Since the inception of the law, Hastie Law Offices has counseled clients  on the effect of repeated smoking violations on a liquor permit.  Under Ohio Law, an Ohio liquor permit renewal may be rejected if “”The applicant has operated its liquor permit business in a manner that demonstrates a disregard for the laws, regulations, or local ordinances of this state.” [See O.R.C. 4303.292(A)(1)(b)].  The smoking ban (your personal feelings on it aside) is law in Ohio and repeated violations can justify the rejection of a permit renewal.  Ignoring the law because you don’t like it is a surefire way to run into serious problems.

For more information on the case click here (NBC4) and here (Cincinnati.com). 

Call us at Hastie Law Offices if you have any questions or concerns regarding your Ohio Liquor Permit Renewal or if you are cited for violating the smoking ban.

Normally a permit transfer in Ohio will take at least 30-90 days, depending on several factors.  It can be done quicker, however, a faster transfer takes a confluence of events not always under the attorney’s (or the client’s) control.  This post is intended to give you an overview of the permit transfer process, give you tips on how you can make your transfer go smoothly, and let you know about potential pitfalls.

Step 1: Filing

Under Ohio Law a number of events are triggered once a liquor permit transfer application is filed.  First, the application must be keyed into the system by the Ohio Division of Liquor Control (”ODLC”).  This generally takes 24-48 hours.  It’s imperative for your attorney to ensure the initial application is properly executed.  One small mistake and the application will be rejected; and valuable time will be lost.

Step 2: Governmental Notification

Next, ODLC generates a number of notices for local government agencies required to be made aware of a pending permit.  The city council is given 30 days from reciept of the notice to either object or waive objection.  Most city councils, particularly in the larger cities, take the entire time alloted to send back the notice.  Additionally, the county board of elections is required to verify the wet/dry status of the proposed transferee’s location.  This process can take a few weeks.  The complete notification process is spelled out in O.R.C. Sec 4303.26(A).  To save time, your liquor attorney will want to monitor to ensure the notices are sent out immediately after the application is keyed in.

Additionally, ODLC is required to notify any church, school, library, or public park within 500 feet of the proposed location.  These locations also have 30 days to object.  Generally, ODLC is not even aware of these institutions until after an initial inspection has been completed.

Your lawyer must have a good working relationship with local government and other institutions to effectuate a speedy transfer. Hastie Law Offices has history of wading through the bureaucracy for our clients to ensure a timely transfer of their Ohio liquor license.

During our fastest transfers our attorneys are in constant contact with local government agencies to ensure the a City’s review was completed quickly.  Without a mutual respect between a city and our office the transfer can take much longer.

Step 3: Tax Review

Under Ohio Law, the Ohio Department of Taxation (”OTAX”) must sign off on the liquor permit transfer by ensuring all sales and withholding taxes have been paid by the seller.  OTAX has twenty days to even notify the parties of any outstanding delinquencies. At this point, the tax situation must be resolved.  Sometimes the problem is as simple as paying some outstanding late fees.  Other times, multiple returns must be filed with accompanying documentation.

A transfer is generally much quicker if there are little to no tax issues.  Our fastest transfers have no outstanding taxes.  An effective Ohio liquor lawyer  will conduct extensive due diligence prior to the transfer even being filed so you can advised of the pitfalls with a particular permit.  At Hastie Law Offices we also have extensive experience in expeditiously resolving tax problems when they do arise.  This knowledge is essential to effectively and quickly transfering an Ohio liquor permit.

Step 4: Documentation

An Ohio liquor permit transfer is a document intensive endeavor.  A transfer requires the following documentation to be filed with the ODLC: Officer/Shareholder Disclosure, an executed lease or Summary of Tenancy Rights, the purchase agreement or a summary of the deal, financial verification of the funds used to set-up and purchase the business, and Personal History forms for all owners and officers.

Upon receipt, the ODLC will process the documents and notify the parties of any additional documentation needed.  Your liquor attorney should be able to anticipate the documentation needed to effectuate your Ohio liquor permit transfer.

