OK
Oklahoma Senate Bill SB1727

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1727 Compare Versions

Only one version of the bill is available at this time.
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5353 STATE OF OKLAHOMA
5454
5555 2nd Session of the 58th Legislature (2022)
5656
5757 SENATE BILL 1727 By: Bergstrom
5858
5959
6060
6161 AS INTRODUCED
6262
6363 An Act relating to alcoholic beverages; providing
6464 definitions; creating Alcoholic Beverage Regulatory
6565 Business Program; requiring the Alcoholic Beverage
6666 Law Enforcement Commission to administer program;
6767 providing for consultations between an applicant and
6868 Commission; requiring an applicant to submit
6969 applications; providing for contents of application;
7070 requiring Commission to review applications;
7171 providing factors for Commission to consider during
7272 review; providing for acceptance or denial of
7373 application by the Commission; allowing for the
7474 Commission’s discretion on denial of applications;
7575 providing for reasons of denial; allowing for
7676 approved applicants to demonstrate offering in a
7777 twelve-month time frame; providing for condition s of
7878 an offering by a participant of the program;
7979 providing for the sus pension of law or rules
8080 necessary for participant to demonstrate offering;
8181 prohibiting immunity from criminal offenses by
8282 participant; allowing regulatory relief office to end
8383 participant’s participation under certain conditions;
8484 requiring participant to provide disclosure before
8585 demonstration to consumer; providing contents of
8686 disclosure; allowing for participant to extend
8787 demonstration period at end of twelve -month period;
8888 requiring participant to retain all records,
8989 documents, and data produ ced during the program;
9090 allowing for the Commission to request records,
9191 documents, and data from partic ipant; allowing for
9292 Commission to dismiss participant for failure to
9393 comply; requiring participant to compile report for
9494 Commission following the en d of program
9595 participation; providing for contents of report;
9696 providing for promulgation of rules; providing for
9797 codification; and providing an effective date.
9898
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152152
153153 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
154154 SECTION 1. NEW LAW A new se ction of law to be codified
155155 in the Oklahoma Statutes as Section 8-101 of Title 37A, unless there
156156 is created a duplication in numbe ring, reads as follows:
157157 As used in this act:
158158 1. “Alcoholic beverage product or services” means an alcoholic
159159 beverage product or ser vice that requires lice nsure, registration,
160160 or other authorization as regulated by state law or rule, including
161161 an alcoholic beverage specific product or alcoholic beverage service
162162 that includes a business model, delivery mech anism, or element that
163163 requires a license, registration, or othe r authorization to do a n
164164 alcoholic beverage specific business, as an alcoholic beverage
165165 producer or consultant;
166166 2. “Applicant” means an individual or entity that is applying
167167 to participate in the alcoholic beverage specific regulatory
168168 business program;
169169 3. “Commission” means the Alcoholic Beverage Law Enforcement
170170 Commission;
171171 4. “Consumer” means a person that purchases or otherwise enters
172172 into a transaction agreement to receive an innovative alcoholic
173173 beverage specific product or service th at is being tested by an
174174 alcoholic beverage specific regulatory bu siness program;
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226226 5. “Innovation” means the use or incorporation of a new or
227227 emerging technology or a new use of existing technology, including
228228 blockchain technology, to address a problem, provide a benefit, or
229229 otherwise offer a product, service, business model, or delivery
230230 mechanism that is not known by the Commission to have a comparable
231231 widespread offering in this state.
232232 6. “Innovative product or service” means an alcoholic beverage
233233 product or service that includes an innovation;
234234 7. “Participant” means a person whose application to
235235 participate in the alcoholic beverage regulatory program is approved
236236 in accordance with th e provisions of this act;
237237 8. “Program” means the Alcoholic Beverage Regulatory Business
238238 Program created in this act, which allows a per son to temporarily
239239 test an innovative al coholic beverage product or service on a
240240 limited basis without otherwise being licensed or authorized to act
241241 under the laws of this state; and
242242 9. “Test” means to provide an innovative alcoholic beverage
243243 product or services in accordance with th e provisions of this act.
244244 SECTION 2. NEW LAW A new section of law to be codified
245245 in the Oklahoma Statutes as Section 8-102 of Title 37A, unless there
246246 is created a duplication in numbering, reads as fol lows:
247247 A. The Alcoholic Beverages Law Enforcement Commission shall
248248 create the Alcoholic Beverage Regulatory Business Program.
