Bill Text: OH HB273 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To prohibit the transfer of ownership or the transfer of location of a C-1, C-2, or C-2x liquor permit in, or to a premises located in, a municipal corporation or the unincorporated area of a township in which the number of that class of permits actually issued exceeds the number of that class of permits allowed to be issued under population quota restrictions.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2009-08-26 - To State Government [HB273 Detail]

Download: Ohio-2009-HB273-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 273

Representative Williams, S. 

Cosponsors: Representatives Ujvagi, Weddington 

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A BILL

To amend sections 4303.29 and 4303.292 of the Revised

1

Code to prohibit the transfer of ownership or the

2

transfer of location of a C-1, C-2, or C-2x liquor

3

permit in, or to a premises located in, a

4

municipal corporation or the unincorporated area

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of a township in which the number of that class of

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permits actually issued exceeds the number of that

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class of permits allowed to be issued under

8

population quota restrictions.

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

Section 1. That sections 4303.29 and 4303.292 of the Revised	10
Code be amended to read as follows:	11

Sec. 4303.29.  (A) No permit, other than an H permit, shall	12
be issued to a firm or partnership unless all the members of the	13
firm or partnership are citizens of the United States. No permit,	14
other than an H permit, shall be issued to an individual who is	15
not a citizen of the United States. No permit, other than an E or	16
H permit, shall be issued to any corporation organized under the	17
laws of any country, territory, or state other than this state	18
until it has furnished the division of liquor control with	19
evidence that it has complied with the laws of this state relating	20
to the transaction of business in this state.	21

The division may refuse to issue any permit to or refuse to	22
renew any permit of any person convicted of any felony that is	23
reasonably related to the person's fitness to operate a liquor	24
permit business in this state. No holder of a permit shall sell,	25
assign, transfer, or pledge the permit without the written consent	26
of the division.	27

(B)(1) No D-3 permit shall be issued to any club unless the	28
club has been continuously engaged in the activity specified in	29
section 4303.15 of the Revised Code, as a qualification for that	30
class of permit, for two years at the time the permit is issued.	31

(2)(a) Subject to division (B)(2)(b) of this section, upon	32
application by properly qualified persons, one C-1 and C-2 permit	33
shall be issued for each one thousand population or part of that	34
population, and one D-1 and D-2 permit shall be issued for each	35
two thousand population or part of that population, in each	36
municipal corporation and in the unincorporated area of each	37
township.	38

Subject to division (B)(2)(b) of this section, not more than	39
one D-3, D-4, or D-5 permit shall be issued for each two thousand	40
population or part of that population in any municipal corporation	41
and in the unincorporated area of any township, except that, in	42
any city of a population of fifty-five thousand or more, one D-3	43
permit may be issued for each fifteen hundred population or part	44
of that population.	45

(b)(i) Division (B)(2)(a) of this section does not prohibit	46
the transfer of location or the transfer of ownership and location	47
of a C-1, C-2, D-1, D-2, D-3, or D-5 permit from a municipal	48
corporation or the unincorporated area of a township in which the	49
number of permits of that class exceeds the number of such permits	50
authorized to be issued under division (B)(2)(a) of this section	51
to an economic development project located in another municipal	52
corporation or the unincorporated area of another township in	53
which no additional permits of that class may be issued to the	54
applicant under division (B)(2)(a) of this section, but the. The	55
transfer of location or transfer of ownership and location of the	56
permit may occur only if the applicant notifies the municipal	57
corporation or township to which the location of the permit will	58
be transferred regarding the transfer and that municipal	59
corporation or township acknowledges in writing to the division of	60
liquor control, at the time the application for the transfer of	61
location or transfer of ownership and location of the permit is	62
filed, that the transfer will be to an economic development	63
project. This acknowledgment by the municipal corporation or	64
township does not prohibit it from requesting a hearing under	65
section 4303.26 of the Revised Code. The applicant is eligible to	66
apply for and receive the transfer of location of the permit under	67
division (B)(2)(b) of this section if all permits of that class	68
that may be issued under division (B)(2)(a) of this section in the	69
applicable municipal corporation or unincorporated area of the	70
township have already been issued or if the number of applications	71
filed for permits of that class in that municipal corporation or	72
the unincorporated area of that township exceed the number of	73
permits of that class that may be issued there under division	74
(B)(2)(a) of this section.	75

