S. B. No. 150 As Passed by the Senate

Cosponsors: Senators Fedor, Boccieri, Miller, D., Kearney, Schuler, Austria, Cafaro, Cates, Clancy, Faber, Gardner, Grendell, Harris, Mason, Morano, Niehaus, Padgett, Sawyer, Schuring, Spada, Stivers, Wilson, Carey

Section 1. That sections 4301.10 and 4301.639 of the Revised	11
Code be amended to read as follows:	12

Sec. 4301.10. (A) The division of liquor control shall do	13
all of the following:	14

(1) Control the traffic in beer and intoxicating liquor in	15
this state, including the manufacture, importation, and sale of	16
beer and intoxicating liquor;	17

(2) Grant or refuse permits for the manufacture,	18
distribution, transportation, and sale of beer and intoxicating	19
liquor and the sale of alcohol, as authorized or required by this	20
chapter and Chapter 4303. of the Revised Code. A certificate,	21
signed by the superintendent of liquor control and to which is	22
affixed the official seal of the division, stating that it appears	23
from the records of the division that no permit has been issued to	24
the person specified in the certificate, or that a permit, if	25
issued, has been revoked, canceled, or suspended, shall be	26
received as prima-facie evidence of the facts recited in the	27
certificate in any court or before any officer of this state.	28

(3) Put into operation, manage, and control a system of state	29
liquor stores for the sale of spirituous liquor at retail and to	30
holders of permits authorizing the sale of spirituous liquor;	31
however, the division shall not establish any drive-in state	32
liquor stores; and by means of those types of stores, and any	33
manufacturing plants, distributing and bottling plants,	34
warehouses, and other facilities that it considers expedient,	35
establish and maintain a state monopoly of the distribution of	36
spirituous liquor and its sale in packages or containers; and for	37
that purpose, manufacture, buy, import, possess, and sell	38
spirituous liquors as provided in this chapter and Chapter 4303.	39
of the Revised Code, and in the rules promulgated by the	40
superintendent of liquor control pursuant to those chapters; lease	41
or in any manner acquire the use of any land or building required	42
for any of those purposes; purchase any equipment that is	43
required; and borrow money to carry on its business, and issue,	44
sign, endorse, and accept notes, checks, and bills of exchange;	45
but all obligations of the division created under authority of	46
this division shall be a charge only upon the moneys received by	47
the division from the sale of spirituous liquor and its other	48
business transactions in connection with the sale of spirituous	49
liquor, and shall not be general obligations of the state;	50

(4) Enforce the administrative provisions of this chapter and	51
Chapter 4303. of the Revised Code, and the rules and orders of the	52
liquor control commission and the superintendent relating to the	53
manufacture, importation, transportation, distribution, and sale	54
of beer or intoxicating liquor. The attorney general, any	55
prosecuting attorney, and any prosecuting officer of a municipal	56
corporation or a municipal court shall, at the request of the	57
division of liquor control or the department of public safety,	58
prosecute any person charged with the violation of any provision	59
in those chapters or of any section of the Revised Code relating	60
to the manufacture, importation, transportation, distribution, and	61
sale of beer or intoxicating liquor.	62

(5) Determine the locations of all state liquor stores and	63
manufacturing, distributing, and bottling plants required in	64
connection with those stores, subject to this chapter and Chapter	65
4303. of the Revised Code;	66

(6) Conduct inspections of liquor permit premises to	67
determine compliance with the administrative provisions of this	68
chapter and Chapter 4303. of the Revised Code and the rules	69
adopted under those provisions by the liquor control commission.	70

Except as otherwise provided in division (A)(6) of this	71
section, those inspections may be conducted only during those	72
hours in which the permit holder is open for business and only by	73
authorized agents or employees of the division or by any peace	74
officer, as defined in section 2935.01 of the Revised Code.	75
Inspections may be conducted at other hours only to determine	76
compliance with laws or commission rules that regulate the hours	77
of sale of beer or intoxicating liquor and only if the	78
investigator has reasonable cause to believe that those laws or	79
rules are being violated. Any inspection conducted pursuant to	80
division (A)(6) of this section is subject to all of the following	81
requirements:	82

