As Reported by the Senate Insurance, Commerce and Labor Committee

129th General Assembly Regular Session 2011-2012

Sub. S. B. No. 298

Senator Cafaro 

Cosponsors: Senators Brown, Seitz, Kearney, Beagle, Hughes, Hite, Turner, Bacon 

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A BILL

To amend section 4303.181 of the Revised Code to

1

alter the conditions under which a D-51 liquor

2

permit may be issued.

3

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

Section 1.  That section 4303.181 of the Revised Code be	4
amended to read as follows:	5

Sec. 4303.181.  (A) Permit D-5a may be issued either to the	6
owner or operator of a hotel or motel that is required to be	7
licensed under section 3731.03 of the Revised Code, that contains	8
at least fifty rooms for registered transient guests or is owned	9
by a state institution of higher education as defined in section	10
3345.011 of the Revised Code or a private college or university,	11
and that qualifies under the other requirements of this section,	12
or to the owner or operator of a restaurant specified under this	13
section, to sell beer and any intoxicating liquor at retail, only	14
by the individual drink in glass and from the container, for	15
consumption on the premises where sold, and to registered guests	16
in their rooms, which may be sold by means of a controlled access	17
alcohol and beverage cabinet in accordance with division (B) of	18
section 4301.21 of the Revised Code; and to sell the same products	19
in the same manner and amounts not for consumption on the premises	20
as may be sold by holders of D-1 and D-2 permits. The premises of	21
the hotel or motel shall include a retail food establishment or a	22
food service operation licensed pursuant to Chapter 3717. of the	23
Revised Code that operates as a restaurant for purposes of this	24
chapter and that is affiliated with the hotel or motel and within	25
or contiguous to the hotel or motel, and that serves food within	26
the hotel or motel, but the principal business of the owner or	27
operator of the hotel or motel shall be the accommodation of	28
transient guests. In addition to the privileges authorized in this	29
division, the holder of a D-5a permit may exercise the same	30
privileges as the holder of a D-5 permit.	31

The owner or operator of a hotel, motel, or restaurant who	32
qualified for and held a D-5a permit on August 4, 1976, may, if	33
the owner or operator held another permit before holding a D-5a	34
permit, either retain a D-5a permit or apply for the permit	35
formerly held, and the division of liquor control shall issue the	36
permit for which the owner or operator applies and formerly held,	37
notwithstanding any quota.	38

A D-5a permit shall not be transferred to another location.	39
No quota restriction shall be placed on the number of D-5a permits	40
that may be issued.	41

The fee for this permit is two thousand three hundred	42
forty-four dollars.	43

(B) Permit D-5b may be issued to the owner, operator, tenant,	44
lessee, or occupant of an enclosed shopping center to sell beer	45
and intoxicating liquor at retail, only by the individual drink in	46
glass and from the container, for consumption on the premises	47
where sold; and to sell the same products in the same manner and	48
amount not for consumption on the premises as may be sold by	49
holders of D-1 and D-2 permits. In addition to the privileges	50
authorized in this division, the holder of a D-5b permit may	51
exercise the same privileges as a holder of a D-5 permit.	52

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

53

One D-5b permit may be issued at an enclosed shopping center	54
containing at least two hundred twenty-five thousand, but less	55
than four hundred thousand, square feet of floor area.	56

Two D-5b permits may be issued at an enclosed shopping center	57
containing at least four hundred thousand square feet of floor	58
area. No more than one D-5b permit may be issued at an enclosed	59
shopping center for each additional two hundred thousand square	60
feet of floor area or fraction of that floor area, up to a maximum	61
of five D-5b permits for each enclosed shopping center. The number	62
of D-5b permits that may be issued at an enclosed shopping center	63
shall be determined by subtracting the number of D-3 and D-5	64
permits issued in the enclosed shopping center from the number of	65
D-5b permits that otherwise may be issued at the enclosed shopping	66
center under the formulas provided in this division. Except as	67
provided in this section, no quota shall be placed on the number	68
of D-5b permits that may be issued. Notwithstanding any quota	69
provided in this section, the holder of any D-5b permit first	70
issued in accordance with this section is entitled to its renewal	71
in accordance with section 4303.271 of the Revised Code.	72

