine for a violation of section 4301.63 or division (B) of416
section 4301.631 of the Revised Code may order that the fine be417
paid by the performance of public work at a reasonable hourly rate418
established by the court. The court shall designate the time419
within which the public work shall be completed.420

       (F)(1) Whoever violates section 4301.634 of the Revised Code421
is guilty of a misdemeanor of the first degree. If, in committing422
a first violation of that section, the offender presented to the423
permit holder or the permit holder's employee or agent a false,424
fictitious, or altered identification card, a false or fictitious425
driver's license purportedly issued by any state, or a driver's426
license issued by any state that has been altered, the offender is427
guilty of a misdemeanor of the first degree and shall be fined not428
less than two hundred fifty and not more than one thousand429
dollars, and may be sentenced to a term of imprisonment of not430
more than six months.431

       (2) On a second violation in which, for the second time, the432
offender presented to the permit holder or the permit holder's433
employee or agent a false, fictitious, or altered identification434
card, a false or fictitious driver's license purportedly issued by435
any state, or a driver's license issued by any state that has been436
altered, the offender is guilty of a misdemeanor of the first437
degree and shall be fined not less than five hundred nor more than438
one thousand dollars, and may be sentenced to a term of439
imprisonment of not more than six months. The court also may 440
impose a class seven suspension of the offender's driver's or441
commercial driver's license or permit or nonresident operating442
privilege from the range specified in division (A)(7) of section443
4510.02 of the Revised Code.444

       (3) On a third or subsequent violation in which, for the445
third or subsequent time, the offender presented to the permit446
holder or the permit holder's employee or agent a false,447
fictitious, or altered identification card, a false or fictitious448
driver's license purportedly issued by any state, or a driver's449
license issued by any state that has been altered, the offender is450
guilty of a misdemeanor of the first degree and shall be fined not451
less than five hundred nor more than one thousand dollars, and may452
be sentenced to a term of imprisonment of not more than six453
months. The court also shall impose a class six suspension of the454
offender's driver's or commercial driver's license or permit or 455
nonresident operating privilege from the range specified in456
division (A)(6) of section 4510.02 of the Revised Code, and the457
court may order that the suspension or denial remain in effect458
until the offender attains the age of twenty-one years. The court459
also may order the offender to perform a determinate number of460
hours of community service, with the court determining the actual461
number of hours and the nature of the community service the462
offender shall perform.463

       (G) Whoever violates section 4301.636 of the Revised Code is464
guilty of a felony of the fifth degree.465

       (H) Whoever violates division (A)(1) of section 4301.22 of466
the Revised Code is guilty of a misdemeanor, shall be fined not467
less than five hundred and not more than one thousand dollars,468
and, in addition to the fine, may be imprisoned for a definite469
term of not more than sixty days.470

       (I) Whoever violates division (A) of section 4301.69 or471
division (H) of section 4301.691 of the Revised Code is guilty of472
a misdemeanor, shall be fined not less than five hundred and not473
more than one thousand dollars, and, in addition to the fine, may474
be imprisoned for a definite term of not more than six months.475

       (J) Whoever violates division (B) of section 4301.65 of the 476
Revised Code is guilty of a misdemeanor of the third degree. For a 477
second or subsequent violation occurring within a period of five 478
consecutive years after the first violation, a person is guilty of 479
a misdemeanor of the first degree.480

       Sec. 4303.29.  (A) No permit, other than an H permit, shall481
be issued to a firm or partnership unless all the members of the482
firm or partnership are citizens of the United States and a483
majority have resided in this state for one year prior to484
application for the permit. No permit, other than an H permit,485
shall be issued to an individual who is not a citizen of the486
United States who has resided in this state for at least one year487
prior to application for the permit. No permit, other than an E or 488
H permit, shall be issued to any corporation organized under the 489
laws of any country, territory, or state other than this state490
until it has furnished the division of liquor control with491
evidence that it has complied with the laws of this state relating492
to the transaction of business in this state.493

       The division may refuse to issue any permit to or refuse to494
renew any permit of any person convicted of any felony that is495
reasonably related to the person's fitness to operate a liquor496
permit business in this state. No holder of a permit shall sell,497
assign, transfer, or pledge the permit without the written consent 498
of the division.499

       (B)(1) No more than one of each type of C or D permit shall500
be issued to any one person, firm, or corporation in any county501
having a population of less than twenty-five thousand, and no more502
than one of each type of C or D permit shall be issued to any one503
person, firm, or corporation for any additional twenty-five504
thousand or major fraction thereof in any county having a greater505
population than twenty-five thousand, provided that, in the case506
of D-3, D-3a, D-4, and D-5 permits, no more than one permit shall507
be issued to any one person, firm, or corporation in any county508
having a population of less than fifty thousand, and no more than509
one such permit shall be issued to any one person, firm, or510
corporation for any additional fifty thousand or major fraction511
thereof in any county having a greater population than fifty512
thousand.513

