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Oklahoma House Bill HB1715

Oklahoma 2023 Regular Session

Oklahoma House Bill HB1715 Compare Versions

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1-An Act
2-ENROLLED HOUSE
3-BILL NO. 1715 By: Marti of the House
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28+STATE OF OKLAHOMA
29+
30+1st Session of the 59th Legislature (2023)
31+
32+CONFERENCE COMMITTEE
33+SUBSTITUTE
34+FOR ENGROSSED
35+HOUSE BILL NO. 1715 By: Marti of the House
436
537 and
638
7- Coleman and Bergstrom of
8-the Senate
9-
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11-
12-
39+ Coleman of the Senate
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45+
46+CONFERENCE COMMITTEE SUBSTITUTE
1347
1448 An Act relating to alco holic beverages; authorizing
1549 the ABLE Commission to permit certain license holders
1650 to host off-site events following application;
1751 providing details of application ; allowing Commission
1852 to assess fee; updating statutory language and
1953 reference; amending 37A O .S. 2021, Section 1-103,
2054 which relates to definitions for the Oklahoma
2155 Alcoholic Beverage Control Act; modifying the
2256 definition of beer; de fining seltzer; updatin g
23-statutory reference; amending 37A O.S. 2021, Section
24-2-101, which relates to license fees; modifying fees
25-for certain license holders based on production;
26-amending 37A O.S. 2021, Section 2 -102, as amended by
27-Section 1, Chapter 396, O.S.L. 2021, which relate to
28-brewer licenses; requiring licensees to sell only the
29-products covered by licenses; providing for off -site
30-events; amending 37A O.S. 2021, Section 2-103, which
31-relates to a distiller license; modi fying where a
32-distiller may sell spirits produced by the license
33-holder; providing that consumers after final sale may
34-add non-alcoholic substances to the spirits;
35-providing that non-alcoholic substances are not part
36-of the distilling process; amending 37A O.S. 2021,
37-Section 2-131, which relates to small farm winery
38-licenses; allowing certain purchases by small farm
39-winery license holders; amending 37A O.S. 2021,
40-Section 3-111, which relates to termination of
41-distribution agreement; allowing certain individ uals
42-to purchase interest under certain conditions;
43-expanding and clarifying when a brewer may
44-immediately terminate a dist ributor agreement;
45-providing for compensation for when a brewer
46-terminates a distribution agreement and the brewer ENR. H. B. NO. 1715 Page 2
47-obtains a new distributor; providing that
57+statutory reference; amending 37A O.S. 2021, amending
58+37A O.S. 2021, Section 2 -101, which relates to
59+license fees; modifying fees for certain license
60+holders based on production; amending 37A O.S. 2021,
61+Section 2-102, as amended by Section 1, Chapter 396 ,
62+O.S.L. 2021, which relate to brewer licenses;
63+requiring licensees to sell only the products covered
64+by licenses; providing for off -site events; amending
65+37A O.S. 2021, Section 2-103, which relates to a
66+distiller license; modifying where a distill er may
67+sell spirits produced by the license holder;
68+providing that consumers after final sale may add
69+non-alcoholic substances to the spirits; providing
70+that non-alcoholic substances are not part of the
71+distilling process; amending 37A O.S. 2021, Section
72+2-131, which relates to small farm winery licenses;
73+allowing certain purchases by small farm winery
74+license holders; amending 37A O.S. 2021, Section 3 -
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101+111, which relates to termination of distribution
102+agreement; allowing certain individuals to purchase
103+interest under certain conditions; expanding and
104+clarifying when a brewer may immediately terminate a
105+distributor agreement; providing for compensation for
106+when a brewer terminates a distribution agreement and
107+the brewer obtains a new distributor; providing that
48108 reimbursement of arbitration costs shall be award ed
49109 to the prevailing part; providing that if a
50110 distributor improperly terminated the damages may
51111 include the fair market value of the distribution
52112 rights; requiring agreements to be null and void in
53113 violation of certain provisions; updating statutory
54114 reference; amending 37A O.S. 2021, Section 6 -102, as
55115 amended by Section 1, Chapter 300, O.S.L. 2022 (37A
56116 O.S. Supp. 2022, Section 6-102), which relates to
57117 licensee prohibited acts; allowing the delivery of up
58118 to six bottles or cans of beer at a time for on -
59-premises consumption; repealing 37A O.S. 2021,
60-Section 2-102, as amended by Section 1, Chapter 226,
61-O.S.L. 2019, which relates to brewer license;
62-providing for codification; and declaring an
63-emergency.
