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28	28	STATE OF OKLAHOMA
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30	30	1st Session of the 58th Legislature (2021)
31	31
32	32	HOUSE BILL 2117 By: McEntire
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38	38	AS INTRODUCED
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40	40	An Act relating to alcoholic beverages; amending
41	41	Section 93, Chapter 366, O.S.L. 2016, as amended by
42	42	Section 2, Chapter 431, O.S.L. 201 9 (37A O.S. Supp.
43	43	2020, Section 3-123), which relates to wholesalers,
44	44	beer distributors and retailers; authorizing certain
45	45	social media exchanges; defining term; and providing
46	46	an effective date.
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52	52	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAH OMA:
53	53	SECTION 1. AMENDATORY Section 93, Chapter 366, O.S.L.
54	54	2016, as amended by Section 2, Chapter 431, O.S.L. 2019 (37A O.S.
55	55	Supp. 2020, Section 3 -123), is amended to read as follows:
56	56	Section 3-123. A. It shall be unlawful for a ny person
57	57	privileged to sell alcoholic beverages to wholesalers, beer
58	58	distributors or retailers:
59	59	1. To discriminate, directly or indirectly, in price between
60	60	one wine and spirits wholesaler and another wine and spirits
61	61	wholesaler, when that manufacturer h as not designated a single wine
62	62	and spirits wholesaler, or between one retailer and another retailer
63	63
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89	89	purchasing alcoholic beverages bearing the same brand or trade name
90	90	and of like age and quality, unless otherwise provided by law; or
91	91	2. To grant, directl y or indirectly, any discount, rebate, free
92	92	goods, allowance or other inducement.
93	93	B. The ABLE Commission is hereby authorized to promulgate rules
94	94	which are necessary to carry out the purpose of this section and to
95	95	prevent its circumvention by offering or giving of any rebate,
96	96	allowance, free goods, discount or any other thing or service of
97	97	value; provided, the posting or invoicing of charges per order for
98	98	processing minimum orders or per case for the handling or repacking
99	99	of goods by wine and spirits whole salers and beer distributors for
100	100	sales in less than full case lots shall not constitute a violation
101	101	of this section.
102	102	C. For the violation of any provision of this section or of any
103	103	rule duly promulgated under this section, the ABLE Commission may
104	104	suspend or revoke a license as follows:
105	105	1. For a first offense, not exceeding ten (10) days' suspension
106	106	of license;
107	107	2. For a second offense, not exceeding thirty (30) days'
108	108	suspension of license; and
109	109	3. For a third offense, the ABLE Commission shall revoke the
110	110	license.
111	111	D. For purposes of this section, and except as otherwise
112	112	provided in subsection E of this section, "inducement" means
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139	139	directly or indirectly offering, selling, trading, giving or
140	140	furnishing any discount, free goods, electronic or nonelectronic
141	141	refrigerated equipment, barrels, tubs, fixtures, dispensing
142	142	equipment, outdoor electric or nonelectric advertising structure
143	143	displaying the retailer's name, permanent shelving, supplies, gifts,
144	144	prizes, instantly redeemable coupons, premiums, retailer rebates ,
145	145	services of any employee including , but not limited to, affixing
146	146	price labels or tags, routinely stocking product on shelves other
147	147	than the stocking of cold boxes, paying a third party for entering
148	148	product and price information into a retailer's computer system,
149	149	portal, website, spreadsheet or third -party system, handling product
150	150	that was not sold to the retailer by the licensee, paying a slotting
151	151	fee, selling on consignment, operating a retailer's cash register,
152	152	conducting janitorial services, decoration , samples of alcoholic
153	153	beverages, personal property or other inducement or thing of value
154	154	to any retail spirit, retail beer, retail wine, beer and wine, mixed
155	155	beverage, caterer, bottle club or special event licensee, wine and
156	156	spirits wholesaler or beer dis tributor, their agents or employees.
