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STATE OF OKLAHOMA
1st Session of the 59th Legisl ature (2023)
HOUSE BILL 1707 By: McEntire
AS INTRODUCED
An Act relating to alcoholic beverages; creating a
delivery service license for delivery of alcoholic
beverages; providing requireme nts to receive a
delivery service license; providing actions a
delivery service licensee may or may not undertake;
providing delivery service license renewal amount;
allowing a delivery service licensee to charge
consumers a delivery fee; prohibiting deliv ery
service licensee from charging, adding on , or
collecting any portion of the amount of the retail
sales price for the alcoholic beverages; prohibiting
a retail spirits licensee from using delivery service
licensees for the purpose of completing alcoholi c
beverage product deliveries to consumers ; exempting a
technology services company from needing a license;
granting the Alcoholic Beverage Law Enforcement
Commission the ability to enforce this act;
prohibiting direct shipment of alcohol, liquor, wine,
or beer from any manufacturer ; providing nothing
shall be construed to authorize the direct shipment
of alcohol, liquor, wine, or beer from any
manufacturer; providing no person shall use a license
or exercise any privileges granted by the license
except as provided by the Oklahoma Alcoholic Beverage
Control Act; providing that no package containing
alcoholic beverages may be delivered to or left
unattended at a residence or business address ;
providing that the ABLE Commission is authorized to
promulgate rules, regulations, forms, and procedures;
providing that deliveries authorized by a licensee to
be made to a consumer shall be deemed a direct hand -
to-hand sale as though the consumer was physically
present on the licensed premises and authorized by
law; amending 37A O.S. 2021, Sections 2-101 and 2-
161, which relate to annual fees and curbside pickup
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and delivery; providing delivery service license
annual fee; providing that a delivery service
licensee may transport and del iver alcoholic beverage
products; providing that a retail beer or retail wine
licensee may sell curbside and deliver; providing
that employees or independent contractors of retail
beer or retail wine licensees or delivery service
licensees shall be licensed to make alcoholic
beverage product deliveries; providing that a
delivery service licensee shall be held responsible
for violations of alcoholic beverage laws or
administrative rules of the ABLE Commission;
providing for codification; providing an effective
date; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. 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. Any individual, limited liability company, corpor ation, or
partnership that is registered to do business in this state,
regardless of the residency of the ownership of the entity, may
apply for and be issued a delivery service license that authorizes
the licensee to deliver alcoholic beverages from a store holding a
retail beer or retail wine license, licensed by the Alcoholic
Beverage Law Enforcement (ABLE) Commission to sell alcoholic
beverage products, to any person in this state who is a t least
twenty-one (21) years of age for the individual 's personal use and
not for resale.
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B. To receive a delivery service license, an applicant shall do
all of the following:
1. Apply for an application with the Alcoholic Beverage Law
Enforcement (ABLE) Commission;
2. Provide to the ABLE Commission a sample contract that the
applicant intends to enter into with a retail beer or retail wine
licensee for the delivery of alcoholic beverage products, unless the
applicant is the holder of a retail beer or r etail wine license or
operates under the same parent company as the retail beer or retail
wine license holder;
3. Submit to the ABLE Commission an outline of internal or
external training for delivery service personnel that addresses
topics such as identifying underage persons, intoxicated persons,
and fake or altered identification;
4. Provide an attestation that the applicant is at least
twenty-one (21) years of age and has not been convicted of a felony
in any state or federal court ;
5. Provide proof of a general liability insuran ce policy in an
amount not less than One Million Dollars ($1,000,000.00) per
occurrence; and
6. Be properly registered to conduct business in Oklahoma.
C. A delivery service licensee:
1. May contract with any retail beer or retail wine licensee ,
licensed to sell alcoholic beverage products for off-premises
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consumption, for the purpose of delivering alcoholic beverage
products;
2. May use its own employees or independent contractors who are
at least twenty-one (21) years of age to deliver such alcoholic
beverage products, provided such delivery service personnel shall
not have been convicted of any criminal offense relating to
alcoholic beverages. The delivery service licensee shall complete a
criminal history records check on each delivery driver who de livers
alcoholic beverages for a licensee;
3. May facilitate orders by telephone, Internet, or by other
electronic means for the sale and delivery of alcoholic beverage s.
