HB3641 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 2nd Session of the 58th Legislature (2022) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 3641 By: Dempsey and Humphrey of the House and Coleman of the Senate COMMITTEE SUBSTITUTE An Act relating to alcoholic beverages; providing that a holder of a small farm winery or winemaker license may serve free samples and sell other items; providing wine may be served at off -premises locations; providing that at public events the location occupied by the small farm winery or winemaker licensee becomes a licensed premises and extension of the licensed small farm winery or winemaker; requiring a licensee to establish a serving area; providing that multipl e licensees may combine their serving areas; a mending 37A O.S. 2021, Section 2-103, which relates to distiller's licenses; allowing holders of a distiller's license to open satellite locations; providing allowed activities and sales that may occur at satel lite locations; providing for codification; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOM A: HB3641 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 SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Sectio n 2-162 of Title 37A, unless there is created a duplication in numbering, reads as follows: A holder of a small farm winery or winemaker lic ense, which serves wine for on-premises or off-premises consumption, shall be allowed to serve free samples, or sell Oklahoma-manufactured wine, mulled wine, or spiced w ine, mixed with nonalcoholic beverages, or food items such as water, sugar, fruits, and vegetables, at any temperature. Wine produced by a holder of a small farm winery or winemaker license may be serve d at any public events including, but not limited to, festivals, trade shows, boat shows, RV shows, home and garden shows, fairs, car shows, swap meets, city events, county events, or state events for either on -premises or off-premises consumption. This i ncludes any public events that are held at premises which hold a retail beer license, retail spirits license, mixed beverage license, beer a nd wine license, caterer's license, special event license, public event license, winemaker license, charitable auction license, or brewpub license. At public events, the location within the event occupied by the small farm winery or winemaker licensee bec omes a licensed premises and extension of the licensed small farm winery or winemaker. The licensee shall set up and define an area contiguous to its booth space as a s erving area where the wine is dispensed. The licensee may only serve the wine in the serving area. In the event that multiple winemakers are at HB3641 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 the same public event, they may combine their serving are as into one larger area as long as they are contiguou s to the winemakers' booths. SECTION 2. AMENDATORY 37A O.S. 2 021, Section 2-103, is amended to read as follows: Section 2-103. A. A distiller license shall authorize the holder thereof: 1. To manufacture, bottle, package and st ore spirits on licensed premises; 2. To sell spirits in this state to licensed wholesa lers and manufacturers only; 3. To sell spirits out of this state to qualified persons ;, to purchase from licensed distillers and rectifiers in this state, and import spirits from without this state for manufacturing purposes in accordance with federal la ws and regulations; 4. To serve free samples of spirits produced only by the licensee to visitors twenty -one (21) years of age and older. For purposes of this section, no visitor may sample more than a total of three (3) fluid ounces of spirits per day. The distiller shall restrict the distribution and consumption of spirits samples to an area within the licensed pre mises designated by the distiller. A current floor plan that includes the designated sampling area shall be on file with the ABLE Commissio n. No visitor under twenty -one (21) years of age shall be permitted to enter the designated HB3641 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 sampling area when samp les are being distributed and consumed. Samples of spirits served by a distiller under this section shall not be considered a sale of spiri ts within the meaning of Article XXVIII-A of the Oklahoma Constitution or Section 1 -103 of this title; provided, suc h samples of spirits shall be considered removed or withdrawn from the distillery for use or consumption within the meaning of Section 5 -110 of this title for excise tax determination and reporting requirements; 5. To sell spirits produced by the licensee for either on- premises or off-premises consumption t o consumers on the licensed distillery premises or in an area controlled by the license e located contiguous to the licensed distillery premises. Product offered for sale by the Oklahoma -licensed distiller will have been sold to and shipped to an Oklahoma licensed wine and spirits wholesaler and then made available for purchase by the Oklaho ma-licensed distiller for to sale; and 6. To sell spirits at public events such as trade shows or festivals. Products offered for sale by the Oklahoma licensed distiller will have been sold to and shipped to an Oklahoma licensed wine and spirits wholesal er and then made available for purchase by the Oklahoma licensed distiller ; and 7. To establish distiller's satelli te locations, which shall be considered extensions of the distiller's licensed premises, where the distiller's products may be tasted, sampl ed, and served for on - HB3641 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 premises consumption and the holder of a distiller's license is permitted to sell the distille r's products in sealed containers, provided that the distiller's license is active and in good standing and the product offered for sale by the Oklahoma licensed distiller will have first been sold to and shipped to an Oklahoma licensed wine and spirt wholesaler and then made available for purchase by the Oklahoma licensed distiller to sell. The spirits sold at a satellite tasting room must h ave been produced and manufactured by the holder of the distiller license . B. Spirits sold pursuant to paragraphs 5 and, 6, and 7 of subsection A of this section shall not exceed fifteen thousand (15,000) gallons per calendar year in combination. SECTION 3. This act shall become effective November 1, 2022. COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED SUBSTANCES, dated 03/03/2022 - DO PASS, As Amended and Coauthored.