The holder of a D-5b permit issued before April 4, 1984,	73
whose tenancy is terminated for a cause other than nonpayment of	74
rent, may return the D-5b permit to the division of liquor	75
control, and the division shall cancel that permit. Upon	76
cancellation of that permit and upon the permit holder's payment	77
of taxes, contributions, premiums, assessments, and other debts	78
owing or accrued upon the date of cancellation to this state and	79
its political subdivisions and a filing with the division of a	80
certification of that payment, the division shall issue to that	81
person either a D-5 permit, or a D-1, a D-2, and a D-3 permit, as	82
that person requests. The division shall issue the D-5 permit, or	83
the D-1, D-2, and D-3 permits, even if the number of D-1, D-2,	84
D-3, or D-5 permits currently issued in the municipal corporation	85
or in the unincorporated area of the township where that person's	86
proposed premises is located equals or exceeds the maximum number	87
of such permits that can be issued in that municipal corporation	88
or in the unincorporated area of that township under the	89
population quota restrictions contained in section 4303.29 of the	90
Revised Code. Any D-1, D-2, D-3, or D-5 permit so issued shall not	91
be transferred to another location. If a D-5b permit is canceled	92
under the provisions of this paragraph, the number of D-5b permits	93
that may be issued at the enclosed shopping center for which the	94
D-5b permit was issued, under the formula provided in this	95
division, shall be reduced by one if the enclosed shopping center	96
was entitled to more than one D-5b permit under the formula.	97

The fee for this permit is two thousand three hundred	98
forty-four dollars.	99

(C) Permit D-5c may be issued to the owner or operator of a	100
retail food establishment or a food service operation licensed	101
pursuant to Chapter 3717. of the Revised Code that operates as a	102
restaurant for purposes of this chapter and that qualifies under	103
the other requirements of this section to sell beer and any	104
intoxicating liquor at retail, only by the individual drink in	105
glass and from the container, for consumption on the premises	106
where sold, and to sell the same products in the same manner and	107
amounts not for consumption on the premises as may be sold by	108
holders of D-1 and D-2 permits. In addition to the privileges	109
authorized in this division, the holder of a D-5c permit may	110
exercise the same privileges as the holder of a D-5 permit.	111

To qualify for a D-5c permit, the owner or operator of a	112
retail food establishment or a food service operation licensed	113
pursuant to Chapter 3717. of the Revised Code that operates as a	114
restaurant for purposes of this chapter, shall have operated the	115
restaurant at the proposed premises for not less than twenty-four	116
consecutive months immediately preceding the filing of the	117
application for the permit, have applied for a D-5 permit no later	118
than December 31, 1988, and appear on the division's quota waiting	119
list for not less than six months immediately preceding the filing	120
of the application for the permit. In addition to these	121
requirements, the proposed D-5c permit premises shall be located	122
within a municipal corporation and further within an election	123
precinct that, at the time of the application, has no more than	124
twenty-five per cent of its total land area zoned for residential	125
use.	126

A D-5c permit shall not be transferred to another location.	127
No quota restriction shall be placed on the number of such permits	128
that may be issued.	129

Any person who has held a D-5c permit for at least two years	130
may apply for a D-5 permit, and the division of liquor control	131
shall issue the D-5 permit notwithstanding the quota restrictions	132
contained in section 4303.29 of the Revised Code or in any rule of	133
the liquor control commission.	134

The fee for this permit is one thousand five hundred	135
sixty-three dollars.	136

(D) Permit D-5d may be issued to the owner or operator of a	137
retail food establishment or a food service operation licensed	138
pursuant to Chapter 3717. of the Revised Code that operates as a	139
restaurant for purposes of this chapter and that is located at an	140
airport operated by a board of county commissioners pursuant to	141
section 307.20 of the Revised Code, at an airport operated by a	142
port authority pursuant to Chapter 4582. of the Revised Code, or	143
at an airport operated by a regional airport authority pursuant to	144
Chapter 308. of the Revised Code. The holder of a D-5d permit may	145
sell beer and any intoxicating liquor at retail, only by the	146
individual drink in glass and from the container, for consumption	147
on the premises where sold, and may sell the same products in the	148
same manner and amounts not for consumption on the premises where	149
sold as may be sold by the holders of D-1 and D-2 permits. In	150
addition to the privileges authorized in this division, the holder	151
of a D-5d permit may exercise the same privileges as the holder of	152
a D-5 permit.	153

