Oklahoma 2022 Regular Session

Oklahoma House Bill HB2726 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
3		-	BILL NO. 2726 By: Pittman, Davis and Bell of
4		-	the House
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	3	+	ENGR. S. A. TO ENGR. H. B. NO. 2726 Page 1 1
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	28	+	ENGROSSED SENATE AMENDMENT
	29	+	TO
	30	+	ENGROSSED HOUSE
	31	+	BILL NO. 2726 By: Pittman and Davis of the
	32	+	House
	33	+
	34	+	and
	35	+
	36	+	Coleman of the Senate
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	38	+
	39	+
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	42	+	An Act relating to alcoholic beverages; amending
	43	+	Section 3, Chapter 366, O.S.L. 2016, as last amended
	44	+	by Section 6, Chapter 161, O.S.L. 2020 (37 A O.S.
	45	+	Supp. 2020, Section 1 -103), which relates to
	46	+	definitions; defining certain terms; amending Section
	47	+	22, Chapter 366, O.S.L. 2016, as last amended by
	48	+	Section 1, Chapter 424, O.S.L. 2019 (37 A O.S. Supp.
	49	+	2020, Section 2-110), which relates to mixed beverage
	50	+	licenses; granting additional authorities to mixed
	51	+	beverage licensees; amending Section 142, Chapter
	52	+	366, O.S.L. 2016, as last amended by Section 20,
	53	+	Chapter 161, O.S.L. 2020 (37 A O.S. Supp. 2020,
	54	+	Section 6-102), which relates to prohibited acts of
	55	+	licensees; providing certain exception to prohibited
	56	+	acts; and providing an effective date.
	57	+
	58	+
	59	+
	60	+
	61	+
	62	+	AUTHOR: Add the following House Coauthor: Bell
	63	+
	64	+	AMENDMENT NO. 1. Page 23, line 17, delete the effective date and
	65	+	insert an emergency clause
	66	+
	67	+	and amend the title to conform
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	69	+
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	72	+	ENGR. S. A. TO ENGR. H. B. NO. 2726 Page 2 1
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	97	+	Passed the Senate the 19th day of April, 2021.
	98	+
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	100	+
	101	+	Presiding Officer of the Senate
	102	+
	103	+
	104	+	Passed the House of Representatives the ____ day of __________,
	105	+	2021.
	106	+
	107	+
	108	+
	109	+	Presiding Officer of the House
	110	+	of Representatives
	111	+
	112	+	ENGR. H. B. NO. 2726 Page 1 1
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	137	+	ENGROSSED HOUSE
	138	+	BILL NO. 2726 By: Pittman and Davis of the
	139	+	House
5	140
6	141		and
7	142
8	143		Coleman of the Senate
9	144
10	145
11	146
12	147
13	148
14	149
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16	151		An Act relating to alcoholic beverages; amending
17	152		Section 3, Chapter 366, O.S.L. 2016, as last amended
18	153		by Section 6, Chapter 161, O.S.L. 2020 (37 A O.S.
19	154		Supp. 2020, Section 1-103), which relates to
20	155		definitions; defining certain terms; amending Section
21	156		22, Chapter 366, O.S.L. 2016, as last amended by
22	157		Section 1, Chapter 424, O.S.L. 2019 (37 A O.S. Supp.
23	158		2020, Section 2-110), which relates to mixed beverage
24	159		licenses; granting additional authorities to mixed
25	160		beverage licensees; amending Section 142, Chapter
26		-	366, O.S.L. 2016, as last amended by Section 1 of
27		-	Enrolled House Bill No. 2277 of the 1st Session of
28		-	the 58th Oklahoma Legislature , which relates to
29		-	prohibited acts of licensees; providing certain
30		-	exception to prohibited acts; providing requirements
31		-	for patron self-pour service of beer and wine;
32		-	defining term; repealing Section 142, Chapter 366,
33		-	O.S.L. 2016, as last amended by Section 1 of Enrolled
34		-	House Bill No. 2380 of the 1st Session of the 58th
35		-	Oklahoma Legislature, which relates to licensee
36		-	prohibited acts; and declaring an emergency.
	161	+	366, O.S.L. 2016, as last amended by Section 20,
	162	+	Chapter 161, O.S.L. 2020 (37 A O.S. Supp. 2020,
	163	+	Section 6-102), which relates to prohibited acts of
	164	+	licensees; providing certain exception to prohibited
	165	+	acts; and providing an effective date.
37	166
38	167
39	168
40		-	~~SUBJECT: Alcoholic beverages~~
	169	+
41	170
42	171		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
43		-
44	172		SECTION 1. AMENDATORY Section 3, Chapter 366, O.S.L.
