Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1811 Compare Versions

Version 1 (Old)

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29		-	SENATE FLOOR VERSION
30		-	March 3, 2022
	28	+	STATE OF OKLAHOMA
	29	+
	30	+	2nd Session of the 58th Legislature (2022)
	31	+
	32	+	COMMITTEE SUBSTITUTE
	33	+	FOR
	34	+	SENATE BILL 1811 By: Garvin
	35	+
	36	+
	37	+
31	38
32	39
33	40		COMMITTEE SUBSTITUTE
34		-	FOR
35		-	SENATE BILL NO. 1811 By: Garvin
36	41
	42	+	An Act relating to alcoholic beverages; amending 37A
	43	+	O.S. 2021, Sections 2-102, as amended by Section 1,
	44	+	Chapter 396, O.S.L. 2021, 2-103, 2-104, and 2-131,
	45	+	which relate to brewer, wine maker, distillery, and
	46	+	small farm winery licenses; allowing certain license
	47	+	holders to host off-site events under certain
	48	+	conditions; authorizing the ABLE Commission to permit
	49	+	certain license holders to host off-site events
	50	+	following application; requiring licensees to sell
	51	+	only the products covered by licenses; providing
	52	+	details of application ; allowing Commission to assess
	53	+	fee; updating statutory language; providing for
	54	+	codification; and declaring an emergency.
37	55
38		-
39		-	[ alcoholic beverages - certain license holders to
40		-	host off-site events - ABLE Commission - only the
41		-	products covered by licenses - fee - codification -
42		-	emergency ]
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47	60		BE IT ENACTED BY THE PEOPLE OF THE STAT E OF OKLAHOMA:
48	61		SECTION 1. AMENDATORY 37A O.S. 2021, Section 2 -102, as
49	62		amended by Section 1, Chapter 396, O.S.L. 2021, is amended to read
50	63		as follows:
51	64		Section 2-102. A. A brewer license shall authorize the holder
52	65		thereof:
53	66		1. To manufacture, bottle, package and store beer and cider on
54	67		the licensed premises; and
55		-	2. To sell beer and cider in this state to holders of beer
56		-	distributor licenses and to sell beer and cid er out of this state to
57		-	qualified persons; and
58		-	3. To host off-site events pursuant to Section 5 of this act.
59		-	B. A small brewer license shall authorize the holder thereof:
60		-	1. To manufacture, bottle, package and store beer produc ed by
61		-	the licensee on lice nsed premises;
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	94	+	2. To sell beer and cider in this state to holders of beer
	95	+	distributor licenses and to sell beer and cider ou t of this state to
	96	+	qualified persons; and
	97	+	3. To host off-site events pursuant to Section 5 of this act.
	98	+	B. A small brewer license shall authorize the holder thereof:
	99	+	1. To manufacture, bottle, package and store beer produc ed by
	100	+	the licensee on lice nsed premises;
89	101		2. To sell beer in this state to holders of beer distributor
90	102		licenses and retail licenses or to sell beer ou t of this state to
91	103		qualified persons;
92	104		3. To serve free samples of beer produced by the licensee to
93	105		visitors twenty-one (21) years of age or older;
94	106		4. To sell beer produced by the licensee for either on -premises
95	107		or off-premises consumption to consumers on the brewery premises, or
96	108		on premises located contiguous thereto;
97	109		5. To sell beer at public events such a s trade shows or
98	110		festivals;
99	111		6. To purchase wine in retail containers from the holder of a
100	112		wholesaler license or as specifically provided by law; and
101	113		7. To sell, offer for sale and possess wine for on -premises
102	114		consumption; and
103	115		8. To host off-site events pursuant to Section 5 of this act.
104	116		C. The holder of multiple small brewer licenses may sell beer
105	117		produced at up to three breweries for which the lice nsee has a
106		-	license, at any other of such three licensed breweries or on
107		-	premises located contiguous thereto.
108		-	D. Nothing in the Oklahoma Alcoholic Beverage Control Act shall
109		-	prohibit the holder of a small brewer license from also holding or
110		-	owning an interest in th e holder of a brewpub license.