A D-5d permit shall not be transferred to another location.	154
No quota restrictions shall be placed on the number of such	155
permits that may be issued.	156

The fee for this permit is two thousand three hundred	157
forty-four dollars.	158

(E) Permit D-5e may be issued to any nonprofit organization	159
that is exempt from federal income taxation under the "Internal	160
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 501(c)(3), as	161
amended, or that is a charitable organization under any chapter of	162
the Revised Code, and that owns or operates a riverboat that meets	163
all of the following:	164

(1) Is permanently docked at one location;

165

(2) Is designated as an historical riverboat by the Ohio	166
historical society;	167

(3) Contains not less than fifteen hundred square feet of	168
floor area;	169

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

170

The holder of a D-5e permit may sell beer and intoxicating	171
liquor at retail, only by the individual drink in glass and from	172
the container, for consumption on the premises where sold.	173

A D-5e permit shall not be transferred to another location.	174
No quota restriction shall be placed on the number of such permits	175
that may be issued. The population quota restrictions contained in	176
section 4303.29 of the Revised Code or in any rule of the liquor	177
control commission shall not apply to this division, and the	178
division shall issue a D-5e permit to any applicant who meets the	179
requirements of this division. However, the division shall not	180
issue a D-5e permit if the permit premises or proposed permit	181
premises are located within an area in which the sale of	182
spirituous liquor by the glass is prohibited.	183

The fee for this permit is one thousand two hundred nineteen	184
dollars.	185

(F) Permit D-5f may be issued to the owner or operator of a	186
retail food establishment or a food service operation licensed	187
under Chapter 3717. of the Revised Code that operates as a	188
restaurant for purposes of this chapter and that meets all of the	189
following:	190

(1) It contains not less than twenty-five hundred square feet	191
of floor area.	192

(2) It is located on or in, or immediately adjacent to, the	193
shoreline of, a navigable river.	194

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

195

(4) It provides entertainment and recreation, provided that	196
not less than fifty per cent of the business on the permit	197
premises shall be preparing and serving meals for a consideration.	198

In addition, each application for a D-5f permit shall be	199
accompanied by a certification from the local legislative	200
authority that the issuance of the D-5f permit is not inconsistent	201
with that political subdivision's comprehensive development plan	202
or other economic development goal as officially established by	203
the local legislative authority.	204

The holder of a D-5f permit may sell beer and intoxicating	205
liquor at retail, only by the individual drink in glass and from	206
the container, for consumption on the premises where sold.	207

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

208

The division of liquor control shall not issue a D-5f permit	209
if the permit premises or proposed permit premises are located	210
within an area in which the sale of spirituous liquor by the glass	211
is prohibited.	212

A fee for this permit is two thousand three hundred	213
forty-four dollars.	214

As used in this division, "navigable river" means a river	215
that is also a "navigable water" as defined in the "Federal Power	216
Act," 94 Stat. 770 (1980), 16 U.S.C. 796.	217

(G) Permit D-5g may be issued to a nonprofit corporation that	218
is either the owner or the operator of a national professional	219
sports museum. The holder of a D-5g permit may sell beer and any	220
intoxicating liquor at retail, only by the individual drink in	221
glass and from the container, for consumption on the premises	222
where sold. The holder of a D-5g permit shall sell no beer or	223
intoxicating liquor for consumption on the premises where sold	224
after two-thirty a.m. A D-5g permit shall not be transferred to	225
another location. No quota restrictions shall be placed on the	226
number of D-5g permits that may be issued. The fee for this permit	227
is one thousand eight hundred seventy-five dollars.	228

(H)(1) Permit D-5h may be issued to any nonprofit	229
organization that is exempt from federal income taxation under the	230
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	231
501(c)(3), as amended, that owns or operates any of the following:	232