An Ohio background check is also required.  If you are in Columbus, I recommend Fast Fingerprints on Bethel Road.  They are extremely fast and attentive.  The background check process is one of the major sticking points in any transfer.

Step 5: Final Inspection

One step remains once all the objections are waived, taxes are paid and all documentation is delivered and processed: final inspection.  The Ohio Division of Liquor Control has a laundry list of requirements for any building seeking to house an Ohio liquor permit.  Your attorney should be knowledgeable of building requirements and be able to guide you through the process so your final inspection is a breeze.

Conclusion

The transfer of an Ohio liquor permit is time consuming and complicated.  If you are need of a fast, cost-effective transfer give us a call.  We can’t guarantee exactly how fast your transfer can but we can guarantee your project will be handled quickly, competently, and efficiently.

Call us at (614) 488-2800 for a free consulation today.

(this list will be updated periodically)

LA Times: ‘Because I got High’ Rapper sued on 4/20 (Yes, thats the real Los Angeles Times, I didn’t believe it either)

Columbus Dispatch: Rapper sued over April 9 no-show

Gawker.com: ‘Because I got High’ Singer Sued Forgetting Concert

AboveTheLaw.com: Fake Lawsuit of the Day: Its 4.20! (They originally thought it was a spoof)

Inquiries should be made to Hastie Law Offices at (614) 488 – 2800.

For example, the City of Columbus recently published their “hit list” of liquor permits they are objecting to. Upper Arlington’s struggles with Oynx led to an objection. Permit holders should take such actions by a city EXTREMELY serious. You can (and will) be shut down if you don’t have competent legal help.

Very few attorneys have direct experience defending the hospitality industry against these types of action. We do.

At Hastie Law Offices we have extensive experience in all facets of objection related representation. Call us if you need help negotiating a “good neighbor” agreement to fend off closure or fighting your city in front of the Ohio Division of Liquor Control or Ohio Liquor Commission. You have options, don’t give up.

What can an Ohio Liquor Permit Holder do if they are facing extinction? Call Hastie Law Offices at (614) 488-2800.

If you are pulled over for OVI in Central Ohio  - remain calm, be respectful, and call us at (614) 488-2800.  Ed’s cell phone will be on all day/night – (614) 940 – 5003 .

By Dean Narciso

THE COLUMBUS DISPATCH

The Tipsy Bar in the University District might be on shaky ground with its advertising.

On “Tipsy Tuesdays,” a sign in the window of the watering hole on N. High Street near Lane Avenue proclaims, the bar offers 50-cent pitchers of Natural Light beer from 9 p.m. until closing.

State law prohibits happy-hour pricing after 9 p.m. It also requires minimum pricing, more than 50 cents for a pitcher of beer.

The laws are intended to discourage excessive consumption of alcohol and bargain prices past a reasonable hour. But the state agency with the authority to cite violators rarely does, even though examples of violations are easy to find.

Since 2007, the Ohio Investigative Unit, a branch of the state Department of Public Safety, has written 12 citations in Franklin County for promoting happy-hour pricing after 9 p.m.

One law also prohibits more than two neon window signs. Investigators have cited only two bars statewide since 2007 for that offense.

“If we don’t get a complaint on it, then we may never know,” said Julie Hinds, spokeswoman for the agency. “A lot of the people who complain are the competitors.”

The investigative unit, which has 100 undercover police officers, is more concerned about underage drinking, Hinds said. It also investigates gambling, food-stamp abuse and sale of tobacco to minors.

The advertising laws can be traced to Prohibition.

“It goes back to a temperance era,” said Jacob Evans, an attorney for the Ohio Licensed Beverage Association, which has 500 members statewide. “You don’t want people selling beer or alcohol at a reduced price. A product such as alcohol should be regulated. It needs to be sold and consumed in a responsible manner.

“Not only are you cheating, but you are cheating your competitors,” Evans said. Penalties vary from warnings to fines to license revocation, determined by the Ohio Liquor Control Commission. First-time offenders typically are fined $200 or have their liquor licenses suspended for two years.

“People usually pay the fines,” said Jada Brady, executive director of the three-member Ohio Liquor Control Commission.