45	173		2016, as last amended by Section 6, Chapt er 161, O.S.L. 2020 (37 A
46		-	O.S. Supp. 2020, Section 1 -103), is amended to read as follows: ENR. H. B. NO. 2726 Page 2
47		-
	174	+	O.S. Supp. 2020, Section 1 -103), is amended to read as follows:
48	175		Section 1-103. As used in the Oklahoma Alcoholic Beverage
49	176		Control Act:
50	177
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51	203		1. "ABLE Commission" or "Commission" means the Alcoholic
52	204		Beverage Laws Enforcement Commission;
53		-
54	205		2. "Alcohol" means and includes hydrated oxide of ethyl, ethyl
55	206		alcohol, ethanol or spirits of wine, from whatever source or by
56	207		whatever process produced. It does not include wood alcohol or
57	208		alcohol which has been denatured or produced as denatured in
58	209		accordance with Acts of Congress and regulations promulgated
59	210		thereunder;
60		-
61	211		3. "Alcoholic beverage" means alcohol, spirits, beer and wine
62	212		as those terms are defined herein and also includes every liquid or
63	213		solid, patented or not, containing alcohol, spirits, w ine or beer
64	214		and capable of being consumed as a beverage by human beings;
65		-
66	215		4. "Applicant" means any individual, legal or commercial
67	216		business entity, or any individual involved in any legal or
68	217		commercial business entity allowed to hold any license issued in
69	218		accordance with the Oklahoma Alcoholic Beverage Control Act;
70		-
71	219		5. "Beer" means any beverage of alcohol by volume and obtained
72	220		by the alcoholic fermentation of an infusion or decoction of barley,
73	221		or other grain, malt or similar products. "Beer" may or may not
74	222		contain hops or other vegetable products. "Beer" includes, among
75	223		other things, beer, ale, stout, lager beer, porter and other malt or
76	224		brewed liquors, but does not include sake, known as Japanese rice
77	225		wine;
78	226
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79	252		6. "Beer keg" means any brewer-sealed, single container that
80	253		contains not less than four (4) gallons of beer;
81		-
82	254		7. "Beer distributor" means and includes any person licensed to
83	255		distribute beer for retail sale in the state, but does not include a
84	256		holder of a small brewer self -distribution license or bre wpub self-
85	257		distribution license. The term "distributor", as used in the
86	258		Oklahoma Alcoholic Beverage Control Act, shall be construed to refer
87	259		to a beer distributor;
88		-
89	260		8. "Bottle club" means any establishment in a county which has
90	261		not authorized the retail sa le of alcoholic beverages by the
91		-	individual drink, which is required to be licensed to keep, mix and ~~ENR. H. B. NO. 2726 Page 3~~
	262	+	individual drink, which is required to be licensed to keep, mix and
92	263		serve alcoholic beverages belonging to club members on club
93	264		premises;
94		-
95	265		9. "Bottle service" means the sale and provision of spirits in
96	266		their original packag es by a mixed beverage licensee to be consumed
97	267		in that mixed beverage licensee 's club suite;
98		-
99	268		10. "Brand" means any word, name, group of letters, symbol or
100	269		combination thereof, that is adopted and used by a licensed brewer
101	270		to identify a specific beer, wine or spirit and to distinguish that
102	271		product from another beer, wine or spirit;
103		-
104	272		10. 11. "Brand extension" means:
105		-
106	273		a. after October 1, 2018, any brand of beer or cider
107	274		introduced by a manufacturer in this state which
108	275		either:
109	276
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110	302		(1) incorporates all or a substant ial part of the
111	303		unique features of a preexisting brand of the
112	304		same licensed brewer, or
113		-
114	305		(2) relies to a significant extent on the goodwill
115	306		associated with the preexisting brand, or
116		-
117	307		b. any brand of beer that a brewer, the majority of whose
118	308		total volume of all brands of beer distributed in this
119	309		state by such brewer on January 1, 2016, was
120	310		distributed as low-point beer, desires to sell,
121	311		introduces, begins selling or theretofore has sold and
122	312		desires to continue selling a strong beer in this
123	313		state which either:
124		-
125	314		(1) incorporates or incorporated all or a substantial
126	315		part of the unique features of a preexisting low -
127	316		point beer brand of the same licensed brewer, or
128		-
129	317		(2) relies or relied to a significant extent on the
130	318		goodwill associated with a preexisting low -point
131	319		beer brand;
132		-
133	320		11. 12. "Brewer" means and includes any person who manufactures
134	321		for human consumption by the use of raw materials or other
135	322		ingredients any beer or cider upon which a license fee and a tax are
136		-	imposed by any law of this state; ENR. H. B. NO. 2726 Page 4
137		-
	323	+	imposed by any law of this state;
138	324		12. 13. "Brewpub" means a licensed establishment operated on
139	325		the premises of, or on premises located contiguous to, a small
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140	352		brewer, that prepares and serves food and beverages, including
141	353		alcoholic beverages, for on -premises consumption;
142		-
143	354		13. 14. "Cider" means any alcoholic be verage obtained by the
144	355		alcoholic fermentation of fruit juice, including but not limited to
145	356		flavored, sparkling or carbonated cider. For the purposes of the
146	357		manufacture of this product, cider may be manufactured by either
147	358		manufacturers or brewers. For the purposes of the distribution of
148	359		this product, cider may be distributed by either wine and spirits
149	360		wholesalers or beer distributors;
150		-
151	361		15. "Club suite" means a designated area within the premises of
152	362		a mixed beverage licensee designed to provide an exclusive space
