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(124th General Assembly)
(Substitute House Bill Number 330)
AN ACT
To amend sections 4301.17 and 4303.181 of the Revised
Code to allow
the Division of Liquor Control to
base
the
population quota restrictions for agency
stores
that sell spirituous liquor on the
Division's
behalf on state
population estimates
determined by
the Department of
Development between
federal
decennial censuses; to change these
population
quota restrictions; and
to eliminate the
restriction
against the same
person operating or
having an
interest in more
than sixteen agency
stores in the
state or more than eight agency
stores in the same
county; to require the Division
to adopt rules governing the allocation and
equitable distribution of agency store contracts;
to allow a
restaurant located at an airport
operated by a port authority to
be issued a D-5d
liquor permit; to remove the prohibition
against
more than one D-5d permit being issued in the same
county; and to allow permit holders that sell beer
or intoxicating liquor for consumption on the
premises to operate an agency store adjacent to the
premises.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 4301.17 and 4303.181 of the Revised
Code be
amended to read as follows:
Sec. 4301.17. (A)(1) Subject to local option as provided in
sections 4301.32 to 4301.40 of the Revised Code, five state
liquor
stores or agencies may be established in each county. One
additional store may be established in any county for each
thirty
twenty-five
thousand of population of
that county or major
fraction
thereof
in
excess of the first forty thousand, according
to the
last
preceding federal
decennial census
or according to the
population estimates certified by the department of development
between decennial censuses. A person engaged in a mercantile
business may act as the agent for the division of
liquor
control
for the sale of spirituous liquor in a municipal
corporation, in
the unincorporated area
of a township
of not less than two
thousand population, or in
an area designated and approved as a
resort area under section
4303.262 of the Revised Code, provided
that not more than one
agency contract shall be awarded in the
unincorporated area of a
county for each fifty thousand population
of the county. The
division shall
fix
the compensation for such
an agent
in
the
manner
it
considers best, but
the compensation
shall not
exceed
seven per cent of the gross
sales made by
the
agent in any
one
year.
(2) The division shall adopt rules in accordance with
Chapter 119. of the Revised Code governing the allocation and
equitable distribution of agency store contracts. The division
shall comply with the rules when awarding a contract under
division (A)(1) of this section.
(3) Except as otherwise provided in this section, no
mercantile
business
that sells beer or intoxicating
liquor for
consumption on
the premises under a permit issued by
the division
shall operate
an agency store at
the premises
or
at any adjacent
premises.
An
agency to which a D-1 permit has been
issued may
offer for sale
tasting samples of beer, an agency
to which a
D-2
permit has been
issued may offer for sale tasting samples of wine
and mixed
beverages, and an agency to which a D-5 permit
has been
issued may
offer for sale tasting samples of beer, wine, and mixed
beverages,
but not spirituous liquor. A tasting sample shall not
be sold
for
the purpose of
general consumption. As used in this
section,
"tasting sample" means a small
amount of beer, wine, or
mixed
beverages that is provided in not more than
four servings of
not
more than two ounces each to an authorized purchaser and
that
allows the purchaser to determine, by tasting only, the quality
and
character of the beverage. (B) When an agency contract is proposed or when an existing
agency
contract is assigned, before entering into any
contract or
consenting to any assignment, the division shall
notify the
legislative authority of the municipal corporation
in
which the
agency store is to be located, or the
board
of county
commissioners and the board of township trustees
of the
county and
the township in which the agency store is to be
located
if the
agency store is to be located outside the
corporate limits
of a
municipal corporation, of the proposed
contract
or assignment, and
an
opportunity shall be provided officials or
employees of the
municipal corporation or county and township for
a complete
hearing upon the advisability of entering into the
contract
or
consenting to the assignment. When the division sends notice
to
the
legislative
authority of the political subdivision, the
department
division shall
notify, by certified mail or by personal
service,
the chief peace
officer of the political subdivision,
who
may
appear and testify,
either in person or through a
representative,
at any hearing held
on the advisability of
entering into the
contract
