OK
Oklahoma House Bill HB1707

Oklahoma 2023 Regular Session

Oklahoma House Bill HB1707 Compare Versions

Only one version of the bill is available at this time.
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2828 STATE OF OKLAHOMA
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3030 1st Session of the 59th Legisl ature (2023)
3131
3232 HOUSE BILL 1707 By: McEntire
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3838 AS INTRODUCED
3939
4040 An Act relating to alcoholic beverages; creating a
4141 delivery service license for delivery of alcoholic
4242 beverages; providing requireme nts to receive a
4343 delivery service license; providing actions a
4444 delivery service licensee may or may not undertake;
4545 providing delivery service license renewal amount;
4646 allowing a delivery service licensee to charge
4747 consumers a delivery fee; prohibiting deliv ery
4848 service licensee from charging, adding on , or
4949 collecting any portion of the amount of the retail
5050 sales price for the alcoholic beverages; prohibiting
5151 a retail spirits licensee from using delivery service
5252 licensees for the purpose of completing alcoholi c
5353 beverage product deliveries to consumers ; exempting a
5454 technology services company from needing a license;
5555 granting the Alcoholic Beverage Law Enforcement
5656 Commission the ability to enforce this act;
5757 prohibiting direct shipment of alcohol, liquor, wine,
5858 or beer from any manufacturer ; providing nothing
5959 shall be construed to authorize the direct shipment
6060 of alcohol, liquor, wine, or beer from any
6161 manufacturer; providing no person shall use a license
6262 or exercise any privileges granted by the license
6363 except as provided by the Oklahoma Alcoholic Beverage
6464 Control Act; providing that no package containing
6565 alcoholic beverages may be delivered to or left
6666 unattended at a residence or business address ;
6767 providing that the ABLE Commission is authorized to
6868 promulgate rules, regulations, forms, and procedures;
6969 providing that deliveries authorized by a licensee to
7070 be made to a consumer shall be deemed a direct hand -
7171 to-hand sale as though the consumer was physically
7272 present on the licensed premises and authorized by
7373 law; amending 37A O.S. 2021, Sections 2-101 and 2-
7474 161, which relate to annual fees and curbside pickup
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101101 and delivery; providing delivery service license
102102 annual fee; providing that a delivery service
103103 licensee may transport and del iver alcoholic beverage
104104 products; providing that a retail beer or retail wine
105105 licensee may sell curbside and deliver; providing
106106 that employees or independent contractors of retail
107107 beer or retail wine licensees or delivery service
108108 licensees shall be licensed to make alcoholic
109109 beverage product deliveries; providing that a
110110 delivery service licensee shall be held responsible
111111 for violations of alcoholic beverage laws or
112112 administrative rules of the ABLE Commission;
113113 providing for codification; providing an effective
114114 date; and declaring an emergency .
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119119 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
120120 SECTION 1. NEW LAW A new section of law to be codified
121121 in the Oklahoma Statutes as Section 2-162 of Title 37A, unless there
122122 is created a duplication in numbering, reads as follows:
123123 A. Any individual, limited liability company, corpor ation, or
124124 partnership that is registered to do business in this state,
125125 regardless of the residency of the ownership of the entity, may
126126 apply for and be issued a delivery service license that authorizes
127127 the licensee to deliver alcoholic beverages from a store holding a
128128 retail beer or retail wine license, licensed by the Alcoholic
129129 Beverage Law Enforcement (ABLE) Commission to sell alcoholic
130130 beverage products, to any person in this state who is a t least
131131 twenty-one (21) years of age for the individual 's personal use and
132132 not for resale.
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159159 B. To receive a delivery service license, an applicant shall do
160160 all of the following:
161161 1. Apply for an application with the Alcoholic Beverage Law
162162 Enforcement (ABLE) Commission;
163163 2. Provide to the ABLE Commission a sample contract that the
164164 applicant intends to enter into with a retail beer or retail wine
165165 licensee for the delivery of alcoholic beverage products, unless the
166166 applicant is the holder of a retail beer or r etail wine license or
167167 operates under the same parent company as the retail beer or retail
168168 wine license holder;
169169 3. Submit to the ABLE Commission an outline of internal or
170170 external training for delivery service personnel that addresses
171171 topics such as identifying underage persons, intoxicated persons,
172172 and fake or altered identification;
173173 4. Provide an attestation that the applicant is at least
174174 twenty-one (21) years of age and has not been convicted of a felony
175175 in any state or federal court ;
176176 5. Provide proof of a general liability insuran ce policy in an
177177 amount not less than One Million Dollars ($1,000,000.00) per
178178 occurrence; and
179179 6. Be properly registered to conduct business in Oklahoma.