153	363		which is limited to a patron or patrons specifically granted access
154	364		by a mixed beverage licensee and is not accessible to other patrons
155	365		of the mixed beverage licensee or the public. A club suite must
156	366		have a clearly designated point of access for a patron or patrons
157	367		specifically granted access by the mixed beverage licensee to ensure
158	368		that persons present in the suite are limited to patrons
159	369		specifically granted access by the mixed beverage licensee and
160	370		employees providing services to the club suite;
161		-
162	371		14. 16. "Convenience store" means any person primarily engaged
163	372		in retailing a limited range of general household items and
164	373		groceries, with extended hours of operation, whether or not engaged
165	374		in retail sales of automotive fuels in combination with such sale s;
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166	400
167	401		15. 17. "Convicted" and "conviction" mean and include a finding
168	402		of guilt resulting from a plea of guilty or nolo contendere, the
169	403		decision of a court or magistrate or the verdict of a jury,
170	404		irrespective of the pronouncement of judgment or the suspension
171	405		thereof;
172		-
173	406		16. 18. "Designated products" means the brands of wine or
174	407		spirits offered for sale by a manufacturer that the manufacturer has
175	408		assigned to a designated wholesaler for exclusive distribution;
176		-
177	409		17. 19. "Designated wholesaler " means a wine and spir its
178	410		wholesaler who has been selected by a manufacturer as a wholesaler
179	411		appointed to distribute designated products;
180		-
181		-	18. 20. "Director" means the Director of the ABLE Commission; ENR. H. B. NO. 2726 Page 5
182		-
	412	+	18. 20. "Director" means the Director of the ABLE Commission;
183	413		19. 21. "Distiller" means any person who produces spirits from
184	414		any source or substance, or any person who brews or makes mash, wort
185	415		or wash, fit for distillation or for the production of spirits
186	416		(except a person making or using such material in the authorized
187	417		production of wine or beer, or the production of vinegar by
188	418		fermentation), or any person who by any process separates alcoholic
189	419		spirits from any fermented substance, or any person who, making or
190	420		keeping mash, wort or wash, has also in his or her possession or use
191	421		a still;
192		-
193	422		20. 22. "Distributor agreement " means the written agre ement
194	423		between the distributor and brewer as set forth in Section 3 -108 of
195	424		this title;
196	425
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197	451		21. 23. "Drug store" means a person primarily engaged in
198	452		retailing prescription and nonprescription drugs and medicines;
199		-
200	453		22. 24. "Dual-strength beer" means a brand of beer that,
201	454		immediately prior to April 15, 2017, was being sold and distributed
202	455		in this state:
203		-
204	456		a. as a low-point beer pursuant to the Low -Point Beer
205	457		Distribution Act in effect immediately prior to
206	458		October 1, 2018, and
207		-
208	459		b. as strong beer pursuant to the Alcoho lic Beverage
209	460		Control Act in effect immediately prior to October 1,
210	461		2018,
211		-
212	462		and continues to be sold and distributed as such on October 1, 2018.
213	463		Dual-strength beer does not include a brand of beer that arose as a
214	464		result of a brand extension as defined in thi s section;
215		-
216	465		23. 25. "Fair market value" means the value in the subject
217	466		territory covered by the written agreement with the distributor or
218	467		wholesaler that would be determined in an arm 's length transaction
219	468		entered into without duress or threat of terminatio n of the
220	469		distributor's or wholesaler's rights and shall include all elements
221	470		of value, including goodwill and going -concern value;
222		-
223	471		24. 26. "Good cause" means:
224		-	ENR. H. B. NO. 2726 Page 6
225	472		a. failure by the distributor to comply with the material
226	473		and reasonable provisions of a written agreement or
227	474		understanding with the brewer, or
228	475
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229	501		b. failure by the distributor to comply with the duty of
230	502		good faith;
231		-
232	503		25. 27. "Good faith" means the duty of each party to any
233	504		distributor agreement and all officers, employees or agents thereof
234	505		to act with honesty in fact and within reasonable standards of fair
235	506		dealing in the trade;
236		-
237		-	26. 28. "Grocery store" means a person primaril y engaged in
	507	+	26. 28 "Grocery store" means a person primarily engaged in
238	508		retailing a general line of food, such as canned or frozen foods,
239	509		fresh fruits and vegetables, and fresh and prepared m eats, fish and
240	510		poultry;
241		-
242	511		27. 29. "Hotel" or "motel" means an establishment which is
243	512		licensed to sell alcoholic beverages by the individual drink and
244	513		which contains guestroom accommodations with respect to which the
245	514		predominant relationship existing between the occupants thereof and
246	515		the owner or operator of the establishment is that of innkeeper and
247	516		guest. For purposes of this section, the existence of other legal
248	517		relationships as between some occupants and the owner or operator
249	518		thereof shall be immaterial;
250		-
251	519		28. 30. "Legal newspaper" means a newspaper meeting the
252	520		requisites of a newspaper for publication of legal notices as
253	521		prescribed in Sections 101 through 114 of Title 25 of the Oklahoma
254	522		Statutes;
255		-
256	523		29. 31. "Licensee" means any person holding a license unde r the
257	524		Oklahoma Alcoholic Beverage Control Act, and any agent, servant or