       (2) No D-3 permit shall be issued to any club unless the club 514
has been continuously engaged in the activity specified in section 515
4303.15 of the Revised Code, as a qualification for that class of 516
permit, for two years at the time the permit is issued.517

       (3)(2)(a) Subject to division (B)(3)(2)(b) of this section, 518
upon application by properly qualified persons, one C-1 and C-2 519
permit shall be issued for each one thousand population or part of 520
that population, and one D-1 and D-2 permit shall be issued for521
each two thousand population or part of that population, in each522
municipal corporation and in the unincorporated area of each523
township.524

       Subject to division (B)(3)(2)(b) of this section, not more525
than one D-3, D-4, or D-5 permit shall be issued for each two526
thousand population or part of that population in any municipal527
corporation and in the unincorporated area of any township, except528
that, in any city of a population of fifty-five thousand or more,529
one D-3 permit may be issued for each fifteen hundred population530
or part of that population.531

       (b)(i) Division (B)(3)(2)(a) of this section does not532
prohibit the transfer of location or the transfer of ownership and533
location of a C-1, C-2, D-1, D-2, D-3, or D-5 permit from a534
municipal corporation or the unincorporated area of a township in535
which the number of permits of that class exceeds the number of536
such permits authorized to be issued under division (B)(3)(2)(a) 537
of this section to an economic development project located in 538
another municipal corporation or the unincorporated area of 539
another township in which no additional permits of that class may 540
be issued to the applicant under division (B)(3)(2)(a) of this 541
section, but the transfer of location or transfer of ownership and 542
location of the permit may occur only if the applicant notifies543
the municipal corporation or township to which the location of the544
permit will be transferred regarding the transfer and that545
municipal corporation or township acknowledges in writing to the546
division of liquor control, at the time the application for the547
transfer of location or transfer of ownership and location of the548
permit is filed, that the transfer will be to an economic549
development project. This acknowledgment by the municipal550
corporation or township does not prohibit it from requesting a551
hearing under section 4303.26 of the Revised Code. The applicant552
is eligible to apply for and receive the transfer of location of553
the permit under division (B)(3)(2)(b) of this section if all 554
permits of that class that may be issued under division555
(B)(3)(2)(a) of this section in the applicable municipal 556
corporation or unincorporated area of the township have already 557
been issued or if the number of applications filed for permits of 558
that class in that municipal corporation or the unincorporated 559
area of that township exceed the number of permits of that class 560
that may be issued there under division (B)(3)(2)(a) of this 561
section.562

       A permit transferred under division (B)(3)(2)(b) of this 563
section may be subsequently transferred to a different owner at 564
the same location, or to the same owner or a different owner at a 565
different location in the same municipal corporation or in the566
unincorporated area of the same township, as long as the same or567
new location meets the economic development project criteria set568
forth in this section.569

       (ii) Factors that shall be used to determine the designation570
of an economic development project include, but are not limited571
to, architectural certification of the plans and the cost of the572
project, the number of jobs that will be created by the project,573
projected earnings of the project, projected tax revenues for the574
political subdivisions in which the project will be located, and575
the amount of financial investment in the project. The576
superintendent of liquor control shall determine whether the577
existing or proposed business that is seeking a permit described578
in division (B)(3)(2)(b) of this section qualifies as an economic579
development project and, if the superintendent determines that it580
so qualifies, shall designate the business as an economic581
development project.582

       (4)(3) Nothing in this section shall be construed to restrict583
the issuance of a permit to a municipal corporation for use at a584
municipally owned airport at which commercial airline companies585
operate regularly scheduled flights on which space is available to586
the public. A municipal corporation applying for a permit for such 587
a municipally owned airport is exempt, in regard to that588
application, from the population restrictions contained in this589
section and from population quota restrictions contained in any590
rule of the liquor control commission. A municipal corporation591
applying for a D-1, D-2, D-3, D-4, or D-5 permit for such a592
municipally owned airport is subject to section 4303.31 of the593
Revised Code.594

       (5)(4) Nothing in this section shall be construed to prohibit595
the issuance of a D permit to the board of trustees of a soldiers'596
memorial for a premises located at a soldiers' memorial597
established pursuant to Chapter 345. of the Revised Code. An598
application for a D permit by the board for those premises is599
exempt from the population restrictions contained in this section600
and from the population quota restrictions contained in any rule601
of the liquor control commission. The location of a D permit602
issued to the board for those premises shall not be transferred. A 603
board of trustees of a soldiers' memorial applying for a D-1, D-2, 604
D-3, D-4, or D-5 permit for the soldiers' memorial is subject to 605
section 4303.31 of the Revised Code.606