111		-	E. For purposes of this section, no visitor may sample more
112		-	than a total of twelve (12) flu id ounces of beer per day. The
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	144	+	license, at any other of such three licensed breweries or on
	145	+	premises located contiguous thereto.
	146	+	D. Nothing in the Oklahoma Alcoholic Beverage Control Act shall
	147	+	prohibit the holder of a small brewer license from also holding or
	148	+	owning an interest in th e holder of a brewpub license.
	149	+	E. For purposes of this section, no visitor may sample more
	150	+	than a total of twelve (12) fluid ounces of b eer per day. The
140	151		brewer must restrict the distribution and consumption of beer
141	152		samples to an area within the licensed premises designated by the
142	153		brewer. A current floor plan that includes the designated sampling
143	154		area must be on file with the ABLE Commiss ion. No visitor under
144	155		twenty-one (21) years of age shall be permitted to enter this
145	156		designated sampling area when samp les are being distributed or
146	157		consumed. Samples of beer served by a brewery under this section
147	158		shall not be considered a sale of beer wit hin the meaning of Article
148	159		XXVIII-A of the Oklahoma Constitution or Section 1-103 of this
149	160		title; however, such samples of beer shall be considered beer
150	161		removed or withdrawn from the brewery for use or consumption withi n
151	162		the meaning of Section 5 -110 of this title for excise tax
152	163		determination and reporting requirements. Sales and sampling may
153	164		only occur between the hours of 10:00 a.m. and 2:00 a.m.
154	165		F. A small brewer self-distribution license shall authorize
155	166		holders of a small brewer license to distribute be er produced only
156	167		by such licensee to a holder of a retail beer license, retail
157		-	spirits license, mixed beverage license, beer and wine license,
158		-	caterer’s license, special event license, public event license,
159		-	charitable auction license or brewp ub license. A small brewer shall
160		-	elect whether it will distribute through a distributor or self-
161		-	distribute in a subject territory; h owever, a small brewer may not
162		-	elect to do both simultaneously in a subject territory. The
163		-	election shall be made through notice to the ABLE Commission. Any
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	194	+	spirits license, mixed beverage license, beer and wine license,
	195	+	caterer’s license, special event license, public event license,
	196	+	charitable auction license or brewpub license. A small brewer shall
	197	+	elect whether it will distribute through a distributor or self-
	198	+	distribute in a subject territory; h owever, a small brewer may not
	199	+	elect to do both simultaneously in a subject territory. The
	200	+	election shall be made through notice to the ABLE Commission. Any
191	201		changes to the election shall require immediate notification to the
192	202		ABLE Commission before the ch ange in election will take effect. A
193	203		small brewer that elects to self -distribute in multiple terri tories
194	204		shall only be required to have one small brewer self -distribution
195	205		license.
196	206		G. All manufacturer’s licenses held by brewer s during the first
197	207		calendar year beginning October 1, 2018, shall automatically convert
198	208		to brewer licenses and be deemed effecti ve as of the date of the
199	209		first issuance of the manufacture r’s license. Upon the first
200	210		renewal of the license, the brewer will n eed to obtain the
201	211		appropriate brewer’s license. If a brewer elects to market wine and
202	212		spirits, the brewer will also be required to obtain a manufacturer ’s
203	213		license and comply with the rules and regulations for both licenses.
204	214		SECTION 2. AMENDATORY 37A O.S. 2021 , Section 2-103, is
205	215		amended to read as follows:
206	216		Section 2-103. A. A distiller license shall authorize the
207	217		holder thereof:
208		-	1. To manufacture, bottle, package and store spirits on
209		-	licensed premises;
210		-	2. To sell spirits in this state to licensed wholesaler s and
211		-	manufacturers only;
212		-	3. To sell spirits out of this state to qualified perso ns; to
213		-	purchase from licensed distil lers and rectifiers in this state, and
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	244	+	1. To manufacture, bottle, package and store spirits on
	245	+	licensed premises;
	246	+	2. To sell spirits in this state to licensed wholesaler s and
	247	+	manufacturers only;
	248	+	3. To sell spirits out of this state to qualified perso ns; to
	249	+	purchase from licensed distillers and rectifiers in this state, and
241	250		import spirits from without this state for manufa cturing purposes in
242	251		accordance with federal laws a nd regulations;
243	252		4. To serve free samples of spirits produced only by the
244	253		licensee to visitors twenty-one (21) years of age and older. For
245	254		purposes of this section, no visitor may sample more than a total of
246	255		three (3) fluid ounces of spirits per day. The distiller shall
247	256		restrict the distribution and consumption of spirits samples to a n
248	257		area within the licensed premises designated by the distiller. A
249	258		current floor plan that includes the designated sampling area shall
250	259		be on file with the ABLE Commission. No visitor under twenty-one
251	260		(21) years of age shall be permitted to enter the desi gnated
252	261		sampling area when samples are being distributed and consumed.
