Oklahoma 2022 2022 Regular Session

Oklahoma Senate Bill SB1811 Introduced / Bill

Filed 01/20/2022

                     
 
 
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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   
 
 
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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.   
 
 
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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.   
 
 
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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;   
 
 
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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   
 
 
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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   
 
 
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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   
 
 
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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   
 
 
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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   
 
 
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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