Earlier this week, we discussed the types of liquor licenses available to restaurants, bars, and breweries to serve alcohol on site. Once you’ve selected which permit best suits your needs, you’ll need to apply for state and federal licenses for the sale of alcohol. Today we’ll focus on the application process for the State of Ohio.
In Ohio, applications for liquor licenses are made to the Division of Liquor Control, which is a part of the Department of Commerce.
Completing the Application Form
The first step in the application process is to complete the application form. What steps and forms are needed will differ depending upon the type of business entity you have selected. In general, people who are involved in making business decisions, officers of the business and managing members of an LLC, are required to submit to background checks before a permit may be issued.
A non-refundable processing fee of $100 is due along with the application. If a permit is available, this fee is applied to the permit fee. If no permit is available, the application is held by Liquor Control until one is available. If a business cancels its application, the fee is lost.
If you have questions about which forms you will need to fill out for your application or what information you must provide to Liquor Control, contact A.T. Keane Law, I can help you file your application with the state.
Notifications to Local Authorities
When Liquor Control receives your application for a license, they send notification to your local city council or township trustees and to your local county sheriff. This notification gives the local authorities an opportunity to object if its believed that your business will be harmful to a community. Because of this opportunity to object, it is in a business owner’s best interest to approach and form a good relationship with the local authorities. If an area is hostile to your business, it may be a good idea to look for an alternate location where the authorities are more supportive.
Other groups who may be notified of your application include schools, churches, parks, and daycare centers located within 500 feet of your planned location. These groups will have the same opportunity to object that is given to city officials.
Background Checks and Who May Not Get a Permit
As was said above, each person involved in making business decisions must submit fingerprints for a background check. What is done with those background checks? What is the Division of Liquor Control looking for?
Certain people are banned from obtaining a liquor license under Ohio law. This includes people who have been convicted of crimes that cast doubt on “fitness to operate a liquor establishment”. While the law does not provide an exhaustive list of convictions which would count toward this disqualifier, courts and city councils have assumed that drug sales, prostitution, and crimes involving alcohol like drunk driving all are covered by the law.
The law also allows those that a city knows to be in the habit of using alcohol or drugs to excess, or to be addicted to narcotics, to be denied a permit. Past drug and alcohol convictions can be used as proof of an addiction or excessive use.
Businesses seeking to apply for a liquor permit should make sure to review the history of all officers and major owners of the business. It may not be possible for all prospective owners to be included.
In addition, failure to disclose a crime on the application will result in the denial of an application for misrepresentation.
Local Option Elections and Wet/Dry Status of Precinct
Along with the notifications and opportunity to object mentioned above, the Division of Liquor Control will contact your local Board of Elections to determine whether the precinct in which you seek to open your business is wet or dry, meaning whether it allows liquor generally or if it does not allow liquor generally. Having your site located in a currently dry precinct does not necessarily end the process. There is a procedure called the Local Option that can come to the rescue.
All the information about the local option could easily fill an entire article of its own. For now, the important knowledge is that a person seeking to get a permit may ask the local Board of Elections for a petition to schedule a special election to determine whether a precinct will allow alcohol sales or not. A positive vote on a local option can save an application that looked dead, so just like you want a good relationship with the local lawmakers, finding your way to a good relationship with the community is also key.
If you are currently waiting on an application in a dry precinct, contact a lawyer to see what steps you need to take in order to give yourself the best chance of success.
Issuing the Permit or Holding a Hearing
Once the application is submitted to the Division of Liquor Control, there is a time given for local authorities to object to the application. If no objection is made to the application and there are no facts that require the Division to deny a permit, the permit will be sent to the business by Certified Mail.
If one of the groups listed above files an objection with Liquor Control, the Division will hold a hearing to decide whether the permit should be issued. After the hearing, the Division of Liquor Control will send its decision both to the person who objected and to the applicant by Certified Mail.
The city officials and the applicant both have the right to appeal the decision of Liquor Control. These appeals are heard by the Franklin County Court of Common Pleas in Columbus.
Next Steps
Once you’ve determined what permits you need and filed your application with the state, you’ll need to apply for Federal licenses through the Alcohol and Tobacco Tax and Trade Bureau. Both state and federal licenses are required before you can begin to sell alcohol at your restaurant or bar. More information will follow in a later article about what is involved in the federal application.
Applying for all the required permits can be a very complicated process, especially for a new business owner who has enough on their plate running their new business. Contact A.T. Keane Law today to discuss the liquor license needs of your new business.
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