or consenting to the assignment. If
the proposed agency store
would
be located within five
hundred
feet of a school, church,
library,
public playground, or
township
park, the division shall
not enter
into an agency
contract
until it has provided notice of
the
proposed contract to
the
authorities in control of the school,
church, library, public
playground, or township park and has
provided
those authorities
with
an opportunity for
a complete hearing
upon the advisability
of
entering into the
contract. If an agency
store so located is
operating under an
agency contract,
the
division may consent to
the assignment of
that
contract to operate
an agency store at the
same location,
but the division
shall not consent to an
assignment
until it has notified the
authorities in control of the
school,
church, library, public
playground, or township park and
has
provided
those authorities with
an opportunity for
a complete
hearing upon the advisability of
consenting to the
assignment. Any hearing
provided for in this division shall be held in
the
central office of the division,
except that upon
written
request of the legislative authority of the municipal
corporation,
the board of county commissioners,
or
the board of
township
trustees,
or the authorities in control of the school, church,
library, public playground, or township park,
the hearing shall be
held in the county seat
of the county where
the proposed agency
store is to be located. (C) All agency contracts entered into by the division
pursuant to this section shall be in writing and shall contain a
clause providing for the termination of the contract at will by
the division upon its giving ninety days' notice in writing to
the agent of its intention to do so. Any agency contract may
include a clause requiring the agent to report to the appropriate
law enforcement agency the name and address of any individual
under twenty-one years of age who attempts to make an illegal
purchase. An agent may engage in the selling of beer, mixed
beverages,
and wine pursuant to permits issued to the agent under
Chapter
4303. of the Revised Code. The division shall issue a C-1 and C-2 permit to each
agent
who prior to
November 1, 1994, had not been issued both of these
permits,
notwithstanding the population quota restrictions
contained in section 4303.29
of the Revised Code or in any rule of
the liquor control commission and
notwithstanding the requirements
of section 4303.31 of the Revised Code. The
location of a C-1 or
C-2 permit issued to such an agent shall not be
transferred. The
division shall revoke any C-1 or C-2
permit issued to
an agent
under this paragraph if the agent no longer operates an agency
store. No person shall operate, or
have any interest, directly or
indirectly, in more than
eight state
agencies in any one
county
or
more than
sixteen state agencies in
the state for
the sale of
spirituous liquor. For purposes of
this section, a
person has an
interest in a state agency if the
person is a
partner, member,
officer, or director of, or a
shareholder owning
ten per cent or
more of the capital stock of,
any legal entity
with which the
department has entered into an
agency contract.
The division may enter into agreements with the department
of
development to
implement a minority loan program to provide
low-interest loans to minority
business enterprises, as defined in
section 122.71 of the Revised Code, that
are awarded liquor agency
contracts or assignments. (D) If the division closes a state liquor store and replaces
that store with
an agency store, any employees of the division
employed at that state liquor
store who lose their jobs at that
store as a result shall be given
preference by the agent who
operates the agency store in filling any vacancies that occur
among the agent's employees, if
that preference does not
conflict
with the agent's obligations pursuant to a collective
bargaining
agreement. If the division closes a state liquor store and replaces the
store with an
agency store, any employees of the division employed
at the state liquor store
who lose their jobs at that store as a
result may displace other
employees as provided in sections
124.321 to 124.328 of the Revised Code. If
an employee cannot
displace other employees and is laid off, the employee
shall be
reinstated in another job as provided in sections 124.321 to
124.328
of the Revised Code, except that the employee's rights of
reinstatement in a
job at a state liquor store shall continue for
a period of two years after the
date of the employee's layoff and
shall apply to jobs at state liquor stores
located in the
employee's layoff jurisdiction and any layoff jurisdiction
adjacent to the employee's layoff jurisdiction. (E) The division shall require every
agent to
give bond
with surety to the satisfaction of the division, in
the
amount
the division fixes, conditioned for the faithful
performance of
the agent's
duties as prescribed by the division.