(a) A fine arts museum, provided that the nonprofit	233
organization has no less than one thousand five hundred bona fide	234
members possessing full membership privileges;	235

(b) A community arts center. As used in division (H)(1)(b) of	236
this section, "community arts center" means a facility that	237
provides arts programming to the community in more than one arts	238
discipline, including, but not limited to, exhibits of works of	239
art and performances by both professional and amateur artists.	240

(c) A community theater, provided that the nonprofit	241
organization is a member of the Ohio arts council and the American	242
community theatre association and has been in existence for not	243
less than ten years. As used in division (H)(1)(c) of this	244
section, "community theater" means a facility that contains at	245
least one hundred fifty seats and has a primary function of	246
presenting live theatrical performances and providing recreational	247
opportunities to the community.	248

(2) The holder of a D-5h permit may sell beer and any	249
intoxicating liquor at retail, only by the individual drink in	250
glass and from the container, for consumption on the premises	251
where sold. The holder of a D-5h permit shall sell no beer or	252
intoxicating liquor for consumption on the premises where sold	253
after one a.m. A D-5h permit shall not be transferred to another	254
location. No quota restrictions shall be placed on the number of	255
D-5h permits that may be issued.	256

(3) The fee for a D-5h permit is one thousand eight hundred	257
seventy-five dollars.	258

(I) Permit D-5i may be issued to the owner or operator of a	259
retail food establishment or a food service operation licensed	260
under Chapter 3717. of the Revised Code that operates as a	261
restaurant for purposes of this chapter and that meets all of the	262
following requirements:	263

(1) It is located in a municipal corporation or a township	264
with a population of one hundred thousand or less.	265

(2) It has inside seating capacity for at least one hundred	266
forty persons.	267

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

268

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

269

(5) Its receipts from beer and liquor sales, excluding wine	270
sales, do not exceed twenty-five per cent of its total gross	271
receipts.	272

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

273

(a) The value of its real and personal property exceeds seven	274
hundred twenty-five thousand dollars.	275

(b) It is located on property that is owned or leased by the	276
state or a state agency, and its owner or operator has	277
authorization from the state or the state agency that owns or	278
leases the property to obtain a D-5i permit.	279

The holder of a D-5i permit may sell beer and any	280
intoxicating liquor at retail, only by the individual drink in	281
glass and from the container, for consumption on the premises	282
where sold, and may sell the same products in the same manner and	283
amounts not for consumption on the premises where sold as may be	284
sold by the holders of D-1 and D-2 permits. The holder of a D-5i	285
permit shall sell no beer or intoxicating liquor for consumption	286
on the premises where sold after two-thirty a.m. In addition to	287
the privileges authorized in this division, the holder of a D-5i	288
permit may exercise the same privileges as the holder of a D-5	289
permit.	290

A D-5i permit shall not be transferred to another location.	291
The division of liquor control shall not renew a D-5i permit	292
unless the retail food establishment or food service operation for	293
which it is issued continues to meet the requirements described in	294
divisions (I)(1) to (6) of this section. No quota restrictions	295
shall be placed on the number of D-5i permits that may be issued.	296
The fee for the D-5i permit is two thousand three hundred	297
forty-four dollars.	298

(J) Permit D-5j may be issued to the owner or the operator of	299
a retail food establishment or a food service operation licensed	300
under Chapter 3717. of the Revised Code to sell beer and	301
intoxicating liquor at retail, only by the individual drink in	302
glass and from the container, for consumption on the premises	303
where sold and to sell beer and intoxicating liquor in the same	304
manner and amounts not for consumption on the premises where sold	305
as may be sold by the holders of D-1 and D-2 permits. The holder	306
of a D-5j permit may exercise the same privileges, and shall	307
observe the same hours of operation, as the holder of a D-5	308
permit.	309

The D-5j permit shall be issued only within a community	310
entertainment district that is designated under section 4301.80 of	311
the Revised Code and that meets one of the following	312
qualifications:	313

(1) It is located in a municipal corporation with a	314
population of at least one hundred thousand.	315

(2) It is located in a municipal corporation with a	316
population of at least twenty thousand, and either of the	317
following applies:	318