253	262		Samples of spirits served by a distiller under this s ection shall
254	263		not be considered a sale of spirits w ithin the meaning of Article
255	264		XXVIII-A of the Oklahoma Constitution or Section 1 -103 of this
256	265		title; provided, such samples of spirits shall be considered removed
257	266		or withdrawn from the distillery for use or c onsumption within the
258		-	meaning of Section 5 -110 of this title for excise tax determination
259		-	and reporting requirements;
260		-	5. To sell spirits produced by the licensee for e ither on-
261		-	premises or off-premises consumption to consumers on the licensed
262		-	distillery premises or in an area controlled by the licensee lo cated
263		-	contiguous to the licensed distillery premises. Product offered for
264		-	sale by the Oklahoma licensed distiller wil l have been sold to and
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	293	+	meaning of Section 5 -110 of this title for excise tax determination
	294	+	and reporting requirements;
	295	+	5. To sell spirits produced by the licensee for either on-
	296	+	premises or off-premises consumption to consumers on the licensed
	297	+	distillery premises or in an area controlled by the licensee lo cated
	298	+	contiguous to the licensed distillery premises. Product offered for
	299	+	sale by the Oklahoma licensed distiller will have been sold to and
292	300		shipped to an Oklahoma licensed wine and spirits wholesaler and then
293	301		made available for purchase by the Oklahoma l icensed distiller for
294	302		sale; and
295	303		6. To sell spirits at public events such as trade shows or
296	304		festivals. Products offered for sale by the Oklahoma licensed
297	305		distiller will have been sold to and shipped to an Oklahoma licensed
298	306		wine and spirits wholesaler and then made available for purchase by
299	307		the Oklahoma licensed distiller ; and
300	308		7. To host off-site events pursuant to Section 5 of this act;
301	309		provided, that products offered for sale by the Oklahoma licensed
302	310		distiller will have been sold to and shi pped to an Oklahoma licensed
303	311		wine and spirits wholesaler and then made available for purchase by
304	312		the Oklahoma licensed distiller.
305	313		B. Spirits sold pur suant to paragraphs 5 and 6 of subsection A
306	314		of this section shall not excee d fifteen thousand (15,000) gallons
307	315		per calendar year in combination.
308		-	SECTION 3. AMENDATORY 37A O.S. 2021, Section 2-104, is
309		-	amended to read as follows:
310		-	Section 2-104. A winemaker license shall authorize the holder
311		-	thereof:
312		-	1. To manufacture (including such mixing, blending and cellar
313		-	treatment as authorized by federal law), bottle, package and store
314		-	on licensed premises wine containing not more than twenty-four
315		-	percent (24%) alcohol by volume,; provided, the bottle or package
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	342	+	SECTION 3. AMENDATORY 37A O.S. 2021, Section 2-104, is
	343	+	amended to read as follows:
	344	+	Section 2-104. A winemaker license shall authorize the holder
	345	+	thereof:
	346	+	1. To manufacture (including such mixing, blending and cellar
	347	+	treatment as authorized by federal law), bottle, package and store
	348	+	on licensed premises wine containing not more than twenty-four
	349	+	percent (24%) alcohol by volume,; provided, the bottle or package
343	350		sizes authorized shall be limited to the capacities ap proved by the
344	351		United States Alcohol and Tobacco Tax and Trade Bureau;
345	352		2. To sell wine in this state to licensed wholesalers and
346	353		manufacturers;
347	354		3. To sell wine produced at the winery from gr apes and other
348	355		fruits and berries grown in this state, if availab le, for either on-
349	356		premises or off-premises consumption to consumers on the pr emises of
350	357		the winery;
351	358		4. To serve free samples of wine produced at the wi nery to
352	359		visitors twenty-one (21) years of age and older. For purposes of
353	360		this section, no visitor may sa mple more than a total of six (6)