64-
65-
66-
67-
68-SUBJECT: Alcoholic beverages
119+premise consumption; repealing 37A O.S. 2021, Section
120+2-102, as amended by Section 1, Chapter 226, O.S.L.
121+2019, which relates to brewer license; providing for
122+codification; and declaring an emergency.
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69126
70127 BE IT ENACTED BY THE PEOPLE O F THE STATE OF OKLAHOMA:
71-
72128 SECTION 1. NEW LAW A new section of law to be codified
73129 in the Oklahoma Statutes as Section 2-162 of Title 37A, unless there
74130 is created a duplication in numbering, reads as follows:
75-
76131 A. A brewer, small brewer, or small farm winery licensee shall
77132 be authorized to host an off -site event following the submission and
78133 approval of an application to the ABLE Commission. The licensee
79134 shall only be authorized to sell for consumption at the o ff-site
80135 event alcoholic beverages authorized for sale under the licensee’s
81136 respective license. The licensee shall be limited to hosting four
82137 (4) off-site events per year.
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84164 B. The application shall include, but not be limited to, the
85165 location of the off-site event with a designated area within the
86166 location designed to provide an exclusive space whi ch may be limited
87167 to the public and a designated poin t of access for a patron or
88168 patrons specifically granted access to ensure that persons present
89169 in the designated area are above twenty -one (21) years of age. The
90170 Commission may prescribe a filing fee fo r each off-site event
91-application not to exceed Twent y-five Dollars ($25.00). ENR. H. B. NO. 1715 Page 3
92-
171+application not to exceed Twent y-five Dollars ($25.00).
93172 C. The ABLE Commission shall promulgate rules necessary for the
94173 implementation of this section.
95-
96174 SECTION 2. AMENDATORY 37A O.S. 2021, Section 1-103, is
97175 amended to read as follows:
98-
99176 Section 1-103. As used in the Oklahoma Alcoholic Beverage
100177 Control Act:
101-
102178 1. “ABLE Commission” or “Commission” means the Alcoholic
103179 Beverage Laws Enforcement Commission;
104-
105180 2. “Alcohol” means and includes hydrated oxide of ethyl, ethyl
106181 alcohol, ethanol or spirits of wine, f rom whatever source or by
107182 whatever process produc ed. It does not include wood alcohol or
108183 alcohol which has been denatured or produced as denatured in
109184 accordance with Acts of Congress and regulations promulgated
110185 thereunder;
111-
112186 3. “Alcoholic beverage” means alcohol, spirits, beer and wine
113187 as those terms are defined herein and also includes every liquid or
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114214 solid, patented or not, containing alcohol, spirits, wine or beer
115215 and capable of being consumed as a beverage by human beings;
116-
117216 4. “Applicant” means any individual, legal or commercial
118217 business entity, or a ny individual involved in any legal or
119218 commercial business entity allowed to hold any license issued in
120219 accordance with the Oklahoma Alcoholic Beverage Control Act;
121-
122220 5. “Beer” means any beverage containing more than on e-half of
123221 one percent (0.50%) of alcohol by volume and obtained by the
124222 alcoholic fermentation of an infusion or decoction of barley, or
125223 other grain, sugar, malt or similar products. For the purposes of
126224 taxation, distribution, sales, and regulation, seltze r shall mean
127225 the same as beer as provi ded in this section. “Beer” Beer may or
128226 may not contain hops or other vegetable products. “Beer” Beer
129227 includes, among other things, beer, ale, stout, lager beer, porter,
130228 seltzer, and other malt or brewed liquors, but does not include
131229 sake, known as Japanese rice wine;
132-
133230 6. “Beer keg” means any brewer-sealed, single container that
134231 contains not less than four (4) gallons of be er;
135- ENR. H. B. NO. 1715 Page 4
136232 7. “Beer distributor” means and includes any person licensed to
137233 distribute beer for retail sale in the state, but does not include a
138234 holder of a small brewer self-distribution license or brewpub self-
139235 distribution license. The term “distributor” distributor, as used
140236 in the Oklahoma Alcoholic Beverage Control Act, shall be construed
141237 to refer to a beer distributor;
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143264 8. “Bottle club” means any establishment in a county which has
144265 not authorized the retail sale of alcoholic beverages by the
145266 individual drink, which is r equired to be licensed to keep, mix and
146267 serve alcoholic beverages belonging to club members on club
