Oklahoma 2022 Regular Session

Oklahoma House Bill HB3641 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 3641 Page 1 1
	3	+	HB3641 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 3641 By: Dempsey, Humphrey and Strom
30		-	of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	2nd Session of the 58th Legislature (2022)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR
	37	+	HOUSE BILL NO. 3641 By: Dempsey and Humphrey of the
	38	+	House
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32	40		and
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34	42		Coleman of the Senate
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	49	+	COMMITTEE SUBSTITUTE
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42		-	[ alcoholic beverages - providing that a holder of a
43		-	small farm winery, winemaker, or small brewer
44		-	license may serve free samples and sell o ther items
45		-	- allowing holders of a distiller's license to open
46		-	satellite locations - effective date ]
	51	+	An Act relating to alcoholic beverages; providing
	52	+	that a holder of a small farm winery or winemaker
	53	+	license may serve free samples and sell other items;
	54	+	providing wine may be served at off -premises
	55	+	locations; providing that at public events the
	56	+	location occupied by the small farm winery or
	57	+	winemaker licensee becomes a licensed premises and
	58	+	extension of the licensed small farm winery or
	59	+	winemaker; requiring a licensee to establish a
	60	+	serving area; providing that multipl e licensees may
	61	+	combine their serving areas; a mending 37A O.S. 2021,
	62	+	Section 2-103, which relates to distiller's licenses;
	63	+	allowing holders of a distiller's license to open
	64	+	satellite locations; providing allowed activities and
	65	+	sales that may occur at satel lite locations;
	66	+	providing for codification; and providing an
	67	+	effective date.
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51	73		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOM A:
52		-	SECTION 1. NEW LAW A new section of law to be codified
53		-	in the Oklahoma Statutes as Section 2-162 of Title 37A, unless there
54		-	is created a duplication in numbering, reads as follows:
55		-	A holder of a small farm winery , winemaker, or small brewer
56		-	license, which serves wine or beer for on-premises or off-premises
57		-	consumption, shall be allowed to serve fre e samples, or sell
58		-	Oklahoma-manufactured beer, wine, mulled wine, or spiced wine, mixe d
59		-	with nonalcoholic beverages, or food items such as water, sugar,
60		-	fruits, and vegetables, at any temperature. Wine or beer produced
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62		-	ENGR. H. B. NO. 3641 Page 2 1
	75	+	HB3641 HFLR Page 2
	76	+	BOLD FACE denotes Committee Amendments. 1
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87		-	by a holder of a small farm winery, winemaker, or small brewer
88		-	license may be served at any public events including, but not
89		-	limited to, festival s, trade shows, boat shows, RV shows, home and
90		-	garden shows, fairs, car shows, swap meets, city events, county
	101	+	SECTION 1. NEW LAW A new section of law to be codified
	102	+	in the Oklahoma Statutes as Sectio n 2-162 of Title 37A, unless there
	103	+	is created a duplication in numbering, reads as follows:
	104	+	A holder of a small farm winery or winemaker lic ense, which
	105	+	serves wine for on-premises or off-premises consumption, shall be
	106	+	allowed to serve free samples, or sell Oklahoma-manufactured wine,
	107	+	mulled wine, or spiced w ine, mixed with nonalcoholic beverages, or
	108	+	food items such as water, sugar, fruits, and vegetables, at any
	109	+	temperature. Wine produced by a holder of a small farm winery or
	110	+	winemaker license may be serve d at any public events including, but
	111	+	not limited to, festivals, trade shows, boat shows, RV shows, home
	112	+	and garden shows, fairs, car shows, swap meets, city events, county
91	113		events, or state events for either on -premises or off-premises
92	114		consumption. This i ncludes any public events that are held at
93	115		premises which hold a retail beer license, retail spirits license,
94	116		mixed beverage license, beer a nd wine license, caterer's license,
95	117		special event license, public event license, winemaker license,
96	118		charitable auction license, or brewpub license. At public events,
97		-	the location within the event occupied by the small farm winery ,
98		-	winemaker, or small brewer licensee becomes a licensed premi ses and
99		-	extension of the licensed small farm winery , winemaker, or small
100		-	brewer. The licensee shall set up and define an area contiguous to
101		-	its booth space as a serving ar ea where the wine or beer is
102		-	dispensed. The licensee may only serve the wine or beer in the
103		-	serving area. In the event that multiple winemakers or brewers are
104		-	at the same public event, they may combine their serving areas into
105		-	one larger area as long as they are c ontiguous to the winemakers' or
106		-	brewers' booths. A small farm winery, winemaker, or small brewer
107		-	licensee shall not be required to secure or control the public event
108		-	premises once the Oklahoma-manufactured beer, wine, mulled wine , or
109		-	spiced wine, mixed with nonalcoholic beverages, or food items such
	119	+	the location within the event occupied by the small farm winery or
	120	+	winemaker licensee bec omes a licensed premises and extension of the
	121	+	licensed small farm winery or winemaker. The licensee shall set up
	122	+	and define an area contiguous to its booth space as a s erving area
	123	+	where the wine is dispensed. The licensee may only serve the wine
	124	+	in the serving area. In the event that multiple winemakers are at
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111		-	ENGR. H. B. NO. 3641 Page 3 1
	126	+	HB3641 HFLR Page 3
	127	+	BOLD FACE denotes Committee Amendments. 1
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136		-	as water, sugar, fruits , and vegetables, at any temperature, is
137		-	served.
