Req. No. 2552 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 2nd Session of the 58th Legislature (2022) SENATE BILL 1811 By: Garvin AS INTRODUCED An Act relating to alcoholic beverages; amending 37A O.S. 2021, Sections 2 -102, as amended by Section 1, Chapter 226, O.S.L. 2019, 2-103, and 2-104, which relate to brewer, wine maker, and distillery licenses; allowing certain license holders to host off -site events under certain conditions; authorizing the ABLE Commission to permit certain license holders to host off-site events following application; requiring licensees to sell only the products covered by licenses; providing details of application ; allowing Commission to assess fee; providing for codification; and declaring an emergency . BE IT ENACTED BY THE PEOPLE OF THE STAT E OF OKLAHOMA: SECTION 1. AMENDATORY 37A O.S. 2021, Section 2 -102, as amended by Section 1, Chapter 226, O.S.L. 2019, 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 beer or cider on the licensed premises; and Req. No. 2552 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. To sell beer or cider in this state to holders of beer distributor licenses and to sell beer or cider out of this state to qualified persons; and 3. To host off-site events pursuant to Section 4 of this act. B. A small brewer license shall authorize the holder thereof: 1. To manufacture, bottle, package and store beer or cider produced by the licensee on licensed premise s; 2. To sell beer or cider in this state to hold ers of beer distributor licenses and retail licenses or to sell beer or cider out of this state to qualified persons; 3. To serve free samples of beer or cider p roduced by the licensee to visitors twenty -one (21) years of age or older; 4. To sell beer or cider 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 or cider at public events such as 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 host off-site events pursuant to Section 4 of this act. Req. No. 2552 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. Nothing in the Oklahoma 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 lice nse. D. For purposes of this se ction, no visitor may s ample more than a total of twelve (12) fluid ounces of beer or cider per day. The brewer must restrict the distribution of beer or cider to the serving area within the licensed premises as defined in this subsection. A current floo r plan that includes th e designated serving 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 serving area. Accompanied visitors under twenty-one (21) years of age shall be allowed anywhere on the premises except for a serving area. Samples of beer or cider served by a brewery under this section shall not be considered a sale of beer or cider within the meaning of Article XXVIIIA of the Oklahoma Constitution or Section 1-103 of this title; h owever, such samples of bee r or cider shall be considered beer or cider removed or withdrawn from the brewery for use or consumption within the meaning of Section 5 -110 of this title for excise tax det ermination and reporting requirements. Sales and sampl ing may only occur between the hours of 10:00 a.m. and 2:00 a.m. For purposes of this subsection, “serving area” means the area of the bar where drinks are sold, prepared and served to paying customer s and shall not include other areas of the brewery wher e customers consume purchas ed products. Req. No. 2552 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. A small brewer self-distribution license shall authorize holders of a small brewer license to distribute beer or cider produced only by such licensee to a ho lder of a retail beer license, retail spirits license, mixed beverage license, bee r and wine license, caterer’s license, special event license, public event license, winemaker license charitable auction license or brewpub license. A small brewer shall ele ct whether it will distribute through a distributor or self-distribute in a subjec t territory; however, a small brewer may not elect to do both simultaneously in a subject territory. The election shall be made through notice to the ABLE Commission. Any c hanges to the election shall req uire 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. SECTION 2. AMENDATORY 37A O.S. 2021 , Section 2-103, is amended to read as follows: Section 2-103. A. A distiller license shall authorize the holder thereof: 1. To manufacture, bottle, package and store spirits on licensed premises; 2. To sell spirits in this state to licensed wholesaler s and manufacturers only; Req. No. 2552 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. To sell spirits out of this state to qualified persons; to purchase from licensed distil lers and rectifiers in this state, and import spirits from without this state for manufa cturing purposes in accordance with federal laws a nd regulations; 4. To serve free samples of spirits produced only by the licensee to visitors twenty -one (21) years of age and older. For purposes of this section, no visitor may sample more than a total of three (3) fluid ounces of spirits per day. The distiller shall restrict the distribution and consumption of spirits samples to an area within the licensed premises designated by the distiller. A current floor plan that includes the designated sampling area shall be on file with the ABLE Commission. No visitor under twenty-one (21) years of age shall be permitted to enter the designated sampling area when samples ar e being distributed and consumed. Samples of spirits served by a distiller under this s ection shall not be considered a sale of spirits w ithin the meaning of Article XXVIII-A of the Oklahoma Constitution or Section 1 -103 of this title; provided, such samp les of spirits shall be considered removed or withdrawn from the distillery for use or c onsumption within the meaning of Section 5 -110 of this title for excise tax determination and reporting requirements; 5. To sell spirits produced by the licensee for e ither on- premises or off-premises consumption to consumers on the licensed distillery premises or in an area controlled by the licensee lo cated Req. No. 2552 