Oklahoma 2022 Regular Session

Oklahoma House Bill HB1096 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	An Act
2		-	ENROLLED HOUSE
	1	+
	2	+
	3	+	SENATE FLOOR VERSION - HB1096 SFLR Page 1
	4	+	(Bold face denotes Committee Amendments) 1
	5	+	2
	6	+	3
	7	+	4
	8	+	5
	9	+	6
	10	+	7
	11	+	8
	12	+	9
	13	+	10
	14	+	11
	15	+	12
	16	+	13
	17	+	14
	18	+	15
	19	+	16
	20	+	17
	21	+	18
	22	+	19
	23	+	20
	24	+	21
	25	+	22
	26	+	23
	27	+	24
	28	+
	29	+	SENATE FLOOR VERSION
	30	+	March 30, 2021
	31	+
	32	+
	33	+	ENGROSSED HOUSE
3	34		BILL NO. 1096 By: Strom and McEntire of the
4	35		House
5	36
6	37		and
7	38
8		-	Coleman and Bergstrom of
9		-	the Senate
10		-
	39	+	Coleman of the Senate
11	40
12	41
13	42
14	43
15	44
16	45		An Act relating to alcoholic beverages; amending
17	46		Section 93, Chapter 366, O.S.L. 2016, as amended by
18	47		Section 2, Chapter 431, O.S.L. 2019 (37A O.S. Supp.
19	48		2020, Section 3-123), which relates to wholesalers,
20	49		beer distributors and retailers; authorizing certain
21	50		social media exchanges; defining term; and providing
22	51		an effective date.
23	52
24	53
25	54
26	55
27		-	SUBJECT: Alcoholic beverages
28	56
29	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
30		-
31	58		SECTION 1. AMENDATORY Section 93, Chapter 366, O.S.L.
32	59		2016, as amended by Section 2, Chapter 431, O.S.L. 2019 (37A O.S.
33	60		Supp. 2020, Section 3-123), is amended to read as follows:
34		-
35	61		Section 3-123. A. It shall be unlawful for any person
36	62		privileged to sell alcoholic beverages to wholesalers, beer
37	63		distributors or retailers:
38		-
39	64		1. To discriminate, directly or indirectly, in price between
40	65		one wine and spirits wholesaler and another wine and spirits
41	66		wholesaler, when that manufacturer has not designated a single wine
	67	+
	68	+	SENATE FLOOR VERSION - HB1096 SFLR Page 2
	69	+	(Bold face denotes Committee Amendments) 1
	70	+	2
	71	+	3
	72	+	4
	73	+	5
	74	+	6
	75	+	7
	76	+	8
	77	+	9
	78	+	10
	79	+	11
	80	+	12
	81	+	13
	82	+	14
	83	+	15
	84	+	16
	85	+	17
	86	+	18
	87	+	19
	88	+	20
	89	+	21
	90	+	22
	91	+	23
	92	+	24
	93	+
42	94		and spirits wholesaler, or between one retailer and another retailer
43	95		purchasing alcoholic beverages bearing the same brand or trade name
44	96		and of like age and quality, unless otherwise provided by law; or
45		-	ENR. H. B. NO. 1096 Page 2
46	97		2. To grant, directly or indirectly, any discount, rebate, free
47	98		goods, allowance or other inducement.
48		-
49	99		B. The ABLE Commission is hereby authorized to promulgate rules
50	100		which are necessary to carry out the purpose of this section and to
51	101		prevent its circumvention by offering or giving of any rebate ,
52	102		allowance, free goods, discount or any other thing or service of
53	103		value; provided, the posting or invoicing of charges per order for
54	104		processing minimum orders or per case for the handling or repacking
55	105		of goods by wine and spirits wholesalers and beer dist ributors for
56	106		sales in less than full case lots shall not constitute a violation
57	107		of this section.