180180 C. A delivery service licensee:
181181 1. May contract with any retail beer or retail wine licensee ,
182182 licensed to sell alcoholic beverage products for off-premises
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209209 consumption, for the purpose of delivering alcoholic beverage
210210 products;
211211 2. May use its own employees or independent contractors who are
212212 at least twenty-one (21) years of age to deliver such alcoholic
213213 beverage products, provided such delivery service personnel shall
214214 not have been convicted of any criminal offense relating to
215215 alcoholic beverages. The delivery service licensee shall complete a
216216 criminal history records check on each delivery driver who de livers
217217 alcoholic beverages for a licensee;
218218 3. May facilitate orders by telephone, Internet, or by other
219219 electronic means for the sale and delivery of alcoholic beverage s.
220220 If payment is not received at the time of order , the delivery
221221 service licensee may act as an agent of the retail licensee in the
222222 collection of payments from the sale of alcoholic beverages, but the
223223 full amount of each order must be handled in a manner that gives the
224224 retail licensee control over the ult imate receipt of the payment
225225 from the consumer with the retail licensee operating as the merchant
226226 of record. The retail beer or retail wine licensee shall remain
227227 responsible for the proper remittance of all applicable taxes on the
228228 sale of the product;
229229 4. Shall deliver only sealed container s of alcoholic beverage
230230 products;
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257257 5. Shall obtain from the consumer a confirmation that he or she
258258 is at least twenty-one (21) years of age at the time the order is
259259 placed;
260260 6. Shall require the recipient, at the time of delivery, to
261261 provide valid photo id entification verifying he or she is at least
262262 twenty-one (21) years of age and sign for the delivery ;
263263 7. Shall possess identification scanning software technology or
264264 a state-of-the-art alternative at the point of deliver y to
265265 authenticate that the recipient is at least twenty-one (21) years of
266266 age, and collect the recipient's name and date of birth;
267267 8. Shall return all alcoholic beverages to the retail beer or
268268 retail wine licensee if the recipient is under twenty-one (21) years
269269 of age, appears intoxicated, fails to provide proof of
270270 identification, fails or refuses to sign for d elivery, fails to
271271 complete the identity verification process, declines to accept the
272272 delivery of alcoholic beverages or beer, or if any circumstanc es in
273273 the delivery environment indicate illegal conduct, overconsumption,
274274 or an otherwise unsafe e nvironment for the consumption of alcoh ol.
275275 Such return shall occur on the same business day ;
276276 9. May not deliver any alcoholic beverage to any person located
277277 within a dry jurisdiction in O klahoma;
278278 10. Shall pick up alcoholic beverages for delivery only during
279279 lawful sales hours in that jurisd iction for the retail beer or
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306306 retail wine licensee holder, provided that orders may be delivered
307307 and completed on the s ame day within a reasonable tim e thereafter;
308308 11. Shall permit the ABLE Commission to perform an audit of the
309309 licensee's records upon request and with sufficient notificat ion;
310310 12. Shall be deemed to have consented to the jurisdiction of
311311 the ABLE Commission and the Oklahoma courts conce rning enforcement
312312 of this section and any related laws or rules ; and
313313 13. Shall be responsible for deliv ery of alcoholic beverage
314314 products as provided in this act and by rule.
315315 D. A delivery service licensee may renew its license with the
316316 ABLE Commission by maintaining all qualifications, paying annually a
317317 renewal fee of Five Hundred Dollars ($500.00), and providing the
318318 Commission with a true copy of its current license. The annual fee
319319 for delivery service licensees shall be collected by the ABLE
320320 Commission for deposit and credit to the General Revenue Fund of
321321 this state.