147268 premises;
148-
149269 9. “Bottle service” means the sale and provision of spirits in
150270 their original packages by a mixed beverage licensee to be consumed
151271 in that mixed beverage licensee’s club suite;
152-
153272 10. “Brand” means any word, name, group of letters, symbol or
154273 combination thereof, that is adopted and used by a li censed brewer
155274 to identify a specific beer, wine or spirit and to distinguish that
156275 product from another beer, wine or spirit;
157-
158276 11. “Brand extension” means:
159-
160277 a. after October 1, 2018, any brand o f beer or cider
161278 introduced by a manufacturer in this state which
162279 either:
163-
164280 (1) incorporates all or a substantial part of the
165281 unique features of a preexisting brand of the
166282 same licensed brewer, or
167-
168283 (2) relies to a significant extent on the goodwill
169284 associated with the preexisting brand, or
170-
171285 b. any brand of beer that a brewe r, the majority of whose
172286 total volume of all brands of beer distributed in this
173287 state by such brewer on Janu ary 1, 2016, was
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174314 distributed as low-point beer, desires to sell,
175315 introduces, begins selling or theretofore has sold and
176316 desires to continue selling a strong beer in this
177317 state which either:
178- ENR. H. B. NO. 1715 Page 5
179318 (1) incorporates or incorporated all or a substantial
180319 part of the unique features of a preexisting low-
181320 point beer brand of the same licensed brewer, o r
182-
183321 (2) relies or relied to a significant extent on the
184322 goodwill associated with a preexisting low-point
185323 beer brand;
186-
187324 12. “Brewer” means and includes any person who manufactu res for
188325 human consumption by the use of raw materials or other ingredie nts
189326 any beer or cider upon which a license fee and a tax are imposed by
190327 any law of this state;
191-
192328 13. “Brewpub” means a licensed establishment operated on the
193329 premises of, or on premises located contiguous to, a small brewer,
194330 that prepares and serves food an d beverages, including alcoholic
195331 beverages, for on-premises consumption;
196-
197332 14. “Cider” means any alcoholic beverage obtained by the
198333 alcoholic fermentation of frui t juice, including but n ot limited to
199334 flavored, sparkling or carbonated cider. For the purposes of the
200335 manufacture of this product, cider may be manufactured by either
201336 manufacturers or brewers. For the purposes of the distribution of
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202363 this product, cider may be distributed by ei ther wine and spirits
203364 wholesalers or beer distributors;
204-
205365 15. “Club suite” means a designated area within the premises of
206366 a mixed beverage licensee designed to provide an exclusive space
207367 which is limited to a patron or patrons specif ically granted access
208368 by a mixed beverage licensee and is not accessible to other patrons
209369 of the mixed beverage licensee or the public. A club suite must
210370 have a clearly designated point of access for a patron or patrons
211371 specifically granted access by the mixed beverage licensee to ensure
212372 that persons present in the suite are limited to patrons
213373 specifically granted access by the mixed beverage licen see and
214374 employees providing services to the club suite;
215-
216375 16. “Convenience store” means any person primarily en gaged in
217376 retailing a limited range of general household items and groceries,
218377 with extended hours of operation, whether or not engaged in retail
219378 sales of automotive fuels in combination with such sales;
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221379 17. “Convicted” and “conviction” mean and include a f inding of
222380 guilt resulting from a plea of guilty or nolo contendere, the
223-decision of a court or magistrate or the verdict of a jury, ENR. H. B. NO. 1715 Page 6
381+decision of a court or magistrate or the verdict of a jury,
224382 irrespective of the pronouncement of judgment or the suspension
225383 thereof;
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227384 18. “Designated products” means the brands of wine or spirits
228385 offered for sale by a manufacturer that the manufacturer has
229386 assigned to a designat ed wholesaler for exclusive distribution;
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231413 19. “Designated wholesaler” means a wine and spirits wholesaler
232414 who has been selected by a manufacturer as a wholesale r appointed to
233415 distribute designated products;