Sec. 4303.181. (A) Permit D-5a
may be issued either to the
owner or operator of a hotel or motel that
is
required to be
licensed under section 3731.03 of the Revised Code, that contains
at least fifty rooms for
registered transient
guests,
and that
qualifies under the other requirements of this
section,
or to the
owner or operator of a restaurant specified under this
section, to
sell beer and any intoxicating liquor at retail, only
by the
individual drink in glass and from the container, for
consumption
on the premises where sold, and to registered guests
in their
rooms, which may be sold by means of a controlled access
alcohol
and beverage cabinet in accordance with division (B) of
section
4301.21 of the Revised Code; and to sell the same
products in the
same manner and amounts not for consumption on
the premises as may
be sold by holders of D-1 and D-2 permits.
The premises of the
hotel or motel shall include a
retail food
establishment or a
food service operation
licensed
pursuant to
Chapter 3717. of the
Revised Code
that operates
as a restaurant for purposes of this
chapter and that
is
affiliated with the hotel or motel and within
or contiguous to
the
hotel or motel, and that serves food within
the
hotel or motel,
but
the principal business of the owner or
operator of the hotel
or
motel shall be the accommodation of
transient guests. In
addition to the privileges authorized in
this division,
the holder
of a
D-5a permit may exercise the same
privileges as the holder of
a
D-5 permit. The owner or operator of a hotel, motel, or restaurant who
qualified for and
held a D-5a permit on
August 4, 1976, may, if
the owner or operator held another
permit before holding a D-5a
permit, either retain a D-5a permit or apply for
the permit
formerly held, and the division of liquor
control shall issue the
permit for which the owner or operator
applies and formerly held,
notwithstanding any quota. A D-5a permit shall not be
transferred to another location.
No quota restriction shall be
placed on the number of such permits
that may be issued. The fee for this permit is one
thousand eight hundred
seventy-five dollars. (B) Permit D-5b may be issued to
the owner, operator,
tenant, lessee, or occupant of an enclosed
shopping center to sell
beer and intoxicating liquor at retail,
only by the individual
drink in glass and from the container, for
consumption on the
premises where sold; and to sell the same
products in the same
manner and amount not for consumption on the
premises as may be
sold by holders of D-1 and D-2 permits. In
addition to the
privileges authorized in this division,
the holder
of a D-5b
permit may exercise the same privileges as a holder of
a D-5
permit. A D-5b permit shall not be
transferred to another location. One D-5b permit may be issued at
an enclosed shopping center
containing at least two hundred
twenty-five thousand, but less
than four hundred thousand, square
feet of floor area. Two D-5b permits may be issued at
an enclosed shopping center
containing at least four hundred
thousand square feet of floor
area. No more than one D-5b permit
may be issued at an enclosed
shopping center for each additional
two hundred thousand square
feet of floor area or fraction
of that floor area, up to a
maximum of five D-5b permits
for each enclosed
shopping center.
The number of D-5b permits that may be issued
at an enclosed
shopping center shall be determined by subtracting
the number of
D-3 and D-5 permits issued in the enclosed shopping
center from
the number of D-5b permits that otherwise may be
issued at the
enclosed shopping center under the formulas
provided in this
division. Except as provided in this section,
no quota shall be
placed on the number of D-5b permits that may
be issued.