322322 E. A delivery service licensee shall be authorized to charge
323323 the consumer a delivery fee but shall not charge, add on , or collect
324324 any portion of the amount of the retail sales price for t he
325325 alcoholic beverages.
326326 F. A retail spirits licensee shall be prohibited from using
327327 delivery service licensees for the purpose of completing alco holic
328328 beverage product deliveries to consumers.
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355355 G. Nothing in this act shall be construed to require a
356356 technology services company to obtain a delivery service license if
357357 the company does not employ or contract with delivery agents, but
358358 merely provides software or a digital network application that
359359 connects consumers and retail beer or retail wine licensee for the
360360 delivery of alcoholic beverages from the retail beer or retail wine
361361 licensee. However, the act of connecting consumers to retail beer
362362 or retail wine licensee s shall serve to grant jurisdiction to t he
363363 State of Oklahoma.
364364 H. The ABLE Commission may enforce the requirements of this
365365 section by the same administrative procedures that apply to all
366366 other alcoholic beverage licensees.
367367 I. The ABLE Commission may enforce the requirements of this
368368 section against any e mployee or independent contractor of a retail
369369 beer or retail wine licensee or delivery service licensee,
370370 irrespective of the status of any delivery service personnel as an
371371 independent contracto r or employee. Delivery to a minor shall be
372372 treated as furnishing to a minor a nd shall result in any applicab le
373373 disciplinary action, provided that the retail beer or retail wine
374374 licensee shall not be held liable for viol ations that occur after
375375 transferring possession of the alcohol ic beverage product to the
376376 delivery service licensee.
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403403 J. Nothing in this act shall b e construed to authorize the
404404 direct shipment of alcohol, liquor, wine, or beer from any
405405 manufacturer.
406406 K. No person shall use a license or exercise any privileges
407407 granted by the license except as provided by the Oklahoma Alc oholic
408408 Beverage Control Act.
409409 L. No package containing alcoholic beverages may be delivered
410410 to or left unattended at a residence or business address except for
411411 the delivery of such package in person to the purchaser confirmed to
412412 be twenty-one (21) years of age or older.
413413 M. The ABLE Commission is authorized to promulgate rules,
414414 regulations, forms, and procedures necessary to implement and
415415 enforce the provisions o f this section.
416416 N. For purposes of this section, each delivery authorized by a
417417 licensee to be made to a consumer shall be deeme d a direct hand-to-
418418 hand sale as though the consumer was physically present on the
419419 licensed premises and authorized by law by suc h licensee.
420420 SECTION 2. AMENDATORY 37A O.S. 2021, Section 2 -101, is
421421 amended to read as follows:
422422 Section 2-101. A. Except as otherwise provided in this
423423 section, the licenses issued by the ABLE Commission, and the annual
424424 fees therefor, shall be as follows:
425425 1. Brewer License................................ .. $1,250.00
426426 2. Small Brewer License .............................. $125.00
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453453 3. Distiller License............................... $3,125.00
454454 4. Winemaker License................................ . $625.00
455455 5. Small Farm Winery License .......................... $75.00
456456 6. Rectifier License ............................... $3,125.00
457457 7. Wine and Spirits Wholesaler License ............. $3,000.00
458458 8. Beer Distributor License .......................... $750.00
459459 9. The following retail spiri ts license fees
460460 shall be determined by the latest Federal
461461 Decennial Census:
462462 a. Retail Spirits License for cities and
463463 towns from 200 to 2,500 population .......... $305.00
464464 b. Retail Spirits License for cities and
465465 towns from 2,501 to 5,000 population ........ $605.00
466466 c. Retail Spirits License for cities and
467467 towns over 5,000 population................. $905.00
468468 10. Retail Wine License ............................ $1,000.00
469469 11. Retail Beer License .............................. $500.00
470470 12. Mixed Beverage License ......................... $1,005.00
471471 (initial license)
472472 $905.00
473473 (renewal)
474474 13. Mixed Beverage/Caterer Combination Lice nse..... $1,250.00