If payment is not received at the time of order , the delivery
service licensee may act as an agent of the retail licensee in the
collection of payments from the sale of alcoholic beverages, but the
full amount of each order must be handled in a manner that gives the
retail licensee control over the ult imate receipt of the payment
from the consumer with the retail licensee operating as the merchant
of record. The retail beer or retail wine licensee shall remain
responsible for the proper remittance of all applicable taxes on the
sale of the product;
4. Shall deliver only sealed container s of alcoholic beverage
products;
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5. Shall obtain from the consumer a confirmation that he or she
is at least twenty-one (21) years of age at the time the order is
placed;
6. Shall require the recipient, at the time of delivery, to
provide valid photo id entification verifying he or she is at least
twenty-one (21) years of age and sign for the delivery ;
7. Shall possess identification scanning software technology or
a state-of-the-art alternative at the point of deliver y to
authenticate that the recipient is at least twenty-one (21) years of
age, and collect the recipient's name and date of birth;
8. Shall return all alcoholic beverages to the retail beer or
retail wine licensee if the recipient is under twenty-one (21) years
of age, appears intoxicated, fails to provide proof of
identification, fails or refuses to sign for d elivery, fails to
complete the identity verification process, declines to accept the
delivery of alcoholic beverages or beer, or if any circumstanc es in
the delivery environment indicate illegal conduct, overconsumption,
or an otherwise unsafe e nvironment for the consumption of alcoh ol.
Such return shall occur on the same business day ;
9. May not deliver any alcoholic beverage to any person located
within a dry jurisdiction in O klahoma;
10. Shall pick up alcoholic beverages for delivery only during
lawful sales hours in that jurisd iction for the retail beer or
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retail wine licensee holder, provided that orders may be delivered
and completed on the s ame day within a reasonable tim e thereafter;
11. Shall permit the ABLE Commission to perform an audit of the
licensee's records upon request and with sufficient notificat ion;
12. Shall be deemed to have consented to the jurisdiction of
the ABLE Commission and the Oklahoma courts conce rning enforcement
of this section and any related laws or rules ; and
13. Shall be responsible for deliv ery of alcoholic beverage
products as provided in this act and by rule.
D. A delivery service licensee may renew its license with the
ABLE Commission by maintaining all qualifications, paying annually a
renewal fee of Five Hundred Dollars ($500.00), and providing the
Commission with a true copy of its current license. The annual fee
for delivery service licensees shall be collected by the ABLE
Commission for deposit and credit to the General Revenue Fund of
this state.
E. A delivery service licensee shall be authorized to charge
the consumer a delivery fee but shall not charge, add on , or collect
any portion of the amount of the retail sales price for t he
alcoholic beverages.
F. A retail spirits licensee shall be prohibited from using
delivery service licensees for the purpose of completing alco holic
beverage product deliveries to consumers.
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G. Nothing in this act shall be construed to require a
technology services company to obtain a delivery service license if
the company does not employ or contract with delivery agents, but
merely provides software or a digital network application that
connects consumers and retail beer or retail wine licensee for the
delivery of alcoholic beverages from the retail beer or retail wine
licensee. However, the act of connecting consumers to retail beer
or retail wine licensee s shall serve to grant jurisdiction to t he
State of Oklahoma.
H. The ABLE Commission may enforce the requirements of this
section by the same administrative procedures that apply to all
other alcoholic beverage licensees.
I. The ABLE Commission may enforce the requirements of this
section against any e mployee or independent contractor of a retail
beer or retail wine licensee or delivery service licensee,
irrespective of the status of any delivery service personnel as an
independent contracto r or employee. Delivery to a minor shall be
treated as furnishing to a minor a nd shall result in any applicab le
disciplinary action, provided that the retail beer or retail wine
licensee shall not be held liable for viol ations that occur after
transferring possession of the alcohol ic beverage product to the
delivery service licensee.
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J. Nothing in this act shall b e construed to authorize the
direct shipment of alcohol, liquor, wine, or beer from any
manufacturer.
K. No person shall use a license or exercise any privileges
granted by the license except as provided by the Oklahoma Alc oholic
Beverage Control Act.
L. No package containing alcoholic beverages may be delivered
to or left unattended at a residence or business address except for
the delivery of such package in person to the purchaser confirmed to
be twenty-one (21) years of age or older.
M. The ABLE Commission is authorized to promulgate rules,
regulations, forms, and procedures necessary to implement and
enforce the provisions o f this section.
N. For purposes of this section, each delivery authorized by a
licensee to be made to a consumer shall be deeme d a direct hand-to-
hand sale as though the consumer was physically present on the
licensed premises and authorized by law by suc h licensee.