138		-	SECTION 2. AMENDATORY 37A O.S . 2021, Section 1-103, is
	152	+	the same public event, they may combine their serving are as into one
	153	+	larger area as long as they are contiguou s to the winemakers'
	154	+	booths.
	155	+	SECTION 2. AMENDATORY 37A O.S. 2 021, Section 2-103, is
139	156		amended to read as follows:
140		-	Section 1-103. As used in the Oklahoma Alcoholic Beverage
141		-	Control Act:
142		-	1. "ABLE Commission" or "Commission" means the Alcoholic
143		-	Beverage Laws Enforcement Commission;
144		-	2. "Alcohol" means and includes h ydrated oxide of ethyl, ethyl
145		-	alcohol, ethanol or spirits of wine, from whatever sour ce or by
146		-	whatever process produced. It does not include wood alcohol or
147		-	alcohol which has been denatured or produced as denatured in
148		-	accordance with Acts of Congress and regulations promulgated
149		-	thereunder;
150		-	3. "Alcoholic beverage" means alcohol, spirits, beer and wine
151		-	as those terms are defined herein and also includes every li quid or
152		-	solid, patented or not, containing alcohol, spirits, wine or beer
153		-	and capable of being co nsumed as a beverage by human beings;
154		-	4. "Applicant" means any individual, legal or commercial
155		-	business entity, or any individual involved in any legal or
156		-	commercial business entity allowed to hold any license issued in
157		-	accordance with the Oklahoma Alcoho lic Beverage Control Act;
158		-	5. "Beer" means any beverage of alcohol by volume and obta ined
159		-	by the alcoholic fermentation of an infusion or decoction of barley,
	157	+	Section 2-103. A. A distiller license shall authorize the
	158	+	holder thereof:
	159	+	1. To manufacture, bottle, package and st ore spirits on
	160	+	licensed premises;
	161	+	2. To sell spirits in this state to licensed wholesa lers and
	162	+	manufacturers only;
	163	+	3. To sell spirits out of this state to qualified persons ;, to
	164	+	purchase from licensed distillers and rectifiers in this state, and
	165	+	import spirits from without this state for manufacturing purposes in
	166	+	accordance with federal la ws and regulations;
	167	+	4. To serve free samples of spirits produced only by the
	168	+	licensee to visitors twenty -one (21) years of age and older. For
	169	+	purposes of this section, no visitor may sample more than a total of
	170	+	three (3) fluid ounces of spirits per day. The distiller shall
	171	+	restrict the distribution and consumption of spirits samples to an
	172	+	area within the licensed pre mises designated by the distiller. A
	173	+	current floor plan that includes the designated sampling area shall
	174	+	be on file with the ABLE Commissio n. No visitor under twenty -one
	175	+	(21) years of age shall be permitted to enter the designated
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161		-	ENGR. H. B. NO. 3641 Page 4 1
	177	+	HB3641 HFLR Page 4
	178	+	BOLD FACE denotes Committee Amendments. 1
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186		-	or other grain, malt or similar products. "Beer" may or may not
187		-	contain hops or other vegetable products. "Beer" includes, among
188		-	other things, beer, ale, stout, lager beer, porter and other malt or
189		-	brewed liquors, but does not include sake, known as Japa nese rice
190		-	wine;
191		-	6. "Beer keg" means any brewer-sealed, single container tha t
192		-	contains not less than four (4) gallons of beer;
193		-	7. "Beer distributor" means and includes any person li censed to
194		-	distribute beer for retail sale in the state, but does not inclu de a
195		-	holder of a small brewer self-distribution license or brewpub self -
196		-	distribution license. Th e term "distributor", as used in the
197		-	Oklahoma Alcoholic Beverage Control Act, shall b e construed to refer
198		-	to a beer distributor;
199		-	8. "Bottle club" means any establishment in a county which has
200		-	not authorized the retail sale of alcoholi c beverages by the
201		-	individual drink, which is required to be licensed to keep, mix and
202		-	serve alcoholic beverages belonging to club members on club
203		-	premises;
204		-	9. "Bottle service" means the sale and provision of spirits in
205		-	their original packages by a mixed beverage licensee to be consumed
206		-	in that mixed beverage licensee's club suite;
207		-	10. "Brand" means any word, name, group of letters, symbol or
208		-	combination thereof, that is adopted a nd used by a licensed brewer
	203	+	sampling area when samp les are being distributed and consumed.