Many bars are warned about lesser offenses when undercover officers are checking on underage drinking or gambling, said Robert Booker, executive director of the investigative unit.

“Our goal is compliance,” he said. “It’s not about how many citations we can write.”

Ed Hastie, an attorney for bars and taverns throughout the state, also writes articles about his practice on avvo.com, a website for professionals to discuss their work.

“We are aware a vast majority of Ohio permit-holders disregard this law,” he said of happy-hour rules. “I maintain that a lot of places are not out to break the law and catch an edge. I think a lot of places just don’t know that it’s against the rules.”

The state offers free classes on the laws. But after a recent invitation to bars in the University District, “there were no takers,” Booker said. Other classes have had better attendance.

Ignorance is not an excuse at Coaches Bar and Grill on Bethel Road, where three neon signs blaze in the windows.

“We knew the rules,” owner Benny Leonard said. “Our distributor put up three signs and said, ‘If you get in trouble, take one down.’”

“Aren’t there bigger fish to fry?” Leonard wondered. “I wouldn’t see any neon sign draggin’ me into anywhere.”

Nike Sports Lounge on Hilliard-Rome Road advertises $3 “vodka bombs” until midnight. The normal price is $4.

“If I knew they weren’t right, I wouldn’t have put them in,” manager Jared Gordon said of the promotion. “I didn’t have a clue.”

But, he said, he had no plans to change his practices unless authorities tell him to.

Check out the article  on Attorney Brian Kooperman’s website (I have also copied it below, with permission of course).

Brian is an excellent attorney with a focus on complex business transactions and real estate issues.  I can personally attest to his capabilities as I have co-counseled with him on numerous issues pertaining to various liquor/hospitality clients. He also has one of the coolest offices in town.

**********

To Scalp or not to Scalp 

Posted on January 3, 2011 by Brian Kooperman

The 2010-2011 bowl season is just about complete. After a long wait, tomorrow night the Ohio State Buckeyes play the Arkansas Razorbacks in an SEC v. Big 10 Sugar Bowl matchup in New Orleans.  A couple of weeks ago, a friend of mine called and asked the simple question: “Can I post a couple of Sugar Bowl tickets for sale on my website?”  He wanted to sell the tickets for higher than face value and was wondering if this was legal.  Being the sports fan that I am and having bought dozens of tickets from scalpers in my lifetime, I thought  - what would be more fitting than to attempt to answer his question via an entry on my blog?  So, let’s pose the question: Is it legal to scalp tickets?  The simple answer to the question is, (which seems to be the predominate answer to most questions asked of lawyers) it depends.  For instance, the law may be different if he were trying to sell tickets to the Ohio State/Colorado game being played in Columbus on September 24, 2011 or even a Cincinnati Bengals game.

Directly below, I will attempt to examine my friend’s question  regarding ticket sales over the Internet.  However, before we dig too deep, let’s examine the basics.  First, what is ticket scalping?  The shortest definition that I found was on Ebay.  Ebay defines “Scalping” as, “reselling tickets for greater than face value”.  Short and Sweet.  Probably the most thorough definition I have seen was located at none other than wisegeek.com which defines “scalping” as “the practice of buying and selling event tickets by private citizens, rather than by the sponsoring venue or organization.”  Now that we have a basic definition, the next step is usually to figure out if any US or federal laws forbid ticket scalping and move down the legal foodchain from there.  

FEDERAL LAW

Based upon my research, there is no federal law that regulates or prohibits the practice of scalping tickets (although in 2009, Senator Chuck Schumer from New York did attempt to pass a federal anti-ticket scalping bill.  Apparently, he was upset at the outrageous prices of U2 tickets.  See here.) Because there is no applicable federal or US law, we next need to look to the laws of the individual states. 

STATE LAWS

Although I have not seen any survey or report dated after 2007, according to the National Conference of State Legislatures, as of 2006, approximately 16 of the 50 states had a law which deemed scalping tickets illegal. Interestingly enough, shortly after this report was circulated, several states revisited their statutes amidst the boom of websites such as StubHub, Ebay, and Ticketmaster.

