Sub. S. B. No. 173 As Passed by the House

As Passed by the House

130th General Assembly

Regular Session

2013-2014

Sub. S. B. No. 173

Senator Hughes

Cosponsors: Senators Seitz, Uecker, Schiavoni, Balderson, Coley, Eklund, Hite, Jordan, Kearney, Oelslager
Representatives Dovilla, Buchy, Gerberry, Amstutz, Barnes, Beck, Blessing, Boyd, Brenner, Brown, Burkley, Cera, Conditt, DeVitis, Duffey, Hackett, McClain, Milkovich, Pelanda, Ramos, Retherford, Rogers, Ruhl, Stebelton, Young

A BILL

To amend sections 4301.171, 4303.184, 4303.208, and

4303.251 of the Revised Code to modify the law

governing tasting samples of beer and intoxicating

liquor and to allow an F-6 liquor permit to be

issued for the same location as an F-8 liquor

permit, provided that the two permits are not

exercised concurrently.

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

Section 1. That sections 4301.171, 4303.184, 4303.208, and	8
4303.251 of the Revised Code be amended to read as follows:	9

Sec. 4301.171. (A) As used in this section:

(1) "Broker" and "solicitor" have the same meanings as in	11
rules adopted by the superintendent of liquor control under	12
section 4303.25 of the Revised Code.	13

(2) "Tasting sample" means a small amount of spirituous	14
liquor that is provided in a serving of not more than a quarter	15
ounce of spirituous liquor and, if provided, not more than one	16
ounce of nonalcoholic mixer to an authorized purchaser and that	17
allows the purchaser to determine, by tasting only, the quality	18
and character of the beverage.	19

(3) "Trade marketing company" means a company that solicits	20
the purchase of beer and intoxicating liquor and educates the	21
public about beer and intoxicating liquor.	22

(4) "Trade marketing professional" means an individual who is	23
an employee of, or is under contract with, a trade marketing	24
company and who has successfully completed a training program	25
described in section 4301.253 of the Revised Code.	26

(B) Notwithstanding section 4301.24 of the Revised Code, an	27
agency store to which a D-8 permit has been issued may allow a	28
trade marketing professional, broker, or solicitor to offer for	29
sale tasting samples of spirituous liquor when conducted in	30
accordance with this section. A tasting sample shall not be sold	31
for the purpose of general consumption.	32

(C) Tasting samples of spirituous liquor may be offered for	33
sale at an agency store by a trade marketing professional, broker,	34
or solicitor if all of the following apply:	35

(1) The tasting samples are sold only in the area of the	36
agency store in which spirituous liquor is sold and that area is	37
open to the public.	38

(2) The tasting samples are sold only by the trade marketing	39
professional, broker, or solicitor.	40

(3) The spirituous liquor is registered under division (A)(8)	41
of section 4301.10 of the Revised Code.	42

(4) Not less than ~~five~~ten business days prior to the sale,	43
the trade marketing professional, broker, or solicitor has	44
provided written notice to the division of liquor control of the	45
date and time of the sampling, and of the type and brand of	46
spirituous liquor to be sampled at the agency store.	47

(D) A sale of tasting samples of spirituous liquor is subject	48
to rules adopted by the superintendent of liquor control or the	49
liquor control commission.	50

(E) An offering for sale of tasting samples of spirituous	51
liquor shall be limited to a period of not more than two hours.	52

(F) For purposes of offering for sale tasting samples of	53
spirituous liquor, ana trade marketing professional, broker, or	54
solicitor shall purchase the spirituous liquor from the agency	55
store ~~shall purchase the spirituous liquor~~ at the current retail	56
price. An authorized purchaser shall be charged not less than	57
fifty cents for each tasting sample of spirituous liquor. ~~However,~~	58
~~the aggregate amount charged for the sale of tasting samples shall~~	59
~~be sufficient to cover the wholesale price of the spirituous~~	60
~~liquor being tasted as that price is fixed under division (B)(4)~~	61
~~of section 4301.10 of the Revised Code. Of the amount collected~~	62
~~from the sale of tasting samples of spirituous liquor, the trade~~	63
~~marketing professional, broker, or solicitor shall reimburse the~~	64
~~agency store for the amount of the retail price of the spirituous~~	65
~~liquor.~~ When the sale of tasting samples of spirituous liquor at	66
an agency store is completed, any bottles of spirituous liquor	67
used to provide tasting samples that are not empty shall be marked	68
as "sample" and removed from the agency store by the trade	69
marketing professional, broker, or solicitor, as applicable.	70

(G) No trade marketing professional, broker, or solicitor	71
shall do any of the following:	72

(1) Advertise the offering for sale of tasting samples of	73
spirituous liquor other than at the agency store where the tasting	74
samples will be offered;	75