475475 14. On-Premises Beer and Wine Lice nse................ $500.00
476476 (initial license)
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503503 $450.00
504504 (renewal)
505505 15. Bottle Club License ............................ $1,000.00
506506 (initial license)
507507 $900.00
508508 (renewal)
509509 16. Caterer License ................................ $1,005.00
510510 (initial license)
511511 $905.00
512512 (renewal)
513513 17. Annual Special Event License...................... $55.00
514514 18. Quarterly Speci al Event License................... $55.00
515515 19. Hotel Beverage License ......................... $1,005.00
516516 (initial license)
517517 $905.00
518518 (renewal)
519519 20. Airline/Railroad/Commercial Passenger Vessel Beverage
520520 License................................ ........ $1,005.00
521521 (initial license)
522522 $905.00
523523 (renewal)
524524 21. Agent License................................ ..... $55.00
525525 22. Employee License................................ .. $30.00
526526 23. Industrial License ................................ $23.00
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553553 24. Carrier License ................................ ... $23.00
554554 25. Private Carrier License ........................... $23.00
555555 26. Bonded Warehouse License ......................... $190.00
556556 27. Storage License ................................ ... $23.00
557557 28. Nonresident Seller Licens e ...................... $750.00
558558 29. Manufacturer License:
559559 a. 50 cases or less sold in Oklahoma in
560560 last calendar year........................... $50.00
561561 b. 51 to 500 cases sold in Oklahoma in
562562 last calendar year........................... $75.00
563563 c. 501 cases or more sold in Oklahoma in
564564 last calendar year.......................... $150.00
565565 30. Manufacturer's Agent License...................... $55.00
566566 31. Sacramental Wine Suppl ier License................ $100.00
567567 32. Charitable Auction License ......................... $1.00
568568 33. Charitable Alcoholic Beverage License ............. $55.00
569569 34. Winemaker Self-Distribution License .............. $750.00
570570 35. Annual Public Event License .................... $1,005.00
571571 36. One-Time Public Event License.................... $255.00
572572 37. Small Brewer Self-Distribution License ........... $750.00
573573 38. Brewpub License ................................ $1,005.00
574574 39. Brewpub Self-Distribution License ................ $750.00
575575 40. Complimentary Beverage License .................... $75.00
576576 41. Satellite Tasting Room License ................... $100.00
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603603 42. Delivery Servic e License......................... $500.00
604604 B. 1. There shall be added to the initial or renewal fees for
605605 a Mixed Beverage License an administrative fee, which shall not be
606606 deemed to be a license fee, in the amount of Five Hundred Dollars
607607 ($500.00), which shall be paid at the sam e time and in the same
608608 manner as the license fees prescribed by paragraph 12 of subsection
609609 A of this section; provided, this fee shall not be assessed against
610610 service organizations or fraternal beneficiary societies which are
611611 exempt under Section 501(c)(19 ), (8) or (10) of the Internal Revenue
612612 Code.
613613 2. There shall be added to the fee for a Mixed Beverage/Caterer
614614 Combination License an administrative fee, which shall not be deemed
615615 to be a license fee, in the amount of Two Hundred Fifty Dollars
616616 ($250.00), which shall be paid at the same time and in the same
617617 manner as the license fee prescribed by paragraph 13 of subsection A
618618 of this section.
619619 C. Notwithstanding the provisions of subsection A of this
620620 section:
621621 1. The license fee for a mixed beverage or bottle club license
622622 for those service organizations or fraternal beneficiary societies
623623 which are exempt under Section 501(c)(19), (8) or (10) of the
624624 Internal Revenue Code shall be Five Hundred Dollars ($500.00) per
625625 year; and
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652652 2. The renewal fee for an airline/rai lroad/commercial pass enger
653653 vessel beverage license held by a railroad described in 49 U.S.C.,
654654 Section 24301, shall be One Hundred Dollars ($100.00).
655655 D. An applicant may apply for and receive both an on -premises
656656 beer and wine license and a caterer license.
657657 E. All licenses, ex cept as otherwise provided, shall be valid
658658 for one (1) year from date of issuance unless revoked or
659659 surrendered. Provided, all employee licenses shall be valid for two
660660 (2) years.
