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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2135 By: McEntire of the House
and
Thompson of the Senate
COMMITTEE SUBSTITUTE
An Act relating to alcoholic beverages; amending
Section 89, Chapter 366, O.S.L. 2016, as last amended
by Section 1, Chapter 431, O.S.L. 2019 (37A O.S.
Supp. 2020, Section 3 -119), which relates to business
interests and acts prohibited for manufacturers, wine
and spirts wholesalers, beer distributors, persons
authorized to sell alcoholic beverages to wholesalers
and others; modifying to apply to Oklahoma licensed
manufacturers or wholesalers; providing requirements
for manufacturers and brewers whose products are
made outside of the state to have an ownership
interest in an Oklahoma retailer; amending Section
90, Chapter 366, O.S.L. 2016, as amended by Section
23, Chapter 322, O.S.L. 2019 (37A O.S. Supp. 2020,
Section 3-120), which relates to business interests
prohibited for beverage, beer and wine, caterer,
public events or bottle club licensees; modifying to
apply to Oklahoma licensed manufacturers or
wholesalers; amending Section 91, Chapter 366, O.S.L.
2016, as amended by Section 24, Chapter 322, O.S.L.
2019 (37A O.S. Supp. 2020, Section 3-121), which
relates to limitations on ownership interest in mixed
beverage, beer and wine, caterers, public events or
bottle club licensees; modifying to apply to Oklahoma
licensed manufacturer, brewer, wine and spirits
wholesaler, beer distributor, partner in any type of
partnership, manager or member of a limited liability
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company, or officer, director or stockholder of any
nonresident seller, brewer, or manufacturer licensee;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 89, Chapter 366, O.S.L.
2016, as last amended by Section 1, Chapter 431, O.S.L. 2019 (37A
O.S. Supp. 2020, Section 3 -119), is amended to read as follows:
Section 3-119. A. It shall be unlawful for any Oklahoma
Licensed manufacturer, brewer, wine and spirits wholesaler, beer
distributor or person authorized to sell alcoholic beverages to a
wholesaler, or any employee, officer, director, stockholder owning
fifteen percent (15%) or more of the stock, any type of partner,
manager, member or agent thereof, to directly or indirectly:
1. Have any financial interest in any premises upon which any
alcoholic beverage is sold at retail or in any business connected
with the retailing of alcoholic beverages; provided, nothing in this
act shall prohibit the operation of a mixed beverage licensee, beer
and wine licensee or caterer licensee by an entity which has common
owners with the holder of a small brewer license or a brewpub
license;
2. Lend any money or other thing of value, or to make any gift
or offer any gratuity, to any package store, retail wine, retail
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beer, mixed beverage, beer and wine, public event or bottle club
licensee or caterer;
3. Guarantee any loan or the repay ment of any financial
obligation of any retailer, mixed beverage, beer and wine, public
event or bottle club licensee or caterer;
4. Require any wine and spirits wholesaler, beer distributor,
retailer, mixed beverage, on -premises beer and wine licensee, p ublic
event or caterer to purchase and dispose of any quota of alcoholic
beverages, or to require any retailer to purchase any kind, type,
size, container or brand of alcoholic beverages in order to obtain
any other kind, type, size, container or brand of alcoholic
beverages;
5. Sell to any retailer, mixed beverage, on -premises beer and
wine licensee, public event or caterer any alcoholic beverage on
consignment, or upon condition, or with the privilege of return, or
on any condition other than a bona fide sale; provided, the
following shall not be considered a violation of this paragraph:
a. delivery in good faith, through mistake, inadvertence
or oversight, of an alcoholic beverage that was not
ordered by a retailer, mixed beverage licensee, on -
premises beer and wine licensee, caterer, public event
or special event licensee to such licensee,
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b. replacement of product breakage that occurred while
the alcoholic beverages were in transit from the
wholesaler to the licensee, or
c. replacement of cork-tainted wine that makes the
product unsaleable as long as the licensee notifies
the wine and spirits wholesaler of the defect in
writing within ninety (90) days after delivery of the
product; or
6. Extend credit to any retailer, other than holders of Federal
Liquor Stamps on United States government reservations and
installations, mixed beverage, public event or on -premises beer and
wine licensee or caterer, other than a state lodge located in a
county which has approved the retail sale of alcoholic beverages by
the individual drink for on -premises consumption. The acceptance of
a postdated check or draft or the failure to deposit for collection
a current check or draft by the second banking day after receipt
shall be deemed an extension of credit. Violation of th is section
shall be grounds for suspension of the license.
B. Notwithstanding anything to the contrary stated above or in
any other statutory provision in this title, no manufacturer or
brewer whose products are made outside of the State of Oklahoma
shall be prohibited from having any ownership interest in an
Oklahoma retailer, provided that the Oklahoma retailer that is
commonly owned by a manufacturer or brewer does not offer for sale
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at its Oklahoma retail locations the beer, wine, or spirits that are
made by the manufacturer outside of the State.
SECTION 2. AMENDATORY Section 90, Chapter 366, O.S.L.
2016, as amended by Section 23, Chapter 322, O.S.L. 2019 (37A O.S.
Supp. 2020, Section 3 -120), is amended to read as follows:
Section 3-120. No mixed beverage, beer and wine, caterer,
public event or bottle club licensee, partner in any type of
partnership, manager or member of a limited liability company,
officer, director or stockholder of any corporate licensee owning
more than fifteen percent (15%) of the stock shall have any right,
title, lien, claim or interest, financial or otherwise in, upon or
to the premises, equipment, business or merchandise of any package
store, beer distributor, brewer, Oklahoma Licensed manufacturer or
wholesaler. The provisions of this section shall not prohibit a
person who is an officer or director of a fraternal or veteran's
organization which is a tax exempt organization under Section
501(c)(8),(10) or (19) of the Internal Revenue Code and which holds
a license issued by the ABLE Commission from having a right, title,
lien, claim or interest in the premises, equipment, business or
merchandise of a package store.
SECTION 3. AMENDATORY Section 91, Chapter 366, O.S.L.
2016, as amended by Section 24, Chapter 322, O.S.L. 2019 (37A O.S.
Supp. 2020, Section 3 -121), is amended to read as follows:
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Section 3-121. No Oklahoma licensed manufacturer, brewer, wine
and spirits wholesaler, beer distributor, partner in any type of
partnership, manager or member of a limited liability company, or
officer, director or stockholder of any nonresident seller, brewer,
or manufacturer licensee, owning more than fifteen percent (15%) of
the stock shall have any right, title, claim or interest, fin ancial
or otherwise in, upon or to the premises, equipment, business or
merchandise of any mixed beverage, beer and wine, caterer, public
event or bottle club licensee.
SECTION 4. 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 and Coauthored.