354	361		fluid ounces of wine per day. The winery s hall restrict the
355	362		distribution and consumption of wine samples to an area within the
356	363		licensed premises designated by the winery. A current floor plan
357	364		that includes the designated sampling area shall be on file with the
358	365		ABLE Commission. No visitor under t wenty-one (21) years of age
359		-	shall be permitted to enter the designated sampling area when
360		-	samples are being distri buted and consumed. Samples of wine served
361		-	by a winery under thi s section shall not be considered a sale of
362		-	wine within the meaning of Articl e XXVIII-A of the Oklahoma
363		-	Constitution or Section 1-103 of this title; provided, such samples
364		-	of wine shall be considered removed or withdrawn from the winery for
365		-	use or consumption within the meaning of Section 5 -110 of this title
366		-	for excise tax determin ation and reporting requirements;
367	366
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	392	+	shall be permitted to enter the designated sam pling area when
	393	+	samples are being distri buted and consumed. Samples of wine served
	394	+	by a winery under thi s section shall not be considered a sale of
	395	+	wine within the meaning of Articl e XXVIII-A of the Oklahoma
	396	+	Constitution or Section 1-103 of this title; pr ovided, such samples
	397	+	of wine shall be considered removed or withdrawn from the winery for
	398	+	use or consumption within the meaning of Section 5 -110 of this title
	399	+	for excise tax determin ation and reporting requirements;
394	400		5. To serve free samples of wine produc ed at the winery at
395	401		public events such a s festivals and trade shows;
396	402		6. To sell wine produced at the win ery, for either on-premises
397	403		or off-premises consumption at public events such as festivals and
398	404		trade shows;
399	405		7. To sell wine out of this state to qualified persons;
400	406		8. To purchase from licen sed winemakers, distillers and
401	407		rectifiers in this state, and to i mport into this state wine, brandy
402	408		and fruit spirits for use in manufacturing in accordance with
403	409		federal laws and regulations;
404	410		9. To sell and serve Ok lahoma-manufactured wine, mulled wine,
405	411		or spiced wine, mixed with nonalcoholic beverages or food items su ch
406	412		as water, sugar, fruits and vegetables, at any temperature for
407	413		either on-premises or off-premises consumption;
408		-	10. To purchase beer in retail containers from the holder of a
409		-	wholesaler, beer distributor, small brewer self-distributor or
410		-	brewpub self-distributor license or as specifically provided by law;
411		-	11. To sell, offer for sale and possess beer for on-premises
412		-	consumption; and
413		-	12. To establish satellite tasting rooms as defined and
414		-	authorized in this act where the winemaker’s products may be taste d,
415		-	sampled, sold and served for on -premises consumption and the
416		-	winemaker is permitted to sell its products in sealed containers;
417		-	provided, the small farm winery license or winemaker license is
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	440	+	10. To purchase beer in retail conta iners from the holder of a
	441	+	wholesaler, beer distributor, small brewer self-distributor or
	442	+	brewpub self-distributor license or as specifically provided by law;
	443	+	11. To sell, offer for sale and possess beer for on-premises
	444	+	consumption; and
	445	+	12. To establish satellite tasting rooms as defined and
	446	+	authorized in this act where the winemaker’s products may be taste d,
	447	+	sampled, sold and served for on -premises consumption and the
	448	+	winemaker is permitted to sell its products in sealed containers;
	449	+	provided, the small f arm winery license or winemaker license is
445	450		active and in good standing. The wine sold at a satellite tas ting
446	451		room must have been produced/manufactured by the holder of a small
447	452		farm winery license or winemaker license and must have all
448	453		manufacturing taxes paid; and
449	454		13. To host off-site events pursuant to Section 5 of this act.
