Req. No. 851 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 1st Session of the 58th Legislature (2021) SENATE BILL 374 By: David AS INTRODUCED An Act relating to the Oklahoma Alcoholic Beverage Control Act; amending Section 3, Cha pter 366, O.S.L. 2016, as last amended by Section 6, Chapter 161, O.S.L. 2020 (37A O.S. Supp. 2020, Section 1-103), which relates to definitions; adding definition for small farm producer; updating statutory references; amending Section 13, Cha pter 366, O.S.L. 2016, as last amended by Section 9, Chapter 161, O.S.L. 2020 (37A O.S. Supp. 2020, Section 2-101), which relates to licenses; adding small farm producer license; setting license fee; modifying references; establishing authority for certain lic ense; permitting tastings and sales for on -premises and off-premises consumption; limiting gallons for certain consumption; requiring records be kept; allowing label to be owned by certain licensees; providing for codification; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA: SECTION 1. AMENDATORY Section 3, Chapter 366, O.S.L. 2016, as last amended by Section 6, Chapter 161, O.S.L. 2020 (37A O.S. Supp. 2020, Section 1-103), is amended to read as follows: Section 1-103. As used in the Oklaho ma Alcoholic Beverage Control Act: Req. No. 851 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 1. "ABLE Commission" or "Commission" means the Alcoholic Beverage Laws Enforcement Commission; 2. "Alcohol" means and includes hydrated oxide of ethyl, ethyl alcohol, ethanol or spirits of wine, from whatever source or by whatever process produced. It does not include wood alcohol or alcohol which has been denatured or produced as denatured in accordance with Acts of Congress and regulations promulgated thereunder; 3. "Alcoholic beverage" means alcohol, spirits, beer a nd wine as those terms are defined herein and also includes every liquid or solid, patented or not, containing alcohol, spirits, wine or beer and capable of being consumed as a beverage by human beings; 4. "Applicant" means any individual, legal or commer cial business entity, or any individual involved in any legal or commercial business entity allowed to hold any license issued in accordance with the Oklahoma A lcoholic Beverage Control Act; 5. "Beer" means any beverage of alcohol by volume and obtained by the alcoholic fermentation of an infusion or decoction of barley, or other grain, malt or similar products. "Beer" may or may not contain hops or other veget able products. "Beer" includes, among other things, beer, ale, stout, l ager beer, porter and ot her malt or brewed liquors, but does not include sake, known as Japanese rice wine; Req. No. 851 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 6. "Beer keg" means any brewer-sealed, single container that contains not less than four (4) gallons of beer; 7. "Beer distributor" means and includes any person licensed to distribute beer for retail sale in the state, but does not include a holder of a small brewer self -distribution license or brewpub self - distribution license . The term "distributor", as used in the Oklahoma Alcoholic Beverage Co ntrol Act, shall be cons trued to refer to a beer distributor; 8. "Bottle club" means any establishment in a county which has not authorized the retail sale of alcoholic beverages by t he individual drink, which is required to be licensed to keep, mix and serve alcoholic beverages belonging to club members on club premises; 9. "Brand" means any word, name, group of letters, symbol or combination thereof, that is adopted and used by a li censed brewer to identify a specific beer, wi ne or spirit and to disting uish that product from another beer, wine or spirit; 10. "Brand extension" means: a. after October 1, 2018, any brand of beer or cider introduced by a manufacturer in this state which either: (1) incorporates all or a substantia l part of the unique features of a preexisting bran d of the same licensed brewer, or Req. No. 851 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 (2) relies to a significant extent on the goodwill associated with the preexisting brand, or b. any brand of beer that a brewe r, the majority of whose total volume of all brands of beer distributed in this state by such brewer on January 1, 2016, was distributed as low-point beer, desires to sell, introduces, begins selling or theretofore has sold and desires to continue selling a strong beer in this state which either: (1) incorporates or incorporat ed all or a substantial part of the unique features of a preexisting low - point beer brand of the same licensed brewer, or (2) relies or relied to a significant extent on the goodwill associated with a preexisting low -point beer brand; 11. "Brewer" means and includes any person w ho manufactures for human consumption by the use of raw materials or other ingredients any beer or cider upon which a license fee and a tax are imposed by any law of this state; 12. "Brewpub" means a licensed establishment operated on the premises of, or on premises located contiguous to, a small brewer, that prepares and serves food and beverages, including alcoholic beverages, for on-premises consumption; Req. No. 851 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 13. "Cider" means any alcoholic beverage obtaine d by the alcoholic fermentation of fruit juice, inc luding but