Req. No. 6196 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 58th Legislature (2021) HOUSE BILL 1618 By: Bennett AS INTRODUCED An Act relating to alcoholic beverages; creating craft distiller licenses; providing for authority pursuant to the licenses; defining te rms; establishing annual licenses fees; providing for codification; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 2 -103.1 of Title 37A, unless there is created a duplication in numbering, reads as follows: A. A craft distiller license shall authorize the holder thereof to: 1. Manufacture, bottle, package and store spirits produced by the licensee on licensed premises; 2. Sell spirits in this state to licensed wholesalers and to sell spirits outside this state to qualified persons; 3. Serve free samples of spirits produced only by the licensee to visitors twenty-one (21) years of age and ol der. For purposes of this paragraph, no visitor may sample more than a total of three (3) Req. No. 6196 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 fluid ounces of spirits per day. The distiller shall restrict the distribution and consumption of samples of spirits to an area within the licensed premise s designated by the distiller. A current floor plan that includes the designated sampling area shall be on file with the ABLE Commission. No visitor under twenty -one (21) years of age shall be permitted to enter the designated sampling area when samples are being distributed and consumed. Samples of spirits served by a distiller under this paragraph shall not be considered a sale of spirits within the meaning of Article XXVIII -A of the Oklahoma Constitution or Section 1 -103 of Title 37A of the Oklahoma Statutes; provided such samples of spirits shall be considered removed or withdrawn from the distillery for use or consumption within the meaning of Section 5 -110 of Title 37A of the Oklahoma Statutes for excise tax determination and reporting requirements. Sampling may only occur between the hours of 10:00 a.m. and 2:00a.m.; 4. Sell spirits produced by the licensee for either on -premises or off-premises consumption to consumers on the distillery premises, or on an area controlled by the licensee located contiguous to the licensed premises. Such sales will incur a fee paid to a wholesaler, negotiated between the licensee and wholesaler, and be considered a sale through the wholesaler ; and 5. Sell spirits at public events such as trade shows or festivals. Such sales will incur a fee paid to a wholesaler, Req. No. 6196 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 negotiated between the licensee and wholesaler, and be considere d a sale through the wholesaler. Spirits sold under paragraphs 4 and 5 of this subsection are not to exceed fifteen thousand (15,000) gallons per calendar year in combination. B. As used in this act, "craft distiller" means a distillery that does not annually produce for sale more that one hundred thousand (100,000) proof gallons of spirits as reported to the United States Department of the Treasury Al cohol and Tobacco Tax and Trade Bureau. This is the same definition adopted by the Tax and Trade Bureau. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 2-103.2 of Title 37A, unless there is created a duplication in numbering, reads as follows: The annual license fees for a craft distiller license issued pursuant to Section 1 of this act shall be One Hundred Twenty-five Dollars ($125.00). SECTION 3. This act shall become ef fective November 1, 2021. 58-1-6196 JL 12/22/20