(2) Solicit orders or make sales of tasting samples of	76
spirituous liquor for quantities greater than those specified in	77
division (G)(3) of this section;	78

(3) Allow any authorized purchaser to consume more than four	79
tasting samples of spirituous liquor per day.	80

(H) The purchase of a tasting sample of spirituous liquor	81
shall not be contingent upon the purchase of any other product	82
from an agency store.	83

(I) No employee of an agency store that allows the sale of	84
tasting samples of spirituous liquor shall purchase or consume a	85
tasting sample while on duty.	86

(J) If an employee of an agency store that allows the sale of	87
tasting samples of spirituous liquor consumes a tasting sample of	88
spirituous liquor, the employee shall not perform the employee's	89
duties and responsibilities at the agency store on the day the	90
tasting sample is consumed.	91

(K) No person under twenty-one years of age shall consume a	92
tasting sample of spirituous liquor.	93

(L) Not more than ~~five~~ten events at which the sale of	94
tasting samples of spirituous liquor are offered shall occur at an	95
agency store in a calendar month provided that:	96

(1) Not more than two events shall occur in the same day; and

(2) There is not less than one hour between the end of one	98
event and the beginning of the next event.	99

(M) No trade marketing professional, trade marketing company,	100
broker, solicitor, owner or operator of an agency store, or an	101
agent or employee of the owner or operator shall violate this	102
section or any rules adopted by the superintendent or the	103
commission for the purposes of this section.	104

Sec. 4303.184. (A) Subject to division (B) of this section,	105
a D-8 permit may be issued to either of the following:	106

(1) An agency store;

107

(2) The holder of a C-1, C-2, or C-2x permit issued to a	108
retail store that has ~~either~~any of the following characteristics:	109

(a) The store has at least five thousand five hundred square	110
feet of floor area, and it generates more than sixty per cent of	111
its sales in general merchandise items and food for consumption	112
off the premises where sold.	113

(b) The store is located in a municipal corporation or	114
township with a population of five thousand or less, has at least	115
four thousand five hundred square feet of floor area, and	116
generates more than sixty per cent of its sales in general	117
merchandise items and food for consumption off the premises where	118
sold.	119

(c) Wine constitutes at least sixty per cent of the value of	120
the store's inventory.	121

(B) A D-8 permit may be issued to the holder of a C-1, C-2,	122
or C-2x permit only if the premises of the permit holder are	123
located in a precinct, or at a particular location in a precinct,	124
in which the sale of beer, wine, or mixed beverages is permitted	125
for consumption off the premises where sold. Sales under a D-8	126
permit are not affected by whether sales for consumption on the	127
premises where sold are permitted in the precinct or at the	128
particular location where the D-8 premises are located.	129

(C)(1) The holder of a D-8 permit described in division	130
(A)(2) of this section may sell tasting samples of beer, wine, and	131
mixed beverages, but not spirituous liquor, at retail, for	132
consumption on the premises where sold in an amount not to exceed	133
two ounces or another amount designated by rule of the liquor	134
control commission. A tasting sample shall not be sold for general	135
consumption.	136

(2) The holder of a D-8 permit described in division (A)(1)	137
of this section may allow the sale of tasting samples of	138
spirituous liquor in accordance with section 4301.171 of the	139
Revised Code.	140

(3) No D-8 permit holder described in division (A)(2) of this	141
section shall allow any authorized purchaser to consume more than	142
four tasting samples of beer, wine, or mixed beverages, or any	143
combination of beer, wine, or mixed beverages, per day.	144

(D)(1) Notwithstanding sections 4303.11 and 4303.121 of the	145
Revised Code, the holder of a D-8 permit described in division	146
(A)(2) of this section may sell beer that is dispensed from	147
containers that have a capacity equal to or greater than five and	148
one-sixth gallons if all of the following conditions are met:	149

(a) A product registration fee for the beer has been paid as	150
required in division (A)(8)(b) of section 4301.10 of the Revised	151
Code.	152

(b) The beer is dispensed only in glass containers whose	153
capacity does not exceed one gallon and not for consumption on the	154
premises where sold.	155

(c) The containers are sealed, marked, and transported in	156
accordance with division (E) of section 4301.62 of the Revised	157
Code.	158

(d) The containers have been cleaned immediately before being	159
filled in accordance with rule 4301:1-1-28 of the Administrative	160
Code.	161

(2) Beer that is sold and dispensed under division (D)(1) of	162
this section is subject to both of the following:	163

(a) All applicable rules adopted by the liquor control	164
commission, including, but not limited to, rule 4301:1-1-27 and	165
rule 4301:1-1-72 of the Administrative Code;	166

(b) All applicable federal laws and regulations.