(a) It contains an amusement park the rides of which have	319
been issued a permit by the department of agriculture under	320
Chapter 1711. of the Revised Code.	321

(b) Not less than fifty million dollars will be invested in	322
development and construction in the community entertainment	323
district's area located in the municipal corporation.	324

(3) It is located in a township with a population of at least	325
forty thousand.	326

(4) It is located in a township with a population of at least	327
twenty thousand, and not less than seventy million dollars will be	328
invested in development and construction in the community	329
entertainment district's area located in the township.	330

(5) It is located in a municipal corporation with a	331
population between ten thousand and twenty thousand, and both of	332
the following apply:	333

(a) The municipal corporation was incorporated as a village	334
prior to calendar year 1840 and currently has a historic downtown	335
business district.	336

(b) The municipal corporation is located in the same county	337
as another municipal corporation with at least one community	338
entertainment district.	339

(6) It is located in a municipal corporation with a	340
population of at least ten thousand, and not less than seventy	341
million dollars will be invested in development and construction	342
in the community entertainment district's area located in the	343
municipal corporation.	344

(7) It is located in a municipal corporation with a	345
population of at least five thousand, and not less than one	346
hundred million dollars will be invested in development and	347
construction in the community entertainment district's area	348
located in the municipal corporation.	349

The location of a D-5j permit may be transferred only within	350
the geographic boundaries of the community entertainment district	351
in which it was issued and shall not be transferred outside the	352
geographic boundaries of that district.	353

Not more than one D-5j permit shall be issued within each	354
community entertainment district for each five acres of land	355
located within the district. Not more than fifteen D-5j permits	356
may be issued within a single community entertainment district.	357
Except as otherwise provided in division (J)(4) of this section,	358
no quota restrictions shall be placed upon the number of D-5j	359
permits that may be issued.	360

The fee for a D-5j permit is two thousand three hundred	361
forty-four dollars.	362

(K)(1) Permit D-5k may be issued to any nonprofit	363
organization that is exempt from federal income taxation under the	364
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	365
501(c)(3), as amended, that is the owner or operator of a	366
botanical garden recognized by the American association of	367
botanical gardens and arboreta, and that has not less than	368
twenty-five hundred bona fide members.	369

(2) The holder of a D-5k permit may sell beer and any	370
intoxicating liquor at retail, only by the individual drink in	371
glass and from the container, on the premises where sold.	372

(3) The holder of a D-5k permit shall sell no beer or	373
intoxicating liquor for consumption on the premises where sold	374
after one a.m.	375

(4) A D-5k permit shall not be transferred to another	376
location.	377

(5) No quota restrictions shall be placed on the number of	378
D-5k permits that may be issued.	379

(6) The fee for the D-5k permit is one thousand eight hundred	380
seventy-five dollars.	381

(L)(1) Permit D-5l may be issued to the owner or the operator	382
of a retail food establishment or a food service operation	383
licensed under Chapter 3717. of the Revised Code to sell beer and	384
intoxicating liquor at retail, only by the individual drink in	385
glass and from the container, for consumption on the premises	386
where sold and to sell beer and intoxicating liquor in the same	387
manner and amounts not for consumption on the premises where sold	388
as may be sold by the holders of D-1 and D-2 permits. The holder	389
of a D-5l permit may exercise the same privileges, and shall	390
observe the same hours of operation, as the holder of a D-5	391
permit.	392

(2) The D-5l permit shall be issued only to a premises that	393
to which all of the following apply:	394

(a) The premises has gross annual receipts from the sale of	395
food and meals that constitute not less than seventy-five per cent	396
of its total gross annual receipts, that.	397

(b) The premises is located within a revitalization district	398
that is designated under section 4301.81 of the Revised Code,	399
that.	400

(c) The premises is located in a municipal corporation or	401
township in which the number of D-5 permits issued equals or	402
exceeds the number of those permits that may be issued in that	403
municipal corporation or township under section 4303.29 of the	404
Revised Code, and that.	405

