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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1920 By: Martinez
COMMITTEE SUBSTITUTE
An Act relating to beer industry requirements;
amending Section 77, Chapter 366, O.S.L. 2016, as
amended by Section 13, Chapter 322, O.S.L. 2019 (37A
O.S. Supp. 2020, Section 3 -107), which relates to
regulation of beer distribution agreements;
prohibiting certain requirement on nonmanufactured
products; prohibiting controlling hiring decisions;
prohibiting mandating advertising payments;
prohibiting mandating certain point -of-sale
advertising and payments; prohibiting initiation of
electronic funds for products exceeding the order;
prohibiting loss for product not in possession;
prohibiting certain pay ments or mandates for
software; providing a certain exception; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 77, Chapter 366, O.S.L.
2016, as amended by Section 13, Chapter 322, O.S.L. 2019 (37A O.S.
Supp. 2020, Section 3 -107), is amended to read as follows:
Section 3-107. A. In order to provide for regulation of the
sales and distribution of beer in this state by the ABLE Commission,
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this Legislature hereby declares it is necessary to implement the
section.
B. Statutory regulation of the sales and distribution of
designated brands in designated territories by distributors shall
include but not be limited to:
1. A requirement for written distributo r agreements between a
brewer and distributor designating a specific territory within which
the distributor may sell the designated brands of the brewer;
2. Provisions for prohibited acts applicable to the distributor
and brewer; and
3. Provisions for pe nalties for violations.
C. Except for a brewer that has met the provisions of
subsection E of Section 3 -108 of Title 37A of the Oklahoma Statutes
and notwithstanding any existing beer distribution agreement to the
contrary, a brewer or importer of beer sh all not:
1. Coerce or require a distributor to gather or submit sales
records, retail placement, price, discount, rebate or other details
for beer brands not brewed or imported by the brewer or importer;
2. Mandate distributor employee hiring decisions o r payment
rates including incentives;
3. Require a distributor to pay or contribute marketing,
advertising or other funds for control or expenditure by the brewer
or importer, except a distributor may agree, in writing and advance,
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to spend or contribute distributor funds for a specified marketing
or advertising plan or opportunity;
4. Ship, invoice or initiate electronic funds transfer payment
for any quantity of beer exceeding an order, forecast or inventory
level specified by a distributor or include i n a beer sales invoice
charges for any items other than beer, freight, fuel, cooperage,
dunnage, pallets and related deposits;
5. Invoice or initiate electronic funds transfer payment for
point-of-sale advertising specialties or other items, except a
brewer or importer may itself place an order and invoice or initiate
electronic funds transfer payment for point -of-sale advertising
specialties or other items pursuant to a specific and advance
written agreement to do so between the distributor and the brewer or
importer;
6. Attribute risk of loss, ownership or other financial
interest to a distributor for beer not in the distributor's
possession; or
7. Require a distributor to use or pay for development,
installation, or use of any software owned or mandate d by the brewer
or importer, except a distributor may be required to maintain data
in a format compatible with data format standards adopted or with
electronic information systems utilized by a brewer or importer.
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SECTION 2. This act shall become effective November 1, 2021.
58-1-7811 JL 02/25/21