58		-
59	108		C. For the violation of any provision of this section or of any
60	109		rule duly promulgated under this section, the ABLE Commission may
61	110		suspend or revoke a license as follows:
62		-
63	111		1. For a first offense, not exceeding ten (10) days ' suspension
64	112		of license;
65		-
66	113		2. For a second offense, not exceeding thirty (30) days '
67	114		suspension of license; and
68		-
69	115		3. For a third offense, the A BLE Commission shall revoke the
70	116		license.
	117	+
	118	+	SENATE FLOOR VERSION - HB1096 SFLR Page 3
	119	+	(Bold face denotes Committee Amendments) 1
	120	+	2
	121	+	3
	122	+	4
	123	+	5
	124	+	6
	125	+	7
	126	+	8
	127	+	9
	128	+	10
	129	+	11
	130	+	12
	131	+	13
	132	+	14
	133	+	15
	134	+	16
	135	+	17
	136	+	18
	137	+	19
	138	+	20
	139	+	21
	140	+	22
	141	+	23
	142	+	24
71	143
72	144		D. For purposes of this section, and except as otherwise
73	145		provided in subsection E of this section, "inducement" means
74	146		directly or indirectly offering, selling, trading, giving or
75	147		furnishing any discount, free goods , electronic or nonelectronic
76	148		refrigerated equipment , barrels, tubs, fixtures, dispensing
77	149		equipment, outdoor electric or nonelectric advertising structure
78	150		displaying the retailer 's name, permanent shelving, supplies, gifts,
79	151		prizes, instantly redeemable cou pons, premiums, retailer rebates,
80	152		services of any employee including but not limited to affixing price
81	153		labels or tags, routinely stocking product on shelves other than the
82	154		stocking of cold boxes, paying a third party for entering product
83	155		and price information into a retailer's computer system, portal,
84	156		website, spreadsheet or third -party system, handling product that
85	157		was not sold to the retailer by the licensee, paying a slotting fee,
86	158		selling on consignment, operating a retailer 's cash register,
87	159		conducting janitorial services, decoration, samples of alcoholic
88	160		beverages, personal property or other inducement or thing of value
89		-	to any retail spirit, retail beer, retail wine, beer and wine, mixed ~~ENR. H. B. NO. 1096 Page 3~~
	161	+	to any retail spirit, retail beer, retail wine, beer and wine, mixed
90	162		beverage, caterer, bottle club or special event licensee, wine and
91	163		spirits wholesaler or beer distributor, their agents or employees.
92		-
93	164		E. It shall not be deemed an inducement for a brewer, beer
94	165		distributor, small brewer self -distributor or brewpub self -
95	166		distributor to voluntarily take the following merchandising actions
96	167		with the permission of the retail licensee:
97	168
	169	+	SENATE FLOOR VERSION - HB1096 SFLR Page 4
	170	+	(Bold face denotes Committee Amendments) 1
	171	+	2
	172	+	3
	173	+	4
	174	+	5
	175	+	6
	176	+	7
	177	+	8
	178	+	9
	179	+	10
	180	+	11
	181	+	12
	182	+	13
	183	+	14
	184	+	15
	185	+	16
	186	+	17
	187	+	18
	188	+	19
	189	+	20
	190	+	21
	191	+	22
	192	+	23
	193	+	24
	194	+
98	195		1. Furnish point-of-sale advertising materials and consumer
99	196		advertising specialties, as those terms are defined in 27 C.F.R.,
100	197		Section 6.84 and in compliance with the other limits and
101	198		restrictions provided in 27 C. F.R., Section 6.84;
102		-
103	199		2. Give or sell product display s, including but not limited to
104	200		barrels and tubs, provided that the value of such displays does not
105	201		exceed the limits and restrictions provided in 27 C.F.R., Section
