Oklahoma 2022 2022 Regular Session

Oklahoma House Bill HB2665 Introduced / Bill

Filed 01/21/2021

                     
 
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STATE OF OKLAHOMA 
 
1st Session of the 58th Legislature (2021) 
 
HOUSE BILL 2665 	By: Echols 
 
 
 
AS INTRODUCED 
 
An Act relating to alcoholic beverages; amending 
Section 13, Chapter 366, O.S.L. 20 16, as last amended 
by Section 9, Chapter 161, O.S.L. 20 20 (37A O.S. 
Supp. 2020, Section 2-101), which relates to fees; 
modifying name of certain license; adding certain 
license information; amending Section 19, Chapter 
366, O.S.L. 2016, as amended by Section 11, Chapter 
364, O.S.L. 2017 (37A O.S. Supp. 2020 , Section 2-
107), which relates to the wine and spirits 
wholesaler license; authorizing wine or spirits 
wholesaler licensee to purchase or import from 
certain additional sources; restricting certain 
purchases of alcoholic beverages by wholesalers; 
requiring certain licensees to collect and remit 
excise taxes on certain imports; expanding exception 
to the certain restrictions on the sales of spirits 
and wine between wholesalers; amending Section 47, 
Chapter 366, O.S.L. 2016 , as amended by Section 7, 
Chapter 322, O.S.L. 2019 (37A O.S. Supp. 2020 , 
Section 2-135), which relates to the manufacturer 's 
license; authorizing the election of designating or 
nondesignating manufacturer status; and providing an 
effective date. 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE ST ATE OF OKLAHOMA: 
SECTION 1.     AMENDATORY     Section 13, Chapter 366, O.S.L. 
2016, as last amended by Section 9, Chapter 161, O.S.L. 2020 (37A 
O.S. Supp. 2020, Section 2 -101), is amended to read as follows:   
 
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Section 2-101. A.  Except as otherwise provided in this 
section, the licenses issued by the ABLE Commission, and the annual 
fees therefor, shall be as follows: 
1.  Brewer License................................ .. $1,250.00 
2.  Small Brewer License .............................. $125.00 
3.  Distiller License ............................... $3,125.00 
4.  Winemaker License ................................ . $625.00 
5.  Small Farm Winery License .......................... $75.00 
6.  Rectifier License ............................... $3,125.00 
7.  Wine and Spirits Wholesaler License ............. $3,000.00 
8.  Beer Distributor License .......................... $750.00 
9.  The following retail spirits license fees 
shall be determined by the latest Federal 
Decennial Census: 
a. Retail Spirits License for cities and 
towns from 200 to 2,500 population .......... $305.00 
b. Retail Spirits License for cities and 
towns from 2,501 to 5,000 population ........ $605.00 
c. Retail Spirits License for cities and 
towns over 5,000 population ................. $905.00 
10. Retail Wine License............................ $1,000.00 
11.  Retail Beer License .............................. $500.00 
12.  Mixed Beverage License ......................... $1,005.00 
 	(initial license)   
 
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 	$905.00 
 	(renewal) 
13.  Mixed Beverage/Caterer Combination License ..... $1,250.00 
14.  On-Premises Beer and Wine License ................ $500.00 
 	(initial license) 
 	$450.00 
 	(renewal) 
15.  Bottle Club License ............................ $1,000.00 
 	(initial license) 
 	$900.00 
 	(renewal) 
16.  Caterer License ................................ $1,005.00 
 	(initial license) 
 	$905.00 
 	(renewal) 
17.  Annual Special Event License ...................... $55.00 
18.  Quarterly Special Event License ................... $55.00 
19.  Hotel Beverage License ......................... $1,005.00 
 	(initial license) 
 	$905.00 
 	(renewal) 
20.  Airline/Railroad/Commercial Passenger Vessel Beverage 
License................................ ........ $1,005.00 
 	(initial license)   
 