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235416 20. “Director” means the Director of the ABLE C ommission;
236-
237417 21. “Distiller” means any person who pr oduces spirits from any
238418 source or substance, or any person who brews or makes mash, wort or
239419 wash, fit for distillation or for the prod uction of spirits (except
240420 a person making or using such material in the authorized production
241421 of wine or beer, or the prod uction of vinegar by fermentation), or
242422 any person who by any process separates alcoholic spirits from any
243423 fermented substance, or any person who, making or keeping mash, wort
244424 or wash, has also in his or he r possession or use a still;
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246425 22. “Distributor agreement” means the written agreement between
247426 the distributor and brewer as set forth in Section 3 -108 of this
248427 title;
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250428 23. “Drug store” means a person primarily engaged in retailing
251429 prescription and nonprescr iption drugs and medicines;
252-
253430 24. “Dual-strength beer” means a brand of beer that,
254431 immediately prior to April 15, 2017, was being sold and distributed
255432 in this state:
256-
257433 a. as a low-point beer pursuant to the Low-Point Beer
258434 Distribution Act in effect immediatel y prior to
259435 October 1, 2018, and
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261462 b. as strong beer pursuant to the Alcoholic Beverage
262463 Control Act in effect immediately prior to October 1,
263464 2018,
264-
265465 and continues to be sold and distributed as such on October 1, 2018.
266466 Dual-strength beer does not include a bra nd of beer that arose as a
267467 result of a brand extens ion as defined in this section;
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269468 25. “Fair market value” means the value in the subject
270469 territory covered by t he written agreement wit h the distributor or
271470 wholesaler that would be determined in an arm ’s length transaction
272471 entered into without duress or thr eat of termination of the
273472 distributor’s or wholesaler’s rights and shall include all elements
274473 of value, including goodwill and going -concern value;
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276474 26. “Good cause” means:
277-
278475 a. failure by the distributor to comply with the material
279476 and reasonable provisions of a written agreement or
280477 understanding with the brewer, o r
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282478 b. failure by the distributor to comply with the duty of
283479 good faith;
284-
285480 27. “Good faith” means the duty of each party to any
286481 distributor agreement and all officers, employees or agents thereof
287482 to act with honesty in fact and within reasonable standards of fair
288483 dealing in the trade;
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290484 28. “Grocery store” means a person primarily e ngaged in
291485 retailing a general line of food, such as canned or f rozen foods,
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292512 fresh fruits and vegetables, and fresh and prep ared meats, fish and
293513 poultry;
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295514 29. “Hotel” or “motel” means an establishment which is licensed
296515 to sell alcoholic beverages by the indi vidual drink and which
297516 contains guestroom accommodations with respect to which the
298517 predominant relationship existing between the occupants thereof and
299518 the owner or operator of the establishment is that of innkeeper and
300519 guest. For purposes of this section, the existence of other legal
301520 relationships as between some occupants and the owner or operator
302521 thereof shall be immaterial;
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304522 30. “Legal newspaper” means a newspaper meeting the requisites
305523 of a newspaper for publication of legal notices as prescribed in
306524 Sections 101 through 114 of Title 25 of the Oklahoma Statutes;
307-
308525 31. “Licensee” means any person holding a license under the
309526 Oklahoma Alcoholic Beverage Control Act, and any agent, ser vant or
310527 employee of such licensee while in the performance of any act or
311528 duty in connection with the licensed business or on the licensed
312529 premises;
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314530 32. “Low-point beer” shall mean any beverages containing more
315531 than one-half of one percent (1/2 of 1%) alc ohol by volume, and not
316532 more than three and two -tenths percent (3.2%) alcoho l by weight,
317533 including but not limited to, beer or cereal malt beverages obtained