661661 F. The holder of a license, issued by the ABLE Commiss ion, for
662662 a bottle club located in a county of this state where the sale of
663663 alcoholic beverages by the individual drink for on -premises
664664 consumption has been authorized, may exchange the bottle club
665665 license for a mixed beverage license or an on -premises beer and wine
666666 license and operate the licensed premises as a mixed beverage
667667 establishment or an on -premises beer and wine establishment subject
668668 to the provisions of the Oklahoma Alcoholic Beverage Control Act.
669669 There shall be no additional fee for such exchang e and the mixed
670670 beverage license or on-premises beer and wine license issued shall
671671 expire one (1) year from the date of issuance of the original bottle
672672 club license.
673673 G. In addition to the applicable licensing fee, the following
674674 surcharge shall be assessed annually on the foll owing licenses:
675675 1. Nonresident Seller License ...................... $2,500.00
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702702 2. Manufacturer License:
703703 a. 50 cases or less sold in Oklahoma in
704704 last calendar year.......................... $100.00
705705 b. 51 to 500 cases sold in Oklahoma in
706706 last calendar year.......................... $225.00
707707 c. 501 cases or more sold in Oklahoma in
708708 last calendar year.......................... $450.00
709709 3. Wine and Spirits Wholesaler License ............. $2,500.00
710710 4. Beer Distributor ................................ $1,000.00
711711 5. Retail Spirits License for cities and towns
712712 over 5,000 population .......................... $250.00
713713 6. Retail Spirits License for cities and towns
714714 from 2,501 to 5,000 p opulation................. $200.00
715715 7. Retail Spirits License for cities and towns
716716 from 200 to 2,500 population ................... $150.00
717717 8. Retail Wine License ............................... $250.00
718718 9. Retail Beer License ............................... $250.00
719719 10. Mixed Beverage License ............................ $25.00
720720 11. Mixed Beverage/Caterer Combi nation License........ $25.00
721721 12. Caterer License................................ ... $25.00
722722 13. On-Premises Beer and Wine License ................. $25.00
723723 14. Annual Public Event License ....................... $25.00
724724 15. Small Farm Winery License ......................... $25.00
725725 16. Small Brewer License .............................. $35.00
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752752 17. Complimentary Beverage License .................... $25.00
753753 The surcharge shall be paid concurrent with the licensee's
754754 annual licensing fee and, in addition to Five Dollars ($5.00) of the
755755 employee license fee, shall be deposited in the Alcoholic Beverage
756756 Governance Revolving Fund established pursuant to Section 5 -128 of
757757 this title.
758758 H. Any license issued by the ABLE Commission under this title
759759 may be relied upon by other licensees as a valid license, and no
760760 other licensee shall have any obligation to independently determine
761761 the validity of such license or be held liable s olely as a
762762 consequence of another licensee's failure to maintain a valid
763763 license.
764764 SECTION 3. AMENDATORY 37 A O.S. 2021, Section 2-161, is
765765 amended to read as follows:
766766 Section 2-161. A. Retail spirit licensees may sell curbside
767767 and deliver alcoholic beverages including beer, wine, a nd spirits in
768768 sealed original containers to consumers aged twenty -one (21) years
769769 and older as follows:
770770 1. Only employees of the retail spirit licensee shall be
771771 permitted to make alcoholic beverage produc t deliveries to
772772 consumers;
773773 2. Payment for alcoholic beverage product delivery by the
774774 retail spirit licensee may be made by cash, check, transportable
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801801 credit/debit card processors or advance on-line online payment
802802 methods; and
803803 3. The retail spirit license e shall be responsible for hi s or
804804 her delivery employees as provided in Section 2-133 of Title 37A of
805805 the Oklahoma Statutes this title.
806806 B. Small brewers and small farm wineries licensed by the
807807 Oklahoma ABLE Commission may sell curbside only alcoholic beve rages
808808 produced by such licens ee in sealed original c ontainers to consumers
809809 aged twenty-one (21) years and older as follows:
810810 1. Only employees o f the licensed small brew er or small farm
811811 winery shall be permitted to make alcoholic beverage product
812812 deliveries to consumers;
813813 2. Payment for alcoholic beverage p roduct delivery by licensed
814814 small brewers or small farm wineries may be made by cash, check,
815815 transportable credit/deb it card processors, or a dvance on-line
816816 online payment methods; and
817817 3. Small brewers an d small farm wineries shall b e responsible
818818 for their delivery employees as provided in Section 2 -133 of Title
819819 37A of the Oklahoma Statutes this title.