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 	$905.00 
 	(renewal) 
21.  Agent License................................ ..... $55.00 
22.  Employee License ................................ .. $30.00 
23.  Industrial License................................ $23.00 
24.  Carrier License ................................ ... $23.00 
25.  Private Carrier License ........................... $23.00 
26.  Bonded Warehouse License ......................... $190.00 
27.  Storage License ................................ ... $23.00 
28.  Nonresident Seller License or Manufacturer's 
License................................ .......... $750.00 
29.  Designating or Nondesignating Manufacturer 
License: 
a. 50 cases or less sold in Oklahoma in 
last calendar year.......................... $75.00 
b. 51 to 500 cases sold in Oklahoma in 
last calendar year......................... $100.00 
c. 501 cases or more sold in Oklahoma in 
last calendar year......................... $125.00 
30. Manufacturer's Agent License...................... $55.00 
30. 31. Sacramental Wine Supplier License ............ $100.00 
31. 32. Charitable Auction License ..................... $1.00 
32. 33. Charitable Alcoholic Beverage License ......... $55.00 
33. 34. Winemaker Self-Distribution License .......... $750.00   
 
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34. 35. Annual Public Event License ................ $1,005.00 
35. 36. One-Time Public Event License ................ $255.00 
36. 37. Small Brewer Self-Distribution License ....... $750.00 
37. 38. Brewpub License............................ $1,005.00 
38. 39. Brewpub Self-Distribution License ............ $750.00 
39. 40. Complimentary Beverage License ................ $75.00 
40. 41. Satellite Tasting Room License....... ........ $100.00 
B.  1.  There shall be added to the initial or renewal fees for 
a Mixed Beverage License an administrative fee, which shall not be 
deemed to be a license fee, in the amount of Five Hundred Dollars 
($500.00), which shall be paid at the same time and in the same 
manner as the license fees prescribed by paragraph 12 of subsection 
A of this section; provided, this fee shall not be assessed against 
service organizations or fraternal beneficiary societies which are 
exempt under Section 501(c)(19), (8) or (10) of the Internal Revenue 
Code. 
2.  There shall be added to the fee for a Mixed Beverage/Caterer 
Combination License an administrative fee, which shall not be deemed 
to be a license fee, in the amount of Two Hundred Fifty Dolla rs 
($250.00), which shall be paid at the same time and in the same 
manner as the license fee prescribed by paragraph 13 of subsection A 
of this section. 
C.  Notwithstanding the provisions of subsection A of this 
section:   
 
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1.  The license fee for a mixed bev erage or bottle club license 
for those service organizations or fraternal beneficiary societies 
which are exempt under Section 501(c)(19), (8) or (10) of the 
Internal Revenue Code shall be Five Hundred Dollars ($500.00) per 
year; and 
2.  The renewal fee fo r an airline/railroad/commercial passenger 
vessel beverage license held by a railroad described in 49 U.S.C., 
Section 24301, shall be One Hundred Dollars ($100.00). 
D.  An applicant may apply for and receive both an on -premises 
beer and wine license and a caterer license. 
E.  All licenses, except as otherwise provided, shall be valid 
for one (1) year from date of issuance unless revoked or 
surrendered.  Provided, all employee licenses shall be valid for two 
(2) years. 
F.  The holder of a license, issued by the ABLE Commission, for 
a bottle club located in a county of this state where the sale of 
alcoholic beverages by the individual drink for on -premises 
consumption has been authorized, may exchange the bottle club 
license for a mixed beverage license or an on-premises beer and wine 
license and operate the licensed premises as a mixed beverage 
establishment or an on -premises beer and wine establishment subject 
to the provisions of the Oklahoma Alcoholic Beverage Control Act.  
There shall be no additional fee for such exchange and the mixed 
beverage license or on -premises beer and wine license issued shall   
 
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expire one (1) year from the date of issuance of the original bottle 
club license. 
G.  In addition to the applicable licensing fee, the following 
surcharge shall be assessed annually on the following licenses: 
1.  Nonresident Seller or Manufacturer License...... $2,500.00 
2. Designating or Nondesignating Manufacturer 
License: 
a. 50 cases or less sold in Oklahoma in 
last calendar year......................... $125.00 
b. 51 to 500 cases sold in Oklahoma in 
last calendar year......................... $250.00 
c. 501 cases or more sold in Oklahoma in 
last calendar year......................... $375.00 
3. Wine and Spirits Wholesaler License ............. $2,500.00 
3. 4. Beer Distributor............................. $1,000.00 
4. 5. Retail Spirits License for cities and 
towns over 5,000 population.................... $250.00 
5. 6. Retail Spirits License for cities and 
towns from 2,501 to 5,000 population ........... $200.00 
6. 7. Retail Spirits License for cities and 
towns from 200 to 2,500 population ............. $150.00 
7. 8. Retail Wine License............................ $250.00 
8. 9. Retail Beer License............................ $250.00 
9. 10. Mixed Beverage License ......................... $25.00   
 