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258	551		employee of such licensee while in the performance of any act or
259	552		duty in connection with the licensed business or on the licensed
260	553		premises;
261		-
262	554		30. 32. "Low-point beer" shall mean any beverages containing
263	555		more than one-half of one percent (1/2 of 1%) alcohol by volume, and
264	556		not more than three and two -tenths percent (3.2%) alcohol by weight,
265	557		including but not limited to, beer or cereal malt beverages obtained
266	558		by the alcoholic fermentation of an infusion by barley or other
267	559		grain, malt or similar products;
268		-	ENR. H. B. NO. 2726 Page 7
269	560		31. 33. "Manufacturer" means a distiller, winemaker, rectifier
270	561		or bottler of any alcoholic beverage (other than beer) and its
271	562		subsidiaries, affiliates and parent companies;
272		-
273	563		32. 34. "Manufacturer's agent" means a salaried or commissioned
274	564		salesperson who is the agent authorized to act on behalf of the
275	565		manufacturer or nonresident seller in the state;
276		-
277	566		33. 35. "Meals" means foods commonly ordered at lunch or dinner
278	567		and at least part of which i s cooked on the licensed premises and
279	568		requires the use of dining implements for consumption. Provided,
280	569		that the service of only food such as appetizers, sandwiches, salads
281	570		or desserts shall not be considered "meals";
282		-
283	571		34. 36. "Mini-bar" means a closed container, either
284	572		refrigerated in whole or in part, or nonrefrigerated, and access to
285	573		the interior of which is:
286	574
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287	600		a. restricted by means of a locking device which requires
288	601		the use of a key, magnetic card or similar device, or
289		-
290	602		b. controlled at all times by the l icensee;
291		-
292	603		35. 37. "Mixed beverage cooler " means any beverage, by whatever
293	604		name designated, consisting of an alcoholic beverage and fruit or
294	605		vegetable juice, fruit or vegetable flavorings, dairy products or
295	606		carbonated water containing more than one -half of one percent (1/2
296	607		of 1%) of alcohol measured by volume but not more than seven percent
297	608		(7%) alcohol by volume at sixty (60) degrees Fahrenheit and which is
298	609		packaged in a container not larger than three hundred seventy -five
299	610		(375) milliliters. Such term shal l include but not be limited to
300	611		the beverage popularly known as a "wine cooler";
301		-
302	612		36. 38. "Mixed beverages" means one or more servings of a
303	613		beverage composed in whole or part of an alcoholic beverage in a
304	614		sealed or unsealed container of any legal size for consumption on
305	615		the premises where served or sold by the holder of a mixed beverage,
306	616		beer and wine, caterer, public event, charitable event or special
307	617		event license;
308		-
309	618		37. 39. "Motion picture theater " means an establishment which
310	619		is licensed by Section 2 -110 of this title to sell alcoholic
311	620		beverages by the individual drink and where motion pictures are
312	621		exhibited, and to which the general public is admitted;
313		-	ENR. H. B. NO. 2726 Page 8
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314	648		38. 40. "Nondesignated products " means the brands of wine or
315	649		spirits offered for sale by a manufacture r that have not been
316	650		assigned to a designated wholesaler;
317		-
318	651		39. 41. "Nonresident seller" means any person licensed pursuant
319	652		to Section 2-135 of this title;
320		-
321	653		40. 42. "Retail salesperson" means a salesperson soliciting
322	654		orders from and calling upon retail alco holic beverage stores with
323	655		regard to his or her product;
324		-
325	656		41. 43. "Occupation" as used in connection with "occupation
326	657		tax" means the sites occupied as the places of business of the
327	658		manufacturers, brewers, wholesalers, beer distributors, retailers,
328	659		mixed beverage licensees, on -premises beer and wine licensees,
329	660		bottle clubs, caterers, public event and special event licensees;
330		-
331	661		42. 44. "Original package" means any container of alcoholic
332	662		beverage filled and stamped or sealed by the manufacturer or brewer;
333		-
334	663		43. 45. "Package store" means any sole proprietor or
335	664		partnership that qualifies to sell wine, beer and/or spirits for
336	665		off-premises consumption and that is not a grocery store,
337	666		convenience store or drug store, or other retail outlet that is not
338	667		permitted to sell wine or beer for off -premises consumption;
339		-
340	668		44. 46. "Patron" means any person, customer or visitor who is
341	669		not employed by a licensee or who is not a licensee;
342		-
343	670		45. 47. "Person" means an individual, any type of partnership,
344	671		corporation, association, limit ed liability company or any
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345	698		individual involved in the legal structure of any such business
346	699		entity;
347		-
348	700		46. 48. "Premises" means the grounds and all buildings and
349	701		appurtenances pertaining to the grounds including any adjacent
350	702		premises if under the direct or i ndirect control of the licensee and
351	703		the rooms and equipment under the control of the licensee and used
352	704		in connection with or in furtherance of the business covered by a
353	705		license. Provided that the ABLE Commission shall have the authority
354	706		to designate areas to be excluded from the licensed premises solely
355	707		for the purpose of:
356		-	ENR. H. B. NO. 2726 Page 9
357	708		a. allowing the presence and consumption of alcoholic
358	709		beverages by private parties which are closed to the
359	710		general public, or
360		-
361	711		b. allowing the services of a caterer serving alcoholic
362	712		beverages provided by a private party.