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 contiguous to the licensed distillery premises. Product offered for sale by the Oklahoma licensed distiller wil l have been sold to and shipped to an Oklahoma licensed wine and spirits wholesaler and then made available for purchase by the Oklahoma l icensed distiller for sale; and 6. To sell spirits at public events such as trade shows or festivals. Products offer ed for sale by the Oklahoma licensed distiller will have been sold to and shipped to an Oklahoma licensed wine and spirits wholesaler and then made available for purchase by the Oklahoma licensed distiller ; and 7. To host off-site events pursuant to Section 4 of this act; provided, that products offered for sale by the Oklahoma licensed distiller will have been sold to and shi pped to an Oklahoma licensed wine and spirits wholesaler and then available for purchase by the Oklahoma licensed distiller. B. Spirits sold pursuant to paragraphs 5 and 6 of subsection A of this section shall not excee d fifteen thousand (15,000) gallons per calendar year in combination. SECTION 3. AMENDATORY 37A O.S. 2021, Section 2 -104, is amended to read as follows: Section 2-104. A winemaker license shall authorize the holder thereof: 1. To manufacture (including such mixing, blending and cellar treatment as authorized by federal law), bottle, package and store Req. No. 2552 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 on licensed premises wine containing not more than twenty -four percent (24%) alcohol by volume, provided the bottle or package sizes authorized shall be limited to the capacities ap proved by the United States Alcohol and Tobacco Tax and Trade Bureau; 2. To sell wine in this state to licensed wholesalers and manufacturers; 3. To sell wine produced at the winery from gr apes and other fruits and berries grown in this state, if availab le, for either on- premises or off-premises consumption to consumers on the premises of the winery; 4. To serve free samples of wine produced at the winery to visitors twenty-one (21) years of age and older. For purposes of this section, no visitor may sa mple more than a total of six (6) fluid ounces of wine per day. The winery shall restrict the distribution and consumption of wine samples to an area within the licensed premises designated by the winery. A current floor plan that includes the designated sampling area shall be on file with the ABLE Commission. No visitor under twenty -one (21) years of age shall be permitted to enter the designated sampling area when samples are being distri buted and consumed. Samples of wine served by a winery under thi s section shall not be considered a sale of wine within the meaning of Article XXVIII -A of the Oklahoma Constitution or Section 1-103 of this title; provided, such samples of wine shall be considered removed or withdrawn from the winery for Req. No. 2552 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 use or consumption within the meaning of Section 5 -110 of this title for excise tax determination and reporting requirements; 5. To serve free samples of wine produced at the winery at public events such a s festivals and trade shows; 6. To sell wine produced at the win ery, for either on-premises or off-premises consumption at public events such as festivals and trade shows; 7. To sell wine out of this state to qualified persons; 8. To purchase from licen sed winemakers, distillers and rectifiers in this state, and to i mport into this state wine, brandy and fruit spirits for use in manufacturing in accordance with federal laws and regulations; 9. To sell and serve Oklahoma -manufactured wine, mulled wine, or spiced wine, mixed with nonalcoholic beverages or food items su ch as water, sugar, fruits and vegetables, at any temperature for either on-premises or off-premises consumption ; 10. To purchase beer in retail containers from the holder of a wholesaler, beer distributor, small brewer self-distributor or brewpub self-distributor license or as specifically provided by law; 11. To sell, offer for sale and possess beer for on -premises consumption; and 12. To establish satellite tasting rooms as defined and authorized in this act where the winemaker’s products may be taste d, sampled, sold and served for on -premises consumption and the Req. No. 2552 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 winemaker is permitted to sell its products in sealed containers; provided, the small farm winery license or winemaker license is active and in good standing. The wine sold at a satellite tas ting room must have been produced/manufactured by the holder of a small farm winery license or winemaker licens e and must have all manufacturing taxes paid ; and 13. To host off-site events pursuant to Section 4 of this act. SECTION 4. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 2-162 of Title 37A, unless there is created a duplication in numbering, reads as follows: A. A small brewer, winemaker, or distiller license shall be authorized the holder thereof to host an off-site event following the submission and approval of an application to the ABLE Commission. The licensee shall only be authorized to sell for consumption at the off-site event alcoholic beverages authorized for sale under the licensee’s respective license. The licensee shall be limited to hosting four (4) off -site events per year. B. The application shall include, but not be limited to, the location of the off-site event with a designated area within the location designed to provide an exclusive space which may be limited to the public and a designated point of access for a patron or patrons specifically granted acces s to ensure that persons present in the designated area are abo ve twenty-one (21) years of age. The Req. No. 2552 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Commission may prescribe a filing fee for each off-site event application not to exceed Twenty-five Dollars ($25.00). C. The ABLE Commission shall prom ulgate rules necessary for the implementation of this section. SECTION 5. It being immediately necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and appro val. 58-2-2552 MR 1/20/2022 7:53:15 PM