	204	+	Samples of spirits served by a distiller under this section shall
	205	+	not be considered a sale of spiri ts within the meaning of Article
	206	+	XXVIII-A of the Oklahoma Constitution or Section 1 -103 of this
	207	+	title; provided, suc h samples of spirits shall be considered removed
	208	+	or withdrawn from the distillery for use or consumption within the
	209	+	meaning of Section 5 -110 of this title for excise tax determination
	210	+	and reporting requirements;
	211	+	5. To sell spirits produced by the licensee for either on-
	212	+	premises or off-premises consumption t o consumers on the licensed
	213	+	distillery premises or in an area controlled by the license e located
	214	+	contiguous to the licensed distillery premises. Product offered for
	215	+	sale by the Oklahoma -licensed distiller will have been sold to and
	216	+	shipped to an Oklahoma licensed wine and spirits wholesaler and then
	217	+	made available for purchase by the Oklaho ma-licensed distiller for
	218	+	to sale; and
	219	+	6. To sell spirits at public events such as trade shows or
	220	+	festivals. Products offered for sale by the Oklahoma licensed
	221	+	distiller will have been sold to and shipped to an Oklahoma licensed
	222	+	wine and spirits wholesal er and then made available for purchase by
	223	+	the Oklahoma licensed distiller ; and
	224	+	7. To establish distiller's satelli te locations, which shall be
	225	+	considered extensions of the distiller's licensed premises, where
	226	+	the distiller's products may be tasted, sampl ed, and served for on -
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235		-	to identify a specific beer, wine or spirit and to distinguish that
236		-	product from another beer, wine or spirit;
237		-	11. "Brand extension" means:
238		-	a. after October 1, 2018, any brand of beer or cider
239		-	introduced by a manufacturer in t his state which
240		-	either:
241		-	(1) incorporates all or a substantial part of the
242		-	unique features of a pr eexisting brand of the
243		-	same licensed brewer, or
244		-	(2) relies to a significant extent on the goodwill
245		-	associated with the preexisting brand, or
246		-	b. any brand of beer that a brewer, the majority of whose
247		-	total volume of all brands of beer d istributed in this
248		-	state by such brewer on January 1, 2016, was
249		-	distributed as low-point beer, desires to sell,
250		-	introduces, begins selling or theretofore has sold and
251		-	desires to continue selling a strong beer in this
252		-	state which either:
253		-	(1) incorporates or incorporated all or a substantial
254		-	part of the unique features of a preexisting low -
255		-	point beer brand of th e same licensed brewer, or
256		-	(2) relies or relied to a significant extent on the
257		-	goodwill associated with a preexisting low -point
258		-	beer brand;
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285		-	12. "Brewer" means and includes any person who manufactures for
286		-	human consumption by the use of raw materials or ot her ingredients
287		-	any beer or cider upon which a license fee and a tax are i mposed by
288		-	any law of this state;
289		-	13. "Brewpub" means a licensed establishme nt operated on the
290		-	premises of, or on premises located contiguous to, a small brewer,
291		-	that prepares and se rves food and beverages, including alcoholic
292		-	beverages, for on-premises consumption;
293		-	14. "Cider" means any alcoholic beverage obtained by the
294		-	alcoholic fermentation of fr uit juice, including but not limited to
295		-	flavored, sparkling or carbonated cider. For the purposes of the
296		-	manufacture of this product, cider may be manufacture d by either
297		-	manufacturers or brewers. For the purposes of the distribution of
298		-	this product, cider may be distributed by either wine and spirits
299		-	wholesalers or beer distributors;
300		-	15. "Club suite" means a designated area within the premises of
301		-	a mixed beverage licensee designed to provide an exclusive space
302		-	which is limited to a p atron or patrons spec ifically granted access
303		-	by a mixed beverage licensee and is not accessible to other p atrons
304		-	of the mixed beverage licensee or the public. A club suite must
305		-	have a clearly designated point of access for a patron or patrons
306		-	specifically granted access by th e mixed beverage licensee to ensure
307		-	that persons present in the suite are limited to patrons
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334		-	specifically granted access by the mixed beverage licensee and
335		-	employees providing services to the club suite;
336		-	16. "Convenience store" means any person primarily engaged in
337		-	retailing a limited range of general household items and groceries,
338		-	with extended hours of operation, whether or not engaged in retail
339		-	sales of automotive fuels in combination with such sales;
340		-	17. "Convicted" and "conviction" mean and include a finding of