249249 B. In administering the program, the Commission:
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301301 1. Shall Establish a program to enable a person to obtain
302302 limited access to the m arket in the state to test an innovative
303303 alcoholic beverage product or service without obtaining a license or
304304 other authorization that might otherwise be required;
305305 2. May enter into agreements with or foll ow the practices of
306306 the Consumer Financial Protection Bureau or other states that are
307307 administering similar programs; and
308308 3. May not approve participation in the program by an applicant
309309 or any other participant who has been convicted, entered a plea of
310310 guilty or nolo contendere for a serious crime:
311311 a. involving theft, fraud, or dishonesty,
312312 b. that bears substantial relationship to the applicant ’s
313313 or participant’s ability to safely or competently
314314 participate in the program.
315315 C. An applicant for the p rogram shall provide to the C ommission
316316 an application in a form prescribed by t he Commission that:
317317 1. Includes a refundable application fee ;
318318 2. Demonstrates the applicant is subject to the jurisdiction o f
319319 this state;
320320 3. Demonstrates the applicant has established a physical or
321321 virtual location that is adequately accessible to the Commission,
322322 from which testing will be developed and performed and where al l
323323 required records, documents, and data will be main tained;
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375375 4. Contains relevant personal and contact informa tion for the
376376 application, including legal names, a ddresses, telephone numbers, e-
377377 mail addresses, website addresses, and other information r equired by
378378 the Commission;
379379 5. Discloses criminal convictio n of the applicant or other
380380 participating personnel, if any;
381381 6. Demonstrates that the applicant has the n ecessary personnel,
382382 financial, and technical expertise , access to capital, and developed
383383 plans to test, monitor, and assess the innovative alcoholic beverage
384384 product or service;
385385 7. Contains a description of the innovative alcoholic beverage
386386 or service to be tested, including statements regarding the
387387 following:
388388 a. how the innovative alcoholic beverage or service is
389389 subject to licensing or other authorizatio n
390390 requirements outside the scope of the program,
391391 including a specific list of all state l aws,
392392 regulations, and licensing or other requirements that
393393 the applicant is seeking to have waived during the
394394 testing period,
395395 b. how the innovative alcoholic product or service would
396396 benefit consumers,
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448448 c. how the innovative alcoholic product or service is
449449 different from other alcoholic beverage products or
450450 services available in this state ,
451451 d. what risks may confront consumers that use or purchase
452452 the innovative alcoholic beverage product or services,
453453 e. how participating in the program would enable a
454454 successful test of th e innovative alcoholic beverage
455455 product or services,
456456 f. a description of how the applicant will per form
457457 ongoing duties after the test, and
458458 g. how the applicant will end the test and protect
459459 consumers if the test fails, including providing
460460 evidence of sufficient liability coverage and
461461 financial reserves to protect consumers and to protect
462462 against insolvency by the applicant; and
463463 8. Includes any additional information deemed necessary by the
464464 Commission.
465465 C. An applicant shall file a sperate application for e ach
466466 innovative alcoholic beverage product or service the applicant wa nts
467467 to test.
468468 D. After an application is fi led, and before approving the
469469 application, the Commission may seek any additional information from
470470 the applicant that the C ommission deems neces sary.
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522522 E. Subject to subsection F of this section, no later than
523523 ninety (90) days after the day on which a completed application is
524524 received by the Commission, the Commission shall inform the
525525 applicant as to whether the application is approved for enter ing
526526 into the program.
527527 F. The Commission and an applicant may mutually agree to extend
528528 the ninety (90) day timeline as described in subsection E of this
529529 section for the Commission to determine whether an appli cation is
530530 approved for entry int the program.
531531 G. In reviewing an application under this section , the
532532 Commision shall identify how the applica nt’s innovative alcoholic
533533 beverage product or services is subject to licensing or other
534534 authorization requirements outside of the program, including a
535535 specific list of all state laws, regulations, and licensing or other
536536 requirements that the applican t is seeking to have waived during the
537537 testing period.
538538 H. In reviewing the application, the Commission shall consider
539539 whether a competitor to the applicant is or has bee n a previous
540540 program participant and weigh that as a factor in allowing the
541541 applicant to also become a participant.
542542 I. If the Commission and each applicable ag ency approve
543543 admitting an applicant into the p rogram, then an applicant shall
544544 become a participant.
