Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1723 Compare Versions

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Version 2 (New)

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3		-	SB1723 HFLR Page 1
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	3	+	ENGR. S. B. NO. 1723 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	2nd Session of the 58th Legislature (2022)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 1723 By: Coleman of the Senate
37	30
38	31		and
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40	33		Marti of the House
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45	38		[ alcoholic beverages - wine and spirits whol esalers
46	39		to adjust prices monthly - impose minimum fees -
47	40		electronic copies of prices for inspection - repealer
48	41		-
49	42		emergency ]
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53	46		BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA:
54	47		SECTION 1. AMENDATORY 37A O.S. 2021, Section 3 -116, is
55	48		amended to read as follows:
56	49		Section 3-116. A. Any manufacturer or subsidiary of a
57	50		manufacturer who markets its products solely through a subsidiary or
58	51		subsidiaries, a distiller, rectifier, bottler, winemaker or importer
59	52		of alcoholic beverages, bottled or made in a foreig n country, either
60	53		within or without this state, may sell such brands or kinds of
61	54		alcoholic beverages to every licensed wine and spirits wholesaler
62	55		who desires to purchase the same, on the same price basis and
63	56		without discrimination or inducements, and shal l further be required
	57	+	to sell such beverages only to those persons licensed a s wine and
	58	+	spirits wholesalers.
	59	+	B. The provisions of subsection A of this section shall not
	60	+	apply to a brewer except as otherwise stated herein. In the event a
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65		-	SB1723 HFLR Page 2
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	62	+	ENGR. S. B. NO. 1723 Page 2 1
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91		-	to sell such beverages only to those persons licensed a s wine and
92		-	spirits wholesalers.
93		-	B. The provisions of subsection A of this section shall not
94		-	apply to a brewer except as otherwise stated herein. In the event a
95	87		brewer, who has entered into territoria l distribution agreements
96	88		with beer distributors in thi s state, markets wine and spirits
97	89		products in this state either itsel f or through a subsidiary or
98	90		affiliate, then such brewer, subsidiary or affiliate may elect to
99	91		designate beer distributors, with who m it has entered into
100	92		territorial distribution agreemen ts, as its designated wholesalers
101	93		for any wine and spirit products to be sold by the brewer,
102	94		subsidiary or affiliate within said beer distributors ' existing
103	95		territories, provided such beer distributors must also hold a wine
104	96		and spirits wholesaler license. In such event, the beer
105	97		distributors shall be deemed designated whol esalers for the
106	98		territory with respect to the designated products. Provided, in the
107	99		event a beer distributor has not obtained a win e and spirits
108	100		license, has elected not to sell wine and spirits in its respective
109	101		territory or, in the brewer 's commercially reasonable discretion, is
110	102		not suitable to sell wine and spirits in its respective territory,
111	103		then the brewer, subsidiary or affilia te may extend the territory of
112	104		an existing beer distrib utor, with whom it has entered into a
113	105		territorial distribution agreem ent and who holds a wine and spirits
114	106		wholesaler license, for said territory. For purposes of this
	107	+	subsection only, the phrase "subsidiary or affiliate" shall mean any
	108	+	entity that the brewer controls, is controlled by, or is under
	109	+	common control with, duri ng the time that the wine and spirits
	110	+	brands are offered for sale in this state, and "control" shall mean
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	112	+	ENGR. S. B. NO. 1723 Page 3 1
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142		-	subsection only, the phrase "subsidiary or affiliate" shall mean any
143		-	entity that the brewer controls, is controlled by, or is under
144		-	common control with, duri ng the time that the wine and spirits
145		-	brands are offered for sale in this state, and "control" shall mean
146	137		ownership of more than fif ty percent (50%) of the voting securities
147	138		or assets of, or the ability to dictate the material operations of,
148	139		another entity. If the brewer, subsidiary or affiliate sells the
149	140		wine and spirits brands to a manufacturer other than one t hat would
150	141		otherwise fall within the provisions of this subsection, then the
151	142		rights provided in this subsection which relate to the wine and
152	143		spirits brands shall terminate. The rights provided to beer
153	144		distributors pursuant to Section 3 -111 of this title sh all not be
154	145		extended to apply to the wine or spirits brands distributed pursua nt
155	146		to this subsection.