363		-
364	713		This exception shall in no way limit the licensee 's concurrent
365	714		responsibility for any violations of the Oklahoma Alcoholic Beverage
366	715		Control Act occurring on the licensed premises;
367		-
368	716		47. 49. "Private event" means a social gathering or event
369	717		attended by invited guests who share a common cause, membership,
370	718		business or task and have a prior established relationship. For
371	719		purposes of this definition, advertisement for general public
372	720		attendance or sales of tickets to the general public shall not
373	721		constitute a private event;
374	722
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375	748		48. 50. "Public event" means any event that can be attended by
376	749		the general public;
377		-
378	750		49. 51. "Rectifier" means any person who rectifies, purifies or
379	751		refines spirits or wines by any process (other than by origina l and
380	752		continuous distillation, or original and continuous processing, from
381	753		mash, wort, wash or other substance, through continuous closed
382	754		vessels and pipes, until the production thereof is complete), and
383	755		any person who, without rectifying, purifying or ref ining spirits,
384	756		shall by mixing (except for immediate consumption on the premises
385	757		where mixed) such spirits, wine or other liquor with any material,
386	758		manufactures any spurious, imitation or compound liquors for sale,
387	759		under the name of whiskey, brandy, rum, g in, wine, spirits, cordials
388	760		or any other name;
389		-
390	761		50. 52. "Regulation" or "rule" means a formal rule of general
391	762		application promulgated by the ABLE Commission as herein required;
392		-
393	763		51. 53. "Restaurant" means an establishment that is licensed to
394	764		sell alcoholic beverages by the individual drink for on -premises
395	765		consumption and where food is prepared and sold for immediate
396	766		consumption on the premises;
397		-
398	767		52. 54. "Retail container for spirits and wines " means an
399	768		original package of any capacity approved by the United States
400	769		Bureau of Alcohol, Tobacco and Firearms;
401		-	ENR. H. B. NO. 2726 Page 10
402	770		53. 55. "Retailer" means a package store, grocery store,
403	771		convenience store or drug store licensed to sell alcoholic beverages
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404	798		for off-premises consumption pursuant to a Retail Spirits License,
405	799		Retail Wine License or Retail Beer License;
406		-
407	800		54. 56. "Sale" means any transfer, exchange or barter in any
408	801		manner or by any means whatsoever, and includes and means all sales
409	802		made by any person, whether as principal, proprietor or as an agent,
410	803		servant or employee. The term "sale" is also declared to be and
411	804		include the use or consumption in this state of any alcoholic
412	805		beverage obtained within or imported from without this state, upon
413	806		which the excise tax levied by the Oklahoma Alcoholic Beverage
414	807		Control Act has not been paid or exempted;
415		-
416	808		55. 57. "Short-order food" means food other than full meals
417	809		including but not limited to sandwiches, soups and salads. Provided
418	810		that popcorn, chips and other similar snack food shall not be
419	811		considered "short-order food";
420		-
421	812		56. 58. "Small brewer" means a brewer who manufactures less
422	813		than sixty-five thousand (65,000) barrels of beer annually pursuant
423	814		to a validly issued Small Brewer License hereunder;
424		-
425	815		57. 59. "Small farm wine" means a wine that is produced by a
426	816		small farm winery with seven ty-five percent (75%) or more Oklahoma -
427	817		grown grapes, berries, other fruits, honey or vegetables;
428		-
429	818		58. 60. "Small farm winery" means a wine-making establishment
430	819		that does not annually produce for sale more than fifteen thousand
431	820		(15,000) gallons of wine as r eported on the United States Department
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432	847		of the Treasury, Alcohol and Tobacco Tax and Trade Bureau, Report of
433	848		Wine Premises Operations (TTB Form 5120.17);
434		-
435	849		59. 61. "Sparkling wine" means champagne or any artificially
436	850		carbonated wine;
437		-
438	851		60. 62. "Special event" means an entertainment, recreation or
439	852		marketing event that occurs at a single location on an irregular
440	853		basis and at which alcoholic beverages are sold;
441		-
442	854		61. 63. "Spirits" means any beverage other than wine or beer,
443	855		which contains more than one -half of one percent (1/2 of 1%) alcohol
444	856		measured by volume, and obtained by distillation, whether or not
445	857		mixed with other substances in solution and includes those products
446		-	known as whiskey, brandy, rum, gin, vodka, liqueurs, cordials and ~~ENR. H. B. NO. 2726 Page 11~~
	858	+	known as whiskey, brandy, rum, gin, vodka, liqueurs, cordials and
447	859		fortified wines and similar compounds, but shall not include any
448	860		alcohol liquid completely denatured in accordance with the Acts of
449	861		Congress and regulations pursuant thereto;
450		-
451	862		62. 64. "Strong beer" means beer which, prior to October 1,
452	863		2018, was distributed pursuant to the Oklahoma Alcoholic Beverage
453	864		Control Act, Section 501 et seq. of Title 37 of the Oklahoma
454	865		Statutes;
455		-
456	866		63. 65. "Successor brewer" means a primary source of supply, a
457	867		brewer, a cider manufacturer or an importer that acquires rights to
458	868		a beer or cider brand from a prede cessor brewer;
	869	+	64. 66. "Tax Commission" means the Oklahoma Tax Commission;
459	870
460		-	64. 66. "Tax Commission" means the Oklahoma Tax Commission;
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461	895
462	896		65. 67. "Territory" means a geographic region with a specified
463	897		boundary;
464		-
465	898		66. 68. "Wine and spirits wholesaler " or "wine and spirits
466	899		distributor" means and includes any sole propr ietorship or
467	900		partnership licensed to distribute wine and spirits in the state.
468		-	The term "wholesaler", as used in the Oklahoma Alcoholic Beverage
	901	+	The term "wholesaler", as used the Oklahoma Alcoholic Beverage
469	902		Control Act, shall be construed to refer to a wine and spirits
470	903		wholesaler;
471		-
472	904		67. 69. "Wine" means and includes any beverage containing more
473	905		than one-half of one percent (1/2 of 1%) alcohol by volume and not
474	906		more than twenty-four percent (24%) alcohol by volume at sixty (60)
475	907		degrees Fahrenheit obtained by the fermentation of the natural
476	908		contents of fruits, vegetables, honey, milk or other products
477	909		containing sugar, whether or not other ingredients are added, and
478	910		includes vermouth and sake, known as Japanese rice wine;
479		-
480	911		68. 70. "Winemaker" means and includes any person or
481	912		establishment who manufactures for human consumpt ion any wine upon
482	913		which a license fee and a tax are imposed by any law of this state;
483	914		and
484		-
485	915		69. 71. "Satellite tasting room " means a licensed establishment
486	916		operated off the licensed premises of the holder of a small farm
487	917		winery or winemaker license, which s erves wine for on-premises or
488	918		off-premises consumption.
