130th Ohio General Assembly
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H. B. No. 330As Introduced
As Introduced

124th General Assembly
Regular Session
2001-2002
H. B. No. 330


REPRESENTATIVE Peterson



A BILL
To amend section 4301.17 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 the compensation paid to operators of agency stores; to allow the Division to enter into additional contracts for agency stores with certain class C permit holders notwithstanding these population quota or other restrictions; and to eliminate the restriction against the same person operating or having an interest in more than eight agency stores in the state or more than four agency stores in the same county.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 4301.17 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 and except as otherwise provided in division (A)(2) of this section, five state liquor stores or agencies may be established in each county. One Except as otherwise provided in division (A)(2) of this section, one additional store may be established in any county for each thirty twenty-five thousand of population of such 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 Except as otherwise provided in division (A)(2) of this section, 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 such the manner as it deems considers best, but such the compensation shall not be less than six and one-half per cent of, nor exceed seven and one-half per cent of, the gross sales made by such the agent in any one year.
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 such 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.
(2) Notwithstanding the population quota or other restrictions contained in division (A)(1) of this section on the number of liquor stores or agencies that the division may establish in counties, the division may establish additional liquor stores or agencies in counties at any premises for which the division has issued both a C-1 permit and a C-2 permit and that has not less than thirty thousand square feet of retail space.
(B) When an agency contract is proposed or when an existing agency contract is assigned, before entering into any such 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 agency contract or consenting to the assignment. When the division sends notice to the legislative authority of the political subdivision, the department 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 agency contract or consenting to the assignment.
On or after July 21, 1986, if 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 such officials 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, provided that 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 such officials 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 board of township trustees, or the autorities 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 such 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 four state agencies in any one county or more than eight 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 such 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 such agent to give bond with surety to the satisfaction of the division, in such the amount as the division fixes, conditioned for the faithful performance of the agent's duties as prescribed by the division.
Section 2. That existing section 4301.17 of the Revised Code is hereby repealed.
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