156	147		C. No manufacturer shall require a wine and s pirits wholesaler
157	148		to purchase any alcoholic beverages or any goods, wares or
158	149		merchandise as a condition to the wine and spirits whol esaler
159	150		obtaining or being entitled to purchase any alco holic beverages.
160	151		Violation of this section shall be a misdemeanor. C onviction
161	152		hereunder shall automatically revoke the violator 's license.
162	153		D. In the event a manufacturer or nonr esident seller has not
163	154		designated a designated wholesaler to sell its product s in the
164	155		state, the nondesignated products shall be posted in accorda nce with
165	156		the following:
	157	+	1. On the first business day of each month, the manufacturer
	158	+	shall post with the ABLE Commission the price of all wine and
	159	+	spirits it proposes to offer for sale t o licensed wine and spirit
	160	+	wholesalers in this state. All prices sha ll become effective on the
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167		-	SB1723 HFLR Page 4
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	162	+	ENGR. S. B. NO. 1723 Page 4 1
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193		-	1. On the first business day of each month, the manufacturer
194		-	shall post with the ABLE Commission the price of all wine and
195		-	spirits it proposes to offer for sale t o licensed wine and spirit
196		-	wholesalers in this state. All prices sha ll become effective on the
197	187		first business day of the following month and shall remain in effect
198	188		and unchanged for a period of not le ss than one (1) month. The
199	189		posting shall be submitted on a form approved by the ABLE Commission
200	190		and shall identify the bran d, size, alcohol content and price of
201	191		each item intended to be offered for sale. No change or
202	192		modification of the posted price shal l be permitted except upon
203	193		written permission from the ABLE Commission based on good cause
204	194		shown;
205	195		2. When a new item is reg istered, or an old item is
206	196		discontinued, or any change is made by a manufacturer or nonresident
207	197		seller as to price, age, proof, labe l or type of bottle of any item
208	198		offered for sale in thi s state, such new item, discontinued item or
209	199		change in price, age, pr oof, label or type of bottle of any item
210	200		shall be listed separately on the cover page of the price schedule
211	201		and, in the case of pric es changed, shall reflect both the old and
212	202		the new price of the item changed. All new items and changes as to
213	203		age, proof, label or type of bottle in which any item is offered for
214	204		sale shall first be submitted in writing to the ABLE C ommission for
215	205		approval under such requirements as it may deem proper. Approv al or
	206	+	disapproval of price changes shall not be required if filed in
	207	+	conformity with the provisions of this subsection.
	208	+	a. In addition to the foregoing requirements, the
	209	+	manufacturer shall, at the same time, on regular forms
	210	+	provided by the ABLE Commission , re-register all items
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217		-	SB1723 HFLR Page 5
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	212	+	ENGR. S. B. NO. 1723 Page 5 1
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243		-	disapproval of price changes shall not be required if filed in
244		-	conformity with the provisions of this subsection.
245		-	a. In addition to the foregoing requirements, th e
246		-	manufacturer shall, at the same time, on regular forms
247		-	provided by the ABLE Commission , re-register all items
248	237		of alcoholic beverage which the manufacturer had
249	238		registered and offered for sale in this state during
250	239		the previous price period.