489		-	ENR. H. B. NO. 2726 Page 12
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490	945		Words in the plural include the singular, and vice versa, and
491	946		words imparting the masculine gender include the feminine, as well
492	947		as persons and licensees as defined in this section.
493		-
494	948		SECTION 2. AMENDATORY Section 22, Chapter 366, O.S.L.
495	949		2016, as last amended by Section 1, Chapter 424, O.S.L. 2019 (37 A
496	950		O.S. Supp. 2020, Section 2 -110), is amended to read as follows:
497		-
498	951		Section 2-110. A. A mixed beverage license shall authorize the
499	952		holder thereof:
500		-
501	953		1. To purchase alcohol, spirits, beer and/or wine in retail
502	954		containers from the holder of a wine and spirits wholesaler and beer
503	955		distributor license as specifically provided by law; and
504		-
505	956		2. To sell, offer for sale and possess mixed bevera ges for on-
506	957		premises consumption only, provided:
507		-
508	958		a. the holder of a mixed beverage license issued for an
509	959		establishment which is also a restaurant may purchase
510	960		wine directly from a winemaker and beer directly from
511	961		a small brewer who is permitted and has elec ted to
512	962		self-distribute as provided in Article XXVIII -A of the
513	963		Oklahoma Constitution, and
514		-
515	964		b. the holder of a mixed beverage license that is also a
516	965		holder of a retail wine license or retail beer license
517	966		or both a retail wine license and retail beer license
518	967		shall not be prohibited from the on -premises sale of
519	968		wine or beer, according to the license held, for off -
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520	995		premises consumption, subject to the limitations of
521	996		the retail wine license or retail beer license ; and
522		-
523	997		3. To sell spirits in their original packages for consumption
524	998		on its premises under the following conditions:
525		-
526	999		a. spirits in their original packages shall remain and be
527	1000		consumed in the club suite of a mixed beverage
528	1001		licensee and may not be removed from the club suite if
529	1002		not consumed in their entirety a t or before the
530	1003		conclusion of the period for which the club suite was
531	1004		made available to a specific patron or patrons by the
532	1005		mixed beverage licensee, and
533		-	ENR. H. B. NO. 2726 Page 13
534	1006		b. spirits in their original packages to be consumed in
535	1007		the club suite are provided exclusively by the mixed
536	1008		beverage licensee.
537		-
538	1009		B. Sales and service of mixed beverages by holders of mixed
539	1010		beverage licenses shall be limited to the licensed premises of the
540	1011		licensee unless the holder of the mixed beverage license also
541	1012		obtains a caterer license or a mixed beve rage/caterer combination
542	1013		license. A mixed beverage license shall only be issued in counties
543	1014		of this state where the sale of alcoholic beverages by the
544	1015		individual drink for on -premises consumption has been authorized. A
545	1016		separate license shall be required for each place of business.
546		-
547	1017		C. Holders of a mixed beverage license shall not be prohibited
548	1018		from obtaining and holding a retail beer license or retail wine
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549	1045		license or both a retail beer license and retail wine license;
550	1046		provided, that each holder qualifies and maintains the
551	1047		qualifications for each license held as set forth in this title and
552	1048		the rules promulgated by the ABLE Commission.
553		-
554	1049		D. Upon application, a mixed beverage license shall be issued
555	1050		for any place of business functioning as a motion picture the ater,
556	1051		as defined by Section 1 -103 of this title. Provided, that upon
557	1052		proof of legal age to consume alcohol, every patron being served
558	1053		alcoholic beverages shall be required to wear a wrist bracelet or
559	1054		receive a hand stamp identifying the patron as being of legal age to
560	1055		consume alcohol. This requirement shall only apply inside a motion
561	1056		picture theater auditorium where individuals under the legal age to
562	1057		consume alcohol are allowed.
563		-
564	1058		SECTION 3. AMENDATORY Section 142, Chapter 366, O.S .L.