SECTION 2. AMENDATORY 37A O.S. 2021, 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:
1. Brewer License................................ .. $1,250.00
2. Small Brewer License .............................. $125.00
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3. Distiller License............................... $3,125.00
4. Winemaker License................................ . $625.00
5. Small Farm Winery License .......................... $75.00
6. Rectifier License ............................... $3,125.00
7. Wine and Spirits Wholesaler License ............. $3,000.00
8. Beer Distributor License .......................... $750.00
9. 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. Retail Wine License ............................ $1,000.00
11. Retail Beer License .............................. $500.00
12. Mixed Beverage License ......................... $1,005.00
(initial license)
$905.00
(renewal)
13. Mixed Beverage/Caterer Combination Lice nse..... $1,250.00
14. On-Premises Beer and Wine Lice nse................ $500.00
(initial license)
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$450.00
(renewal)
15. Bottle Club License ............................ $1,000.00
(initial license)
$900.00
(renewal)
16. Caterer License ................................ $1,005.00
(initial license)
$905.00
(renewal)
17. Annual Special Event License...................... $55.00
18. Quarterly Speci al Event License................... $55.00
19. Hotel Beverage License ......................... $1,005.00
(initial license)
$905.00
(renewal)
20. Airline/Railroad/Commercial Passenger Vessel Beverage
License................................ ........ $1,005.00
(initial license)
$905.00
(renewal)
21. Agent License................................ ..... $55.00
22. Employee License................................ .. $30.00
23. Industrial License ................................ $23.00
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24. Carrier License ................................ ... $23.00
25. Private Carrier License ........................... $23.00
26. Bonded Warehouse License ......................... $190.00
27. Storage License ................................ ... $23.00
28. Nonresident Seller Licens e ...................... $750.00
29. Manufacturer License:
a. 50 cases or less sold in Oklahoma in
last calendar year........................... $50.00
b. 51 to 500 cases sold in Oklahoma in
last calendar year........................... $75.00
c. 501 cases or more sold in Oklahoma in
last calendar year.......................... $150.00
30. Manufacturer's Agent License...................... $55.00
31. Sacramental Wine Suppl ier License................ $100.00
32. Charitable Auction License ......................... $1.00
33. Charitable Alcoholic Beverage License ............. $55.00
34. Winemaker Self-Distribution License .............. $750.00
35. Annual Public Event License .................... $1,005.00
36. One-Time Public Event License.................... $255.00
37. Small Brewer Self-Distribution License ........... $750.00
38. Brewpub License ................................ $1,005.00
39. Brewpub Self-Distribution License ................ $750.00
40. Complimentary Beverage License .................... $75.00
41. Satellite Tasting Room License ................... $100.00
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42. Delivery Servic e License......................... $500.00
B. 1. There shall be added to the initial or renewal fees for
a Mixed Beverage License an administrative fee, which shall not be
deemed to be a license fee, in the amount of Five Hundred Dollars
($500.00), which shall be paid at the sam e time and in the same
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 the 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 of 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 bottle 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
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2. The renewal fee for an airline/rai lroad/commercial pass enger
vessel beverage license held by a railroad described in 49 U.S.C.,
Section 24301, shall be One Hundred Dollars ($100.00).
D. An applicant may apply for and receive both an on -premises
beer and wine license and a caterer license.
E. All licenses, ex cept 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 Commiss ion, 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 exchang e 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 assessed annually on the foll owing licenses:
1. Nonresident Seller License ...................... $2,500.00
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2. Manufacturer License:
a. 50 cases or less sold in Oklahoma in
last calendar year.......................... $100.00
b. 51 to 500 cases sold in Oklahoma in
last calendar year.......................... $225.00
c. 501 cases or more sold in Oklahoma in
last calendar year.......................... $450.00
3. Wine and Spirits Wholesaler License ............. $2,500.00
4. Beer Distributor ................................ $1,000.00
5. Retail Spirits License for cities and towns
over 5,000 population .......................... $250.00
6. Retail Spirits License for cities and towns
from 2,501 to 5,000 p opulation................. $200.00
7. Retail Spirits License for cities and towns
from 200 to 2,500 population ................... $150.00
8. Retail Wine License ............................... $250.00
9. Retail Beer License ............................... $250.00
10. Mixed Beverage License ............................ $25.00
11. Mixed Beverage/Caterer Combi nation License........ $25.00
12. Caterer License................................ ... $25.00
13. On-Premises Beer and Wine License ................. $25.00
14. Annual Public Event License ....................... $25.00
15. Small Farm Winery License ......................... $25.00
16. Small Brewer License .............................. $35.00
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17. Complimentary Beverage 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 Alcoholic Beverage
Governance Revolving Fund established pursuant 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 obligation to independently determine
the validity of such license or be held liable s olely as a
consequence of another licensee's failure to maintain a valid
license.