A permit transferred under division (B)(2)(b) of this section	76
may be subsequently transferred to a different owner at the same	77
location, or to the same owner or a different owner at a different	78
location in the same municipal corporation or in the	79
unincorporated area of the same township, as long as the same or	80
new location meets the economic development project criteria set	81
forth in this section.	82

(ii) Factors that shall be used to determine the designation	83
of an economic development project include, but are not limited	84
to, architectural certification of the plans and the cost of the	85
project, the number of jobs that will be created by the project,	86
projected earnings of the project, projected tax revenues for the	87
political subdivisions in which the project will be located, and	88
the amount of financial investment in the project. The	89
superintendent of liquor control shall determine whether the	90
existing or proposed business that is seeking a permit described	91
in division (B)(2)(b) of this section qualifies as an economic	92
development project and, if the superintendent determines that it	93
so qualifies, shall designate the business as an economic	94
development project.	95

(3) Nothing in this section shall be construed to restrict	96
the issuance of a permit to a municipal corporation for use at a	97
municipally owned airport at which commercial airline companies	98
operate regularly scheduled flights on which space is available to	99
the public. A municipal corporation applying for a permit for such	100
a municipally owned airport is exempt, in regard to that	101
application, from the population restrictions contained in this	102
section and from population quota restrictions contained in any	103
rule of the liquor control commission. A municipal corporation	104
applying for a D-1, D-2, D-3, D-4, or D-5 permit for such a	105
municipally owned airport is subject to section 4303.31 of the	106
Revised Code.	107

(4) Nothing in this section shall be construed to prohibit	108
the issuance of a D permit to the board of trustees of a soldiers'	109
memorial for a premises located at a soldiers' memorial	110
established pursuant to Chapter 345. of the Revised Code. An	111
application for a D permit by the board for those premises is	112
exempt from the population restrictions contained in this section	113
and from the population quota restrictions contained in any rule	114
of the liquor control commission. The location of a D permit	115
issued to the board for those premises shall not be transferred. A	116
board of trustees of a soldiers' memorial applying for a D-1, D-2,	117
D-3, D-4, or D-5 permit for the soldiers' memorial is subject to	118
section 4303.31 of the Revised Code.	119

(5) Nothing in this section shall be construed to restrict	120
the issuance of a permit for a premises located at a golf course	121
owned by a municipal corporation, township, or county, owned by a	122
park district created under Chapter 1545. of the Revised Code, or	123
owned by the state. The location of such a permit issued on or	124
after September 26, 1984, for a premises located at such a golf	125
course shall not be transferred. Any application for such a permit	126
is exempt from the population quota restrictions contained in this	127
section and from the population quota restrictions contained in	128
any rule of the liquor control commission. A municipal	129
corporation, township, county, park district, or state agency	130
applying for a D-1, D-2, D-3, D-4, or D-5 permit for such a golf	131
course is subject to section 4303.31 of the Revised Code.	132

(6) As used in division (B)(6) of this section, "fair" has	133
the same meaning as in section 991.01 of the Revised Code; "state	134
fairgrounds" means the property that is held by the state for the	135
purpose of conducting fairs, expositions, and exhibits and that is	136
maintained and managed by the Ohio expositions commission under	137
section 991.03 of the Revised Code; "capitol square" has the same	138
meaning as in section 105.41 of the Revised Code; and "Ohio	139
judicial center" means the site of the Ohio supreme court and its	140
grounds.	141