106	202		6.83;
107		-
108	203		3. Build product displays, acce ssible to the customer and
109	204		without disturbing compet itors' products, for the product being
110	205		delivered by the beer distributor;
111		-
112	206		4. Affix pricing to the shelf strip or product display for the
113	207		product being delivered by the beer distributor, small brewer self -
114	208		distributor or brewpub self-distributor, or brewed by the brewer;
115		-
116	209		5. Routinely stock and restock shelves and cold boxes and
117	210		rotate product that has been sold to the retail licensee by the beer
118	211		distributor, small brewer self -distributor or brewpub self -
119	212		distributor, or brewed by the brewer;
120		-
121	213		6. Furnish things of value to a temporary retailer, as defined
122	214		in 27 C.F.R., Section 6.85;
123		-
124	215		7. Sell equipment or supplies to a retail licensee, provided
125	216		the equipment or supplies are sold at a price not less than the co st
126	217		to the industry member and payment is collected w ithin thirty (30)
127	218		days of the sale;
128	219
	220	+	SENATE FLOOR VERSION - HB1096 SFLR Page 5
	221	+	(Bold face denotes Committee Amendments) 1
	222	+	2
	223	+	3
	224	+	4
	225	+	5
	226	+	6
	227	+	7
	228	+	8
	229	+	9
	230	+	10
	231	+	11
	232	+	12
	233	+	13
	234	+	14
	235	+	15
	236	+	16
	237	+	17
	238	+	18
	239	+	19
	240	+	20
	241	+	21
	242	+	22
	243	+	23
	244	+	24
	245	+
129	246		8. Install dispensing accessories at the retail location, as
130	247		long as the retailer bears the cost of installation including
131	248		equipment; or furnish, give or sell coil cle aning services to a
132	249		retailer;
133		-	ENR. H. B. NO. 1096 Page 4
134	250		9. Withdraw quantitie s of beer or cider in undamaged, original
135	251		packaging from the retail licensee 's stock, provided the beer
136	252		distributor, small brewer self -distributor, brewpub self -distributor
137	253		or brewer sold such beer, direc tly or indirectly, to the retail
138	254		licensee and such removal is otherwise permitted under Section 3 -115
139	255		of this title; provided, however, replacing with beer or cider of
140	256		equivalent value shall not be considered a consignment sale;
141		-
142	257		10. Provide mail-in rebates for beer, cider and nonalcoholic
143	258		beverage merchandise items, funded by the brewer and redeemed by the
144	259		brewer, either by itself or through a third -party fulfillment
145	260		company, for a discount or rebate on the beer, cider or nonalcoholic
146	261		item;
147		-
148	262		11. Provide a recommended shelf plan or shelf schematic to a
149	263		retail licensee for all or any portion of the inventory sold by the
150	264		retail licensee;
151		-
152	265		12. Furnish or give a sample of beer or cider to a retailer who
153	266		has not purchased the brand from that brewer, beer distribu tor,
154	267		small brewer self-distributor or brewpub self -distributor within the
155	268		last twelve (12) months, provided that the brewer, beer distributor,
156	269		small brewer self-distributor or brewpub self -distributor may not
	270	+
	271	+	SENATE FLOOR VERSION - HB1096 SFLR Page 6
	272	+	(Bold face denotes Committee Amendments) 1
	273	+	2
	274	+	3
	275	+	4
	276	+	5
	277	+	6
	278	+	7
	279	+	8
	280	+	9
	281	+	10
	282	+	11
	283	+	12
	284	+	13
	285	+	14
	286	+	15
	287	+	16
	288	+	17
	289	+	18
	290	+	19
	291	+	20
	292	+	21
	293	+	22
	294	+	23
	295	+	24
	296	+
157	297		give more than thirty -six (36) ounces of any br and of beer or cider