450	455		SECTION 4. AMENDATORY 37A O.S. 2021, Section 2 -131, is
451	456		amended to read as follows:
452	457		Section 2-131. A. A small farm winery license shall authorize
453	458		the holder thereof:
454	459		1. To manufacture and bottle wines produced by that small farm
455	460		winery;
456	461		2. To bottle and sell wines produced by another small farm
457	462		winery. In order for a small farm winery to bottle a nd sell another
458		-	small farm winery’s products, both the selling winery and the buying
459		-	winery shall be small farm winery permit holders;
460		-	3. To establish satellite tasting rooms as defined and
461		-	authorized in this act where the winemaker’s products may be tast ed,
462		-	sampled, sold and served for on-premises consumption and the
463		-	winemaker is permitted to sell its products in sealed containers;
464		-	provided, the small farm winery license is active and in good
465		-	standing. The wine sold at a satellite tasting room must have been
466		-	produced/manufactured by the holder of a small farm winery license
467		-	and must have all manufacturing taxes paid; and
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	489	+	small farm winery’s products, both the selling winery and the buying
	490	+	winery shall be small farm winery permit holders;
	491	+	3. To establish satellite tasting rooms as defined and
	492	+	authorized in this act where the winemaker’s products may be tast ed,
	493	+	sampled, sold and served for on-premises consumption and the
	494	+	winemaker is permitted to sell its products in sealed containers;
	495	+	provided, the small farm winery license is active and in good
	496	+	standing. The wine sold at a satellite tasting room must have been
	497	+	produced/manufactured by the holder of a small farm winery license
	498	+	and must have all manufacturing taxes paid; and
495	499		4. To host off-site events pursuant to Section 5 of this act;
496	500		and
497	501		5. The small farm winery licensee shall have the same authority
498	502		as the winemaker licensee.
499	503		B. A small farm wine may display the trademarked “Oklahoma
500	504		Grown” sticker available from the Oklahoma Grape Industry Council.
501	505		SECTION 5. NEW LAW A new section of law to be codified
502	506		in the Oklahoma Statutes as Section 2-162 of Title 37A, unless there
503	507		is created a duplication in numbering, reads as follows:
504	508		A. A small brewer, winemaker, distiller, or small farm winery
505	509		licensee shall be authorized to host an off-site event following the
506	510		submission and approval o f an application to the ABLE Commission .
507	511		The licensee shall only be authorized to sell for consumption at the
508	512		off-site event alcoholic beverages authorized for sale under the
509		-	licensee’s respective license. The licensee shall be limit ed to
510		-	hosting four (4) off-site events per year.
511		-	B. The application shall include, but not be limited to, the
512		-	location of the off-site event with a designated area within the
513		-	location designed to provide an exclusive space which may be limited
514		-	to the public and a designated point of access for a pat ron or
515		-	patrons specifically granted acces s to ensure that persons present
516		-	in the designated area are abo ve twenty-one (21) years of age. The
517		-	Commission may prescribe a filing fee for each off-site event
518		-	application not to exceed Twenty-five Dollars ($25.00).
519	513
520		-	SENATE FLOOR VERSION - SB1811 SFLR Page 11
521		-	(Bold face denotes Committee Amendments) 1
	514	+	Req. No. 3698 Page 11 1
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	539	+	licensee’s respective license. The licensee shall be limit ed to
	540	+	hosting four (4) off-site events per year.
	541	+	B. The application shall include, but not be limited to, the
	542	+	location of the off-site event with a designated area within the
	543	+	location designed to provide an exclusive space which may be limited
	544	+	to the public and a designated point of access for a patron or
	545	+	patrons specifically granted acces s to ensure that persons present
	546	+	in the designated area are abo ve twenty-one (21) years of age. The
	547	+	Commission may prescribe a filing fee for each off-site event
	548	+	application not to exceed Twenty-five Dollars ($25.00).
546	549		C. The ABLE Commission shall prom ulgate rules necessary for the
547	550		implementation of this section.
548	551		SECTION 6. It being immediately necessary for the preservation
549	552		of the public peace, health or safety, an emergency is hereby
550	553		declared to exist, by reason whereof this act shall take effect and
551	554		be in full force from and after its passage and appro val.
552		-	~~COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM~~
553		-	~~March~~ 3, 2022 ~~- DO PASS AS AMENDED~~
	555	+
	556	+	58-2-3698 MR 3/3/2022 11:57:00 AM