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596596 J. The Commission may deny any application submitted under this
597597 section, for any reason, at the Commission ’s discretion.
598598 K. If the Commission denies an application submitted under this
599599 section, the Commission shall provide to th e applicant a written
600600 description of the reasons for the denial .
601601 SECTION 3. NEW LAW A new section of law to be codified
602602 in the Oklahoma Statutes as Section 8-103 of Title 37A, unless there
603603 is created a duplication in numbering, reads as follows:
604604 A. If the Commission approved an application under Section 2 of
605605 this act, the participant shall have twelve (12) months after the
606606 day of approval to test the innovat ive product or services described
607607 in the participant’s application.
608608 B. A participant testing an i nnovative alcoholic beverage
609609 product or service within the program is subj ect to the following :
610610 1. Consumers shall be residents of this state ;
611611 2. The Commission may, on a cas e-by-case basis, specify the
612612 maximum number of consumers that may enter into a n agreement with
613613 the participant to use the innovative alcoholic beverage product or
614614 service;
615615 3. The Commission may, if applicable on a case -by-case basis,
616616 specify the maximum number of items for each item that may be
617617 offered by a participant during the test of the innovative alcoholic
618618 beverage product or service ;
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670670 4. If a participant is accepted into the program, the
671671 Commission shall notify other businesses in the industry that a
672672 waiver was granted to afford other companies the opportunity to
673673 apply for the same waiver if they choose.
674674 C. This section does not restrict any participant who holds a
675675 license or other authorization in another juris diction from acting
676676 in accordance with that license or other authori zation.
677677 D. A participant is deemed to possess an appropriate license
678678 pursuant to the laws of this state for the purpose of any provi sions
679679 of federal law requiring state licensure or authorization.
680680 E. A participant that is testing an innovative alcoholic
681681 beverage product or service is not subject to stat e laws,
682682 regulations, licensing requirements, or authorization requirements
683683 that were identified by the partic ipant’s application and have been
684684 waived in writing by the Commission.
685685 F. Notwithstanding any other provision of this act, a
686686 participant shall not have immunity related to any c riminal offense
687687 committed during participation of this program.
688688 G. By written notice, the C ommission may end a participant’s
689689 participation in the program at any time and for any reason
690690 including, but not limited to, the Comm ission determining the
691691 participant is not operating in good faith to b ring an innovative
692692 alcoholic beverage product to market.
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744744 H. The Commission and the Commission ’s employees are not liable
745745 for any business losses, or the recouping of application expense s,
746746 related to the program including for:
747747 1. Denying an applicant’s application to participate in the
748748 program for any reason ; or
749749 2. Ending a participant’s participation in the program at any
750750 time for any reason.
751751 I. No guaranty association in this state may be held liable for
752752 business losses or liabilities incurred as a result of activities
753753 undertaken by a participa nt in the program.
754754 SECTION 4. NEW LAW A new section of law to be codified
755755 in the Oklahoma Statutes as Section 8-104 of Title 37A, unless there
756756 is created a duplication in numbering, reads as follows:
757757 A. Before providing an innovative alcoholic beverage product or
758758 service to a consumer, a participant shall disclose the following to
759759 the consumer:
760760 1. The name and contact information of the participant;
761761 2. That the innovative alcoholic beverage product or service is
762762 authorized pursuant to the program and, if applicable, that the
763763 participant does not have a license or other authorization to
764764 provide an alcoholic beverage product or service under state law
765765 that regulates alcoholic beverage products outside the program;
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817817 3. That the innovative alcoholic beverage product or service is
818818 undergoing testing and may not function as inte nded and may expose
819819 the customer to risk;
820820 4. That the provider of the innovative alcoholic beverage
821821 product or service is not immune from civil liability for any losses
822822 or damages caused by the innovative alcoholic beverage product or
823823 service;
824824 5. That the state does not endorse or recommend the innovative
825825 alcoholic beverage product or service ;
826826 6. That the innovative alcoholic beverage product or service is
827827 a temporary test that may be discontinued at the end of the testing
828828 period;
829829 7. The expected end da te of the testing period ; and
830830 8. That a consumer may contact the Commission to file a
831831 complaint regarding the innovative produ ct or service being tested
832832 and provide the Commission’s telephone number and website address
833833 where a complain may be filed.