158	298		to a specific retailer;
159		-
160	299		13. Furnish or give newspaper cuts, mats or engraved blocks for
161	300		use in retailers' advertisements;
162		-
163	301		14. Package and distribute beer or cider in combination with
164	302		other nonalcoholic items for sale to consumers;
165		-
166	303		15. Give or sponsor educational seminars for employee s of
167	304		retailers either at the brewer, beer distributor, small brewer self -
168	305		distributor or brewpub self -distributor's premises or at the
169	306		retailer's establishment, including seminars dealing with use of a
170	307		retailer's equipment, training seminars for employees o f retailers
171	308		or tours of the brewer, beer distributor, small brewer self -
172	309		distributor, or brewpub self -distributor's plant premises, provided
173	310		that the brewer, beer distributor, small brewer self -distributor or
174	311		brewpub self-distributor shall not pay the retai ler for the
175	312		employees' travel, lodging or other expenses in conjunction with an
176	313		educational seminar but may provide nominal hospitality during the
177	314		event;
178		-	ENR. H. B. NO. 1096 Page 5
179	315		16. Conduct tasting or sampling activities at a r etail
180	316		establishment and purchase the products to be used from the retailer
181	317		so long as the purchase price paid does not exceed the ordinary
182	318		retail price,; provided, a beer distributor shall not be required to
183	319		provide labor for such sampling activities;
184	320
	321	+	SENATE FLOOR VERSION - HB1096 SFLR Page 7
	322	+	(Bold face denotes Committee Amendments) 1
	323	+	2
	324	+	3
	325	+	4
	326	+	5
	327	+	6
	328	+	7
	329	+	8
	330	+	9
	331	+	10
	332	+	11
	333	+	12
	334	+	13
	335	+	14
	336	+	15
	337	+	16
	338	+	17
	339	+	18
	340	+	19
	341	+	20
	342	+	21
	343	+	22
	344	+	23
	345	+	24
	346	+
185	347		17. Offer contest prizes, premium offers, refunds and l ike
186	348		items directly to consumers so long as officers, employees and
187	349		representatives of brewers, beer distributors, small brewer self -
188	350		distributors, brewpub self -distributors and licensed retailers are
189	351		excluded from participation;
190		-
191	352		18. List the names and addr esses of two or more unaffiliated
192	353		retailers selling the products of a brewer, beer distributor, small
193	354		brewer, small brewer self-distributor or brewpub self -distributor in
194	355		an advertisement of such brewer, beer distributor, small brewer,
195	356		small brewer self-distributor or brewpub self -distributor so long as
196	357		the requirements of 27 C.F.R., Section 6.98 are satisfied ,
197	358		considering applicable guidance issued by the United States
198		-	Department of ~~the~~ Treasury Alcohol and ~~Tobacco~~ Tax and Trade Bureau;
	359	+	Department of Treasury Alcohol and T obacco Tax and Trade Bureau;
199	360		provided, nothing in th e Oklahoma Alcoholic Beverage Control Act
200	361		shall prohibit a retail , mixed beverage, on -premises beer and wine,
201	362		public event, special event, charitable auction, charitable
202		-	alcoholic beverage event, or complimentary beverage licensee from
	363	+	alcoholic beverage event or complimentary beverage licensee from
203	364		communicating with a brewer, beer distributor, small brewer, small
204	365		brewer self-distributor or brewpub self -distributor on social media
205	366		or sharing media on the social media page or site of a brewer, beer
206	367		distributor, small bre wer, small brewer self-distributor or brewpub