Nothing in this section shall be construed to restrict the	142
issuance of one or more D permits to one or more applicants for	143
all or a part of the state fairgrounds, capitol square, or the	144
Ohio judicial center. An application for a D permit for the state	145
fairgrounds, capitol square, or the Ohio judicial center is exempt	146
from the population quota restrictions contained in this section	147
and from the population quota restrictions contained in any rule	148
of the liquor control commission. The location of a D permit	149
issued for the state fairgrounds, capitol square, or the Ohio	150
judicial center shall not be transferred. An applicant for a D-1,	151
D-2, D-3, or D-5 permit for the state fairgrounds is not subject	152
to section 4303.31 of the Revised Code.	153

Pursuant to section 1711.09 of the Revised Code, the holder	154
of a D permit issued for the state fairgrounds shall not deal in	155
spirituous liquor at the state fairgrounds during, or for one week	156
before or for three days after, any fair held at the state	157
fairgrounds.	158

(7) Nothing in this section shall be construed to prohibit	159
the issuance of a D permit for a premises located at a zoological	160
park at which sales have been approved in an election held under	161
former section 4301.356 of the Revised Code. An application for a	162
D permit for such a premises is exempt from the population	163
restrictions contained in this section, from the population quota	164
restrictions contained in any rule of the liquor control	165
commission, and from section 4303.31 of the Revised Code. The	166
location of a D permit issued for a premises at such a zoological	167
park shall not be transferred, and no quota or other restrictions	168
shall be placed on the number of D permits that may be issued for	169
a premises at such a zoological park.	170

(C)(1) No D-3, D-4, D-5, or D-5a permit shall be issued in	171
any election precinct in any municipal corporation or in any	172
election precinct in the unincorporated area of any township, in	173
which at the November, 1933, election a majority of the electors	174
voting thereon in the municipal corporation or in the	175
unincorporated area of the township voted against the repeal of	176
Section 9 of Article XV, Ohio Constitution, unless the sale of	177
spirituous liquor by the glass is authorized by a majority vote of	178
the electors voting on the question in the precinct at an election	179
held pursuant to this section or by a majority vote of the	180
electors of the precinct voting on question (C) at a special local	181
option election held in the precinct pursuant to section 4301.35	182
of the Revised Code. Upon the request of an elector, the board of	183
elections of the county that encompasses the precinct shall	184
furnish the elector with a copy of the instructions prepared by	185
the secretary of state under division (P) of section 3501.05 of	186
the Revised Code and, within fifteen days after the request, a	187
certificate of the number of signatures required for a valid	188
petition under this section.	189

Upon the petition of thirty-five per cent of the total number	190
of voters voting in any such precinct for the office of governor	191
at the preceding general election, filed with the board of	192
elections of the county in which such precinct is located not	193
later than seventy-five days before a general election, the board	194
shall prepare ballots and hold an election at such general	195
election upon the question of allowing spirituous liquor to be	196
sold by the glass in such precinct. The ballots shall be approved	197
in form by the secretary of state. The results of the election	198
shall be certified by the board to the secretary of state, who	199
shall certify the results to the division.	200

(2) No holder of a class D-3 permit issued for a boat or	201
vessel shall sell spirituous liquor in any precinct, in which the	202
election provided for in this section may be held, unless the sale	203
of spirituous liquor by the drink has been authorized by vote of	204
the electors as provided in this section or in section 4301.35 of	205
the Revised Code.	206

(D) Any holder of a C or D permit whose permit premises were	207
purchased in 1986 or 1987 by the state or any state agency for	208
highway purposes shall be issued the same permit at another	209
location notwithstanding any quota restrictions contained in this	210
chapter or in any rule of the liquor control commission.	211

Sec. 4303.292.  (A) The division of liquor control may refuse	212
to issue, transfer the ownership of, or renew, and shall refuse to	213
transfer the location of, any retail permit issued under this	214
chapter if it finds either of the following:	215

(1) That the applicant, or any partner, member, officer,	216
director, or manager of the applicant, or, if the applicant is a	217
corporation or limited liability company, any shareholder owning	218
five per cent or more of the applicant's capital stock in the	219
corporation or any member owning five per cent or more of either	220
the voting interests or membership interests in the limited	221
liability company:	222

(a) Has been convicted at any time of a crime that relates to	223
fitness to operate a liquor establishment;	224