157	157	E. It shall not be deemed an inducement for a brewer, beer
158	158	distributor, small brewer self -distributor or brewpub self -
159	159	distributor to voluntarily take the following merchandising actions
160	160	with the permission of the retai l licensee:
161	161	1. Furnish point-of-sale advertising materials and consumer
162	162	advertising specialties, as those terms are defined in 27 C.F.R.,
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189	189	Section 6.84 and in compliance with the other limits and
190	190	restrictions provided in 27 C.F.R., Section 6.84;
191	191	2. Give or sell product displays, including , but not limited
192	192	to, barrels and tubs, provided that the value of such displays does
193	193	not exceed the limits and restrictions provided in 27 C.F.R.,
194	194	Section 6.83;
195	195	3. Build product displays, accessible to the customer and
196	196	without disturbing competitors' products, for the product being
197	197	delivered by the beer distributor;
198	198	4. Affix pricing to the shelf strip or product display for the
199	199	product being delivered by the beer distributor, small brewer self -
200	200	distributor or brewpub self -distributor, or brewed by the brewer;
201	201	5. Routinely stock and restock shelves and cold boxes and
202	202	rotate product that has been sold to the retail licensee by the beer
203	203	distributor, small brewer self -distributor or brewpub self -
204	204	distributor, or brewed by the brewer;
205	205	6. Furnish things of value to a temporary retailer, as defined
206	206	in 27 C.F.R., Section 6.85;
207	207	7. Sell equipment or supplies to a retail licensee, provided
208	208	the equipment or supplies are sold at a price not less than the cost
209	209	to the industry member an d payment is collected within thirty (30)
210	210	days of the sale;
211	211	8. Install dispensing accessories at the retail location, as
212	212	long as the retailer bears the cost of installation including
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239	239	equipment; or furnish, give or sell coil cleaning services to a
240	240	retailer;
241	241	9. Withdraw quantities of beer or cider in undamaged, original
242	242	packaging from the retail licensee's stock, provided the beer
243	243	distributor, small brewer self -distributor, brewpub self -distributor
244	244	or brewer sold such beer, directly or indirectly, to the re tail
245	245	licensee and such removal is otherwise permitted under Section 3 -115
246	246	of this title; provided, however, replacing with beer or cider of
247	247	equivalent value shall not be considered a consignment sale;
248	248	10. Provide mail-in rebates for beer, cider and nonalc oholic
249	249	beverage merchandise items, funded by the brewer and redeemed by the
250	250	brewer, either by itself or through a third -party fulfillment
251	251	company, for a discount or rebate on the beer, cider or nonalcoholic
252	252	item;
253	253	11. Provide a recommended shelf plan or sh elf schematic to a
254	254	retail licensee for all or any portion of the inventory sold by the
255	255	retail licensee;
256	256	12. Furnish or give a sample of beer or cider to a retailer who
257	257	has not purchased the brand from that brewer, beer distributor,
258	258	small brewer self-distributor or brewpub self -distributor within the
259	259	last twelve (12) months, provided that the brewer, beer distributor,
260	260	small brewer self-distributor or brewpub self -distributor may not
261	261	give more than thirty -six (36) ounces of any brand of beer or cider
262	262	to a specific retailer;
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289	289	13. Furnish or give newspaper cuts, mats or engraved blocks for
290	290	use in retailers' advertisements;
291	291	14. Package and distribute beer or cider in combination with
292	292	other nonalcoholic items for sale to consumers;
293	293	15. Give or sponsor education al seminars for employees of
294	294	retailers either at the brewer, beer distributor, small brewer self -
295	295	distributor or brewpub self -distributor's premises or at the
296	296	retailer's establishment, including seminars dealing with use of a
297	297	retailer's equipment, training seminars for employees of retailers
298	298	or tours of the brewer, beer distributor, small brewer self -
299	299	distributor, or brewpub self -distributor's plant premises, provided
300	300	that the brewer, beer distributor, small brewer self -distributor or
301	301	brewpub self-distributor shall not pay the retailer for the
302	302	employees' travel, lodging or other expenses in conjunction with an
303	303	educational seminar but may provide nominal hospitality during the
304	304	event;
305	305	16. Conduct tasting or sampling activities at a retail
306	306	establishment and purc hase the products to be used from the retailer
307	307	so long as the purchase price paid does not exceed the ordinary
308	308	retail price,; provided, a beer distributor shall not be required to
309	309	provide labor for such sampling activities;
310	310	17. Offer contest prizes, premi um offers, refunds and like
311	311	items directly to consumers so long as officers, employees and
312	312	representatives of brewers, beer distributors, small brewer self -
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339	339	distributors, brewpub self -distributors and licensed retailers are
340	340	excluded from participation;
341	341	18. List the names and addresses of two or more unaffiliated
342	342	retailers selling the products of a brewer, beer distributor, small
343	343	brewer, small brewer self-distributor or brewpub self -distributor in
344	344	an advertisement of such brewer, beer distributor, small brewer,
345	345	small brewer self-distributor or brewpub self -distributor so long as
346	346	the requirements of 27 C.F.R., Section 6.98 are satisfied ,
347	347	considering applicable guidance issued by the United States
348	348	Department of Treasury Alcohol and Tobacco Tax and Trade Bureau;
349	349	provided, nothing in the Oklahoma Alcoholic Beverage Control Act
350	350	shall prohibit a retail , mixed beverage, on -premises beer and wine,
351	351	public event, special event, charitable auction, charitable
352	352	alcoholic beverage event, or complimentary beverage licensee from
353	353	communicating with a brewer, beer distributor, small brewer, small
354	354	brewer self-distributor or brewpub self -distributor on social media
355	355	or sharing media on the social media page or site of a brewer, beer
356	356	distributor, small brewer, small brewer self -distributor or brewpub
357	357	self-distributor. A retail, mixed beverage, on -premises beer and
358	358	wine, public event, special event, charitable auction, charitable
359	359	alcoholic beverage event, or complimentary beverage licensee may
360	360	request free social media advertising fr om a brewer, beer
361	361	distributor, small brewer, small brewer self -distributor or brewpub
362	362	self-distributor; provided, nothing in this section shall prohibit a
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389	389	brewer, beer distributor, small brewer, small brewer self -
390	390	distributor or brewpub self -distributor from sharing, reposting or
391	391	forwarding a social media post by a retail , mixed beverage, on -
392	392	premises beer and wine, public event, special event, charitable
393	393	auction, charitable alcoholic beverage event, or complimentary
394	394	beverage licensee, as long as the sharing, reposting or forwarding
395	395	of the social media post does not contain the retail price of any
396	396	alcoholic beverage. No brewer, beer distributor, small brewer,
397	397	small brewer self-distributor or brewpub self -distributor shall pay
398	398	or reimburse a retail , mixed beverage, on-premises beer and wine,
399	399	public event, special event, charitable auction, charitable
400	400	alcoholic beverage event, or complimentary beverage licensee,
401	401	directly or indirectly, for any social media advertising services.