not limited to flavored, sparkling or carbonated cider. For the purposes of the manufacture of this product, cider may be manufactured by either manufacturers or brewers. For the purposes of t he distribution of this product, cider may be distr ibuted by either wine and spirits wholesalers or beer distributors; 14. "Convenience store" means any person primarily engaged in retailing a limited range of general household items and groceries, with extended hours of operation, whether or not engaged in retail sales of automotive fuels in combination with such sales; 15. "Convicted" and "conviction" mean and include a finding of guilt resulting from a plea of guilty or nolo contendere, the decision of a court or magistrate or t he verdict of a jury, irrespective of the pronouncement of judgment or the suspension thereof; 16. "Designated products" means the brands of wine or spirits offered for sale by a manu facturer that the manufacturer has assigned to a designated wholesaler f or exclusive distributio n; 17. "Designated wholesaler " means a wine and spirits wholesaler who has been selected by a manufacturer as a wholesaler appointed to distribute designated p roducts; 18. "Director" means the Director o f the ABLE Commission; Req. No. 851 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 19. "Distiller" means any person who produces spirits from any source or substance, or any person who brews or makes mash, wort or wash, fit for distillation or for the production of spir its (except a person making or using such mat erial in the authorized pro duction of wine or beer, or the production of vinegar by fermentation), or any person who by any process separates alcoholic spirits from any fermented substance, or any person who, ma king or keeping mash, wort or wash, has also in his or her possession or use a still; 20. "Distributor agreement" means the written agreement between the distributor and brewer as set forth in Section 3 -108 of this title; 21. "Drug store" means a person primarily engaged in retailing prescription and nonprescription drugs an d medicines; 22. "Dual-strength beer" means a brand of beer that, immediately prior to April 15, 2017, was being sold and distributed in this state: a. as a low-point beer pursuant to the Low-Point Beer Distribution Act in effec t immediately prior to October 1, 2018, and b. as strong beer pursuant to the Alcoholic Beverage Control Act in effect immediately prior to October 1, 2018, Req. No. 851 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 and continues to be sold and distributed as such on Oc tober 1, 2018. Dual-strength beer does not i nclude a brand of beer that arose as a result of a brand extension as defined in this section; 23. "Fair market value" means the value in the subject territory covered by the written agreement with the distribu tor or wholesaler that would be determined in an arm's length transaction entered into without d uress or threat of termination of the distributor's or wholesaler's rights and shall include all elements of value, including goodwill and going -concern value; 24. "Good cause" means: a. failure by the distributor to comply with th e material and reasonable provisions of a written agreement or understanding with the brewer, or b. failure by the distributor to comply with the duty of good faith; 25. "Good faith" means the duty of each party to any distributor agreement and all office rs, employees or agents thereof to act with honesty in fact and within reasonable standards of fair dealing in the trade; 26. "Grocery store" means a person primarily engaged in retailing a general line of food, such as canned o r frozen foods, fresh fruits and vegetables, and fr esh and prepared meats, fish and poultry; Req. No. 851 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 27. "Hotel" or "motel" means an establishment which is licensed to sell alcoholic beverages by the individual drink a nd which contains guestroom accommodations wi th respect to which the predominant relationship ex isting between the occupants thereof and the owner or operator of the establishment is that of innkeeper and guest. For purposes of this section, the existence of other legal relationships as between some occupants and the owner or operator thereof shall be immaterial; 28. "Legal newspaper" means a newspaper meeting the requisites of a newspaper for publication of legal notices as prescribed in Sections 101 through 114 of Title 25 of the Oklahoma Statutes ; 29. "Licensee" means any person holding a licens e under the Oklahoma Alcoholic Beverage Control Act, and any agent, servant or employee of such licensee while in the performance of any act or duty in connection with the licensed business or on the licen sed premises; 30. "Low-point beer" shall mean any beverages containing more than one-half of one percent (1/2 of 1%) alcohol by volume, and not more than three and two -tenths percent (3.2%) alcohol by weight, including but not limited to, beer or cereal m alt beverages obtained by the alcoholic fermentatio n of an infusion by barley or other grain, malt or similar products; Req. No. 851 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 31. "Manufacturer" means a distiller, winemaker, rectifier or bottler of any alcoholic bev erage (other than beer) and its subsidiaries, affiliates and parent comp anies; 