820820 C. Restaurants, bars and clubs holding mixed beverage, beer and
821821 wine, or caterer/mixed beverage licenses issued by the Oklahoma ABLE
822822 Commission may sell cur bside and deliver only closed packages of
823823 beer and wine to consumers aged twenty -one (21) years and older as
824824 follows:
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851851 1. Only employees of such restaurant, ba r or club licensee
852852 shall be permitted to make alcoholic beverage package d eliveries to
853853 consumers;
854854 2. Payment for alcoholic beverage package delivery by licensed
855855 restaurants, bars and clubs may be made by cash, check,
856856 transportable credit/debit card proces sors, or advance on-line
857857 online payment methods; and
858858 3. Restaurants, bars and clubs licensed by th e Oklahoma ABLE
859859 Commission shall be responsible for their delivery employees as
860860 provided in Section 2 -133 of Title 37A of the Oklahoma Statutes this
861861 title.
862862 D. Grocery and convenience stores holding a r etail beer and/or
863863 retail wine license issued by the Ok lahoma ABLE Commission may sell
864864 curbside and deliver original sealed containers of beer and/or wine
865865 only according to the license held to consumers aged twenty -one (21)
866866 years and older as follows:
867867 1. Only employees of such license d grocery or convenience store
868868 shall be permitted to make alcoholic beverage product deliveries to
869869 consumers;
870870 2. Payment for alcoholic beverage product d elivery by a
871871 licensed grocery or convenience s tore may be made by cash, c heck,
872872 transportable credit/de bit card processors or ad vance on-line online
873873 payment methods; and
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900900 3. Grocery and convenience store licensees shall be responsible
901901 for their delivery employees as provided in Section 2 -133 of Title
902902 37A of the Oklahoma Statutes this title.
903903 E. Licensees authorized by this section to make alcoholic
904904 beverage product deliveries to consumers are prohibited from
905905 utilizing third-party vendors or delivery services for pu rposes of
906906 completing such product deliveries to consumers .
907907 F. Licensees authorized by this sec tion to make alcoholic
908908 beverage product deliveries to consumers shall comply with the laws,
909909 rules, procedures and executive orders incum bent on such licensee.
910910 G. The Oklahoma ABLE Commission is authorized to promulgat e
911911 rules, regulations, forms and proced ures necessary to impleme nt and
912912 enforce the provisions of this section.
913913 H. For purposes of this section each delivery authorized by a
914914 licensee to be made by his or her employee shall be deemed a direct
915915 hand-to-hand sale as though the consumer was physical ly present on
916916 the licensed premises and authorized by law by such licensee.
917917 I. Notwithstanding any law or rule to the contrary, a deliv ery
918918 service licensee, or an employee or independent contractor of a
919919 delivery service licensee, in accordance with Sectio n 1 of this act,
920920 may transport and deliver alcoholic beverage products, including
921921 curbside, from a retail beer or retail wine licensee s to consumers
922922 aged twenty-one (21) years and older for the consumer 's personal use
923923 and not for resale.
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950950 J. Employees or independent contractors of licensed grocery
951951 stores or convenience stores or delivery service licensees shall be
952952 permitted to make al coholic beverage product deliveries to consumers
953953 aged twenty-one (21) years and older for the co nsumer's personal use
954954 and not for resale.
955955 K. A delivery service licensee who is authorized by law and by
956956 contractual agreement with a grocery or convenience s tore licensee
957957 to deliver alcoholic beverage products to a consumer shall be held
958958 responsible for violations of alcoholic bever age laws or
959959 administrative rules of the ABLE Commission affecting his or her
960960 license privilege to deliver alcoholic beverage produ cts to
961961 consumers.
962962 SECTION 4. This act shall become effective July 1, 202 3.
963963 SECTION 5. It being immediately necessary for the preservation
964964 of the public peace, health or safe ty, an emergency is hereby
965965 declared to exist, by reason whereof this act shall take effect and
966966 be in full force from and after its passage and app roval.
967967
968968 59-1-5858 JL 01/05/23