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Liquor Control Commission Common Sense Initiative

Created by Executive Order 2011-01K, the Common Sense Initiative (CSI), and Senate Bill 2 of the 129th General Assembly require state agencies, including the Ohio Liquor Control Commission (Commission) to draft rules in collaboration with stakeholders, assess and justify any adverse impact on the business community (as defined by Senate Bill 2), and provide opportunity for those who are impacted to provide input on the rules.

The Commission is proposing No Change to the following rules:


4301:1-1-05    Mixed beverages: requirements.

This rule describes various requirements for manufacturers, suppliers, importers, bottlers, and wholesale distributors of mixed beverages operating in Ohio. The rule requires that every mixed beverage manufacturer, supplier, importer, bottler, or wholesale distributor have the appropriate federal permit issued by the federal government.  The rule also requires that these entities, upon request, submit to the Division of Liquor Control (“Division”) a statement of the ingredients of any labeled mixed beverage and submit samples for analysis.  The statement shall remain confidential, except pursuant to a court order or a subpoena issued by the Commission.  The rule also states that these entities cannot fix the price to be charged for any package by any other permit holder.  Also, under the rule, no manufacturer, supplier, importer or bottler may differentiate the price sold to wholesale distributors, except upon “reasonable business grounds.”  Finally, no wholesale distributor or retail permit holder can be required to participate in any price promotion.


4301:1-1-16    Closing authority.

This rule provides that if a permit holder is unable to operate or desires to discontinue the operation of the permit business for a period in excess of 30 days, the permit holder must notify the Division, giving the reason for the request and specifying the period of time the permit holder wishes to remain closed.  The permit holder must have a bona fide reason and must be a bona fide operator.  Closing authority cannot exceed 180 days, except for good cause, and the permit holder must resume operations at the end of the closing authority period.  If the Division determines that the permit holder has been closed in excess of 30 days and has not notified the Division, the Division must issue a citation to the permit holder for failure to exercise permit privileges and for being closed more than 30 days without the consent of the Division.


4301:1-1-68    Sales reports of B-1 permit holders.

This rule provides that not more than 20% of total sales of B-1 permit holders (a permit for distribution, sale for home use) may be made to non-permit holders for home use during the immediate previous three months.  The rule also requires B-1 permit holders to maintain records for one year for inspection by the Division to verify compliance with the rule.


4301:1-1-73    Differential pricing practices: manner and frequency of price changes for beer. 

This rule provides that manufacturers and suppliers who sell beer to wholesale distributors must give 14 days written notice of any price change to wholesale distributors to whom they regularly sell their products before initiating the price change.  As soon as practicable, the wholesale distributor must then give notice of any resulting price change to its retail accounts.  No manufacturer or supplier who sells beer to wholesale distributors may fix the price to be charged for any package by any other permit holder.  No manufacturer or supplier of beer to Ohio wholesalers may differentiate in the price of beer sold to Ohio wholesalers except when based on reasonable business grounds.  A differential price may not be based on a wholesaler’s refusal to participate in a price promotion.  No manufacturer or supplier of beer may require an Ohio wholesaler to participate in any price promotion. 


Associated CSI Documents

Contact Information for Comments
The Commission welcomes comments regarding these proposed rules.  To ensure your comments are considered as part of the Common Sense Initiative review period, please reply to this email AND copy the Common Sense Initiative Office on your email at CSIPublicComments by June 17, 2013.  


Sarah W. Creedon- Executive Director

77 South High Street, 18th Floor • Columbus, Ohio 43215
Phone: 614-466-3132 •
Fax: 614-466-4564