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10. 11. Mixed Beverage/Caterer Combination 
License................................ ....... $25.00 
11. 12. Caterer License............................... $25.00 
12. 13. On-Premises Beer and Wine License ............. $25.00 
13. 14. Annual Public Event License ................... $25.00 
14. 15. Small Farm Winery License..................... $25.00 
15. 16. Small Brewer License .......................... $35.00 
16. 17. Complimentary Beverage License ................ $25.00 
The surcharge shall be paid concurrent with the licensee 's 
annual licensing fee and, in addition to Five Dollars ($5.00) of the 
employee license fee, s hall be deposited in the Alcoholic Beverage 
Governance Revolving Fund established pursuant to Section 5 -128 of 
this title. 
H.  Any license issued by the ABLE Commission under this title 
may be relied upon by other licensees as a valid license, and no 
other licensee shall have any obligation to independently determine 
the validity of such license or be held liable solely as a 
consequence of another licensee 's failure to maintain a valid 
license. 
SECTION 2.     AMENDATORY     Section 19, Cha pter 366, O.S.L. 
2016, as amended by Section 1 1, Chapter 364, O.S.L. 2017 (37A O.S. 
Supp. 2020, Section 2 -107), is amended to read as follows: 
Section 2-107. A.  A wine and spirits wholesaler license shall 
authorize the holder thereof:   
 
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1.  To purchase and import into this state spirits and wines 
from persons authorized to sell same who are the holders of a 
designating manufacturer license, nondesignating manufacturer 
license or nonresident seller license, and their agents who are the 
holders of manufacture r's agent licenses; provided, it shall be 
unlawful for any wholesaler to purchase any alcoholic beverage s for 
resale unless those alcoholic beverages are purchased from a primary 
American source of supply for the brand of alcoholic beverages 
sought to be resold; 
2.  To purchase spirits and wines from licensed distillers, 
rectifiers and winemakers in this state; 
3.  To purchase spirits and wines from licensed wholesalers, to 
the extent set forth in subsections B and C of this section; 
4.  To sell in retail c ontainers in this state to retailers, 
mixed beverage, caterer, special event, public event, hotel beverage 
or airline/railroad beverage licensees, spirits and wines which have 
been received and unloaded at the bonded warehouse facilities of the 
wholesaler before such sale; provided, it shall be unlawful for any 
wholesaler to sell any alcoholic beverages if the alcoholic 
beverages have not been purchased by the wholesaler f rom a primary 
American source of supply ; 
5.  To sell to licensed wholesalers, to the e xtent set forth in 
subsections B and C of this section, spirits and wines which have   
 
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been received and unloaded at the bonded warehouse facilities of the 
wholesaler before such sale; and 
6.  To sell spirits and wines out of this state to qualified 
persons; and 
7.  To collect and remit excise taxes on all alcoholic beverages 
it has transported into the state . 
Provided, however, sales of spirits and wine in containers with 
a capacity of less than one -twentieth (1/20) gallon by a holder of a 
wholesaler license shall be in full case lots and in the original 
unbroken case.  Wholesalers shall be authorized to place such signs 
outside their place of business as are required by Acts of Congress 
and by such laws and regulations promulgated under such Acts. 
B.  A wholesaler may sell spirits and wine to other wholesalers 
or purchase spirits and wines from other wholesalers without 
complying with subsection A of this section in the case of the sale, 
purchase or other transfer or acquisition of a particular brand of 
wine or spirits or the entire business of a wholesaler, including 
the inventory of spirits and wine. 
C.  A wholesaler license shall authorize the holder thereof to: 
1.  Maintain not more than three (3) self -owned or leased and 
self-operated bonded warehouses wi thin this state.  All invoices 
shall be stored at the principal place of business for which the 
wholesaler license was granted; and   
 