341		-	guilt resulting from a plea of guilty or nolo contendere, the
342		-	decision of a court or magistrate or the verdict of a jury,
343		-	irrespective of the prono uncement of judgment or the suspension
344		-	thereof;
345		-	18. "Designated products" means the brands of wi ne or spirits
346		-	offered for sale by a manufacturer that the manufacturer has
347		-	assigned to a designated wholesaler for exclusive distribution;
348		-	19. "Designated wholesaler" means a wine and spirits wholesaler
349		-	who has been selected by a manu facturer as a wholesa ler appointed to
350		-	distribute designated products;
351		-	20. "Director" means the Director o f the ABLE Commission;
352		-	21. "Distiller" means any person who produces spir its from any
353		-	source or substance, or any person who brews or makes mash, wor t or
354		-	wash, fit for distillation or for the production of spirits (except
355		-	a person making or using such mat erial in the authorized production
356		-	of wine or beer, or the production of v inegar by fermentation), or
357		-	any person who by any process separates alcoholi c spirits from any
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384		-	fermented substance, or any person who, making or keeping mash, wort
385		-	or wash, has also in his or her possession or use a still;
386		-	22. "Distributor agreement " means the written agreement between
387		-	the distributor and brewer as set forth in S ection 3-108 of this
388		-	title;
389		-	23. "Drug store" means a person primarily engaged in retailing
390		-	prescription and nonprescription drugs and medicines;
391		-	24. "Dual-strength beer" means a brand of beer that,
392		-	immediately prior to April 15, 2017, was being sold and distributed
393		-	in this state:
394		-	a. as a low-point beer pursuant to the Low -Point Beer
395		-	Distribution Act in effec t immediately prior to
396		-	October 1, 2018, and
397		-	b. as strong beer pursuant to the Alcoholic Beverage
398		-	Control Act in effect immediately prior to October 1,
399		-	2018,
400		-	and continues to be sold and distributed as such on October 1, 2018.
401		-	Dual-strength beer does not i nclude a brand of beer that arose as a
402		-	result of a brand extension as defi ned in this section;
403		-	25. "Fair market value" means the value in the subject
404		-	territory covered by the written agreement with the distributor or
405		-	wholesaler that would be determined in an arm's length transaction
406		-	entered into without duress or threat of term ination of the
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433		-	distributor's or wholesaler's rights and shall include all el ements
434		-	of value, including goodwill and going -concern value;
435		-	26. "Good cause" means:
436		-	a. failure by the distributor to comply with the material
437		-	and reasonable provisions of a writt en agreement or
438		-	understanding with the brewer, or
439		-	b. failure by the distribu tor to comply with th e duty of
440		-	good faith;
441		-	27. "Good faith" means the duty of each party to any
442		-	distributor agreement and all officers, employees or agents thereof
443		-	to act with honesty in fact and within reasonable standards of fair
444		-	dealing in the trade;
445		-	28. "Grocery store" means a person primarily engaged in
446		-	retailing a general line of food, such as canned o r frozen foods,
447		-	fresh fruits and vegetables, and fresh and prepared meats, fish and
448		-	poultry;
449		-	29. "Hotel" or "motel" means an establishment which is l icensed
450		-	to sell alcoholic beverages by the individual drink and which
451		-	contains guestroom accommodations wi th respect to which the
452		-	predominant relationship existing between the occu pants thereof and
453		-	the owner or operator of the establishment is that of innk eeper and
454		-	guest. For purposes of this section, the existence of other legal
455		-	relationships as between some occupants and the owner or operator
456		-	thereof shall be immaterial;
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482		-
483		-	30. "Legal newspaper" means a newspaper meeting the requisites
484		-	of a newspaper for p ublication of legal n otices as prescribed in
485		-	Sections 101 through 114 of Title 25 of the Oklahoma Statutes ;
486		-	31. "Licensee" means any person holding a license under the
487		-	Oklahoma Alcoholic Beverage Control Act, and any agent, servant or
488		-	employee of such lic ensee while in the pe rformance of any act or
489		-	duty in connection with the licensed business or on the licen sed
490		-	premises;
491		-	32. "Low-point beer" shall mean any beverages containing mo re
492		-	than one-half of one percent (1/2 of 1%) alcohol by volume, and not
493		-	more than three and two-tenths percent (3.2%) alcohol by weight,
494		-	including, but not limited to, beer or cereal malt beverages
495		-	obtained by the alcoholic fermentation of an infusion by ba rley or
496		-	other grain, malt or similar products;