SECTION 3. AMENDATORY 37 A O.S. 2021, Section 2-161, is
amended to read as follows:
Section 2-161. A. Retail spirit licensees may sell curbside
and deliver alcoholic beverages including beer, wine, a nd spirits in
sealed original containers to consumers aged twenty -one (21) years
and older as follows:
1. Only employees of the retail spirit licensee shall be
permitted to make alcoholic beverage produc t deliveries to
consumers;
2. Payment for alcoholic beverage product delivery by the
retail spirit licensee may be made by cash, check, transportable
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credit/debit card processors or advance on-line online payment
methods; and
3. The retail spirit license e shall be responsible for hi s or
her delivery employees as provided in Section 2-133 of Title 37A of
the Oklahoma Statutes this title.
B. Small brewers and small farm wineries licensed by the
Oklahoma ABLE Commission may sell curbside only alcoholic beve rages
produced by such licens ee in sealed original c ontainers to consumers
aged twenty-one (21) years and older as follows:
1. Only employees o f the licensed small brew er or small farm
winery shall be permitted to make alcoholic beverage product
deliveries to consumers;
2. Payment for alcoholic beverage p roduct delivery by licensed
small brewers or small farm wineries may be made by cash, check,
transportable credit/deb it card processors, or a dvance on-line
online payment methods; and
3. Small brewers an d small farm wineries shall b e responsible
for their delivery employees as provided in Section 2 -133 of Title
37A of the Oklahoma Statutes this title.
C. Restaurants, bars and clubs holding mixed beverage, beer and
wine, or caterer/mixed beverage licenses issued by the Oklahoma ABLE
Commission may sell cur bside and deliver only closed packages of
beer and wine to consumers aged twenty -one (21) years and older as
follows:
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1. Only employees of such restaurant, ba r or club licensee
shall be permitted to make alcoholic beverage package d eliveries to
consumers;
2. Payment for alcoholic beverage package delivery by licensed
restaurants, bars and clubs may be made by cash, check,
transportable credit/debit card proces sors, or advance on-line
online payment methods; and
3. Restaurants, bars and clubs licensed by th e Oklahoma ABLE
Commission shall be responsible for their delivery employees as
provided in Section 2 -133 of Title 37A of the Oklahoma Statutes this
title.
D. Grocery and convenience stores holding a r etail beer and/or
retail wine license issued by the Ok lahoma ABLE Commission may sell
curbside and deliver original sealed containers of beer and/or wine
only according to the license held to consumers aged twenty -one (21)
years and older as follows:
1. Only employees of such license d grocery or convenience store
shall be permitted to make alcoholic beverage product deliveries to
consumers;
2. Payment for alcoholic beverage product d elivery by a
licensed grocery or convenience s tore may be made by cash, c heck,
transportable credit/de bit card processors or ad vance on-line online
payment methods; and
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3. Grocery and convenience store licensees shall be responsible
for their delivery employees as provided in Section 2 -133 of Title
37A of the Oklahoma Statutes this title.
E. Licensees authorized by this section to make alcoholic
beverage product deliveries to consumers are prohibited from
utilizing third-party vendors or delivery services for pu rposes of
completing such product deliveries to consumers .
F. Licensees authorized by this sec tion to make alcoholic
beverage product deliveries to consumers shall comply with the laws,
rules, procedures and executive orders incum bent on such licensee.
G. The Oklahoma ABLE Commission is authorized to promulgat e
rules, regulations, forms and proced ures necessary to impleme nt and
enforce the provisions of this section.
H. For purposes of this section each delivery authorized by a
licensee to be made by his or her employee shall be deemed a direct
hand-to-hand sale as though the consumer was physical ly present on
the licensed premises and authorized by law by such licensee.
I. Notwithstanding any law or rule to the contrary, a deliv ery
service licensee, or an employee or independent contractor of a
delivery service licensee, in accordance with Sectio n 1 of this act,
may transport and deliver alcoholic beverage products, including
curbside, from a retail beer or retail wine licensee s to consumers
aged twenty-one (21) years and older for the consumer 's personal use
and not for resale.
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J. Employees or independent contractors of licensed grocery
stores or convenience stores or delivery service licensees shall be
permitted to make al coholic beverage product deliveries to consumers
aged twenty-one (21) years and older for the co nsumer's personal use
and not for resale.
K. A delivery service licensee who is authorized by law and by
contractual agreement with a grocery or convenience s tore licensee
to deliver alcoholic beverage products to a consumer shall be held
responsible for violations of alcoholic bever age laws or
administrative rules of the ABLE Commission affecting his or her
license privilege to deliver alcoholic beverage produ cts to
consumers.
SECTION 4. This act shall become effective July 1, 202 3.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safe ty, 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 app roval.
59-1-5858 JL 01/05/23