(b) Has operated liquor permit businesses in a manner that	225
demonstrates a disregard for the laws, regulations, or local	226
ordinances of this state or any other state;	227

(c) Has misrepresented a material fact in applying to the	228
division for a permit; or	229

(d) Is in the habit of using alcoholic beverages or dangerous	230
drugs to excess, or is addicted to the use of narcotics.	231

(2) That the place for which the permit is sought:

232

(a) Does not conform to the building, safety, or health	233
requirements of the governing body of the county or municipal	234
corporation in which the place is located. As used in division	235
(A)(2)(a) of this section, "building, safety, or health	236
requirements" does not include local zoning ordinances. The	237
validity of local zoning regulations shall not be affected by this	238
section.	239

(b) Is so constructed or arranged that law enforcement	240
officers and duly authorized agents of the division are prevented	241
from reasonable access to rooms within which beer or intoxicating	242
liquor is to be sold or consumed;	243

(c) Is so located with respect to the neighborhood that	244
substantial interference with public decency, sobriety, peace, or	245
good order would result from the issuance, renewal, transfer of	246
location, or transfer of ownership of the permit and operation	247
under it by the applicant; or	248

(d) Has been declared a nuisance pursuant to Chapter 3767. of	249
the Revised Code since the time of the most recent issuance,	250
renewal, or transfer of ownership or location of the liquor	251
permit.	252

(B) The division of liquor control may refuse to issue or	253
transfer the ownership of, and shall refuse to transfer the	254
location of, any retail permit issued under this chapter if it	255
finds either of the following:	256

(1) That the place for which the permit is sought is so	257
situated with respect to any school, church, library, public	258
playground, or hospital that the operation of the liquor	259
establishment will substantially and adversely affect or interfere	260
with the normal, orderly conduct of the affairs of those	261
facilities or institutions;	262

(2) That the number of permits already existent in the	263
neighborhood is such that the issuance or transfer of location of	264
a permit would be detrimental to and substantially interfere with	265
the morals, safety, or welfare of the public. In reaching a	266
conclusion in this respect, the division shall consider, in light	267
of the purposes of this chapter and Chapters 4301. and 4399. of	268
the Revised Code, the character and population of the	269
neighborhood, the number and location of similar permits in the	270
neighborhood, the number and location of all other permits in the	271
neighborhood, and the effect the issuance or transfer of location	272
of a permit would have on the neighborhood.	273

(C) The division of liquor control shall not transfer the	274
location or transfer the ownership and location of a permit under	275
division (B)(2)(b) of section 4303.29 of the Revised Code unless	276
the permit is transferred to an economic development project.	277

(D) The division of liquor control shall refuse to issue,	278
renew, transfer the ownership of, or transfer the location of a	279
retail permit under this chapter if the applicant is or has been	280
convicted of a violation of division (C)(1) of section 2913.46 of	281
the Revised Code.	282

(E) The division of liquor control shall refuse to transfer	283
the ownership of or transfer the location of a retail permit under	284
this chapter while criminal proceedings are pending against the	285
holder of the permit for a violation of division (C)(1) of section	286
2913.46 of the Revised Code. The department of public safety shall	287
notify the division whenever criminal proceedings have commenced	288
for a violation of division (C)(1) of section 2913.46 of the	289
Revised Code.	290

(F) The division of liquor control shall refuse to issue,	291
renew, or transfer the ownership or location of a retail permit	292
under this chapter if the applicant has been found to be	293
maintaining a nuisance under section 3767.05 of the Revised Code	294
at the premises for which the issuance, renewal, or transfer of	295
ownership or location of the retail permit is sought.	296

(G) The division of liquor control shall refuse to transfer	297
the ownership of, or to transfer the location of, a C-1, C-2, or	298
C-2x permit if the transfer will be in, or to a premises located	299
in, a municipal corporation or the unincorporated area of a	300
township in which the number of permits of that class actually	301
issued exceeds the number of permits of that class allowed under	302
section 4303.29 of the Revised Code.	303

Section 2. That existing sections 4303.29 and 4303.292 of the	304
Revised Code are hereby repealed.	305