251	240		b. A short form of price p osting may be permitte d by the
252	241		ABLE Commission for any price period in which no new
253	242		item is offered or old item discontinued, or change is
254	243		made in the price, age, proof, label or type of bottle
255	244		of any item offered by any manufacturer. Such short
256	245		form shall contain only such st atements as the
257	246		Director may require or permit;
258	247		3. The brand name, size, proof and type of alcoholic beverages
259	248		must be shown on each container sold in this state;
260	249		4. No brand of alcoholic beverage shall be listed on a price
261	250		list or posting in more than o ne place, or offered for sale by more
262	251		than one method, or at more than one price, except as provided
263	252		hereafter:
264	253		a. a manufacturer who has posted F.O.B. prices from a
265	254		foreign shipping point shall also list the same
266	255		item(s) at an F.O.B. point within the cont inental
	256	+	United States. Only one United States F.O.B. p oint
	257	+	shall be permitted, and
	258	+	b. a manufacturer may list on their pric e list or posting
	259	+	an item of specific size that may be packaged in more
	260	+	than one type or design container, pro vided that the
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268		-	SB1723 HFLR Page 6
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294		-	United States. Only one United States F.O.B. p oint
295		-	shall be permitted, and
296		-	b. a manufacturer may list on their pric e list or posting
297		-	an item of specific size that may be packaged in more
298		-	than one type or design con tainer, provided that the
299	287		containers being offered have been approved by the
300	288		ABLE Commission;
301	289		5. The manufacturer shall sell to the wine and spirits
302	290		wholesalers all items of wine and spirits at the current posted
303	291		price in effect on the date of the shipment as shown on the
304	292		manifest, bill of lading or invoice;
305	293		6. A full and correct copy of ea ch said price registration
306	294		shall be transmitted to wine and spirits w holesalers on the same day
307	295		such prices are filed with or mailed to the ABLE Commission. Proof
308	296		of such mailing or delivery shall be furnished the ABLE Commission
309	297		by the manufacturer with the price registration or upon request;
310	298		7. The sale, or offer to sel l, of any item of alcoholic
311	299		beverage by a manufacturer to a wine and spirits wholesaler at a
312	300		price not in compliance with the price posted with the ABLE
313	301		Commission may be deemed a violati on; and
314	302		8. This subsection shall not apply to a manufacturer that ha s
315	303		designated a wine and spirits wholesaler to sell its product in the
316	304		state or a brewer who has appointed a be er distributor as a
	305	+	designated wholesaler pursuant to subsection B of Section 3-116 of
	306	+	this title, with respect to designated products.
	307	+	E. Every wine and spirits wholesaler shall maintain its wine
	308	+	and spirits prices through the end of the ca lendar month. The wine
	309	+	and spirits wholesaler may change any wine and spirits price at the
	310	+	beginning of each calendar month.
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319		-	BOLD FACE denotes Committee Amend ments. 1
	312	+	ENGR. S. B. NO. 1723 Page 7 1
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344		-	designated wholesaler pursuant to subsection B of Section 3-116 of
345		-	this title, with respect to designated products.
346		-	E. Every wine and spirits wholesaler shall maintain its wine
347		-	and spirits prices through the end of the ca lendar month. The wine
348		-	and spirits wholesaler may change any wine and spirits price at the
349		-	beginning of each calendar month.
350	337		F. Every wine and spirits wholesa ler is authorized to fill
351	338		orders non-sequentially and impose minimum order, delivery,
352	339		handling, processing, repackaging, and invoicing fees onto its
353	340		orders. These activities shall not constitute a violation of this
354	341		title or any rule promulgated under this title.
355	342		G. Every wine and spirits wholesaler shall make available for
356	343		inspection by the ABLE Commission upon request an electronic copy of
357	344		the prices in which its wine and spirits were sold to the retail
358	345		tier in this state. The electronic copy shall li st the line-item
359	346		price, handling cost, transportation cos t, and any other costs that
360	347		may be associated with the sale or delivery of th at item. The
361	348		prices provided by the wine and spirits w holesaler shall not be
362	349		subject to the Oklahoma Open Records Act or publicly disseminated by
363	350		the ABLE Commission.
364	351		SECTION 2. AMENDATORY 37A O.S. 2021, Section 3 -123, is
365	352		amended to read as follows:
	353	+	Section 3-123. A. It shall be unlawful for any person
	354	+	privileged to sell alcoholic beverages to wholesalers, beer
	355	+	distributors or retailers:
	356	+	1. To discriminate, directly or indirectly, in price between
	357	+	one wine and spirits wholesaler and another wine and spirits
	358	+	wholesaler, when that ma nufacturer has not designated a single wine
	359	+	and spirits wholesaler, or between one retailer and ano ther retailer
366	360
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	361	+	ENGR. S. B. NO. 1723 Page 8 1
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393		-	Section 3-123. A. It shall be unlawful for any person
394		-	privileged to sell alcoholic beverages to wholesalers, beer
395		-	distributors or retailers:
396		-	1. To discriminate, directly or indirectly, in price betwe en
397		-	one wine and spirits wholesaler and another wine and spirits
398		-	wholesaler, when that ma nufacturer has not designated a single wine
399		-	and spirits wholesaler, or between one retailer and ano ther retailer
400	386		purchasing alcoholic beverages bearing the same brand or trade name
401	387		and of like age and quality, unless otherwise provided by law; or
402	388		2. To grant, directly or indirectly, any discount, rebate, free
403	389		goods, allowance or other inducement.