32. "Manufacturer's agent" means a salaried or commissioned salesperson who is the agent authorized to act on behalf of the manufacturer or nonresident seller in the state; 33. "Meals" means foods commonly ordered at lun ch or dinner and at least part of which is cooked o n the licensed premises and requires the use of dining implements for consumption. Provided, that the service of only food such as appetizers, sandwiches, sala ds or desserts shall not be considered "meals"; 34. "Mini-bar" means a closed container, either refrigerated in whole or in part, or nonrefrigerated, and access to the interior of which is: a. restricted by means of a locking device which requires the use of a key, magnetic card or similar device, o r b. controlled at all time s by the licensee; 35. "Mixed beverage cooler " means any beverage, by whatever name designated, consisting of an alcoholic beverage and fruit or vegetable juice, fruit or vegetable fl avorings, dairy products or carbonated water containing more than one -half of one percent (1/2 of 1%) of alcohol measured by volume but not more than seven percent (7%) alcohol by volume at sixty (60) degrees Fahrenheit and which is packaged in a container not larger than three hundred seventy -five Req. No. 851 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 (375) milliliters. Such ter m shall include but not be limited to the beverage popularly known as a "wine cooler"; 36. "Mixed beverages" means one or more servings of a beverage composed in whole or part of an a lcoholic beverage in a sealed or unsealed container of any legal size fo r consumption on the pre mises where served or sold by the holder of a mixed beverage, beer and wine, caterer, public event, charitable event or special event license; 37. "Motion picture theater" means an establishment which is licensed by Section 2 -110 of this title to sell alc oholic beverages by the individual drink and where motion pictures are exhibited, and to which the general public is admitted; 38. "Nondesignated products " means the brands of wine or spirits offered for sale by a manufacturer that have not been assigned to a designated wholesaler; 39. "Nonresident seller" means any person licensed pursuant to Section 2-135 of this title; 40. "Retail salesperson" means a salesperson soliciting orders from and calling upo n retail alcoholic beverage stores with regard to his or her product; 41. "Occupation" as used in connection with "occupation tax" means the sites occupied as the places of business of the manufacturers, brewer s, wholesalers, beer distributors, retailers, Req. No. 851 Page 11 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 mixed beverage licensees, on-premises beer and win e licensees, bottle clubs, caterers, public event and special event licensees; 42. "Original package" means any container of alcoholic beverage filled and stam ped or sealed by the manufacturer or brewer; 43. "Package store" means any sole proprietor or p artnership that qualifies to sell wine, beer and/or spirits for off -premises consumption and that is not a grocery store, convenience store or drug store, or other retail outlet that is not permitted to se ll wine or beer for off -premises consumption; 44. "Patron" means any person, customer or visitor who is not employed by a licensee or who is not a licensee; 45. "Person" means an individual, any type of partne rship, corporation, association, limited liab ility company or any individual involved in the leg al structure of any such business entity; 46. "Premises" means the grounds and all buildings and appurtenances pertaining to the grounds including any adjacent premises if under the direct or indirect con trol of the licensee and the rooms and equipment un der the control of the licensee and used in connection with or in furtherance of the business covered by a license. Provided that the ABLE Commission shall hav e the authority to designate areas to be excl uded from the licensed prem ises solely for the purpose of: Req. No. 851 Page 12 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 a. allowing the presence and consumption of alcoholic beverages by private parties which are closed to the general public, or b. allowing the services o f a caterer serving alcoholic beverages provided by a private party. This exception shall in no way limit the licensee 's concurrent responsibility for any violations of the Oklahoma Alcoholic Beverage Control Act occurring on the licensed premises; 47. "Private event" means a social gathering or eve nt attended by invited guests who share a common ca use, membership, business or task and have a prior established relationship. For purposes of this definition, advertisement for general public attendance or sales of tickets to the general public shall no t constitute a private event; 48. "Public event" means any event that can be attended by the general public; 49. "Rectifier" means any person who rectifies, purifies or refines spirits or wines by any process (other than by original and continuous distillation, or original and con tinuous processing, from mash, wort, wash or other substance, through continuous closed vessels and pipes, until the production thereof is complete), and any person who, without rectif ying, purifying or refining spirits, shall by mixing (except for immedia te consumption on the pr emises where