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SENATE FLOOR VERSION
February 4, 2021
SENATE BILL NO. 85 By: Coleman of the Senate
and
Strom of the House
An Act relating to alcoholic beverages; amending
Section 14, Chapter 366, O.S.L. 2016 , as last amended
by Section 3, Chapter 32 2, O.S.L. 2019 (37A O.S.
Supp. 2020, Section 2-102), which relates to brewer
and small brewer licenses; authorizing holders of
multiple small brewer licenses to sell beer at
multiple locations; updating statutory l anguage; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 14, Chapter 366, O.S.L.
2016, as last amended by Section 3, Chapter 322, O.S.L. 2019 (37A
O.S. Supp. 2020, Section 2-102), 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 and cider on
the licensed premises; and
2. To sell beer and cider in this state to holders of beer
distributor licenses and to sell beer and cider out of this state to
qualified persons.
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B. A small brewer license shall authorize the holder thereof:
1. To manufacture, bottle, package and store beer produced by
the licensee on licensed premises;
2. To sell beer in this state to holders of beer distributor
licenses and retail licenses or to sell beer out of this state to
qualified persons;
3. To serve free samples of beer produced by the licensee to
visitors twenty-one (21) years of age or older;
4. To sell beer 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 at public events such as tra de shows or
festivals;
6. To purchase wine in retail c ontainers 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.
C. The holder of multiple small brew er licenses may sell beer
produced at any brewery for which the licensee has a license, at any
other brewery for which the licensee has a license or on premises
located contiguous thereto.
D. Nothing in this act the 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 license.
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D. E. For purposes of this section, no visitor may sample more
than a total of twelve (12) fluid ounces of beer per day. The
brewer must restrict the distribution and consumption of beer
samples to an area within the licensed premises designated by the
brewer. A current floor plan that includes the designated sampling
area must be on file with the ABLE Commission. No visitor under
twenty-one (21) years of age shall be permitted to enter t his
designated sampling area when samples are being distributed or
consumed. Samples of beer served by a brewery under this section
shall not be considered a sale of beer within the meaning of Article
XXVIII-A of the Oklahoma Constitution or Section 1 -103 of this
title; however, such samples of beer shall be considered beer
removed or withdrawn from the brewery for use or consumption within
the meaning of Section 5 -110 of this title for excise tax
determination and reporting requirements. Sales and sampli ng may
only occur between the hours of 10:00 a.m. and 2:00 a.m.
E. F. A small brewer self-distribution license shall authorize
holders of a small brewer license to distribute beer produced only
by such licensee to a holder of a retail beer license, retail
spirits license, mixed beverage license, beer and wine license,
caterer’s license, special event license, public event license,
charitable auction license or brewpub license. A small brewer shall
elect whether it will distribute through a distributor or self-
distribute in a subject territory; however, a small brewer may not
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elect to do both simultaneously in a subject territory. The
election shall be made through notice to the ABLE Commission. Any
changes to the election shall require immediate notifica tion 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.
F. G. All manufacturer’s licenses held by brewers during the
first calendar year beginning October 1, 2018, shall automatically
convert to brewer licenses and be deemed effective as of the date of
the first issuance of the manufacturer ’s license. Upon the first
renewal of said the license, the brewer will need to obtain the
appropriate brewer’s license. If a brewer elects to market wine and
spirits, the brewer will also be required to obtain a manufacturer ’s
license and comply with the ru les and regulations for both licenses.
SECTION 2. This act shall become effective November 1, 202 1.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM
February 4, 2021 - DO PASS