The companies who have been profiting off the lucrative ticket scalping industry hired influential lobbyists to persuade state legislatures to change their laws.  This is demonstrated on Ticketmaster’s website here.  Which states that:  “Ticketmaster and TicketsNow are committed to providing fans with the highest levels of service, choice, convenience, and security, and are committed to doing so lawfully. Ticketmaster and TicketsNow have been working with local jurisdictions across the United States and Canada, with a myriad of different and sometimes conflicting local laws, to ensure legal compliance, so that the laws reflect the fast-changing technology and marketplace. In fact, Ticketmaster has been at the forefront of efforts to prevent the illegal diversion of tickets away from fans by the use of automated programs.”

I wouldn’t doubt Ticketmaster’s statement for one second.  As of 2007, according to research conducted by the Connecticut General Assembly, only 13 states still outlawed reselling tickets above face value.  As of 2011, that number may have been reduced even further.  More than half of those 13 states require a special license to resell tickets. A select few states leave the issue up to state municipalities.

OHIO

Believe it or not, one of the select few states that defer the decision to local municipalities is Ohio.  Under Ohio Revised Code §715.48(B), the state allows municipalities to regulate “the business of trafficking” entertainment tickets.  This of course makes matters even more complicated.  As you would expect for example, there is a distinction between the laws governing Columbus versus the laws governing Cincinnati.  There is no regulation or statute in the Columbus City Code regarding or prohibiting scalping. Conversely, there is an entire section of the Columbus City Code that regulates “peddlers” or “peddling” (Section 523 of the Columbus City Code), but there is nothing in this section that expressly prohibits scalping. 

The Tenth District Court of Appeals (Franklin County) pondered this issue in a 2005 case as it related to probable cause for a police stop that took place in Columbus:

During the suppression hearing, Trooper Firmi was unsure if scalping tickets violated criminal law. Likewise, neither Trooper Firmi nor appellee cites a specific statute under the Ohio Revised Code or Columbus City Code that prohibits ticket scalping. Under R.C. 715.48(B), the state allows municipalities to regulate “the business of trafficking” entertainment tickets. However, we find no Columbus City Code against ticket scalping. We recognize that the Columbus City Code regulates a “peddler” who sells items “upon any street, road, alley, doorway, sidewalk, or upon vacant lots or other tracts of land, or from place to place, or house to house within the corporate limits of this city.” Columbus City Code 523.01. These municipal regulations contain licensing requirements for peddlers, but do not prohibit ticket scalping. See Columbus City Code 523.01 et. seq.

State v. Smith, 2005 WL 1220742, 4 (Ohio App. 10 Dist.). 

Under Columbus City Code § 523, “peddling” is defined as the act of:

 “selling, bartering, offering for sale, exposing for sale at retail or wholesale, any goods, wares, merchandise, chattels, vegetables, fruits, foodstuff of any other description, any drink or other substance for human consumption; or any commodity or service or other article upon any street, road, alley, doorway, sidewalk, or upon vacant lots or other tracts of land, or from place to place, or house to house within the corporate limits of this city”.  The criminal penalty for a violation of this section varies from a minor misdemeanor to a first degree misdemeanor for repeat violations.”

While there are no laws in Columbus that address the scalping issue directly, the laws of another city, Cincinnati, for example, are very different.  Cincinnati’s Code of Ordinances § 840, the “Street Ticket Sales” section, straightforwardly addresses the issue of scalping.  In fact, section 840-3, mandates that it is illegal to sell a ticket for more than face value unless you’ve obtained a ticket-sales license from the city treasurer.  This section of the Cincinnati code was passed in March of 2001.  Prior to the codification of the Street Ticket Sales section, scalpers in Cincinnati were subject to harassment from police even though there was no specific statute making scalping illegal.  A 1999 case shed some light on why scalpers were being prosecuted:

The city maintains what it chooses to call a “scalping detail,” strongly suggesting a municipal animus against a practice that is not, by itself, illegal. *** Most telling, there is also the statement, attributed to Officer Haun by Ryther, that the work of the “scalping detail” was in response to Marge Schott, then majority owner of the Reds, putting pressure on the city. Presumably such pressure was not to see that traffic laws and city ordinances were enforced, but that ticket scalping was stopped. *** In summary, [the Defendants] were arrested four times and never found guilty of anything, while having thousands of dollars of property-not contraband-seized from them.”   