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2.  Accept as payment cash, personal check, cashier 's check, 
money order or electronic fund transfer from persons licensed t o 
purchase alcoholic beverages; provided, a wholesaler shall not be 
permitted to accept payment by credit card. 
SECTION 3.     AMENDATORY     Section 47, Chapter 366, O.S.L. 
2016, as amended by Section 7, Chapter 322, O.S.L. 2019 (37A O.S. 
Supp. 2020, Section 2 -135), is amended to read as follows: 
Section 2-135. A.  All distillers, winemakers, and spirits 
manufacturers, importers, brokers and others seeking to sell wine 
and spirits in Oklahoma, regardless of whether such sales are 
consummated within or without the state, must either obtain a 
manufacturer's license or contract with a person that maintains a 
nonresident seller license in order to sell wine and spirits 
intended for consumption within the State of Oklahoma. 
A manufacturer's license or nonresident seller license shall 
authorize the holder thereof to solicit and take orders for wine and 
spirits from the holders of licenses authorized to import the same 
into this state, and to ship or deliver, or cause to be shipped or 
delivered, wine and spirits into Oklahoma pursuant to such sales. 
B.  The ABLE Commission may, subject to the provisions of the 
Oklahoma Alcoholic Beverage Control Act requiring notice and hearing 
in the case of sanctions against holders of licenses, suspend or 
revoke a brewer's license, manufacturer 's license or nonresident   
 
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seller license for any violation of the Oklahoma Alcoholic Beverage 
Control Act by the holder thereof. 
C.  No licensee in this state authorized to import alcoholic 
beverages into this state shall purchase or receive any alcoholic 
beverages from without this state from any person not holding a 
valid and existing brewer, small brewer, manufacturer 's or 
nonresident seller license.  Every manufacturer 's license or 
nonresident seller license shall expir e on the June 30 following its 
issuance or renewal, and shall be eligible for subsequent renewal 
terms of one (1) year beginning on the July 1 following each 
expiration.  License fees for a new or initial manufacturer 's 
license or nonresident seller licens e applied for after July 1 may 
be prorated through the following June 30 on a quarterly basis. 
D.  The holder of a manufacturer 's license or nonresident seller 
license shall, promptly upon consignment of any wine and spirits to 
an importer in Oklahoma, for ward to the ABLE Commission a true copy 
of the invoice, bill of lading or other document as the ABLE 
Commission may by rule prescribe, showing the details of such 
shipment. 
E.  Any person, not otherwise a dealer in alcoholic beverages, 
coming into possessi on of any alcoholic beverages as security for or 
in payment of a debt, or as an insurer or its transferee or assignee 
for the salvage or liquidation of an insured casualty or damage or 
loss, or as an executor, administrator, trustee or other fiduciary,   
 
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may sell the beverages in one lot or parcel to a duly licensed 
wholesaler or beer distributor at an agreed -upon price without 
regard to current posted prices.  However, immediately after taking 
possession of the alcoholic beverages, the person shall register 
with the Director and furnish a detailed list of the alcoholic 
beverages and post with the Director a bond in such amount as the 
Director deems sufficient to protect the state from any taxes due on 
the alcoholic beverages.  The person shall pay to the Dire ctor a 
registration fee of Fifty Dollars ($50.00), which fee shall permit 
the sale of only the alcoholic beverages detailed in the 
registration request.  A wholesaler or beer distributor receiving a 
lot or parcel of alcoholic beverages pursuant to this sub section may 
sell it in one lot or parcel or more than one lot or parcel to a 
licensed package store or mixed beverage licensee or more than one 
licensed package store or mixed beverage licensee at an agreed -upon 
price without regard to current posted price s; provided, the total 
of the lots sold by the wholesaler or beer distributor shall not 
exceed four (4) lots. 
F.  In the event a winery, distiller, importer or broker obtains 
a manufacturer's license, the manufacturer shall elect to be either 
a designating manufacturer or nondesignating manufacturer.  For 
purposes of this title: 
1.  "Designating manufacturer " shall be any manufacturer, 
importer, broker or agent that has designated a wine and spirits   
 
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wholesaler to distribute one or more stock -keeping units (SKUs) 
within the state; and 
2.  "Nondesignating manufacturer " shall be any manufacturer, 
importer, broker or agent that has elected to allow all wine and 
spirits wholesalers to distribute one or more SKUs within the state. 
SECTION 4.  This act shall become effective November 1, 2021. 
 
58-1-6287 JL 12/28/20