207	368		self-distributor. A retail, mixed beverage, on -premises beer and
208	369		wine, public event, special event, charitable auction, charitable
209		-	alcoholic beverage event, or complimentary beverage licensee may
	370	+	alcoholic beverage event or complimentary beverage licensee may
	371	+
	372	+	SENATE FLOOR VERSION - HB1096 SFLR Page 8
	373	+	(Bold face denotes Committee Amendments) 1
	374	+	2
	375	+	3
	376	+	4
	377	+	5
	378	+	6
	379	+	7
	380	+	8
	381	+	9
	382	+	10
	383	+	11
	384	+	12
	385	+	13
	386	+	14
	387	+	15
	388	+	16
	389	+	17
	390	+	18
	391	+	19
	392	+	20
	393	+	21
	394	+	22
	395	+	23
	396	+	24
	397	+
210	398		request free social media advertising from a brewer, beer
211	399		distributor, small brewer, small brewer self -distributor or brewpub
212	400		self-distributor; provided , nothing in this section shall prohibit a
213	401		brewer, beer distributor, small brewer, small brewer self -
214	402		distributor or brewpub self-distributor from sharing, reposting or
215	403		forwarding a social media post by a retail, mixed beverage, on -
216	404		premises beer and wine, public event, special event, charitable
217		-	auction, charitable alcoholic beverage event, or ~~comp limentary~~
	405	+	auction, charitable alcoholic beverage event or complimentary
218	406		beverage licensee, as long as the sharing, reposting or forwarding
219	407		of the social media post does not contain the reta il price of any
220	408		alcoholic beverage. No brewer, beer distributor, small brewer,
221	409		small brewer self-distributor or brewpub self -distributor shall pay
222	410		or reimburse a retail, mixed beverage, on-premises beer and wine,
223		-	public event, special event, charitable auction, charitable ~~ENR. H. B. NO. 1096 Page 6~~
224		-	alcoholic beverage event, or complimentary beverage licensee,
	411	+	public event, special event, charitable auction, charitable
	412	+	alcoholic beverage event or complimentary beverage licensee,
225	413		directly or indirectly, for any social media advertising services.
226	414		No retail, mixed beverage, on-premises beer and wine, pub lic event,
227	415		special event, charitable auction, charitable alcoholic beverage
228		-	event, or complimentary beverage licensee shall accept any payment
229		-	or reimbursement, directly or i ndirectly, for any social media
	416	+	event or complimentary beverage licensee shall accept any payment or
	417	+	reimbursement, directly or i ndirectly, for any social media
230	418		advertising service offered by a brewer, beer dist ributor, small
231	419		brewer, small brewer self -distributor or brewpub self -distributor.
232	420		For purposes of this paragraph, "social media" means a service,
233	421		platform or site where users communicate with one another and share
	422	+
	423	+	SENATE FLOOR VERSION - HB1096 SFLR Page 9
	424	+	(Bold face denotes Committee Amendments) 1
	425	+	2
	426	+	3
	427	+	4
	428	+	5
	429	+	6
	430	+	7
	431	+	8
	432	+	9
	433	+	10
	434	+	11
	435	+	12
	436	+	13
	437	+	14
	438	+	15
	439	+	16
	440	+	17
	441	+	18
	442	+	19
	443	+	20
	444	+	21
	445	+	22
	446	+	23
	447	+	24
	448	+
234	449		media, such as pictures, videos, music an d blogs, with other users
235	450		free of charge; or
236		-
237	451		19. Entering product and price information into a retailer 's
238	452		portal, website, spreadsheet or third -party system. A brewer may
239	453		pay for a third-party system that pr ovides data and pricing services
240	454		to the brewer or a beer distributor.