497		-	33. "Manufacturer" means a distiller, winemaker, r ectifier or
498		-	bottler of any alcoholic beverage (other than beer) and its
499		-	subsidiaries, affiliates and parent companies;
500		-	34. "Manufacturer's agent " means a salaried or commissioned
501		-	salesperson who is the agent authorized to act on behal f of the
502		-	manufacturer or nonresident seller in the state;
503		-	35. "Meals" means foods commonly ordered at lu nch or dinner and
504		-	at least part of which is cooked on the licensed premise s and
505		-	requires the use of dining implements for consumption. Provided,
506		-
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532		-	that the service of only f ood such as appetizers, sandwiches, salads
533		-	or desserts shall not be considered "meals";
534		-	36. "Mini-bar" means a closed container, either refrigerated in
535		-	whole or in part, or nonrefrigerated, and access to the interior of
536		-	which is:
537		-	a. restricted by means of a locking device which requires
538		-	the use of a key, magnetic card or similar device, or
539		-	b. controlled at all times by the licensee;
540		-	37. "Mixed beverage cooler " means any beverage, by whatever
541		-	name designated, consisting of an alcoholic beverage and fruit o r
542		-	vegetable juice, fruit or vegetable flavorings, dairy products or
543		-	carbonated water containing more than one-half of one percent (1/2
544		-	of 1%) of alcohol measu red by volume but not more than seven percent
545		-	(7%) alcohol by volume at sixty (60) degrees Fahrenh eit and which is
546		-	packaged in a container not larger than three hundred seventy -five
547		-	(375) milliliters. Such term shall include but not be limited to
548		-	the beverage popularly known as a "wine cooler";
549		-	38. "Mixed beverages" means one or more servings of a be verage
550		-	composed in whole or part of an alcoholic beverage in a sealed or
551		-	unsealed container of any legal size for consumption on the premises
552		-	where served or sold by the holder of a mixed beverage, beer and
553		-	wine, caterer, public event, charitable event or special event
554		-	license;
555		-
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580		-
581		-	39. "Motion picture theater " means an establishment which is
582		-	licensed by Section 2-110 of this title to sell alcoholic beverages
583		-	by the individual drink and where motion pictures are exhibited, and
584		-	to which the general public is adm itted;
585		-	40. "Nondesignated products " means the brands of wine or
586		-	spirits offered for sale by a manufacturer that have not been
587		-	assigned to a designated wholes aler;
588		-	41. "Nonresident seller" means any person licensed pursuant to
589		-	Section 2-135 of this title;
590		-	42. "Retail salesperson" means a salesperson soliciting orders
591		-	from and calling upon retail alcoholic beverage stores with regard
592		-	to his or her product;
593		-	43. "Occupation" as used in connection with "occupation tax"
594		-	means the sites occupied as the places of business of the
595		-	manufacturers, brewers, wholesalers, beer distributors, retailers ,
596		-	mixed beverage licensees, on-premises beer and wine licensees,
597		-	bottle clubs, caterers, public event and special event licensees;
598		-	44. "Original package" means any container of alcoholic
599		-	beverage filled and stamped or sealed by the manufacturer or brewer;
600		-	45. "Package store" means any sole proprietor or partnership
601		-	that qualifies to sell wine, beer and/or spirits for off-premises
602		-	consumption and that i s not a grocery store , convenience store or
603		-	drug store, or other retail outlet that is not permitted to s ell
604		-	wine or beer for off-premises consumption;
605		-
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630		-
631		-	46. "Patron" means any person, customer or visitor who is not
632		-	employed by a licensee or who is not a li censee;
633		-	47. "Person" means an individual, any type of partnership,
634		-	corporation, association, limited lia bility company or any
635		-	individual involved in the legal structure of any su ch business
636		-	entity;
637		-	48. "Premises" means the grounds and all buildings and
638		-	appurtenances pertaini ng to the grounds including any adjacent
639		-	premises if under the direct or indirect co ntrol of the licensee and
640		-	the rooms and equipment under the control of the licensee and used
641		-	in connection with or in furtherance of the business cover ed by a
642		-	license. Provided that the ABLE Commission shall have the authority
643		-	to designate areas to be exc luded from the licensed premises solely
644		-	for the purpose of:
645		-	a. allowing the presence and consumption of alcoholic
646		-	beverages by private parties which ar e closed to the
647		-	general public, or
648		-	b. allowing the services of a caterer serving alcoholic
649		-	beverages provided by a private party.