404	390		B. The ABLE Commission is hereby authorized to promulgate rules
405	391		which are necessary to carry out the purpose of this section and to
406	392		prevent its circumvention by offering or giving of any rebate,
407	393		allowance, free goods, discount or any other thing or service of
408	394		value; provided, the posting or invoicing of charges per order for
409	395		processing minimum ord ers or per case for the handling or repacking
410	396		of goods imposition of minimum order, delivery, handling,
411	397		processing, repackaging, and invoicing fees onto its order by wine
412	398		and spirits wholesalers and beer distributors for sales in less than
413	399		full case lots shall not constitute a violation of this section.
414	400		C. For the violation of any provision of this section or of any
415	401		rule duly promulgated under this section, the ABLE Commiss ion may
416	402		suspend or revoke a license as follows:
	403	+	1. For a first offense, not exceedi ng ten (10) days' suspension
	404	+	of license;
	405	+	2. For a second offense, n ot exceeding thirty (30) days'
	406	+	suspension of license; and
	407	+	3. For a third offense, the ABLE Commission s hall revoke the
	408	+	license.
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418		-	SB1723 HFLR Page 9
419		-	BOLD FACE denotes Committee Amend ments. 1
	410	+	ENGR. S. B. NO. 1723 Page 9 1
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444		-	1. For a first offense, not exceedi ng ten (10) days' suspension
445		-	of license;
446		-	2. For a second offense, n ot exceeding thirty (30) days'
447		-	suspension of license; and
448		-	3. For a third offense, the ABLE Commission s hall revoke the
449		-	license.
450	435		D. For purposes of this section, and except as otherwise
451	436		provided in subsection E of this section, "inducement" means
452	437		directly or indirectly offering, selling, trading, giving or
453	438		furnishing any discount, free goods, electronic or nonelectronic
454	439		refrigerated equipment, barrels, tubs, fixtures, dispensing
455	440		equipment, outdoor electric or nonelectric advertising structure
456	441		displaying the retailer's name, permanent shelving, supplies, gifts,
457	442		prizes, instantly redeemable coupons, premiums, retailer rebates,
458	443		services of any employee including but not limited to affixing pri ce
459	444		labels or tags, routinely stocking product on shelves other than the
460	445		stocking of cold boxes, paying a third party for entering product
461	446		and price information into a retai ler's computer system, portal,
462	447		website, spreadsheet or third -party system, handling product that
463	448		was not sold to the retailer by the licensee, paying a slotting fee,
464	449		selling on consignment, operating a retailer 's cash register,
465	450		conducting janitorial servic es, decoration, samples of alcoholic
466	451		beverages, personal property or other inducemen t or thing of value
467	452		to any retail spirit, retail beer, retail wine, beer and wine, mixed
	453	+	beverage, caterer, bottle club or special event licensee, wine and
	454	+	spirits wholesaler or beer distributor, their agents or employees.
	455	+	E. It shall not be deemed an ind ucement for a brewer, beer
	456	+	distributor, small brewer self -distributor or brewpub self-
	457	+	distributor to voluntarily take the following merchandising actions
	458	+	with the permission of the retail licensee:
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469		-	SB1723 HFLR Page 10
470		-	BOLD FACE denotes Committee Amend ments. 1
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495		-	beverage, caterer, bottle club or special event licensee, wine and
496		-	spirits wholesaler or beer distributor, their agents or employees.