mixed) such spirits, wine or other liquor with any material, Req. No. 851 Page 13 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 manufactures any spurious, imitation or compound liquors for sale, under the name of whiskey, brandy, rum, gin, wine, spirits, cord ials or any other name; 50. "Regulation" or "rule" means a formal rule of general application promulgated by the ABLE Commission as herein required; 51. "Restaurant" means an establishment that is licensed to sell alcoholic beverages by the individual dr ink for on-premises consumption and where food is p repared and sold for immediate consumption on the premises; 52. "Retail container for spirits and wines " means an original package of any capacity approved by the United States Bureau of Alcohol, Tobacco and Firearms; 53. "Retailer" means a package store , grocery store, convenience store or drug store licensed to sell alcoholic beverages for off-premises consumption pursuant to a Retail Spirits License, Retail Wine License or Retail Beer License; 54. "Sale" means any transfer, exc hange or barter in any m anner or by any means whatsoever, and includes and means all sales made by any person, whether as principal, proprietor or as an agent, servant or employee. The term "sale" is also declared to be and incl ude the use or consumption in this state of any alc oholic beverage obtained within or imported from without this state, upon which the excise tax levied by the Oklahoma Alcoholic Beverage Control Act has not been paid or exempted; Req. No. 851 Page 14 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 55. "Short-order food" means food other than full m eals including but not limited to sandwiches, soups and salads. Provided that popcorn, chips and other similar snack food shall not be considered "short-order food"; 56. "Small brewer" means a brewer who manufactures less than sixty-five thousand (65,000 ) barrels of beer annual ly pursuant to a validly issued Small Brewer License hereunder; 57. "Small farm wine" means a wine that is produced by a small farm winery with seventy -five percent (75%) or more Oklahoma -grown grapes, berries, other fruits, honey or vegetables; 58. "Small farm winery" means a wine-making establishment that does not annually produce for sale more than fifteen thousand (15,000) gallons of wine as reported on the United States Department of the Treasury, Alcohol and Tobacco Tax and T rade Bureau, Report of Wine Premises Operations (TTB Form 5120.17); 59. "Small farm producer" means a person that annually produces in this state no les s than one hundred (100) vines of sound ripe grapes, one thousand (1,000) pounds of other sound r ipe fruit or berries or one hundred (100) pounds of honey ; 60. "Sparkling wine" means champagne or any artificially carbonated wine; 60. 61. "Special event" means an entertainment, recreation or marketing event that occurs at a single location on an irregular basis and at which alcoh olic beverages are sold; Req. No. 851 Page 15 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 61. 62. "Spirits" means any beverage other than wine or beer, which contains more than one -half of one percent (1/2 of 1%) alcohol measured by volume, and obtained by distil lation, whether or not mixed with other substances in sol ution and includes those products known as whiskey, brandy, rum, gin, vodka, liqueurs, cordials and fortified wines and similar compounds, but shall not include any alcohol liquid completely denature d in accordance with the Acts of Congress and regulations pursuant thereto; 62. 63. "Strong beer" means beer which, prior to October 1, 2018, was distributed pursuant to the Oklahoma Alcoholic Beverage Control Act, Section 501 e t seq. of Title 37 of the Oklah oma Statutes; 63. 64. "Successor brewer" means a primary source of supply, a brewer, a cider manufacturer or an importer that acquires rights to a beer or cider brand from a predecessor brewer; 64. 65. "Tax Commission" means the Oklahoma Tax Commission; 65. 66. "Territory" means a geographic region with a specified boundary; 66. 67. "Wine and spirits wholesaler " or "wine and spirits distributor" means and includes any sole proprietorship or partnership licensed to distribute wine and spir its in the state. The term "wholesaler", as used the Oklahoma Alcoh olic Beverage Control Act, shall be construed to refer to a wine and spirits wholesaler; Req. No. 851 Page 16 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 67. 68. "Wine" means and includes any beverage containing more than one-half of one percent (1/2 of 1 %) alcohol by volume and not more than twenty-four percent (24%) alcohol by volume at sixty (60) degrees Fahrenheit obtained by the fermentation of the natural contents of fruits, vegetables, honey, milk or other products containing sugar, whether or not o ther ingredients are added, and includes vermouth and sake, known as Japanese rice wine; 68. 69. "Winemaker" means and includes any person or establishment who manufactures for human consumption any wine upon which a license fee and a tax are imposed by any l aw of this state; and 69. 