650		-	This exception shall in no way limit the licensee 's concurrent
651		-	responsibility for any violations of the Oklahoma Alcoholic Bev erage
652		-	Control Act occurring on the licensed premises;
653		-	49. "Private event" means a social gathering or ev ent attended
654		-	by invited guests who share a common cause, membership, busin ess or
655		-
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681		-	task and have a prior established relationship. For purposes of
682		-	this definition, advertise ment for general public attendance or
683		-	sales of tickets to the general public shall n ot constitute a
684		-	private event;
685		-	50. "Public event" means any event that ca n be attended by the
686		-	general public;
687		-	51. "Rectifier" means any person who re ctifies, purifies or
688		-	refines spirits or wines by any process (other than by original and
689		-	continuous distillation, or original and continuous processing, from
690		-	mash, wort, wash or o ther substance, through continuous closed
691		-	vessels and pipes, until the produc tion thereof is compl ete), and
692		-	any person who, without rectifying, purifying or refining spirits,
693		-	shall by mixing (except for immediate consumption on the premises
694		-	where mixed) such spirits, wine or other liquor with any material,
695		-	manufactures any spurious , imitation or compou nd liquors for sale,
696		-	under the name of whiskey, brandy, rum, gin, wine, spirits, cor dials
697		-	or any other name;
698		-	52. "Regulation" or "rule" means a formal rule o f general
699		-	application promulgated by the ABLE Commission as herein required;
700		-	53. "Restaurant" means an establishment that is licensed to
701		-	sell alcoholic beverages by the individual d rink for on-premises
702		-	consumption and where food is prepared and sold for i mmediate
703		-	consumption on the premises;
704		-
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730		-	54. "Retail container for spirits and wines" means an original
731		-	package of any capacity approved by the United States Bureau of
732		-	Alcohol, Tobacco and Firearms;
733		-	55. "Retailer" means a package store, grocery store,
734		-	convenience store or drug store licensed to sell alcoholic beverages
735		-	for off-premises consumption pursu ant to a Retail Spirits License,
736		-	Retail Wine License or Retail Beer License;
737		-	56. "Sale" means any transfer, exchange or barter in any manner
738		-	or by any means whatsoever, and includes and means all sales made by
739		-	any person, whether as p rincipal, proprietor or as an agent, servant
740		-	or employee. The term "sale" is also declared to be and inc lude the
741		-	use or consumption in this state of any alcoholic beverage obtain ed
742		-	within or imported from without this state, upon which the excise
743		-	tax levied by the Oklahoma Al coholic Beverage Control Act has not
744		-	been paid or exempted;
745		-	57. "Short-order food" means food other than full meals
746		-	including but not limited to sandwiches, soups and salads. Provided
747		-	that popcorn, chips and other similar snack food shall not be
748		-	considered "short-order food";
749		-	58. "Small brewer" means a brewer who manufactures less than
750		-	sixty-five thousand barrels of beer annually pursuant to a validly
751		-	issued Small Brewer License hereunder;
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778		-	59. "Small farm wine" means a wine that is produced by a small
779		-	farm winery with seventy -five percent (75%) or more Oklahoma -grown
780		-	grapes, berries, other fruits, honey or vegetables;
781		-	60. "Small farm winery" means a wine-making establishment that
782		-	does not annually produce for sale more than fifteen thousand
783		-	(15,000) gallons of wine as reported on the United States Department
784		-	of the Treasury, Alcohol an d Tobacco Tax and Trade Bureau, Report of
785		-	Wine Premises Operations (TTB Fo rm 5120.17);
786		-	61. "Sparkling wine" means champagne or any artificially
787		-	carbonated wine;
788		-	62. "Special event" means an entertainment, recreation or
789		-	marketing event that occurs at a si ngle location on an irregular
790		-	basis and at which alcoholic beverages are s old;
791		-	63. "Spirits" means any beverage other than wine or beer, which
792		-	contains more than one-half of one percent (1/2 of 1%) alcohol
793		-	measured by volume, and obtained by distillation, whether or not
794		-	mixed with other substances in solution and includes those products
795		-	known as whiskey, brandy, rum, gin, vodka, liqueurs, cordials and
796		-	fortified wines and si milar compounds, but shall not include any
797		-	alcohol liquid completely denatured in ac cordance with the Acts of
798		-	Congress and regulations pursuant thereto;
799		-	64. "Strong beer" means beer which, prior to October 1, 2018,
800		-	was distributed pursuant to the Oklahoma Alcoholic Beverage Control
801		-	Act, Section 501 et seq. of Title 37 of the Oklahoma Sta tutes;
802		-
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828		-	65. "Successor brewer" means a primary source of supply, a
829		-	brewer, a cider manufacturer or an importer that acquires rights to
830		-	a beer or cider brand from a predeces sor brewer;
831		-	66. "Tax Commission" means the Oklahoma Tax Commission;
832		-	67. "Territory" means a geographic region with a specified
833		-	boundary;
834		-	68. "Wine and spirits wholesaler" or "wine and spirits
835		-	distributor" means and includes any sole proprietorship or
836		-	partnership licensed to distribute wine and spirits in the state.
