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ENGROSSED SENATE
BILL NO. 1263 By: Coleman of the Senate
and
Strom of the House
An Act relating to alcoholic beverages; amen ding 37A
O.S. 2021, Sections 2 -102, as last amended by Section
1, Chapter 396, O.S.L. 2021, and 2-132, which relate
to brewer and brewpub licenses; authorizing licensees
to purchase from certain businesses and import beer
into the state in accordance with federal laws and
regulations; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 37A O.S. 2021, Section 2 -102, as
last amended by Section 1, Chapter 396, O.S.L . 2021, is amended to
read as follows:
Section 2-102. A. A brewer license shall authorize the holder
thereof:
1. To manufacture, bottle, package and store be er and cider on
the licensed premises; and
2. To sell beer and cider in this state to holders of beer
distributor licenses and to sell beer and cider out of this state to
qualified persons; and
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3. To purchase from licensed brewers, small brewers, and
brewpubs in this state, and to import beer into this state for use
in manufacturing in accordance with federa l laws and regulations.
B. A small brewer license shall authorize the holder thereof:
1. To manufacture, bottle, package and store beer produc ed by
the licensee on licensed premises;
2. To sell beer in this state to holders of beer distributor
licenses and retail licenses or to sell beer out of this state to
qualified persons;
3. To serve free samples of be er produced by the licensee to
visitors twenty-one (21) years of age or older;
4. To sell beer produced by the licensee for either on -premises
or off-premises consumption to consumers on the brewery premises, or
on premises located contiguous thereto;
5. To sell beer at public events such a s trade shows or
festivals;
6. To purchase wine in retail containers from the holder of a
wholesaler license or as specifically provided by law; and
7. To sell, offer for sale and possess wine for on -premises
consumption; and
8. To purchase from licensed br ewers, small brewers, and
brewpubs in this state , and to import beer into this state for use
in manufacturing in accordance with federal laws and regulations.
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C. The holder of multiple small brewer licenses may sell beer
produced at up to three breweries for which the licensee has a
license, at any other of such three licensed breweries or on
premises located contiguous thereto.
D. Nothing in the Alcoholic Beverage Control Act shall prohibit
the holder of a small brewer license from also holding or owning an
interest in the holder of a brewpub license.
E. For purposes of this section, no visitor may sample mor e
than a total of twelve (12) fluid ounces of beer per day. The
brewer must restrict the distribution and consumption of beer
samples to an area within the licensed premises designated by the
brewer. A current floor plan that includes the designated samp ling
area must be on file with the ABLE Commission. No visitor under
twenty-one (21) years of age shall be permitted to enter this
designated sampling area when samples are being distributed or
consumed. Samples of beer served by a brewery under this sec tion
shall not be considered a sale of beer within the meaning of Article
XXVIII-A of the Oklahoma Constitution or Section 1-103 of this
title; however, such samples of beer shall be considered beer
removed or withdrawn from the brewery for use or consumpt ion within
the meaning of Section 5-110 of this title for excise tax
determination and reporting requirements. Sales and sampling may
only occur between the hours of 10:00 a.m. and 2:00 a.m.
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F. A small brewer self-distribution license shall authorize
holders of a small brew er license to distribute beer produced only
by such licensee to a holder of a retail beer license, retail
spirits license, mixed beverage license, beer and wine license,
caterer’s license, special event license, public event license,
charitable auction lic ense or brewpub license. A small brewer shall
elect whether it will distribute through a distributor or self-
distribute in a subject territory; however, a small brewer may not
elect to do both simultaneously in a subject territory. Th e
election shall be made through notice to the ABLE Commission. Any
changes to the election shall require immediate notification to the
ABLE Commission before the change in election will take effect. A
small brewer that elects to self -distribute in multiple territories
shall only be required to have one small brewer self -distribution
license.
G. All manufacturer’s licenses held by brewers during the first
calendar year beginning October 1, 2018, shall automatically convert
to brewer licenses and be deeme d effective as of th e date of the
first issuance of the manufacture r’s license. Upon the first
renewal of the license, the brewer will need to obtain the
appropriate brewer’s license. If a brewer elects to market wine and
spirits, the brewer will also be required to obtain a manufacturer’s
license and comply with t he rules and regulations for both licenses.
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SECTION 2. AMENDATORY 37A O.S. 2021, Section 2 -132, is
amended to read as follo ws:
Section 2-132. A. A brewpub license shall authorize a sm all
brewer to:
1. Manufacture, bottle, package and store beer on the licensed
premises;
2. Sell beer produced by the licensee for e ither on-premises or
off-premises consumption to consumers on the brewery premises, or
premises located contiguous thereto;
3. Sell beer at public events such as trade shows or festivals;
4. Also hold a mixed be verage license, beer and wine license or
caterer’s license; and
5. Hold a brewpub self -distribution license ; and
6. Purchase from licensed br ewers, small brewers, an d brewpubs
in this state, and to import beer into this state for use in
manufacturing in accordance with federal laws and regulations.
B. A brewpub self-distribution license shall authorize holders
of a brewpub license to distribute beer produced only by such
licensee and operated by an entity which has common owners with such
brewpub licensee, regardless of which place of business brews the
beverage. “Common owners” means that the owners at each place or
entity together own more than fifty percent (5 0%) of the interest in
each place or entity that holds a type of license listed in thi s
subsection.
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SECTION 3. It being immediately necessary for the pr eservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason w hereof this act shal l take effect and
be in full force from and after its pas sage and approval.
Passed the Senate the 15th day of March, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2022.
Presiding Officer of the House
of Representatives