(a) The only property that may be confiscated is contraband,	83
as defined in section 2901.01 of the Revised Code, or property	84
that is otherwise necessary for evidentiary purposes.	85

(b) A complete inventory of all property confiscated from the	86
premises shall be given to the permit holder or the permit	87
holder's agent or employee by the confiscating agent or officer at	88
the conclusion of the inspection. At that time, the inventory	89
shall be signed by the confiscating agent or officer, and the	90
agent or officer shall give the permit holder or the permit	91
holder's agent or employee the opportunity to sign the inventory.	92

(c) Inspections conducted pursuant to division (A)(6) of this	93
section shall be conducted in a reasonable manner. A finding by	94
any court of competent jurisdiction that an inspection was not	95
conducted in a reasonable manner in accordance with this section	96
or any rules adopted by the commission may be considered grounds	97
for suppression of evidence. A finding by the commission that an	98
inspection was not conducted in a reasonable manner in accordance	99
with this section or any rules adopted by it may be considered	100
grounds for dismissal of the commission case.	101

If any court of competent jurisdiction finds that property	102
confiscated as the result of an administrative inspection is not	103
necessary for evidentiary purposes and is not contraband, as	104
defined in section 2901.01 of the Revised Code, the court shall	105
order the immediate return of the confiscated property, provided	106
that property is not otherwise subject to forfeiture, to the	107
permit holder. However, the return of this property is not grounds	108
for dismissal of the case. The commission likewise may order the	109
return of confiscated property if no criminal prosecution is	110
pending or anticipated.	111

(7) Delegate to any of its agents or employees any power of	112
investigation that the division possesses with respect to the	113
enforcement of any of the administrative laws relating to beer or	114
intoxicating liquor, provided that this division does not	115
authorize the division to designate any agent or employee to serve	116
as an enforcement agent. The employment and designation of	117
enforcement agents shall be within the exclusive authority of the	118
director of public safety pursuant to sections 5502.13 to 5502.19	119
of the Revised Code.	120

(a) A biennial fifty-dollar registration fee for each agent,	122
solicitor, or salesperson, registered pursuant to section 4303.25	123
of the Revised Code, of a beer or intoxicating liquor	124
manufacturer, supplier, broker, or wholesale distributor doing	125
business in this state;	126

(c) An annual three-hundred-dollar supplier registration fee	131
from each manufacturer or supplier that produces and ships into	132
this state, or ships into this state, intoxicating liquor or beer,	133
in addition to an initial application fee of one hundred dollars.	134

Each supplier, agent, solicitor, or salesperson registration	135
issued under this division shall authorize the person named to	136
carry on the activity specified in the registration. Each agent,	137
solicitor, or salesperson registration is valid for two years or	138
for the unexpired portion of a two-year registration period. Each	139
supplier registration is valid for one year or for the unexpired	140
portion of a one-year registration period. Registrations shall end	141
on their respective uniform expiration date, which shall be	142
designated by the division, and are subject to suspension,	143
revocation, cancellation, or fine as authorized by this chapter	144
and Chapter 4303. of the Revised Code.	145

(9) Establish a system of electronic data interchange within	146
the division and regulate the electronic transfer of information	147
and funds among persons and governmental entities engaged in the	148
manufacture, distribution, and retail sale of alcoholic beverages;	149

(3) Terminate at will any lease entered into pursuant to	168
division (B)(2) of this section upon first giving ninety days'	169
notice in writing to the lessor of its intention to do so;	170

(b) A fifty-dollar product registration fee for each new beer	127
or intoxicating liquor product sold in this state. The product	128
registration fee shall be accompanied by a copy of the federal	129
label and product approval for the new product.	130

(10) Notify all holders of retail permits of the forms of	150
permissible identification for purposes of division (A) of section	151
4301.639 of the Revised Code;	152

(11) Exercise all other powers expressly or by necessary	153
implication conferred upon the division by this chapter and	154
Chapter 4303. of the Revised Code, and all powers necessary for	155
the exercise or discharge of any power, duty, or function	156
expressly conferred or imposed upon the division by those	157
chapters.	158

(1) Sue, but may be sued only in connection with the	160
execution of leases of real estate and the purchases and contracts	161
necessary for the operation of the state liquor stores that are	162
made under this chapter and Chapter 4303. of the Revised Code;	163