70. "Satellite tasting room" means a licensed establishment operated off the licensed premises of the holder of a small farm winery or winemaker license, which serves wine for on -premises or off-premises consumption. Words in the plural include the singular, and v ice versa, and words imparting the masculine gender include the feminine, as well as persons and licensees as defined in this section. SECTION 2. AMENDATORY Section 13, Chapter 366, O.S.L. 2016, as last amended by Section 9, Chapter 161, O.S.L. 2020 (37A O.S. Supp. 2020, Section 2-101), is amended to read as follows: Section 2-101. A. Except as otherwise provided in this section, the licenses issued by the ABLE Commission, and the annual fees therefor, shall be as follows: Req. No. 851 Page 17 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 1. Brewer License................................ .. $1,250.00 2. Small Brewer License .............................. $125.00 3. Distiller License ............................... $3,125.00 4. Winemaker License................................ . $625.00 5. Small Farm Winery License .......................... $75.00 6. Small Farm Producer License ........................ $75.00 7. Rectifier License............................... $3,125.00 7. 8. Wine and Spirits Wholesal er License.......... $3,000.00 8. 9. Beer Distributor License ....................... $750.00 9. 10. The following retail spiri ts license fees shall be determined by the latest Federal Decennial Census: a. Retail Spirits License for cities and towns from 200 to 2,500 population.......... $305.00 b. Retail Spirits License for cities and towns from 2,501 to 5,000 population ........ $605.00 c. Retail Spirits License for cities and towns over 5,000 population ................. $905.00 10. 11. Retail Wine License........................ $1,000.00 11. 12. Retail Beer License.......................... $500.00 12. 13. Mixed Beverage License..................... $1,005.00 (initial license) $905.00 (renewal) Req. No. 851 Page 18 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 13. 14. Mixed Beverage/Caterer Combination License................................ ........ $1,250.00 14. 15. On-Premises Beer and Wine License ............ $500.00 (initial license) $450.00 (renewal) 15. 16. Bottle Club License........................ $1,000.00 (initial license) $900.00 (renewal) 16. 17. Caterer License............................ $1,005.00 (initial license) $905.00 (renewal) 17. 18. Annual Special Event License.................. $55.00 18. 19. Quarterly Special Event License ............... $55.00 19. 20. Hotel Beverage License..................... $1,005.00 (initial license) $905.00 (renewal) 20. 21. Airline/Railroad/Commercial Passenger Vessel Beverage License................................ ................. $1,005.00 (initial license) $905.00 Req. No. 851 Page 19 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 (renewal) 21. 22. Agent License................................ . $55.00 22. 23. Employee License.............................. $30.00 23. 24. Industrial License............................ $23.00 24. 25. Carrier License............................... $23.00 25. 26. Private Carrier License ....................... $23.00 26. 27. Bonded Warehouse License ..................... $190.00 27. 28. Storage License............................... $23.00 28. 29. Nonresident Seller Licens e or Manufacturer's License........................... $750.00 29. 30. Manufacturer's Agent License.................. $55.00 30. 31. Sacramental Wine Supplier License............ $100.00 31. 32. Charitable Auction License ..................... $1.00 32. 33. Charitable Alcoholic Beverage License ......... $55.00 33. 34. Winemaker Self-Distribution License .......... $750.00 34. 35. Annual Public Event Lice nse................ $1,005.00 35. 36. One-Time Public Event Licens e................ $255.00 36. 37. Small Brewer Self-Distribution License ....... $750.00 37. 38. Brewpub License............................ $1,005.00 38. 39. Brewpub Self-Distribution License ............ $750.00 39. 40. Complimentary Beverage License ................ $75.00 40. 41. Satellite Tasting Room L icense............... $100.00 B. 1. There shall be added to the initial or renewal fees for a Mixed Beverage License an administrative fee, which shall not be Req. No. 851 Page 20 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 deemed to be a license fee, in the amount of Five Hundred Dollars ($500.00), which shall be paid at the same time and in the sa me manner as the license fees prescribed by paragraph 12 of subsection A of this section; provided, this fee shall not be assessed against service organizations or fraternal beneficiary societies which are exempt under Section 501(c )(19), (8) or (10) of th e Internal Revenue Code. 2. There shall be added to the fee for a Mixed Beverage/Caterer Combination License an administrative fee, which shall not be deemed to be a license fee, in the amount o f Two Hundred Fifty Dollars ($250.00), which shall be paid at the same time and in the same manner as the license fee prescribed by paragraph 13 of subsection A of this section. C. Notwithstanding the provisions of subsection A of this section: 1. The license fee for a mixed beverage or bot tle club license for those service organizations or fraternal beneficiary societies which are exempt under Section 501(c)(19), (8) or (10) of the Internal Revenue Code shall be Five Hundred Dollars ($500.00) per year; and 2. The renewal fee for an airline /railroad/commercial pas senger vessel beverage license held by a railroad