834834 B. The disclosures required in subsection A of this se ction
835835 shall be provided to a consumer in a clear and conspicuous form and,
836836 for an Internet or application based innovative alcoholic beverage
837837 product or service, a consumer shall acknowledge receipt of the
838838 disclosure before a transaction may be completed.
839839 C. The Commission may require that a participant make
840840 additional disclosures to a cons umer.
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892892 SECTION 5. NEW LAW A new section of law to be codified
893893 in the Oklahoma Statutes as Sectio n 8-105 of Title 37A, unless there
894894 is created a duplication in numbering, reads as follows:
895895 A. At least thirty (3 0) days before the end of the twelve -month
896896 testing period, a participant shall:
897897 1. Notify the Commission that the par ticipant will exit the
898898 program, discontinue the participant’s test, and will stop offering
899899 any innovative alcoholic beverage product or service in the program
900900 within sixty (60) days after the day on which the twelve-month
901901 testing period ends; or
902902 2. Seek an extension in accordance with Section 6 of this act .
903903 B. Subject to subsection C of this section, if the Commission
904904 does not receive notification as required by subsection A of this
905905 section, the testing period ends at the end of the twelve-month
906906 testing period and the participant shall immediately stop offering
907907 each innovative alcoholic beverage product or serv ice being tested.
908908 C. If a test includes offering an innovative alcoholic beverage
909909 product or service that require s ongoing duties, the participant
910910 shall continued to fulfi ll those duties or arrange for another
911911 person to fulfill those duties after the date on which the
912912 participant exists the program.
913913 SECTION 6. NEW LAW A new section of law to be codified
914914 in the Oklahoma Statutes as Section 8-106 of Title 37A, unless there
915915 is created a duplication in numbering, reads as follows:
916916
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967967 A. No later than thirty (30) days before the end of the twelve-
968968 month testing period, a participant may request an extension of the
969969 testing period for the purpose of obtaining a license or other
970970 authorization.
971971 B. The Commission shall grant or deny a request for an
972972 extension in accordance with subsection A of this section by the end
973973 of the twelve-month testing period.
974974 C. The Commission may grant an ex tension in accordance with
975975 this section for not more than twelve (12) months after the end of
976976 the testing period.
977977 D. A participant that obtains an extension in accord ance with
978978 this section shall provide the Commis sion with a written report
979979 every three (3) months that provides an upd ate on efforts to obtain
980980 a license or other authorization required by law, including any
981981 submitted for licensure or other authorization , rejected
982982 application, or issued license, or other authorization .
983983 SECTION 7. NEW LAW A new secti on of law to be codified
984984 in the Oklahoma Statutes as Section 8-107 of Title 37A, unless there
985985 is created a duplication in numbering, reads as f ollows:
986986 A. A participant shall retain records, documents, and dat a
987987 produced in the ordinary course of business regarding an innovative
988988 alcoholic beverage product or service tested in the program.
989989 B. If an innovative alcoholic beverage product or service fails
990990 before the end of the testing period, the participant shall notify
991991
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10421042 the Commission and report on actions taken by the participant to
10431043 ensure consumers have not been harmed as result of the failure.
10441044 C. The Commission shall establish quarterly reporting
10451045 requirements for a participant , including information about any
10461046 consumer complaints.
10471047 D. The Commission may request records, documents, and data from
10481048 a participant and, upon the Commission’s request, a participant
10491049 shall make sure records, docum ents, and data available for
10501050 inspection by the Commission.
10511051 E. If the Commission determine s that a participant has engaged
10521052 in, is engaging in, or is about to engage in any pr actice or
10531053 transaction that is in violation of this act or that constitute s a
10541054 violation of state or federal criminal law, the Commission shall
10551055 remove a participant from the program.
10561056 F. By October 1 of each year, the Commission shall provide an
10571057 annual report to the Legislature that provide information regarding
10581058 each participant and that provides recommendations regarding the
10591059 effectiveness of the program.
10601060 SECTION 8. NEW LAW A new sectio n of law to be codified
10611061 in the Oklahoma Statutes a s Section 8-108 of Title 37A, unless there
10621062 is created a duplication in numbering, reads as follows:
10631063 The Alcoholic Beverage Law Enforcement Commission s hall
10641064 promulgate the rules necessary to implement this a ct.
10651065
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11171117 SECTION 9. This act shall be come effective Novembe r 1, 2022.
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