497		-	E. It shall not be deemed an ind ucement for a brewer, beer
498		-	distributor, small brewer self -distributor or brewpub self-
499		-	distributor to voluntarily take the following merchandising actions
500		-	with the permission of the retail licensee:
501	485		1. Furnish point-of-sale advertising materials and consum er
502	486		advertising specialties, as those terms are defined in 27 C.F.R.,
503	487		Section 6.84 and in compliance with the other limits and
504	488		restrictions provided in 27 C.F.R., Section 6. 84;
505	489		2. Give or sell product displays, including but not limited to
506	490		barrels and tubs, provided that the value of such displays does not
507	491		exceed the limits and restrictions provided in 27 C.F.R., Section
508	492		6.83;
509	493		3. Build product displays, accessible to the cu stomer and
510	494		without disturbing competitors ' products, for the product being
511	495		delivered by the beer distributor;
512	496		4. Affix pricing to the shelf strip or pr oduct display for the
513	497		product being delivered by the beer distributor, small brewer self -
514	498		distributor or brewpub self-distributor, or brewed by the brewer;
515	499		5. Routinely stock and restock s helves and cold boxes and
516	500		rotate product that has been sold to the r etail licensee by the beer
517	501		distributor, small brewer self -distributor or brewpub self -
518	502		distributor, or brewed by the brewer;
	503	+	6. Furnish things of value to a temporary retailer, as defined
	504	+	in 27 C.F.R., Section 6.85;
	505	+	7. Sell equipment or supplies to a reta il licensee, provided
	506	+	the equipment or supplies are sold at a price not less than the cost
	507	+	to the industry member and payment is collected within thirty (30)
	508	+	days of the sale;
519	509
520		-	SB1723 HFLR Page 11
521		-	BOLD FACE denotes Committee Amend ments. 1
	510	+	ENGR. S. B. NO. 1723 Page 11 1
522	511		2
523	512		3
524	513		4
525	514		5
526	515		6
527	516		7
528	517		8
529	518		9
530	519		10
531	520		11
532	521		12
533	522		13
534	523		14
535	524		15
536	525		16
537	526		17
538	527		18
539	528		19
540	529		20
541	530		21
542	531		22
543	532		23
544	533		24
545	534
546		-	6. Furnish things of value to a temporary r etailer, as defined
547		-	in 27 C.F.R., Section 6.85;
548		-	7. Sell equipment or supplies to a reta il licensee, provided
549		-	the equipment or supplies are sold at a price not less than the cost
550		-	to the industry member and payment is collected within thirty (30)
551		-	days of the sale;
552	535		8. Install dispensing accessories at the retail location, as
553	536		long as the retailer bears the cost of installation including
554	537		equipment; or furnish, give or sell coil cleaning services t o a
555	538		retailer;
556	539		9. Withdraw quantities of beer or cider in undamaged, original
557	540		packaging from the retail licensee's stock, provided the beer
558	541		distributor, small brewer self-distributor, brewpub self -distributor
559	542		or brewer sold such beer, directly or indirectl y, to the retail
560	543		licensee and such removal is otherwise permitted under Section 3 -115
561	544		of this title; provided, however, replacing with beer or cider of
562	545		equivalent value shall not be considered a consignment sale;
563	546		10. Provide mail-in rebates for beer, cide r and nonalcoholic
564	547		beverage merchandise items, funded by the brewer and redeemed by the
565	548		brewer, either by itself or through a third -party fulfillment
566	549		company, for a discount or rebate on the beer, cider or nonalcoholic
567	550		item;
	551	+	11. Provide a recommended shel f plan or shelf schematic to a
	552	+	retail licensee for all or any portion of the invento ry sold by the
	553	+	retail licensee;
	554	+	12. Furnish or give a sample of bee r or cider to a retailer who
	555	+	has not purchased the brand from that brewer, beer distributor,
	556	+	small brewer self-distributor or brewpub self -distributor within the
	557	+	last twelve (12) months, p rovided that the brewer, beer distributor,
	558	+	small brewer self-distributor or brewpub self-distributor may not
568	559
569		-	SB1723 HFLR Page 12
570		-	BOLD FACE denotes Committee Amend ments. 1
	560	+	ENGR. S. B. NO. 1723 Page 12 1
571	561		2
572	562		3
573	563		4
574	564		5
575	565		6
576	566		7
577	567		8
578	568		9
579	569		10
580	570		11