       (6)(5) Nothing in this section shall be construed to restrict607
the issuance of a permit for a premises located at a golf course608
owned by a municipal corporation, township, or county, owned by a609
park district created under Chapter 1545. of the Revised Code, or610
owned by the state. The location of such a permit issued on or611
after September 26, 1984, for a premises located at such a golf612
course shall not be transferred. Any application for such a permit 613
is exempt from the population quota restrictions contained in this 614
section and from the population quota restrictions contained in 615
any rule of the liquor control commission. A municipal 616
corporation, township, county, park district, or state agency 617
applying for a D-1, D-2, D-3, D-4, or D-5 permit for such a golf 618
course is subject to section 4303.31 of the Revised Code.619

       (7)(6) As used in division (B)(7)(6) of this section, "fair" 620
has the same meaning as in section 991.01 of the Revised Code;621
"state fairgrounds" means the property that is held by the state622
for the purpose of conducting fairs, expositions, and exhibits and 623
that is maintained and managed by the Ohio expositions commission 624
under section 991.03 of the Revised Code; "capitol square" has the625
same meaning as in section 105.41 of the Revised Code; and "Ohio 626
judicial center" means the site of the Ohio supreme court and its 627
grounds.628

       Nothing in this section shall be construed to restrict the629
issuance of one or more D permits to one or more applicants for630
all or a part of the state fairgrounds, capitol square, or the 631
Ohio judicial center. An application for a D permit for the state 632
fairgrounds, capitol square, or the Ohio judicial center is exempt 633
from the population quota restrictions contained in this section 634
and from the population quota restrictions contained in any rule 635
of the liquor control commission. The location of a D permit 636
issued for the state fairgrounds, capitol square, or the Ohio 637
judicial center shall not be transferred. An applicant for a D-1, 638
D-2, D-3, or D-5 permit for the state fairgrounds is not subject 639
to section 4303.31 of the Revised Code.640

       Pursuant to section 1711.09 of the Revised Code, the holder641
of a D permit issued for the state fairgrounds shall not deal in642
spirituous liquor at the state fairgrounds during, or for one week643
before or for three days after, any fair held at the state644
fairgrounds.645

       (8)(7) Nothing in this section shall be construed to prohibit646
the issuance of a D permit for a premises located at a zoological647
park at which sales have been approved in an election held under648
former section 4301.356 of the Revised Code. An application for a649
D permit for such a premises is exempt from the population650
restrictions contained in this section, from the population quota651
restrictions contained in any rule of the liquor control652
commission, and from section 4303.31 of the Revised Code. The653
location of a D permit issued for a premises at such a zoological654
park shall not be transferred, and no quota or other restrictions655
shall be placed on the number of D permits that may be issued for656
a premises at such a zoological park.657

       (C)(1) No D-3, D-4, D-5, or D-5a permit shall be issued in658
any election precinct in any municipal corporation or in any659
election precinct in the unincorporated area of any township, in660
which at the November, 1933, election a majority of the electors661
voting thereon in the municipal corporation or in the662
unincorporated area of the township voted against the repeal of663
Section 9 of Article XV, Ohio Constitution, unless the sale of664
spirituous liquor by the glass is authorized by a majority vote of665
the electors voting on the question in the precinct at an election666
held pursuant to this section or by a majority vote of the667
electors of the precinct voting on question (C) at a special local668
option election held in the precinct pursuant to section 4301.35669
of the Revised Code. Upon the request of an elector, the board of670
elections of the county that encompasses the precinct shall671
furnish the elector with a copy of the instructions prepared by672
the secretary of state under division (P) of section 3501.05 of673
the Revised Code and, within fifteen days after the request, a674
certificate of the number of signatures required for a valid675
petition under this section.676

       Upon the petition of thirty-five per cent of the total number677
of voters voting in any such precinct for the office of governor678
at the preceding general election, filed with the board of679
elections of the county in which such precinct is located not680
later than seventy-five days before a general election, the board681
shall prepare ballots and hold an election at such general682
election upon the question of allowing spirituous liquor to be683
sold by the glass in such precinct. The ballots shall be approved684
in form by the secretary of state. The results of the election685
shall be certified by the board to the secretary of state, who686
shall certify the results to the division.687

       (2) No holder of a class D-3 permit issued for a boat or688
vessel shall sell spirituous liquor in any precinct, in which the689
election provided for in this section may be held, unless the sale690
of spirituous liquor by the drink has been authorized by vote of691
the electors as provided in this section or in section 4301.35 of692
the Revised Code.693

