Oklahoma 2022 Regular Session

Oklahoma House Bill HB1920 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	HB1920 HFLR Page 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31	27		STATE OF OKLAHOMA
32	28
33	29		1st Session of the 58th Legislature (2021)
34	30
35		-	COMMITTEE SUBSTITUTE
36		-	FOR
37		-	HOUSE BILL NO. 1920 By: Martinez
	31	+	HOUSE BILL 1920 By: Martinez
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	37	+	AS INTRODUCED
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44		-
45		-	COMMITTEE SUBSTITUTE
46		-
47		-	An Act relating to beer industry requirements;
48		-	amending Section 77, Chapter 366, O.S.L. 2016, as
49		-	amended by Section 13, Chapter 322, O.S.L. 2019 (37A
50		-	O.S. Supp. 2020, Section 3 -107), which relates to
51		-	regulation of beer distribution agreements;
52		-	prohibiting certain requirement on nonmanufactured
53		-	products; prohibiting con trolling hiring decisions;
54		-	prohibiting mandating advertising payments;
55		-	prohibiting mandating certain point -of-sale
56		-	advertising and payments; prohibiting initiation of
57		-	electronic funds for products exceeding the order;
58		-	prohibiting loss for product not in po ssession;
59		-	prohibiting certain payments or mandates for
60		-	software; providing a certain exception; and
	39	+	An Act relating to alcoholic beverages; providing
	40	+	that a manufacturer, brewer, or importer of beer
	41	+	shall not commit certain acts relati ng to beer
	42	+	distribution; providing for codification; and
61	43		providing an effective date.
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67	49		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
68		-	SECTION 1. AMENDATORY Section 77, Chapter 36 6, O.S.L.
69		-	2016, as amended by Section 13, Chapter 322, O.S.L. 2019 (37A O.S.
70		-	Supp. 2020, Section 3 -107), is amended to read as follows:
71		-
72		-	HB1920 HFLR Page 2
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	50	+	SECTION 1. NEW LAW A new section of law to be codified
	51	+	in the Oklahoma Statutes as Section 3-128 of Title 37A, unless there
	52	+	is created a duplication in numbering, reads as follows:
	53	+	Notwithstanding any existing beer distribution agreement to the
	54	+	contrary, a manufacturer, brewer, or importer of beer shall not:
	55	+	1. Coerce or require a wh olesaler to gather or submit sales
	56	+	records, retail placement, price, discount, rebate, or other details
	57	+	for beer brands not manufactured, brewed, or imported by the
	58	+	manufacturer, brewer, or importer;
	59	+	2. Mandate wholesaler employee hiring decisions or paym ent
	60	+	rates, including incentives;
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98		-	Section 3-107. A. In order to provide for regulation of the
99		-	sales and distribution of beer in this state by the ABLE C ommission,
100		-	this Legislature hereby declares it is necessary to implement the
101		-	section.
102		-	B. Statutory regulation of the sales and distribution of
103		-	designated brands in designated territories by distributors shall
104		-	include but not be limited to:
105		-	1. A requirement for written distributor agreements between a
106		-	brewer and distributor designating a specific territory within which
107		-	the distributor may sell the designated brands of the brewer;
108		-	2. Provisions for prohibited acts applicable to the distributor
109		-	and brewer; and
110		-	3. Provisions for penalties for violations.
111		-	C. Except for a brewer that has met the provisions of
112		-	subsection E of Section 3 -108 of Title 37A of the Oklahoma Statutes
113		-	and notwithstanding any existing beer distribution agreement to the
114		-	contrary, a brewer or importer of beer shall not:
115		-	1. Coerce or require a distributor to gather or submit sales
116		-	records, retail placement, price, discount, rebate or other details
117		-	for beer brands not brewed or imported by the brewer or importer;
118		-	2. Mandate distributor em ployee hiring decisions or payment
119		-	rates including incentives;
120		-	3. Require a distributor to pay or contribute marketing,
121		-	advertising or other funds for control or expenditure by the brewer
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123		-	HB1920 HFLR Page 3
124		-	BOLD FACE denotes Committee Amendments. 1
	86	+	3. Require a wholesaler to pay or contribute marketing,
	87	+	advertising or other funds for control or expenditure by the
	88	+	manufacturer, brewer, or importer, except a wholesaler may agree, in
	89	+	writing and advance, to spend or con tribute wholesaler funds for a
	90	+	specified marketing or advertising plan or opportunity;
	91	+	4. Ship, invoice or initiate electronic funds transfer payment
	92	+	for any quantity of beer exceeding an order, forecast, or inventory
	93	+	level specified by a wholesaler or in clude in a beer sales invoice
	94	+	charges for any items other than beer, freight, fuel, cooperage,
	95	+	dunnage, pallets and related deposits;
	96	+	5. Invoice or initiate electronic funds transfer payment for
	97	+	point of sale advertising specialties or other items, except a
	98	+	manufacturer, brewer, or importer may itself place an order and
	99	+	invoice or initiate electronic funds transfer payment for point of
	100	+	sale advertising specialties or other items pursuant to a specific
	101	+	and advance written agreement to do so between the whol esaler and
	102	+	the manufacturer, brewer, or importer;
	103	+	6. Attribute risk of loss, ownership or other financial
	104	+	interest to a wholesaler for beer not in the wholesaler 's
	105	+	possession; or
	106	+	7. Require a wholesaler to use or pay for development,
	107	+	installation, or use of any software owned or mandated by the
	108	+	manufacturer, brewer, or importer, except a wholesaler may be
	109	+	required to maintain data in format compatible with data format
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149		-	or importer, except a distributor may agree, in writing and advance ,
150		-	to spend or contribute distributor funds for a specified marketing
151		-	or advertising plan or opportunity;
152		-	4. Ship, invoice or initiate electronic funds transfer payment
153		-	for any quantity of beer exceeding an order, forecast or inventory
154		-	level specified by a distributor or include in a beer sales invoice
155		-	charges for any items other than beer, freight, fuel, cooperage,
156		-	dunnage, pallets and related deposits;
157		-	5. Invoice or initiate electronic funds transfer payment for
158		-	point-of-sale advertising specialties or o ther items, except a
159		-	brewer or importer may itself place an order and invoice or initiate
160		-	electronic funds transfer payment for point -of-sale advertising
161		-	specialties or other items pursuant to a specific and advance
162		-	written agreement to do so between the d istributor and the brewer or
163		-	importer;
164		-	6. Attribute risk of loss, ownership or other financial
165		-	interest to a distributor for beer not in the distributor's
166		-	possession; or
167		-	7. Require a distributor to use or pay for development,
168		-	installation, or use of any software owned or mandated by the brewer
169		-	or importer, except a distributor may be required to maintain data
170		-	in a format compatible with data format standards adopted or with
171		-	electronic information systems utilized by a brewer or importer.
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173		-	HB1920 HFLR Page 4
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	135	+	standards adopted or with electronic information systems utilized by
	136	+	a manufacturer, brewer, or importer.
199	137		SECTION 2. This act shall become effective November 1, 2021.
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201		-	COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
202		-	SUBSTANCES, dated 03/01/2021 - DO PASS, As Amended.
	139	+	58-1-5609 JL 12/15/20