(2) Enter into leases and contracts of all descriptions and	164
acquire and transfer title to personal property with regard to the	165
sale, distribution, and storage of spirituous liquor within the	166
state;	167

(4) Fix the wholesale and retail prices at which the various	171
classes, varieties, and brands of spirituous liquor shall be sold	172
by the division. Those retail prices shall be the same at all	173
state liquor stores, except to the extent that a price	174
differential is required to collect a county sales tax levied	175
pursuant to section 5739.021 of the Revised Code and for which tax	176
the tax commissioner has authorized prepayment pursuant to section	177
5739.05 of the Revised Code. In fixing selling prices, the	178
division shall compute an anticipated gross profit at least	179
sufficient to provide in each calendar year all costs and expenses	180
of the division and also an adequate working capital reserve for	181
the division. The gross profit shall not exceed forty per cent of	182
the retail selling price based on costs of the division, and in	183
addition the sum required by section 4301.12 of the Revised Code	184
to be paid into the state treasury. An amount equal to one and	185
one-half per cent of that gross profit shall be paid into the	186
statewide treatment and prevention fund created by section 4301.30	187
of the Revised Code and be appropriated by the general assembly	188
from the fund to the department of alcohol and drug addiction	189
services as provided in section 4301.30 of the Revised Code.	190

On spirituous liquor manufactured in this state from the	191
juice of grapes or fruits grown in this state, the division shall	192
compute an anticipated gross profit of not to exceed ten per cent.	193

The wholesale prices fixed under this division shall be at a	194
discount of not less than six per cent of the retail selling	195
prices as determined by the division in accordance with this	196
section.	197

(C) The division may approve the expansion or diminution of a	198
premises to which a liquor permit has been issued and may adopt	199
standards governing such an expansion or diminution.	200

Sec. 4301.639. (A) No permit holder, agent or employee of a	201
permit holder, or any other person may be found guilty of a	202
violation of any section of this chapter or any rule of the liquor	203
control commission in which age is an element of the offense, if	204
the liquor control commission or any court of record finds all of	205
the following:	206

(1) That the person buying, at the time of so doing,	207
exhibited to the permit holder, the agent or employee of the	208
permit holder, or the other person a driver's or commercial	209
driver's license or, an identification card issued under sections	210
4507.50 to 4507.52 of the Revised Code ~~showing~~, or a military	211
identification card issued by the United States department of	212
defense, that displays a picture of the individual for whom the	213
license or card was issued and shows that the person buying was	214
then at least twenty-one years of age, if the person was buying	215
beer as defined in section 4301.01 of the Revised Code or	216
intoxicating liquor, or that the person was then at least eighteen	217
years of age, if the person was buying any low-alcohol beverage;	218

(2) That the permit holder, the agent or employee of the	219
permit holder, or the other person made a bona fide effort to	220
ascertain the true age of the person buying by checking the	221
identification presented, at the time of the purchase, to	222
ascertain that the description on the identification compared with	223
the appearance of the buyer and that the identification presented	224
had not been altered in any way;	225

(3) That the permit holder, the agent or employee of the	226
permit holder, or the other person had reason to believe that the	227
person buying was of legal age.	228

(B) In any hearing before the liquor control commission and	229
in any action or proceeding before a court of record in which a	230
defense is raised under division (A) of this section, the	231
registrar of motor vehicles or deputy registrar who issued an	232
identification card under sections 4507.50 to 4507.52 of the	233
Revised Code shall be permitted to submit certified copies of the	234
records, in the registrar's or deputy's possession, of that	235
issuance in lieu of the testimony of the personnel of or	236
contractors with the bureau of motor vehicles at the hearing,	237
action, or proceeding.	238

(C) The defense provided by division (A) of this section is	239
in addition to the affirmative defense provided by section	240
4301.611 of the Revised Code.	241

Section 2. That existing sections 4301.10 and 4301.639 of the	242
Revised Code are hereby repealed.	243

Section 3. The Division of Liquor Control shall provide the	244
notification required by division (A)(10) of section 4301.10 of	245
the Revised Code, as amended by this act, to holders of retail	246
permits on the effective date of this act not later than ninety	247
days after that effective date.	248