837		-	The term "wholesaler", as used in the Oklahoma Alcoholic Beverage
838		-	Control Act, shall be const rued to refer to a wine and spirits
839		-	wholesaler;
840		-	69. "Wine" means and includes any beverage contai ning more than
841		-	one-half of one percent (1/2 of 1%) alcohol by volume and not more
842		-	than twenty-four percent (24%) alcohol by volume at sixty (60)
843		-	degrees Fahrenheit obtained by the fermentation of the natural
844		-	contents of fruits, vegetab les, honey, milk or o ther products
845		-	containing sugar, whether or not other ingredients are added, and
846		-	includes vermouth and sake, known as Japanese rice wine;
847		-	70. "Winemaker" means and includes any person or establishment
848		-	who manufactures for human consump tion any wine upon wh ich a license
849		-	fee and a tax are imposed by any law of this state; and
850		-	71. "Satellite tasting room" means a licensed establishment
851		-	operated off the licensed p remises of the holder of a small farm
852		-
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878		-	winery, or winemaker, or small brewer license, which serves wine or
879		-	beer for on-premises or off-premises consumption.
880		-	Words in the plural include the singular, and vice versa, and
881		-	words imparting the masculine gender include the feminine, as well
882		-	as persons and licensees as defined in t his section.
883		-	SECTION 3. AMENDATORY 37A O.S. 2 021, Section 2-103, is
884		-	amended to read as follows:
885		-	Section 2-103. A. A distiller license shall authorize t he
886		-	holder thereof:
887		-	1. To manufacture, bottle, package and store spirits on
888		-	licensed premises;
889		-	2. To sell spirits in this state to licensed wholesa lers and
890		-	manufacturers only;
891		-	3. To sell spirits out of this state to qualified persons ;, to
892		-	purchase from licensed distillers and rectifiers in this state, and
893		-	import spirits from without this state for manufacturing purposes in
894		-	accordance with federal la ws and regulations;
895		-	4. To serve free samples of spirits produced only by the
896		-	licensee to visitors twenty -one (21) years of age and older. For
897		-	purposes of this section, no visitor may samp le more than a total of
898		-	three (3) fluid ounces of spirits per day. The distiller shall
899		-	restrict the distribution and consumption of spirits samples to an
900		-	area within the lice nsed premises designated by the distiller. A
901		-	current floor plan that includes th e designated sampling area shall
902		-
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927		-
928		-	be on file with the ABLE Commissio n. No visitor under twenty -one
929		-	(21) years of age shall be permitted to enter the designated
930		-	sampling area when samples are being distributed and consumed.