581	571		12
582	572		13
583	573		14
584	574		15
585	575		16
586	576		17
587	577		18
588	578		19
589	579		20
590	580		21
591	581		22
592	582		23
593	583		24
594	584
595		-	11. Provide a recommended shel f plan or shelf schematic to a
596		-	retail licensee for all or any po rtion of the invento ry sold by the
597		-	retail licensee;
598		-	12. Furnish or give a sample of bee r or cider to a retailer who
599		-	has not purchased the brand from that brewer, beer distributor,
600		-	small brewer self-distributor or brewpub self -distributor within the
601		-	last twelve (12) months, p rovided that the brewer, beer distributor,
602		-	small brewer self-distributor or brewpub self-distributor may not
603	585		give more than thirty -six (36) ounces of any brand of beer or c ider
604	586		to a specific retailer;
605	587		13. Furnish or give newspaper cuts, mats or engraved b locks for
606	588		use in retailers' advertisements;
607	589		14. Package and distrib ute beer or cider in combination with
608	590		other nonalcoholic items for sale to consumers;
609	591		15. Give or sponsor educational seminars for employees of
610	592		retailers either at the brewer, beer distri butor, small brewer self-
611	593		distributor or brewpub self -distributor's premises or at the
612	594		retailer's establishment, including seminars dealing with use of a
613	595		retailer's equipment, training seminars for employees of retailers
614	596		or tours of the brewer, beer distrib utor, small brewer self-
615	597		distributor, or brewpub self -distributor's plant premises, provided
616	598		that the brewer, beer distributor, small brewer self -distributor or
617	599		brewpub self-distributor shall not pay the retailer for the
618	600		employees' travel, lodging or other expenses in conjunction with an
	601	+	educational seminar but may provide nominal hospitality during the
	602	+	event;
	603	+	16. Conduct tasting or sampling activities at a retail
	604	+	establishment and purchase the products to be used from the retailer
	605	+	so long as the purchase p rice paid does not exceed the ordinary
	606	+	retail price; provided, a bee r distributor shall not be required to
	607	+	provide labor for such sampling activities;
619	608
620		-	SB1723 HFLR Page 13
621		-	BOLD FACE denotes Committee Amend ments. 1
	609	+	ENGR. S. B. NO. 1723 Page 13 1
622	610		2
623	611		3
624	612		4
625	613		5
626	614		6
627	615		7
628	616		8
629	617		9
630	618		10
631	619		11
632	620		12
633	621		13
634	622		14
635	623		15
636	624		16
637	625		17
638	626		18
639	627		19
640	628		20
641	629		21
642	630		22
643	631		23
644	632		24
645	633
646		-	educational seminar but may provide nominal hospitality during the
647		-	event;
648		-	16. Conduct tasting or sampling activities at a retail
649		-	establishment and purchase the products to be used from the retailer
650		-	so long as the purchase p rice paid does not exceed the ordinary
651		-	retail price; provided, a bee r distributor shall not be required to
652		-	provide labor for such sampling activities;
653	634		17. Offer contest pr izes, premium offers, refunds and like
654	635		items directly to consumers so long as office rs, employees and
655	636		representatives of brewers, beer distributors, sma ll brewer self-
656	637		distributors, brewpub self -distributors and licensed retailers are
657	638		excluded from particip ation;
658	639		18. List the names and addresses of two or more unaffiliated
659	640		retailers selling the products of a brewer, beer distributor, small
660	641		brewer, small brewer self-distributor or brewpub self -distributor in
661	642		an advertisement of such brewer, beer distributor, small brewer,
662	643		small brewer self-distributor or brewpub self -distributor so long as
663	644		the requirements of 27 C.F.R., Section 6.98 are satisfied,
664	645		considering applicable guidance issued by the United States
665	646		Department of the Treasury Alcohol and Tobacco Tax an d Trade Bureau;
666	647		provided, nothing in the Oklahoma Alcoholic Beverage Control Act
667	648		shall prohibit a retail, mixed beverage, on -premises beer and wine,
668	649		public event, special event, charitable auction, charitable
669	650		alcoholic beverage event, or complimentary beve rage licensee from
	651	+	communicating with a brewer, beer distributor, small brewer, smal l