565		-	2016, as last amended by Section 1 of Enrolled House Bi ll No. 2277
566		-	of the 1st Session of the 58th Oklahoma Legislature , is amended to
567		-	read as follows:
568		-
	1059	+	2016, as last amended by Section 20, Chapter 161, O.S.L. 2020 (37 A
	1060	+	O.S. Supp. 2020, Section 6 -102), is amended to read as follows:
569	1061		Section 6-102. A. No licensee of the ABLE Commission shall:
570		-
571	1062		1. Receive, possess or sell any alcoholic beverage except as
572	1063		authorized by the Oklahoma Alcoholic Beverage Control Act and by the
573	1064		license or permit which the licensee holds;
574		-
575	1065		2. Employ any person under eighteen (18) years of age in the
576	1066		selling of beer or wine or employ any person under twenty -one (21)
577	1067		years of age in the selling of spirits. Provided:
578		-	ENR. H. B. NO. 2726 Page 14
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579	1094		a. a mixed beverage, beer and wine, caterer, public
580	1095		event, special event, bottle club, retail wine or
581	1096		retail beer licensee may employ servers or sales
582	1097		clerks who are at least eighteen (18) years of age,
583	1098		except persons under twenty-one (21) years of age may
584	1099		not serve in designated bar or lounge areas, and
585		-
586	1100		b. a mixed beverage, beer and wine, caterer, public
587	1101		event, special event or bottle club licensee may
588	1102		employ or hire musical bands who have musicians who
589	1103		are under eighteen (18) years of age if each such
590	1104		musician is either accompanied by a parent or legal
591	1105		guardian or has on their person, to be made available
592	1106		for inspection upon demand by any employee of the ABLE
593	1107		Commission or law enforcement officer, a written,
594	1108		notarized affidavit from the parent or legal guardian
595	1109		giving the underage musician permission to perform in
596	1110		designated bar or lounge areas;
597		-
598	1111		3. Give any alcoholic beverage as a prize, premium or
599	1112		consideration for any lottery, game of chance or skill or any type
600	1113		of competition;
601		-
602	1114		4. Use any of the following means or inducements to stimulate
603	1115		the consumption of alcoholic beverages, including but not limited
604	1116		to:
605	1117
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	1142	+
606	1143		a. deliver more than two drinks to one person at one
607	1144		time, except as provided for serving tasting flights
608		-	defined in Section 6-102.1 of this title,
609		-
	1145	+	defined in Section 2 6-102.1 of this act title,
610	1146		b. sell or offer to sell to any person or group of
611	1147		persons any drinks at a price that is less than six
612	1148		percent (6%) below the markup of the cost to the mixed
613	1149		beverage licensee; provided, a mixed beverage license e
614	1150		shall be permitted to offer these drink specials on
615	1151		any particular hour of any particular day and shall
616	1152		not be required to offer these drink specials for an
617		-	entire calendar week or from open to close, and shall
618		-	not be required to offer such drink specials at all
619		-	venues operating under the same mixed beverage
620		-	license,
621		-
622		-	ENR. H. B. NO. 2726 Page 15
	1153	+	entire calendar week or from open to close,
623	1154		c. sell or offer to sell to any person an unlimited
624	1155		number of drinks during any set period of time for a
625	1156		fixed price, except at private functions not open to
626	1157		the public,
627		-
628	1158		d. sell or offer to sell drinks to any person or group of
629	1159		persons on any one day or portion thereof at prices
630	1160		less than those charged the g eneral public on that
631	1161		day, except at private functions not open to the
632	1162		public,
633		-
634	1163		e. increase the volume of alcoholic beverages contained
635	1164		in a drink without increasing proportionately the
636	1165		price regularly charged for such drink during the same
637	1166		calendar week, or
638	1167
	1168	+	ENGR. H. B. NO. 2726 Page 22 1
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	1192	+
639	1193		f. encourage or permit, on the licensed premises, any
640	1194		game or contest which involves drinking or the
641	1195		awarding of drinks as prizes.
642		-
643	1196		Provided, that the provisions of this paragraph shall not
644	1197		prohibit the advertising or offering of food or, entertainment or
645	1198		bottle service in licensed establishments;
646		-
647	1199		5. Permit or allow any patron or person to exit the licensed
648	1200		premises with an open container of any alcoholic beverage.
649	1201		Provided, this prohibition shall not be applicable to closed
650	1202		original containers of alcoho lic beverages which are carried from
651	1203		the licensed premises of a bottle club by a patron, closed original
652	1204		wine containers removed from the premises of restaurants, hotels and
653	1205		motels, or to closed original containers of alcoholic beverages
654	1206		transported to and from the place of business of a licensed caterer
655	1207		by the caterer or an employee of the caterer;
656		-
657	1208		6. Serve or sell alcoholic beverages with an expired license
658	1209		issued by the ABLE Commission; or
659		-
660	1210		7. Permit any person to be drunk or intoxicated on the
661		-	licensee's licensed premises; or
662		-
663		-	8. Permit or allow any patron to serve or pour himself or
664		-	herself any alcoholic beverage, except a licensee may offer a patron
665		-	self-pour service of beer or wine, or both, from automated devices
666		-	on licensed premises so long as:
667		-	ENR. H. B. NO. 2726 Page 16
668		-	a. the licensee monitors and has the ability to control
669		-	the dispensing of such beer or wine, or both, from the
670		-	automated devices. "Automated device" shall mean any
671		-	mechanized device capable of dispensing wine or beer,
672		-	or both, directly to a patron in exchange for
673		-	compensation that a licensee has received directly
674		-	from the patron, and
675		-
676		-	b. each licensee offering a patron self -pour service of
677		-	wine or beer, or both, from any automated device shall
678		-	provide constant video monitoring of the automated
679		-	device at all times during which the licensee is open
680		-	to the public. The licensee shall keep recorded
681		-	footage from the video monitoring for at least sixty
682		-	(60) days, and shall p rovide the footage, upon
683		-	request, to any agent of the Director of the ABLE
684		-	Commission or other authorized law enforcement agent.
685		-
686		-	B. 1. The compensation required by subparagraph a of paragraph
687		-	8 of subsection A of this section shall be in the form of a r adio
688		-	frequency identification (RFID) device, mobile application or any
689		-	other technology approved by the ABLE Commission containing a fixed
690		-	amount of volume of thirty -two (32) ounces for beer and ten (10)
691		-	ounces for wine that may be directly exchanged for b eer or wine
692		-	dispensed from the automated device:
693		-
694		-	a. RFID devices may be assigned, used or reactivated only
695		-	during a business day,
696		-
697		-	b. each RFID device shall be obtained from the licensee
698		-	by a patron,
699		-
700		-	c. a licensee shall not issue more than one active RFI D
701		-	device to a patron, and
702		-
703		-	d. an RFID device shall be deemed active if the RFID
704		-	device contains volume credit or has not yet been used
705		-	to dispense ten (10) ounces of wine or thirty -two (32)
706		-	ounces of beer.