described in 49 U.S.C., Section 24301, shall be One Hundred Dollars ($100.00). Req. No. 851 Page 21 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 D. An applicant may apply for and receive both an on -premises beer and wine license and a caterer lice nse. E. All licenses, except as otherwise provided, shall be valid for one (1) year from date of issuance unless revoked or surrendered. Provided, all employee licenses shall be valid for two (2) years. F. The holder of a license, issued by the ABLE Com mission, for a bottle club located in a county of this state where the sale of alcoholic beverages by the individual drink for on -premises consumption has been authorized, may exchange the bottle club license for a mixed beverage license or an on-premises beer and wine license and operate the licensed premises as a mixed beverage establishment or an on -premises beer and wine establishment subject to the provisions of the Oklahoma Alcoholic Beverage Control Act. There shall be no additional fee for such exc hange and the mixed beverage license or on-premises beer and wine license issued shall expire one (1) year from the date of issuance of the original bottle club license. G. In addition to the applicable licensing fee, the following surcharge shall be asse ssed annually on the fol lowing licenses: 1. Nonresident Seller or Manufacturer License ...... $2,500.00 2. Wine and Spirits Wholesaler License ............. $2,500.00 3. Beer Distributor ................................ $1,000.00 Req. No. 851 Page 22 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 4. Retail Spirits License for cities an d towns over 5,000 population............................. $250.00 5. Retail Spirits Lice nse for cities and towns from 2,501 to 5,000 population .................... $200.00 6. Retail Spirits License for cities and towns from 200 to 2,500 population ...................... $150.00 7. Retail Wine License ............................... $250.00 8. Retail Beer License............................... $250.00 9. Mixed Beverage License............................. $25.00 10. Mixed Beverage/Caterer Combination License ........ $25.00 11. Caterer License ................................ ... $25.00 12. On-Premises Beer and Wine License ................. $25.00 13. Annual Public Event License ....................... $25.00 14. Small Farm Winery License ......................... $25.00 15. Small Brewer License.............................. $35.00 16. Complimentary Bevera ge License.................... $25.00 The surcharge shall be paid concurrent with the licensee 's annual licensing fee and, in addition to Five Dollars ($5.00) of the employee license fee, shall be deposited in the A lcoholic Beverage Governance Revolving Fund established pursu ant to Section 5-128 of this title. H. Any license issued by the ABLE Commission under this title may be relied upon by other licensees as a valid license, and no other licensee shall have any o bligation to independently determine Req. No. 851 Page 23 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 the validity of such lic ense or be held liable solely as a consequence of another licensee 's failure to maintain a valid license. SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Stat utes as Section 2-131.1 of Title 37A, unless there is created a duplication in numb ering, reads as follows: A. Small Farm Producer License shall authorize the holder thereof: 1. To contract with a small farm winery license holder to manufacture wine exclusively from produce grown by the licensee on the premises described in the application and in the issued license. All wine sold or served by the license holder shall be produced, in whole or in part, using sound ripe grapes, fruits, berries or honey grown or produced exclusively by the license holder and shall not exceed one thousand (1,000) gallons; 2. To conduct wine tastings of wine m anufactured from produce grown by the licensee on the licens ed premise and registered farmers markets; 3. To sell wine manufactured from produce grown by the licensee in the original unopened container or by the glass for either on - premises or off-premises consumption to consumers on the premises of the small farm producer license holder; and 4. To sell and serve Oklahom a-manufactured wine, mulled wine or spiced wine, mixed with nonalcoholic beverages or food items such as Req. No. 851 Page 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 water, sugar, fruits and vegetables, at any temperature for either on-premises or off-premises consumption and not to exceed One Thousand (1000) gallons. B. The small farm producer licensee shall maint ain records of all sales made under the license including sales of agriculture products to a small farm winery and sales to consumers and maintain records of all purchases of wine manufactured by such smal l farm winery, for at least three (3) years after the sale or purchase. C. The manufacturer for the sale of wine to holders of producer licenses shall be included in the small farm winer y licensee's annual production. D. The label for any such wine manuf actured by the small farm winery may be owned by either the small farm winery or the producer licensee for whom the wine was manufactured. SECTION 4. This act shall become effect ive November 1, 2021. 58-1-851 NP 1/12/2021 3:29:13 PM