931		-	Samples of spirits served by a d istiller under this section shall
932		-	not be considered a sale of spiri ts within the meaning of Article
933		-	XXVIII-A of the Oklahoma Constitution or Section 1 -103 of this
934		-	title; provided, such samples of spirits shall be considered removed
935		-	or withdrawn from the di stillery for use or consumption within the
936		-	meaning of Section 5 -110 of this title for excise tax dete rmination
937		-	and reporting requirements;
938		-	5. To sell spirits produced by the licensee for either on-
939		-	premises or off-premises consumption to consumers on the l icensed
940		-	distillery premises or in an area controlled by the license e located
941		-	contiguous to the licens ed distillery premises. Product offered for
942		-	sale by the Oklahoma -licensed distiller will have been sold to and
943		-	shipped to an Oklahoma -licensed wine and sp irits wholesaler and then
944		-	made available for purchase by the Oklaho ma-licensed distiller for
945		-	sale to sell; and
946		-	6. To sell spirits at public events such as trade shows or
947		-	festivals. Products offered for sale by the Oklahoma -licensed
948		-	distiller will have been so ld to and shipped to an Oklahoma -licensed
949		-	wine and spirits wholesal er and then made available for pur chase by
950		-	the Oklahoma-licensed distiller; and
951		-
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977		-	7. To establish distiller's satellite locations, which shall be
978		-	considered extensions of the distiller's lic ensed premises, where
979		-	the distiller's products may be tasted, sampl ed, and served for on -
980	254		premises consumption and the holder of a distiller's license is
981	255		permitted to sell the distille r's products in sealed containers,
982	256		provided that the distiller's license is active and in good standing
983		-	and the product offered for sale by the Oklahoma-licensed distiller
984		-	will have first been sold to and shipped to an Oklahoma -licensed
	257	+	and the product offered for sale by the Oklahoma licensed distiller
	258	+	will have first been sold to and shipped to an Oklahoma licensed
985	259		wine and spirt wholesaler and then made available for purchase by
986		-	the Oklahoma-licensed distiller to sell. The spirits sold at a
	260	+	the Oklahoma licensed distiller to sell. The spirits sold at a
987	261		satellite tasting room must h ave been produced and manufactured by
988	262		the holder of the distiller license .
989	263		B. Spirits sold pursuant to paragraphs 5 and, 6, and 7 of
990	264		subsection A of this section shall not exceed fifteen thousand
991	265		(15,000) gallons per calendar year in combination.
992		-	SECTION 4. AMENDATORY 37A O.S. 2021, Section 2-160, is
993		-	amended to read as follows:
994		-	Section 2-160. A satellite tasting room license shall authorize
995		-	the holder of a small farm winery license, or winemaker license, or
996		-	small brewer license to operate no more than two satellite locations
997		-	in addition to his or her their licensed premises for the purpose of
998		-	providing tastings, samples and retail sales for on -premises or off-
999		-	premises consumption to consumers over twenty -one (21) years of age;
1000		-	provided the wine or beer tasted, sampled or sold shall have been
	266	+	SECTION 3. This act shall become effective November 1, 2022.
1001	267
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1027		-	produced/manufactured by the holder of a small farm winery or,
1028		-	winemaker, or small brewer license and shall have all manufacturing
1029		-	taxes paid.
1030		-	The holder of a small farm winer y license or, winemaker license,
1031		-	or small brewer license must obtain approval for each satellite
1032		-	location from the city, town or muni cipality before submitting the
1033		-	application to the ABLE Commission. The fee for licensing each
1034		-	satellite location will be One Hundred D ollars ($100.00) annually.
1035		-	The small farm winery licensee or, winemaker licensee, or small
1036		-	brewer licensee operating a satellite tasting room must keep such
1037		-	license in good standing and is liable for any violati on committed
1038		-	on the premises of its satellite tasting rooms. Employees and
1039		-	managers of the satellite tasting room must be trained in alcohol
1040		-	handling, laws and regul ations and hold a current alcohol servers
1041		-	license and must be over twenty -one (21) years of age.
1042		-	For purposes of this section, the term "tasting or tastings"
1043		-	means the serving of free samples of the winemaker's products not to
1044		-	exceed more than a total of s ix (6) fluid ounces of wine per person
1045		-	aged twenty-one (21) years or older per day, or the serving of the
1046		-	winemaker's products by individual drink purchased by the consumer
1047		-	for on-premises consumption, or the retail sale of the winemaker's
1048		-	products in sealed containers to an on-premises customer for off -
1049		-	premises consumption, or any combination thereof.
1050		-	SECTION 5. This act shall become effective November 1, 2022.
1051		-
1052		-	ENGR. H. B. NO. 3641 Page 22 1
1053		-	2
1054		-	3
1055		-	4
1056		-	5
1057		-	6
1058		-	7
1059		-	8
1060		-	9
1061		-	10
1062		-	11
1063		-	12
1064		-	13
1065		-	14
1066		-	15
1067		-	16
1068		-	17
1069		-	18
1070		-	19
1071		-	20
1072		-	21
1073		-	22
1074		-	23
1075		-	24
1076		-
1077		-	Passed the House of Representatives the 23rd day of March, 2022.
1078		-
1079		-
1080		-
1081		-
1082		-	Presiding Officer of the House
1083		-	of Representatives
1084		-
1085		-
1086		-	Passed the Senate the ___ day of __________, 2022.
1087		-
1088		-
1089		-
1090		-
1091		-	Presiding Officer of the Senate
1092		-
1093		-
	268	+	COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
	269	+	SUBSTANCES, dated 03/03/2022 - DO PASS, As Amended and Coauthored.