(d) The premises meets either of the following	406
qualifications:	407

(i) It is located in a county with a population of one	408
hundred twenty-five thousand or less according to the population	409
estimates certified by the department of development for calendar	410
year 2006.	411

(ii) It is located in the municipal corporation that has the	412
largest population in a county when the county has a population	413
between two hundred fifteen thousand and two hundred twenty-five	414
thousand according to the population estimates certified by the	415
department for calendar year 2006. Division (L)(2)(b) of this	416
section applies only to a municipal corporation that is wholly	417
located in a county.	418

(3) The location of a D-5l permit may be transferred only	419
within the geographic boundaries of the revitalization district in	420
which it was issued and shall not be transferred outside the	421
geographic boundaries of that district.	422

(4) Not more than one D-5l permit shall be issued within each	423
revitalization district for each five acres of land located within	424
the district. Not more than fifteen D-5l permits may be issued	425
within a single revitalization district. Except as otherwise	426
provided in division (L)(4) of this section, no quota restrictions	427
shall be placed upon the number of D-5l permits that may be	428
issued.	429

(5) No D-5l permit shall be issued to an adult entertainment	430
establishment as defined in section 2907.39 of the Revised Code.	431

(6) The fee for a D-5l permit is two thousand three hundred	432
forty-four dollars.	433

(M) Permit D-5m may be issued to either the owner or the	434
operator of a retail food establishment or food service operation	435
licensed under Chapter 3717. of the Revised Code that operates as	436
a restaurant for purposes of this chapter and that is located in,	437
or affiliated with, a center for the preservation of wild animals	438
as defined in section 4301.404 of the Revised Code, to sell beer	439
and any intoxicating liquor at retail, only by the glass and from	440
the container, for consumption on the premises where sold, and to	441
sell the same products in the same manner and amounts not for	442
consumption on the premises as may be sold by the holders of D-1	443
and D-2 permits. In addition to the privileges authorized by this	444
division, the holder of a D-5m permit may exercise the same	445
privileges as the holder of a D-5 permit.	446

A D-5m permit shall not be transferred to another location.	447
No quota restrictions shall be placed on the number of D-5m	448
permits that may be issued. The fee for a permit D-5m is two	449
thousand three hundred forty-four dollars.	450

(N) Permit D-5n shall be issued to either a casino operator	451
or a casino management company licensed under Chapter 3772. of the	452
Revised Code that operates a casino facility under that chapter,	453
to sell beer and any intoxicating liquor at retail, only by the	454
individual drink in glass and from the container, for consumption	455
on the premises where sold, and to sell the same products in the	456
same manner and amounts not for consumption on the premises as may	457
be sold by the holders of D-1 and D-2 permits. In addition to the	458
privileges authorized by this division, the holder of a D-5n	459
permit may exercise the same privileges as the holder of a D-5	460
permit. A D-5n permit shall not be transferred to another	461
location. Only one D-5n permit may be issued per casino facility	462
and not more than four D-5n permits shall be issued in this state.	463
The fee for a permit D-5n shall be twenty thousand dollars. The	464
holder of a D-5n permit may conduct casino gaming on the permit	465
premises notwithstanding any provision of the Revised Code or	466
Administrative Code.	467

(O) Permit D-5o may be issued to the owner or operator of a	468
retail food establishment or a food service operation licensed	469
under Chapter 3717. of the Revised Code that operates as a	470
restaurant for purposes of this chapter and that is located within	471
a casino facility for which a D-5n permit has been issued. The	472
holder of a D-5o permit may sell beer and any intoxicating liquor	473
at retail, only by the individual drink in glass and from the	474
container, for consumption on the premises where sold, and may	475
sell the same products in the same manner and amounts not for	476
consumption on the premises where sold as may be sold by the	477
holders of D-1 and D-2 permits. In addition to the privileges	478
authorized by this division, the holder of a D-5o permit may	479
exercise the same privileges as the holder of a D-5 permit. A D-5o	480
permit shall not be transferred to another location. No quota	481
restrictions shall be placed on the number of such permits that	482
may be issued. The fee for this permit is two thousand three	483
hundred forty-four dollars.	484

Section 2.  That existing section 4303.181 of the Revised	485
Code is hereby repealed.	486