	652	+	brewer self-distributor or brewpub self -distributor on social medi a
	653	+	or sharing media on the social media page or site of a brewer, beer
	654	+	distributor, small brewer, small b rewer self-distributor or brewpub
	655	+	self-distributor. A retail, mixed beverage, on -premises beer and
	656	+	wine, public event, special event, charitable auctio n, charitable
	657	+	alcoholic beverage event, or complimentary beverage licensee may
670	658
671		-	SB1723 HFLR Page 14
672		-	BOLD FACE denotes Committee Amend ments. 1
	659	+	ENGR. S. B. NO. 1723 Page 14 1
673	660		2
674	661		3
675	662		4
676	663		5
677	664		6
678	665		7
679	666		8
680	667		9
681	668		10
682	669		11
683	670		12
684	671		13
685	672		14
686	673		15
687	674		16
688	675		17
689	676		18
690	677		19
691	678		20
692	679		21
693	680		22
694	681		23
695	682		24
696	683
697		-	communicating with a brewer, beer distributor , small brewer, smal l
698		-	brewer self-distributor or brewpub self -distributor on social medi a
699		-	or sharing media on the social media page or site of a brewer, beer
700		-	distributor, small brewer, small b rewer self-distributor or brewpub
701		-	self-distributor. A retail, m ixed beverage, on-premises beer and
702		-	wine, public event, special event, charitable auctio n, charitable
703		-	alcoholic beverage event, or complimentary beverage licensee may
704	684		request free social media advertising from a brewer, beer
705	685		distributor, small brewer, small brewer self -distributor or brewpub
706	686		self-distributor; provided, nothing in this section shall prohibit a
707	687		brewer, beer distributor, small brewer, small brewer self -
708	688		distributor or brewpub self -distributor from sharing, reposting or
709	689		forwarding a social media post by a retail, m ixed beverage, on-
710	690		premises beer and wine, public event, special even t, charitable
711	691		auction, charitable alcoholic beverage event, or complimentary
712	692		beverage licensee, as long as the sharing, reposting or forwarding
713	693		of the social media post does not contain th e retail price of any
714	694		alcoholic beverage. No brewer, beer distribut or, small brewer,
715	695		small brewer self-distributor or brewpub self -distributor shall pay
716	696		or reimburse a retail, mixed beverage, on -premises beer and wine,
717	697		public event, special event, charita ble auction, charitable
718	698		alcoholic beverage event, or complimentary b everage licensee,
719	699		directly or indirectly, for any social media advertising services.
720	700		No retail, mixed beverage, on-premises beer and wine, public event,
	701	+	special event, charitable auction, charitable alcoholic beverage
	702	+	event, or complimentary beverage lice nsee shall accept any payment
	703	+	or reimbursement, directly or indirectly, for any social media
	704	+	advertising service offered by a brewer, beer distributor, small
	705	+	brewer, small brewer self -distributor or brewpub self-distributor.
	706	+	For purposes of this paragraph , "social media" means a service,
	707	+	platform or site where users communicate with one another and share
721	708
722		-	SB1723 HFLR Page 15
723		-	BOLD FACE denotes Committee Amend ments. 1
	709	+	ENGR. S. B. NO. 1723 Page 15 1
724	710		2
725	711		3
726	712		4
727	713		5
728	714		6
729	715		7
730	716		8
731	717		9
732	718		10
733	719		11
734	720		12
735	721		13
736	722		14
737	723		15
738	724		16
739	725		17
740	726		18
741	727		19
742	728		20
743	729		21
744	730		22
745	731		23
746	732		24
747	733
748		-	special event, charitable auction, charitable alcoholic beverage
749		-	event, or complimentary beverage lice nsee shall accept any payment
750		-	or reimbursement, directly or indirectly, for any social media
751		-	advertising service offered by a brewer, beer distributor, small
752		-	brewer, small brewer self-distributor or brewpub self-distributor.
753		-	For purposes of this paragraph , "social media" means a service,
754		-	platform or site where users communicate with one another and share
755	734		media, such as pictures, videos, music and blogs, with other users
756	735		free of charge; or
757	736		19. Entering product and price information into a retailer 's
758	737		portal, website, spreadsheet or third-party system. A brewer may
759	738		pay for a third-party system that provides d ata and pricing services
760	739		to the brewer or a beer distributor.