       (D) Any holder of a C or D permit whose permit premises were694
purchased in 1986 or 1987 by the state or any state agency for 695
highway purposes shall be issued the same permit at another696
location notwithstanding any quota restrictions contained in this697
chapter or in any rule of the liquor control commission.698

       Sec. 4303.292.  (A) The division of liquor control may refuse 699
to issue, transfer the ownership of, or renew, and shall refuse to 700
transfer the location of, any retail permit issued under this 701
chapter if it finds either of the following:702

       (1) That the applicant, or any partner, member, officer,703
director, or manager of the applicant, or, if the applicant is a 704
corporation or limited liability company, any shareholder owning 705
five per cent or more of the applicant's capital stock in the 706
corporation or any member owning five per cent or more of either 707
the voting interests or membership interests in the limited 708
liability company:709

       (a) Has been convicted at any time of a crime that relates to 710
fitness to operate a liquor establishment;711

       (b) Has operated liquor permit businesses in a manner that712
demonstrates a disregard for the laws, regulations, or local713
ordinances of this state or any other state;714

       (c) Has misrepresented a material fact in applying to the715
division for a permit; or716

       (d) Is in the habit of using alcoholic beverages or dangerous 717
drugs to excess, or is addicted to the use of narcotics.718

       (2) That the place for which the permit is sought:719

       (a) Does not conform to the building, safety, or health720
requirements of the governing body of the county or municipal 721
corporation in which the place is located. As used in division 722
(A)(2)(a) of this section, "building, safety, or health723
requirements" does not include local zoning ordinances. The724
validity of local zoning regulations shall not be affected by this725
section.726

       (b) Is so constructed or arranged that law enforcement727
officers and duly authorized agents of the division are prevented728
from reasonable access to rooms within which beer or intoxicating729
liquor is to be sold or consumed;730

       (c) Is so located with respect to the neighborhood that731
substantial interference with public decency, sobriety, peace, or732
good order would result from the issuance, renewal, transfer of733
location, or transfer of ownership of the permit and operation 734
under it by the applicant; or735

       (d) Has been declared a nuisance pursuant to Chapter 3767. of 736
the Revised Code since the time of the most recent issuance,737
renewal, or transfer of ownership or location of the liquor738
permit.739

       (B) The division of liquor control may refuse to issue or740
transfer the ownership of, and shall refuse to transfer the741
location of, any retail permit issued under this chapter if it742
finds either of the following:743

       (1) That the place for which the permit is sought is so744
situated with respect to any school, church, library, public745
playground, or hospital that the operation of the liquor746
establishment will substantially and adversely affect or interfere747
with the normal, orderly conduct of the affairs of those748
facilities or institutions;749

       (2) That the number of permits already existent in the750
neighborhood is such that the issuance or transfer of location of751
a permit would be detrimental to and substantially interfere with752
the morals, safety, or welfare of the public. In reaching a753
conclusion in this respect, the division shall consider, in light 754
of the purposes of this chapter and Chapters 4301. and 4399. of 755
the Revised Code, the character and population of the756
neighborhood, the number and location of similar permits in the757
neighborhood, the number and location of all other permits in the758
neighborhood, and the effect the issuance or transfer of location759
of a permit would have on the neighborhood.760

       (C) The division of liquor control shall not transfer the761
location or transfer the ownership and location of a permit under762
division (B)(3)(2)(b) of section 4303.29 of the Revised Code763
unless the permit is transferred to an economic development764
project.765

       (D) The division of liquor control shall refuse to issue,766
renew, transfer the ownership of, or transfer the location of a767
retail permit under this chapter if the applicant is or has been768
convicted of a violation of division (C)(1) of section 2913.46 of769
the Revised Code.770

       (E) The division of liquor control shall refuse to transfer771
the ownership of or transfer the location of a retail permit under772
this chapter while criminal proceedings are pending against the773
holder of the permit for a violation of division (C)(1) of section774
2913.46 of the Revised Code. The department of public safety shall 775
notify the division whenever criminal proceedings have commenced776
for a violation of division (C)(1) of section 2913.46 of the 777
Revised Code.778

       (F) The division of liquor control shall refuse to issue, 779
renew, or transfer the ownership or location of a retail permit 780
under this chapter if the applicant has been found to be781
maintaining a nuisance under section 3767.05 of the Revised Code 782
at the premises for which the issuance, renewal, or transfer of 783
ownership or location of the retail permit is sought.784

       Section 2. That existing sections 4301.17, 4301.62, 4301.69, 785
4301.99, 4303.29, and 4303.292 and section 4303.273 of the Revised 786
Code are hereby repealed.787