Am. Sub. S. B. No. 102 As Passed by the House

Cosponsors: Senators Spada, Niehaus, Miller, D., Kearney, Clancy, Mumper
Representatives Seitz, Schneider, Carmichael, Stewart, D., Driehaus, Blessing, Daniels, Domenick, Dyer, Flowers, Hagan, R., Harwood, Huffman, Hughes, Letson, Luckie, Mallory, McGregor, J., Otterman, Raussen, Wagoner, Yuko

Section 1. That sections 4301.17 and 4303.99 be amended and	9
section 4303.208 of the Revised Code be enacted to read as	10
follows:	11

Sec. 4301.17. (A)(1) Subject to local option as provided in	12
sections 4301.32 to 4301.40 of the Revised Code, five state liquor	13
stores or agencies may be established in each county. One	14
additional store may be established in any county for each	15
~~twenty-five~~twenty thousand of population of that county or major	16
fraction thereof in excess of the first forty thousand, according	17
to the last preceding federal decennial census or according to the	18
population estimates certified by the department of development	19
between decennial censuses. A person engaged in a mercantile	20
business may act as the agent for the division of liquor control	21
for the sale of spirituous liquor in a municipal corporation, in	22
the unincorporated area of a township, or in an area designated	23
and approved as a resort area under section 4303.262 of the	24
Revised Code. The division shall fix the compensation for such an	25
agent in the manner it considers best, but the compensation shall	26
not exceed seven per cent of the gross sales made by the agent in	27
any one year.	28

(2) The division shall adopt rules in accordance with Chapter	29
119. of the Revised Code governing the allocation and equitable	30
distribution of agency store contracts. The division shall comply	31
with the rules when awarding a contract under division (A)(1) of	32
this section.	33

(3) Except as otherwise provided in this section, no	34
mercantile business that sells beer or intoxicating liquor for	35
consumption on the premises under a permit issued by the division	36
shall operate an agency store at the premises. An agency to which	37
a D-1 permit has been issued may offer for sale tasting samples of	38
beer, an agency to which a D-2 permit has been issued may offer	39
for sale tasting samples of wine and mixed beverages, and an	40
agency to which a D-5 permit has been issued may offer for sale	41
tasting samples of beer, wine, and mixed beverages, but not	42
spirituous liquor. A tasting sample shall not be sold for the	43
purpose of general consumption. As used in this section, "tasting	44
sample" means a small amount of beer, wine, or mixed beverages	45
that is provided in not more than four servings of not more than	46
two ounces each to an authorized purchaser and that allows the	47
purchaser to determine, by tasting only, the quality and character	48
of the beverage.	49

(B) When an agency contract is proposed, when an existing	50
agency contract is assigned, when an existing agency proposes to	51
relocate, or when an existing agency is relocated and assigned,	52
before entering into any contract, consenting to any assignment,	53
or consenting to any relocation, the division shall notify the	54
legislative authority of the municipal corporation in which the	55
agency store is to be located, or the board of county	56
commissioners and the board of township trustees of the county and	57
the township in which the agency store is to be located if the	58
agency store is to be located outside the corporate limits of a	59
municipal corporation, of the proposed contract, assignment, or	60
relocation, and an opportunity shall be provided officials or	61
employees of the municipal corporation or county and township for	62
a complete hearing upon the advisability of entering into the	63
contract or consenting to the assignment or relocation. When the	64
division sends notice to the legislative authority of the	65
political subdivision, the division shall notify, by certified	66
mail or by personal service, the chief peace officer of the	67
political subdivision, who may appear and testify, either in	68
person or through a representative, at any hearing held on the	69
advisability of entering into the contract or consenting to the	70
assignment or relocation.	71

If the proposed agency store, the assignment of an agency	72
contract, or the relocation of an agency store would be located	73
within five hundred feet of a school, church, library, public	74
playground, or township park, the division shall not enter into an	75
agency contract until it has provided notice of the proposed	76
contract to the authorities in control of the school, church,	77
library, public playground, or township park and has provided	78
those authorities with an opportunity for a complete hearing upon	79
the advisability of entering into the contract. If an agency store	80
so located is operating under an agency contract, the division may	81
consent to relocation of the agency store or to the assignment of	82
that contract to operate an agency store at the same location. The	83
division may also consent to the assignment of an existing agency	84
contract simultaneously with the relocation of the agency store.	85
In any such assignment or relocation, the assignee and the	86
location shall be subject to the same requirements that the	87
existing location met at the time that the contract was first	88
entered into as well as any additional requirements imposed by the	89
division in rules adopted by the superintendent of liquor control.	90
The division shall not consent to an assignment or relocation of	91
an agency store until it has notified the authorities in control	92
of the school, church, library, public playground, or township	93
park and has provided those authorities with an opportunity for a	94
complete hearing upon the advisability of consenting to the	95
assignment or relocation.	96

Any hearing provided for in this division shall be held in	97
the central office of the division, except that upon written	98
request of the legislative authority of the municipal corporation,	99
the board of county commissioners, the board of township trustees,	100
or the authorities in control of the school, church, library,	101
public playground, or township park, the hearing shall be held in	102
the county seat of the county where the proposed agency store is	103
to be located.	104

(C) All agency contracts entered into by the division	105
pursuant to this section shall be in writing and shall contain a	106
clause providing for the termination of the contract at will by	107
the division upon its giving ninety days' notice in writing to the	108
agent of its intention to do so. Any agency contract may include a	109
clause requiring the agent to report to the appropriate law	110
enforcement agency the name and address of any individual under	111
twenty-one years of age who attempts to make an illegal purchase.	112