241		-
242	455		F. It shall not be deemed an inducement for a brewer, beer
243	456		distributor, small brewer self -distributor or brewpub self -
244	457		distributor to engage in the following marketing activities,
245	458		provided that the brewer, beer distributor, small bre wer self-
246	459		distributor or brewpub self -distributor shall not pay the retailer 's
247	460		travel costs other than those for local transportation or lodging:
248		-
249	461		1. Provide tickets to a retailer for a sporting or
250	462		entertainment event so long as a representative of the brew er, beer
251	463		distributor, small brewer self -distributor or brewpub self -
252	464		distributor attends the event with the retailer;
253		-
254	465		2. Provide food and beverage to a retailer for immediate
255	466		consumption:
256		-
257	467		a. at a meeting at which the primary purpose is the
258	468		discussion of business,
259		-
260	469		b. at a convention when the food and beverages are
261	470		offered to all participants, or
262		-
263	471		c. at a sports or entertainment event that the
264	472		representatives of a brewer, beer distributor, small
	473	+
	474	+	SENATE FLOOR VERSION - HB1096 SFLR Page 10
	475	+	(Bold face denotes Committee Amendments) 1
	476	+	2
	477	+	3
	478	+	4
	479	+	5
	480	+	6
	481	+	7
	482	+	8
	483	+	9
	484	+	10
	485	+	11
	486	+	12
	487	+	13
	488	+	14
	489	+	15
	490	+	16
	491	+	17
	492	+	18
	493	+	19
	494	+	20
	495	+	21
	496	+	22
	497	+	23
	498	+	24
	499	+
265	500		brewer self-distributor or brewpub self-distributor
266	501		attend with the retailer;
267		-	ENR. H. B. NO. 1096 Page 7
268	502		3. Participate in retailer association activities by engaging
269	503		in the following actions:
270		-
271	504		a. displaying products at a convention or trade show,
272		-
273	505		b. renting display booth space if the rental fee is t he
274	506		same as paid by all exhibitors at the event,
275		-
276	507		c. providing its own hospitality which is independent
277	508		from association-sponsored activities,
278		-
279	509		d. purchasing tickets to functions and paying
280	510		registration fees if the payments or fees are the same
281	511		as paid by all attendees, participants or exhibitors
282	512		at the event, or
283		-
284	513		e. making payments for advertisements in programs or
285	514		brochures issued by retailer associations at a
286	515		convention or trade show; or
287		-
288	516		4. Giving or selling outdoor signs to a retailer so long as the
289	517		following requirements of 27 C.F.R., Section 6.102 ar e satisfied:
290		-
291	518		a. the sign bears conspicuous and substantial advertising
292	519		matter about the product or the brewer, beer
293	520		distributor, small brewer self -distributor or brewpub
294	521		self-distributor which is permanently i nscribed or
295	522		securely affixed,
296	523
	524	+	SENATE FLOOR VERSION - HB1096 SFLR Page 11
	525	+	(Bold face denotes Committee Amendments) 1
	526	+	2
	527	+	3
	528	+	4
	529	+	5
	530	+	6
	531	+	7
	532	+	8
	533	+	9
	534	+	10
	535	+	11
	536	+	12
	537	+	13
	538	+	14
	539	+	15
	540	+	16
	541	+	17
	542	+	18
	543	+	19
	544	+	20
	545	+	21
	546	+	22
	547	+	23
	548	+	24
	549	+
297	550		b. the retailer is not compensated, directly or
298	551		indirectly, such as through a sign company, for
299	552		displaying the signs, and
300		-
301	553		c. a permanent outdoor sign does not contain the
302	554		retailer's name.
303		-
304	555		SECTION 2. This act shall become effective November 1, 2021.
305		-	ENR. H. B. NO. 1096 Page 8
306		-	Passed the House of Representatives the 9th day of March, 2021.
307		-
308		-
309		-
310		-
311		-	Presiding Officer of the House
312		-	of Representatives
313		-
314		-
315		-	Passed the Senate the 12th day of April, 2021.
316		-
317		-
318		-
319		-
320		-	Presiding Officer of the Senate
321		-
322		-
323		-
324		-	OFFICE OF THE GOVERNOR
325		-	Received by the Office of the Governor this ____________________
326		-	day of ___________________, 20_______, at _______ o'clock _______ M.
327		-	By: _________________________________
328		-	Approved by the Governor of the State of Oklahoma this _________
329		-	day of ___________________, 20_______, at _______ o'clock _______ M.
330		-
331		-
332		-	_________________________________
333		-	Governor of the State of Oklahoma
334		-
335		-	OFFICE OF THE SECRETARY OF STATE
336		-	Received by the Office of the Sec retary of State this __________
337		-	day of ___________________, 20_______, at _______ o'clock _______ M.
338		-	By: _________________________________
339		-
	556	+	COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM
	557	+	March 30, 2021 - DO PASS