402	402	No retail, mixed beverage, on -premises beer and wine, public event,
403	403	special event, charitable auction, charitable alcoholic beverage
404	404	event, or complimentary beverage licensee shall accept any payment
405	405	or reimbursement, directly or indirectly, for any social media
406	406	advertising service offere d by a brewer, beer distributor, small
407	407	brewer, small brewer self -distributor or brewpub self -distributor.
408	408	For purposes of this paragraph, "social media" means a service,
409	409	platform or site where users communicate with one another and share
410	410	media, such as pictures, videos, music and blogs, with other users
411	411	free of charge; or
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438	438	19. Entering product and price information into a retailer's
439	439	portal, website, spreadsheet or third -party system. A brewer may
440	440	pay for a third-party system that provides data and pricing services
441	441	to the brewer or a beer distributor.
442	442	F. It shall not be deemed an inducement for a brewer, beer
443	443	distributor, small brewer self -distributor or brewpub self -
444	444	distributor to engage in the following marketing activities,
445	445	provided that the brewer, bee r distributor, small brewer self -
446	446	distributor or brewpub self -distributor shall not pay the retailer's
447	447	travel costs other than those for local transportation or lodging:
448	448	1. Provide tickets to a retailer for a sporting or
449	449	entertainment event so long as a re presentative of the brewer, beer
450	450	distributor, small brewer self -distributor or brewpub self -
451	451	distributor attends the event with the retailer;
452	452	2. Provide food and beverage to a retailer for immediate
453	453	consumption:
454	454	a. at a meeting at which the primary purpose is the
455	455	discussion of business,
456	456	b. at a convention when the food and beverages are
457	457	offered to all participants, or
458	458	c. at a sports or entertainment event that the
459	459	representatives of a brewer, beer distributor, small
460	460	brewer self-distributor or brewpub self -distributor
461	461	attend with the retailer;
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488	488	3. Participate in retailer association activities by engaging
489	489	in the following actions:
490	490	a. displaying products at a convention or trade show,
491	491	b. renting display booth space if the rental fee is the
492	492	same as paid by all exhibitors at the event,
493	493	c. providing its own hospitality which is independent
494	494	from association-sponsored activities,
495	495	d. purchasing tickets to functions and paying
496	496	registration fees if the payments or fees are the same
497	497	as paid by all attendees, participant s or exhibitors
498	498	at the event, or
499	499	e. making payments for advertisements in programs or
500	500	brochures issued by retailer associations at a
501	501	convention or trade show; or
502	502	4. Giving or selling outdoor signs to a retailer so long as the
503	503	following requirements of 27 C.F.R., Section 6.102 are satisfied:
504	504	a. the sign bears conspicuous and substantial advertising
505	505	matter about the product or the brewer, beer
506	506	distributor, small brewer self -distributor or brewpub
507	507	self-distributor which is permanently inscribed or
508	508	securely affixed,
509	509	b. the retailer is not compensated, directly or
510	510	indirectly, such as through a sign company, for
511	511	displaying the signs, and
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538	538	c. a permanent outdoor sign does not contain the
539	539	retailer's name.
540	540	SECTION 2. This act shall become effective N ovember 1, 2021.
541	541
542	542	58-1-7220 MAH 01/19/21

Oklahoma 2022 Regular Session

Oklahoma House Bill HB2117 Compare Versions