Notwithstanding any quota provided in this section,
the holder of
any D-5b permit first issued in accordance with
this section is
entitled to its renewal in accordance with
section 4303.271 of the
Revised Code. The holder of a D-5b permit
issued before April 4, 1984,
whose tenancy is terminated for a
cause other than nonpayment of
rent, may return the D-5b
permit
to the division of liquor
control, and the
division shall
cancel that permit. Upon
cancellation of that permit and upon
the permit holder's payment
of taxes, contributions, premiums,
assessments, and other debts
owing or accrued upon the date of
cancellation to this state and
its political subdivisions and a
filing with the division of a
certification
of that payment, the division shall issue to that
person
either a D-5
permit, or a D-1, a D-2, and a D-3 permit, as
that person
requests. The division shall issue the D-5 permit,
or
the D-1,
D-2, and D-3 permits, even if the number of D-1, D-2,
D-3, or D-5
permits currently issued in the municipal corporation
or in the
unincorporated area of the township where that person's
proposed
premises is located equals or exceeds the maximum number
of such
permits that can be issued in that municipal corporation
or in
the unincorporated area of that township under the
population
quota restrictions contained in section 4303.29 of the
Revised
Code. Any D-1, D-2, D-3, or D-5 permit so issued shall
not
be transferred to another location. If a D-5b permit is
canceled
under the provisions of this paragraph, the number of
D-5b
permits that may be issued at the enclosed shopping center
for
which the D-5b permit was issued, under the formula provided
in
this division, shall be reduced by one if the enclosed shopping
center was entitled to more than one D-5b permit under the
formula. The fee for this permit is one
thousand eight hundred
seventy-five dollars. (C) Permit D-5c may be issued
to the owner or
operator of a
retail food establishment or a
food service operation licensed
pursuant
to
Chapter 3717. of the Revised Code
that operates as a
restaurant
for purposes of this chapter
and that
qualifies under
the other
requirements of this section to sell beer and any
intoxicating
liquor at retail, only by the individual drink in
glass and from
the container, for consumption on the premises
where sold, and to
sell the same products in the same manner and
amounts not for
consumption on the premises as may be sold by
holders of D-1 and
D-2 permits. In addition to the privileges
authorized in this
division, the holder of a D-5c permit
may
exercise the
same
privileges as the holder of a D-5 permit. To qualify for a D-5c permit, the
owner or operator of a
retail food establishment or a food service
operation licensed
pursuant to
Chapter 3717. of
the
Revised Code
that operates as a
restaurant for purposes of
this chapter, shall have operated the
restaurant at
the proposed
premises for not less than twenty-four
consecutive
months
immediately preceding the filing of the
application
for the
permit, have applied for a D-5 permit no later
than
December 31,
1988, and appear on the division's quota waiting
list for not
less
than six months
immediately preceding the filing
of the
application for the
permit. In
addition to these
requirements,
the proposed D-5c permit premises
shall be located
within a
municipal corporation and further
within
an election
precinct
that, at the time of the
application, has
no more than
twenty-five per cent of its total land area zoned
for residential
use. A D-5c permit shall not be
transferred to another location.
No quota restriction shall be
placed on the number of such permits
that may be issued. Any person who has held a D-5c
permit for at least two years
may apply for a D-5 permit, and the
division of liquor control
shall issue the D-5 permit
notwithstanding the quota restrictions
contained in section
4303.29 of the Revised Code or in any rule of
the liquor control
commission. The fee for this permit is one
thousand two hundred fifty
dollars. (D) Permit D-5d may be issued to
the owner or
operator of a
retail food establishment or a
food service operation licensed
pursuant to
Chapter 3717. of the Revised Code
that operates as a
restaurant
for purposes of this chapter and
that is located at an
airport
operated by
a board of county commissioners pursuant to
section
307.20 of the
Revised Code, at an airport operated by a
port authority pursuant to Chapter 4582. of the Revised Code, or
at an airport operated by a
regional
airport
authority pursuant to
Chapter 308. of the
Revised
Code.
Not more
than one D-5d permit
shall be issued in
each
county. The
holder
of a D-5d permit may
sell beer and any
intoxicating liquor
at
retail, only by the
individual drink in
glass and from the
container, for consumption
on the premises
where sold, and may
sell the same products in the
same manner and
amounts not for
consumption on the premises where
sold as may be
sold by the
holders of D-1 and D-2 permits. In
addition to the
privileges
authorized in this division, the holder
of a D-5d
permit may
exercise the same privileges as the holder of
a D-5
permit. A D-5d permit shall not be
transferred to another location.