167

(E) The privileges authorized for the holder of a D-8 permit	168
described in division (A)(2) of this section may only be exercised	169
in conjunction with and during the hours of operation authorized	170
by a C-1, C-2, C-2x, or D-6 permit.	171

(F) A D-8 permit shall not be transferred to another	172
location.	173

(G) The fee for the D-8 permit is five hundred dollars.

174

Sec. 4303.208. (A)(1) The division of liquor control may	175
issue an F-8 permit to a not-for-profit organization that manages,	176
for the benefit of the public and by contract with a political	177
subdivision of this state, publicly owned property to sell beer or	178
intoxicating liquor by the individual drink at specific events	179
conducted on the publicly owned property and appurtenant streets,	180
but only if, and then only at times at which, the sale of beer and	181
intoxicating liquor on the premises is otherwise permitted by law.	182
Additionally, an F-8 permit may be issued only if the publicly	183
owned property is located in a county that has a population of	184
between seven hundred fifty thousand and nine hundred thousand on	185
July 10, 2007.	186

(2) The premises on which an F-8 permit will be used shall be	187
clearly defined and sufficiently restricted to allow proper	188
supervision of the permit's use by state and local law enforcement	189
officers. Sales under an F-8 permit shall be confined to the same	190
hours permitted to the holder of a D-3 permit.	191

(3) The fee for an F-8 permit is one thousand seven hundred	192
dollars. An F-8 permit is effective for a period not to exceed	193
nine months as specified in the permit. An F-8 permit is not	194
transferable or renewable. However, the holder of an F-8 permit	195
may apply for a new F-8 permit at any time. An F-8 permit is not	196
effective until any F-8 permit currently held expires. The holder	197
of an F-8 permit shall make sales only at those specific events	198
about which the permit holder has notified in advance the division	199
of liquor control, the department of public safety, and the chief,	200
sheriff, or other principal peace officer of the local law	201
enforcement agencies having jurisdiction over the premises.	202

(B)(1) An application for the issuance of an F-8 permit is	203
subject to the notice and hearing requirements established in	204
division (A) of section 4303.26 of the Revised Code.	205

(2) The liquor control commission shall adopt under Chapter	206
119. of the Revised Code rules necessary to administer this	207
section.	208

(C) No F-8 permit holder shall sell beer or intoxicating	209
liquor beyond the hours of sale allowed by the permit. This	210
division imposes strict liability on the holder of an F-8 permit	211
and on any officer, agent, or employee of that permit holder.	212

(D) Nothing in this section prohibits the division from	213
issuing an F-2 or F-6 permit for a specific event not conducted by	214
the holder of an F-8 permit provided that the holder of the F-8	215
permit certifies to the division that it will not exercise its	216
permit privileges during that specific event.	217

Sec. 4303.251. (A) A manufacturer, supplier, broker, or	218
wholesale distributor of beer or intoxicating liquor, or an agent,	219
solicitor, or salesperson who is registered under section 4303.25	220
of the Revised Code and who represents the manufacturer, supplier,	221
broker, or wholesale distributor of beer or intoxicating liquor,	222
may conduct consumer product instruction, or provide sample	223
servings of the manufacturer's, supplier's, broker's, or wholesale	224
distributor's products, on the premises of a retail permit holder	225
who is authorized to sell the products for on-premises	226
consumption, without the manufacturer, supplier, broker, wholesale	227
distributor, agent, solicitor, or salesperson having to be issued	228
a retail permit under this chapter. The person providing a sample	229
serving shall purchase the beer or intoxicating liquor at the	230
ordinary retail price from the retail permit holder whose premises	231
are involved. The liquor control commission shall adopt rules in	232
accordance with Chapter 119. of the Revised Code to implement this	233
section.	234

(B) A manufacturer, supplier, or broker of beer, wine, or	235
mixed beverages, or an agent, solicitor, or salesperson who is	236
registered under section 4303.25 of the Revised Code and who	237
represents the manufacturer, supplier, or broker of beer, wine, or	238
mixed beverages, may conduct consumer product instruction, or	239
provide sample servings of the manufacturer's, supplier's, or	240
broker's products on the premises of a retail permit holder who	241
holds a D-8 permit and who is authorized to sell the products for	242
off-premises consumption, without the manufacturer, supplier,	243
broker, agent, solicitor, or salesperson having to be issued a	244
retail permit under this chapter. The person providing a sample	245
serving shall purchase the beer, wine, or mixed beverages at the	246
ordinary retail price from the D-8 permit holder and shall limit	247
the amount and frequency of the sample servings to those	248
authorized pursuant to the D-8 permit. The liquor control	249
commission shall adopt rules in accordance with Chapter 119. of	250
the Revised Code to implement this section.	251

Division (B) of this section does not apply to a wholesale	252
distributor.	253

Section 2. That existing sections 4301.171, 4303.184,	254
4303.208, and 4303.251 of the Revised Code are hereby repealed.	255