761	740		F. It shall not be de emed an inducement for a brewer, beer
762	741		distributor, small brewer self -distributor or brewpub self-
763	742		distributor to engage in the following marketing activities,
764	743		provided that the brewer, beer distributor, small brewer self -
765	744		distributor or brewpub self -distributor shall not pay the retailer's
766	745		travel costs other than those for l ocal transportation or lodging:
767	746		1. Provide tickets to a retailer for a sporting or
768	747		entertainment event so long as a representative of the brewer, beer
769	748		distributor, small brewer self -distributor or brewpub self-
770	749		distributor attends the event with the retail er;
	750	+	2. Provide food and beverage to a retailer for immediate
	751	+	consumption:
	752	+	a. at a meeting at which the primary purpose is the
	753	+	discussion of business,
	754	+	b. at a convention when the food and beverages are
	755	+	offered to all participants, or
	756	+	c. at a sports or entertainment event that the
	757	+	representatives of a brewer, beer distributor, small
771	758
772		-	SB1723 HFLR Page 16
773		-	BOLD FACE denotes Committee Amend ments. 1
	759	+	ENGR. S. B. NO. 1723 Page 16 1
774	760		2
775	761		3
776	762		4
777	763		5
778	764		6
779	765		7
780	766		8
781	767		9
782	768		10
783	769		11
784	770		12
785	771		13
786	772		14
787	773		15
788	774		16
789	775		17
790	776		18
791	777		19
792	778		20
793	779		21
794	780		22
795	781		23
796	782		24
797	783
798		-	2. Provide food and beverage to a retailer for immediate
799		-	consumption:
800		-	a. at a meeting at which the primary purpose is the
801		-	discussion of business,
802		-	b. at a convention when the food and beverages are
803		-	offered to all participants, or
804		-	c. at a sports or entertainment event that the
805		-	representatives of a brewer, beer distributor, small
806	784		brewer self-distributor or brewpub self-distributor
807	785		attend with the retailer;
808	786		3. Participate in retailer asso ciation activities by engaging
809	787		in the following actions:
810	788		a. displaying products at a convention or trade show,
811	789		b. renting display booth space if the rental fee is the
812	790		same as paid by all exhibitors at the event,
813	791		c. providing its own hospitality which is in dependent
814	792		from association-sponsored activities,
815	793		d. purchasing tickets to functions and paying
816	794		registration fees if the payments or fees are the same
817	795		as paid by all attende es, participants or exhibitors
818	796		at the event, or
819	797		e. making payments for advertisement s in programs or
820	798		brochures issued by retailer associations at a
821	799		convention or trade show; or
	800	+	4. Giving or selling outdoor signs to a retailer so long as the
	801	+	following requirements of 27 C.F.R., Section 6.102 are satisfied:
	802	+	a. the sign bears conspicuous an d substantial advertising
	803	+	matter about the product or the brewer, be er
	804	+	distributor, small brewer self-distributor or brewpub
	805	+	self-distributor which is permanently inscribed or
	806	+	securely affixed,
822	807
823		-	SB1723 HFLR Page 17
824		-	BOLD FACE denotes Committee Amend ments. 1
	808	+	ENGR. S. B. NO. 1723 Page 17 1
825	809		2
826	810		3
827	811		4
828	812		5
829	813		6
830	814		7
831	815		8
832	816		9
833	817		10
834	818		11
835	819		12
836	820		13
837	821		14
838	822		15
839	823		16
840	824		17
841	825		18
842	826		19
843	827		20
844	828		21
845	829		22
846	830		23
847	831		24
848	832
849		-	4. Giving or selling outdoor signs to a retailer so long as the
850		-	following requirements of 27 C.F.R., Section 6.102 are satisfied:
851		-	a. the sign bears conspicuous an d substantial advertising
852		-	matter about the product or the brewer, be er
853		-	distributor, small brewer self-distributor or brewpub
854		-	self-distributor which is permanently inscribed or
855		-	securely affixed,
856	833		b. the retailer is not compensated, directly or
857	834		indirectly, such as through a sign company, for
858	835		displaying the signs, and
859	836		c. a permanent outdoor sign does not contain the
860	837		retailer's name.
861	838		SECTION 3. REPEALER 37A O.S. 2021, Sections 3-116.1, 3-
862	839		116.2, and 3-116.3, are hereby repealed.
863	840		SECTION 4. It being immediately necessary for the pr eservation
864	841		of the public peace, health or safety, an emergency is hereby
865	842		declared to exist, by reason whereof this act shall take effect and
866	843		be in full force from and after its passage and approval .
	844	+	Passed the Senate the 22nd day of March, 2022.
867	845
868		-	COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
869		-	SUBSTANCES, dated 04/14/2022 - DO PASS, As Amended.
	846	+
	847	+
	848	+	Presiding Officer of the Senate
	849	+
	850	+
	851	+	Passed the House of Representatives the ____ day of __________,
	852	+	2022.
	853	+
	854	+
	855	+
	856	+	Presiding Officer of the House
	857	+	of Representatives
	858	+