Except as otherwise provided in
this division, no
No quota
restrictions shall be placed on the
number of such permits that
may be issued. The fee for this permit is one
thousand eight hundred
seventy-five dollars. (E) Permit D-5e may be issued to
any nonprofit organization
that is exempt from federal income
taxation under the
"Internal
Revenue Code of 1986,"
100 Stat.
2085, 26 U.S.C.A. 501(c)(3), as
amended, or that is a charitable
organization under any chapter of
the Revised Code, and that owns
or operates a riverboat that
meets all of the following: (1) Is permanently docked at one
location; (2) Is designated as an
historical riverboat by the Ohio
historical society; (3) Contains not less than
fifteen hundred square feet of
floor area; (4) Has a seating capacity of
fifty or more persons. The holder of a D-5e permit may
sell beer and intoxicating
liquor at retail, only by the
individual drink in glass and from
the container, for consumption
on the premises where sold. A D-5e permit shall not be
transferred to another location.
No quota restriction shall be
placed on the number of such permits
that may be issued.
The
population quota restrictions contained
in section 4303.29 of the
Revised Code or in any rule of the
liquor control commission
shall not apply to this division, and
the division
shall issue a
D-5e permit to any applicant who meets
the requirements of this
division. However, the division shall
not issue a
D-5e permit
if the permit premises or proposed permit
premises are located
within an area in which the sale of
spirituous liquor by the
glass is prohibited. The fee for this permit is nine
hundred seventy-five dollars. (F) Permit D-5f may be issued to
the owner or
operator of
a
retail food establishment or a food service
operation
licensed
under
Chapter 3717. of
the Revised Code
that operates as a
restaurant for purposes of
this chapter and that meets all
of the
following: (1) It contains not less than
twenty-five hundred square
feet of floor area. (2) It is located on or in, or
immediately adjacent to, the
shoreline of, a navigable river. (3) It provides docking space for
twenty-five boats. (4) It provides entertainment and
recreation, provided that
not less than fifty per cent of the
business on the permit
premises shall be preparing and serving
meals for a consideration. In addition, each application for
a D-5f permit shall be
accompanied by a certification from the
local legislative
authority that the issuance of the D-5f permit
is not inconsistent
with that political subdivision's
comprehensive development plan
or other economic development goal
as officially established by
the local legislative authority. The holder of a D-5f permit may
sell beer and intoxicating
liquor at retail, only by the
individual drink in glass and from
the container, for consumption
on the premises where sold. A D-5f permit shall not be
transferred to another location.
No more than fifteen D-5f
permits shall be issued by the division
of liquor
control, and
no more than two such permits shall be
issued in any county.
However, the division shall not issue a
D-5f permit
if the
permit premises or proposed permit premises are
located within an
area in which the sale of spirituous liquor by
the glass is
prohibited. A fee for this permit is one
thousand eight hundred
seventy-five dollars. As used in this division,
"navigable river" means a river
that is also a
"navigable water"
as defined in the
"Federal Power
Act," 94 Stat.
770
(1980), 16 U.S.C. 796. (G) Permit D-5g may be issued to
a nonprofit corporation
that is either the owner or the operator
of a national
professional sports museum. The holder of a D-5g
permit may sell
beer and any intoxicating liquor at retail, only
by the individual
drink in glass and from the container, for
consumption on the
premises where sold. The holder of a D-5g
permit shall sell no
beer or intoxicating liquor for consumption
on the premises where
sold after one a.m. A D-5g permit shall
not be transferred to
another location. No quota restrictions
shall be placed on the
number of D-5g permits that may be issued. The fee for
this
permit is one thousand five hundred dollars. (H) Permit D-5h may be issued to any nonprofit
organization
that is exempt from federal income taxation under
the
"Internal
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.
