HB1922 HFLR Page 1 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 1st Session of the 58th Legislature (2021) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 1922 By: Martinez COMMITTEE SUBSTITUTE An Act relating to alcoholic beverages; amending Section 76, Chapter 366, O.S.L. 2016, as last amended by Section 3, Chapter 113, O.S.L. 2018 (37A O.S. Supp. 2020, Section 3 -106), which relates to the shipment of wine; modifying requirements for certain reports; prohibiting certain acts; providing penalties; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY Section 76, Chapter 366, O.S.L. 2016, as last amended by Section 3, Chapter 113, O.S.L. 2018 (37A O.S. Supp. 2020, Section 3-106), is amended to read as follows: Section 3-106. A. A Direct Wine Shipper's Permit may be issued by the Oklahoma ABLE Commission to a winery licensed in this or any other state within the United States as a wine producer. A Direct Wine Shipper's Permit allows a winery to ship up to six nine -liter cases of wine annually directly to an Oklahoma resident who is twenty-one (21) years of age or older for such resident's personal HB1922 HFLR Page 2 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 use and not for resale. No resident shall be permitted to purcha se more than thirty nine -liter cases of wine per year under the provisions of this section. B. The ABLE Commission shall promulgate rules governing the application, issuance and renewal of Direct Wine Shipper's Permits, which shall include but not be limi ted to: 1. Proof of current licensure in this or any other state as a wine producer; 2. Payment of a registration fee of Three Hundred Dollars ($300.00) for original permits and One Hundred Fifty Dollars ($150.00) for renewal permits; and 3. Any other documentation that the ABLE Commission believes is reasonably necessary to verify the identity and physical location of the winery. C. With regard to direct wine shipments permitted by this section, Direct Wine Shipper permit holders: 1. Shall not ship mo re than six nine-liter cases of wine annually to any person for his or her personal use; 2. Shall not ship wine intended for resale; 3. Shall ensure that all packages containing wine shipped directly to a resident in this state are conspicuously labeled with the words "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY" or are conspicuously labeled with alternative wording preapproved by the ABLE Commission; HB1922 HFLR Page 3 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. Shall require the transporter or common carrier that delivers the wine to obtain the signature of a person twenty -one (21) years of age or older at the delivery address at the time of delivery. At the expense of the Direct Wine Shipper, the Direct Wine Shipper shall receive a delivery confirmation from the express company, common carrier or contract carrier indicating the location of delivery and the name and signature of the individual who accepted the delivery. The ABLE Commission shall design and create a label or approve a label that must be affixed to the shipping container by the licensee; 5. Shall report to the ABLE Commission annually, by a method prescribed by the ABLE Commission, the total amount of wine shipped into the state the preceding calendar year; 6. Shall annually pay to the Oklahoma Tax Commission all applicable taxes due on sales authorized by this section to Oklahoma residents in the preceding calendar year. The amount of such taxes shall be calculated as if the sale were in Oklahoma at the location where delivery is made. Upon request, permit holde rs shall permit the Tax Commission to perform an audit of the permit holder's records in order to assure compliance; 7. Shall be deemed to have consented to the jurisdiction of any agency or court of the State of Oklahoma tasked with the enforcement of or adjudication of controversies related to this section and any related laws or rules; and HB1922 HFLR Page 4 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 8. Shall require the consumer to verify, by electronic means or otherwise, that the consumer is at least twenty -one (21) years of age. D. Every express company, com mon carrier, contract carrier and every firm or corporation that shall bring, carry or transport wine for delivery to any person in the state, except wine or spirit wholesalers or beer distributors, shall prepare and file quarterly with the ABLE Commission a report, which shall not be subject to the Oklahoma Open Records Act, of known wine shipments containing: 1. The name of the company, carrier, person, firm or corporation making the report; 2. The period of time covered by the report; 3. The name, direct shipping permit number and business address of the consignor shipping the wine; 4. The weight of the packages shipped; 5. The unique tracking number of the delivery; and 6. The date of delivery. E. No express company, common carrier or contract car rier nor any representative, agent or employee on behalf of an express company, common carrier or contract carrier shall knowingly deliver any shipping container that contains an alcoholic beverage into this state, unless it complies with the provisions of this section. No express company, common carrier or contract carrier nor any representative, agent or employee on behalf of an express company, HB1922 HFLR Page 5 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 common carrier or contract carrier shall knowingly deliver any shipping container that is clearly labeled as c ontaining an alcoholic beverage, including, but not limited to, the lawful shipment of wine under this section, to any person in this state who is under the age of twenty -one (21) at the time of delivery. Any express company, common carrier or contract ca rrier that carries or transports alcoholic beverages for delivery within this state in violation of this section for the first offense shall be fined not more than One Thousand Five Hundred Dollars ($1,500.00), for a second offense shall be fined not more than Two Thousand Five Hundred Dollars ($2,500.00), and for a third and subsequent offense shall be fined not more than Five Thousand Dollars ($5,000.00). An express company, common carrier and contract carrier shall be held vicariously liable for the act ions of its representatives, agents and employees for actions in violation of this section. F. The provisions of this section do not apply to a motor carrier or freight forwarder as defined in Section 13102 of Title 49 of the United States Code or to an a ir carrier as defined in Section 40102 of Title 49 of the United States Code. SECTION 2. This act shall become effective November 1, 2021. COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED SUBSTANCES, dated 03/01/2021 - DO PASS, As Amended.