An agent may engage in the selling of beer, mixed beverages,	113
and wine pursuant to permits issued to the agent under Chapter	114
4303. of the Revised Code.	115

The division shall issue a C-1 and C-2 permit to each agent	116
who prior to November 1, 1994, had not been issued both of these	117
permits, notwithstanding the population quota restrictions	118
contained in section 4303.29 of the Revised Code or in any rule of	119
the liquor control commission and notwithstanding the requirements	120
of section 4303.31 of the Revised Code. The location of a C-1 or	121
C-2 permit issued to such an agent shall not be transferred. The	122
division shall revoke any C-1 or C-2 permit issued to an agent	123
under this paragraph if the agent no longer operates an agency	124
store.	125

The division may enter into agreements with the department of	126
development to implement a minority loan program to provide	127
low-interest loans to minority business enterprises, as defined in	128
section 122.71 of the Revised Code, that are awarded liquor agency	129
contracts or assignments.	130

(D) If the division closes a state liquor store and replaces	131
that store with an agency store, any employees of the division	132
employed at that state liquor store who lose their jobs at that	133
store as a result shall be given preference by the agent who	134
operates the agency store in filling any vacancies that occur	135
among the agent's employees, if that preference does not conflict	136
with the agent's obligations pursuant to a collective bargaining	137
agreement.	138

If the division closes a state liquor store and replaces the	139
store with an agency store, any employees of the division employed	140
at the state liquor store who lose their jobs at that store as a	141
result may displace other employees as provided in sections	142
124.321 to 124.328 of the Revised Code. If an employee cannot	143
displace other employees and is laid off, the employee shall be	144
reinstated in another job as provided in sections 124.321 to	145
124.328 of the Revised Code, except that the employee's rights of	146
reinstatement in a job at a state liquor store shall continue for	147
a period of two years after the date of the employee's layoff and	148
shall apply to jobs at state liquor stores located in the	149
employee's layoff jurisdiction and any layoff jurisdiction	150
adjacent to the employee's layoff jurisdiction.	151

(E) The division shall require every agent to give bond with	152
surety to the satisfaction of the division, in the amount the	153
division fixes, conditioned for the faithful performance of the	154
agent's duties as prescribed by the division.	155

Sec. 4303.208. (A)(1) The division of liquor control may	156
issue an F-8 permit to a not-for-profit organization that manages,	157
for the benefit of the public and by contract with a political	158
subdivision of this state, publicly owned property to sell beer or	159
intoxicating liquor by the individual drink at specific events	160
conducted on the publicly owned property and appurtenant streets,	161
but only if, and then only at times at which, the sale of beer and	162
intoxicating liquor on the premises is otherwise permitted by law.	163
Additionally, an F-8 permit may be issued only if the publicly	164
owned property is located in a county that has a population of	165
between seven hundred fifty thousand and nine hundred thousand on	166
the effective date of this section.	167

Sec. 4303.99. (A) Whoever violates section 4303.28 of the	194
Revised Code shall be fined not less than one thousand nor more	195
than twenty-five hundred dollars or imprisoned not less than six	196
months nor more than one year.	197

(C) Whoever violates section 4303.37 of the Revised Code	201
shall be fined not less than twenty-five nor more than fifty	202
dollars.	203

Section 3. This act is hereby declared to be an emergency	209
measure necessary for the immediate preservation of the public	210
peace, health, and safety. The reason for such necessity lies in	211
the fact that the summer festival season is fast approaching and	212
the implementation of the issuance of the F-8 permit needs to be	213
expedited so that the permit can be issued during this summer	214
season. Therefore, this act shall go into immediate effect.	215

(2) The premises on which an F-8 permit will be used shall be	168
clearly defined and sufficiently restricted to allow proper	169
supervision of the permit's use by state and local law enforcement	170
officers. Sales under an F-8 permit shall be confined to the same	171
hours permitted to the holder of a D-3 permit.	172

(3) The fee for an F-8 permit is one thousand seven hundred	173
dollars. An F-8 permit is effective for a period not to exceed	174
nine months as specified in the permit. An F-8 permit is not	175
transferable or renewable. However, the holder of an F-8 permit	176
may apply for a new F-8 permit at any time. An F-8 permit is not	177
effective until any F-8 permit currently held expires. The holder	178
of an F-8 permit shall make sales only at those specific events	179
about which the permit holder has notified in advance the division	180
of liquor control, the department of public safety, and the chief,	181
sheriff, or other principal peace officer of the local law	182
enforcement agencies having jurisdiction over the premises.	183

(B)(1) An application for the issuance of an F-8 permit is	184
subject to the notice and hearing requirements established in	185
division (A) of section 4303.26 of the Revised Code.	186

(2) The liquor control commission shall adopt under Chapter	187
119. of the Revised Code rules necessary to administer this	188
section.	189

(C) No F-8 permit holder shall sell beer or intoxicating	190
liquor beyond the hours of sale allowed by the permit. This	191
division imposes strict liability on the holder of an F-8 permit	192
and on any officer, agent, or employee of that permit holder.	193

(B) Whoever violates section 4303.36 of the Revised Code	198
shall be fined not less than twenty-five nor more than one hundred	199
dollars.	200

(D) Whoever violates division (B) of section 4303.202 or	204
division (C) of section 4303.208 of the Revised Code is guilty of	205
a misdemeanor of the fourth degree.	206

Section 2. That existing sections 4301.17 and 4303.99 of the	207
Revised Code are hereby repealed.	208