501(c)(3), as
amended, that owns or operates a fine arts museum
and has no less
than five thousand bona fide members possessing
full membership
privileges. The holder of a D-5h permit may sell
beer and any
intoxicating liquor at retail, only by the
individual drink in
glass and from the container, for consumption
on the premises
where sold. The holder of a D-5h permit shall
sell no beer or
intoxicating liquor for consumption on the
premises where sold
after one a.m. A D-5h permit shall not be
transferred to another
location. No quota restrictions shall be
placed on the number of
D-5h permits that may be issued. The fee
for this permit is one
thousand five hundred dollars. (I) Permit D-5i may be issued to
the owner or
operator of
a
retail food establishment or a food service
operation
licensed
under
Chapter 3717. of
the Revised Code
that operates as a
restaurant for purposes of
this chapter and that meets all of the
following
requirements: (1) It is located in a municipal corporation or a township
with a population of fifty thousand or less. (2) It has inside seating capacity for at least one
hundred
forty persons. (3) It has at least four thousand square feet of floor
area. (4) It offers full-course meals, appetizers, and
sandwiches. (5) Its receipts from beer and liquor sales do not exceed
twenty-five per cent of its total gross receipts. (6) The value of its real and personal property exceeds
seven hundred twenty-five thousand
dollars. The holder of a D-5i permit shall cause an independent
audit
to be performed at the end of one full year of operation
following
issuance of the permit in order to verify the
requirements of
division (I)(5) of this section. The results of
the independent
audit shall be transmitted to the
division. Upon determining that
the receipts of the holder from beer
and liquor sales exceeded
twenty-five per cent of its total gross
receipts, the division
shall suspend the permit of
the permit
holder under section
4301.25 of the Revised Code and may allow
the permit holder to
elect a forfeiture under section 4301.252 of
the Revised Code. The holder of a D-5i permit may sell beer and any
intoxicating liquor at retail, only by the individual drink in
glass and from the container, for consumption on the premises
where sold, and may sell the same products in the same manner and
amounts not for consumption on the premises where sold as may be
sold by the holders of D-1 and D-2 permits. The holder of a D-5i
permit shall sell no beer or intoxicating liquor for consumption
on the premises where sold after two-thirty a.m. In addition to
the
privileges authorized in this division, the holder
of a D-5i
permit may exercise the same privileges as the holder
of a D-5
permit. A D-5i permit shall not be transferred to another location.
The division of liquor control shall not renew a D-5i
permit
unless the food service operation for which it is issued
continues
to meet the requirements described in divisions (I)(1)
to (6) of
this section. No quota restrictions shall be placed on
the number
of D-5i permits that may be issued. The fee for this
permit is
one thousand eight hundred seventy-five dollars. (J)(1) Permit D-5j may be issued to
the owner or the
operator of a
retail food establishment or a
food service
operation
licensed under
Chapter 3717.
of
the
Revised Code to
sell beer and intoxicating
liquor
at retail,
only by the
individual drink in glass and from
the container, for
consumption
on the premises where sold
and to
sell beer and
intoxicating
liquor in the same manner and amounts
not
for
consumption on the
premises where
sold as may be sold by
the
holders of D-1 and D-2
permits.
The holder of a D-5j permit
may
exercise the same
privileges, and
shall observe the same hours
of
operation, as the
holder of a D-5
permit.
(2) The D-5j permit shall be issued only within a community
entertainment district that is designated under section 4301.80 of
the
Revised Code and that is located in a
municipal corporation
with a population of at least one hundred
thousand. (3) The location of a D-5j permit may be
transferred only
within
the geographic boundaries of the community entertainment
district in which it
was issued and shall not be transferred
outside the geographic
boundaries of that district. (4) Not more than one D-5j permit shall be issued within
each
community entertainment district for each five acres of land
located
within the district. Not more than fifteen D-5j
permits
may be issued within a single community entertainment district.
Except
as otherwise provided in division (J)(4) of this section,
no quota restrictions shall be placed upon the number of
D-5j
permits that may be issued. (5) The fee for a D-5j permit is one thousand
eight hundred
seventy-five dollars.
SECTION 2. That existing sections 4301.17 and 4303.181 of the
Revised Code
are hereby repealed.
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