707		-
708		-	2. In order to obtain a n RFID device from a lice nsee, each
709		-	patron shall produce a valid driver license, identification card or
710		-	other government-issued document that contains a photograph of the
711		-	individual and demonstrates that the individual is at least twenty -
712		-	one (21) years of age. Each RFID device sh all be programmed to ENR. H. B. NO. 2726 Page 17
713		-	require the production of the patron's valid identification before
714		-	the RFID device can be used for the first time during any business
715		-	day or for any subsequent reactivation.
716		-
717		-	3. Each RFID device shall become inactive at the end of ea ch
718		-	business day.
719		-
720		-	4. Each RFID device shall be programmed to allow the dispensing
721		-	of no more than ten (10) ounces of wine or thirty -two (32) ounces of
722		-	beer to a patron:
723		-
724		-	a. once an RFID device has been used to dispense ten (10)
725		-	ounces of wine or thirty -two (32) ounces of beer to a
726		-	patron, the RFID device shall become inactive, and
727		-
728		-	b. any patron in possession of an inactive RFID device
729		-	may, upon production of the patron's valid
730		-	identification to the licensee or licensee's employee,
731		-	have the RFID device rea ctivated to allow the
732		-	dispensing of an additional ten (10) ounces of wine or
733		-	thirty-two (32) ounces of beer from an automated
734		-	device.
735		-
736		-	Paragraphs 1, 2, 3 and 4 of this subsection shall not apply to wine
737		-	or beer that is dispensed directly to the licensee or the licensee's
738		-	agent or employee.
739		-
740		-	B. C. A mixed beverage or beer and wine licensee shall not be
	1211	+	licensee's licensed premises.
	1212	+	B. A mixed beverage or beer and wine licensee shall not be
741	1213		deemed to have violated the provisions of paragraph 5 of subsection
742	1214		A of this section if it allowed a patron to leave the licensed
743	1215		premises with an open container of beer or wine only and:
	1216	+
	1217	+	ENGR. H. B. NO. 2726 Page 23 1
	1218	+	2
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744	1241
745	1242		1. The otherwise prohibited act was committed during the hours
746	1243		of 8 a.m. to midnight on the day of a scheduled home football game
747	1244		of institutions within The Oklahoma State System of Higher
748	1245		Education, and the establishment is located within two thousand
749	1246		(2,000) feet of the institution;
750		-
751	1247		2. The licensee is participating by invitation in a municipally
752	1248		sanctioned art, music or sporting event within city limits when the
753	1249		municipality has provided written notice of the event and a list of
754	1250		invited licensees to the ABLE Commission at least five (5) days
755	1251		prior to the event; or
756		-	ENR. H. B. NO. 2726 Page 18
757	1252		3. The patron remains on the connected, physical property of
758	1253		the licensee or in a public area adjacent to the physical property
759	1254		of the licensee with prior municipal approval; pr ovided that written
760	1255		notice of the use of the connected, physical property of the
761	1256		licensee or public area shall be provided to the ABLE Commission at
762	1257		least five (5) days prior to such use.
	1258	+	SECTION 4. This act shall become effective November 1, 2021.
763	1259
764		-	SECTION 4. REPEALER Section 142, Chapter 366, O.S.L.
765		-	2016, as last amended by Section 1 of Enrolled House Bill No. 2380
766		-	of the 1st Session of the 58th Oklahoma Legislature , is hereby
767		-	repealed.
	1260	+	ENGR. H. B. NO. 2726 Page 24 1
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768	1284
769		-	SECTION 5. It being immediately necessary for the preservation
770		-	of the public peace, health or safety, an emergency is hereby
771		-	declared to exist, by reason whereof this act shall take effect and
772		-	be in full force from and after its passage and approval.
773		-	ENR. H. B. NO. 2726 Page 19
774		-	Passed the House of Representatives the 5th day of May, 2021.
	1285	+	Passed the House of Representatives the 3rd day of March, 2021.
775	1286
776	1287
777	1288
778	1289
779	1290		Presiding Officer of the House
780	1291		of Representatives
781	1292
782	1293
783		-	Passed the Senate the ~~19th~~ day of ~~April~~, 2021.
	1294	+	Passed the Senate the ___ day of __________, 2021.
784	1295
785	1296
786	1297
787	1298
788	1299		Presiding Officer of the Senate
789	1300
790		-
791		-
792		-	OFFICE OF THE GOVERNOR
793		-	Received by the Office of the Governor this ____________________
794		-	day of ___________________, 20 _______, at _______ o'clock _______ M.
795		-	By: _________________________________
796		-	Approved by the Governor of the State of Oklahoma this _________
797		-	day of ___________________, 20_______, at _______ o'clock _______ M.
798		-
799		-
800		-	_________________________________
801		-	Governor of the State of Oklahoma
802		-
803		-	OFFICE OF THE SECRETARY OF STATE
804		-	Received by the Office of the Secretary of State this __________
805		-	day of ___________________, 20_______, at _______ o'clock _______ M.
806		-	By: _________________________________
807		-