Norwell v. Cincinnati (1999), 133 Ohio App.3d 790, (Ohio App. 1 Dist.).

Regardless, this section would only apply to individuals selling tickets in and around the stadium.  Based upon my interpretation, it certainly does not restrict the sale of tickets in advance over the Internet even if for profit. 

NEW ORLEANS

Okay, now that we have tackled (pardon the pun) the scalping laws in Ohio, what about the scalping laws in the city that contains the site of the Sugar Bowl – New Orleans?  Louisiana Revised Statutes § 4:1 forbids the practice of reselling tickets for higher than face value.  In 2006, the statute was amended to allow the sale of tickets, at any price, for sales conducted over the Internet, so long as the organizer of the event and the event location’s operator have authorized the sale of the tickets.  Second, the web site’s operator must guarantee a full refund of the total sale price (including all charges) if the event is (a) canceled, (b) the purchaser is denied admission through no fault of his own, or (c) the ticket is not delivered as promised and this results in an inability to attend the event. Third, this guarantee must be posted on the operator’s web site. Finally, the prospective purchaser must be directed to the guarantee on the operator’s website prior to the completion of the transaction.  See the applicaple section here.  Meanwhile the New Orleans Code of Ordinances § 54-484 prohibits scalping with no exceptions.

 IS IT LEGAL OR NOT?

That finally brings us to the question posed by my friend.  Well, if we play with the facts, the legal question becomes even murkier.  What happens if one person sells tickets from a state that does not regulate scalping to a person in a state where selling tickets for higher than face value is prohibited? Here is Ebay’s answer:  “Scalping tickets … is indeed illegal in certain states. However, reselling tickets for up to face value is legal nationwide, and resale above face value is legal in most states. The eBay ticket market encourages lawful transactions and has been designed to communicate to users all state ticket resale laws that should be adhered to.”  Ebay of course profits off the sale of tickets, so one should take their answer at face value.  StubHub is much smarter than that.  They inconspicuously post on the bottom of their website page the following disclosure:  “You are buying tickets from a third party; neither StubHub.com nor StubHub, Inc. is the ticket seller. Ticket prices are set by sellers and may differ from face value.”  If you look a bit closer, the StubHub user agreement requires that the user or “seller” warrant “that they will comply with all applicable local, state, federal and international laws, statutes and regulations regarding use of the Site and selling value of the tickets. StubHub does not monitor, obtain, nor have any knowledge of the face value of tickets listed on the Site.”  This all of course will absolve StubHub from any liability in their view. 

What does all this mean?  Great question.  Now I am even more confused. If my friend were to call me today, I think my answer would be this: Call up the New Orleans Saints and the Sugar Bowl Committee.  If they are okay with you selling your two tickets for a price above face value, you are good to go!  Happy selling.  Of course, if you cannot readily get Tom Benson on the phone, don’t publicize what you are doing in the state of Louisiana.   You can probably sell the Sugar Bowl tickets in Ohio so long as you are not standing on the streets around Paul Brown Stadium or peddling around the Horseshoe.   The simplest solution would be to give your tickets to me in exchange for my thorough legal analysis.  Don’t worry, I would not have charged you more than the cost of the face value of the tickets. 

These are just two examples of the many reasons a person may be pulled over that relate merely to proper upkeep of a vehicle.  Many of our drunk driving clients were originally stopped for reasons such as these even without any indication of impaired driving.  If you are driving with a defective vehicle (especially late at night) you will be pulled over.  If you have consumed any alcohol you are likely to be accused of OVI.

Even the mere accusation of OVI will have serious lasting consequences and cost thousands of dollars to rebut.  Sometimes simple vehicle maintenance is enough to keep you from a stop that can lead to unintended consequences.  For advice on what to do if you are stopped by the police check out my recent post on the topic.

As always, if you are charged with OVI anywhere in central Ohio (Franklin, Licking, Delaware, and Union counties) contact us immediately at (614) 488-2800.