318534 by the alcoholic fermentation of an infusion by barley or other
319535 grain, malt or similar products;
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321562 33. “Manufacturer” means a distiller, winemaker, rectifier or
322563 bottler of any alcoholic beverage (other than beer) and its
323564 subsidiaries, affiliates and parent co mpanies;
324-
325565 34. “Manufacturer’s agent” means a salaried or commissioned
326566 salesperson who is the agent authorized to act on behalf of the
327567 manufacturer or nonresident seller in the state;
328-
329568 35. “Meals” means foods commonly ordered at lunch or dinner and
330569 at least part of which is cooked on the licensed premises and
331570 requires the use of dining implements for consumption. Provided,
332571 that the service of only food such as appetizers, sandwiches, salads
333572 or desserts shall not be considered “meals” meals;
334-
335573 36. “Mini-bar” means a closed container, either refrigerated in
336574 whole or in part, or nonrefrigerated, and access to the interior of
337575 which is:
338-
339576 a. restricted by means of a locking device whic h requires
340577 the use of a key, magnetic card or similar device, or
341-
342578 b. controlled at all times by the licensee;
343-
344579 37. “Mixed beverage cooler” means any beverage, by whatever
345580 name designated, consisting of an alcoholic beverage and fruit or
346581 vegetable juice, fruit or vegetable flavorings, dairy products or
347582 carbonated water containing more than one-half of one percent (1/2
348583 of 1%) of alcohol measured by volume but not more than seven percent
349584 (7%) alcohol by volume at sixty (60) degrees Fahrenheit and which is
350585 packaged in a container not larger than three hundred seventy -five
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351612 (375) milliliters. Such term shall include but not be limited to
352613 the beverage popularly known as a “wine cooler”;
353-
354614 38. “Mixed beverages” means one or more servings of a beverage
355615 composed in whole or part of an alcoholic beverage in a sealed or
356616 unsealed container of a ny legal size for consumption on the premis es
357-where served or sold by the holder of a mixed beverage, beer and ENR. H. B. NO. 1715 Page 9
617+where served or sold by the holder of a mixed beverage, beer and
358618 wine, caterer, public event, charitable event or special event
359619 license;
360-
361620 39. “Motion picture theater” means an establishment which is
362621 licensed by Section 2-110 of this title to sell alcoholic beverages
363622 by the individual drink and where motion pictures are exhibited, and
364623 to which the general public is admitted;
365-
366624 40. “Nondesignated products” means the brands of wine or
367625 spirits offered for sal e by a manufacturer that have not been
368626 assigned to a designated wholesaler;
369-
370627 41. “Nonresident seller” means any person licensed pursuant to
371628 Section 2-135 of this title;
372-
373629 42. “Retail salesperson” means a salesperson soliciting orders
374630 from and calling upon retail alcoholic beverage stores with regard
375631 to his or her product;
376-
377632 43. “Occupation” as used in connection with “occupation tax”
378633 means the sites occupied as the places of business of the
379634 manufacturers, brewers, wholesalers, beer distributors, r etailers,
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380661 mixed beverage licensees, on-premises beer and wine licensees,
381662 bottle clubs, caterers, public event and special eve nt licensees;
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383663 44. “Original package” means any container of alcohol ic
384664 beverage filled and stamped or sealed by the manufacture r or brewer;
385-
386665 45. “Package store” means any sole proprietor or partnership
387666 that qualifies to sell wine, beer and/or spirits for o ff-premises
388667 consumption and that is not a grocery store, convenienc e store or
389668 drug store, or other retail outlet that is not permitted to sell
390669 wine or beer for off-premises consumption;
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392670 46. “Patron” means any person, customer or visitor who is not
393671 employed by a licensee or who is not a licensee;
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395672 47. “Person” means an individual, any type of partnership,
396673 corporation, association, limited li ability company or a ny
397674 individual involved in the legal str ucture of any such business
398675 entity;
399-
400676 48. “Premises” means the grounds and all buildings and
401677 appurtenances pertaining to the grounds including any adjacent
402-premises if under the direct or indire ct control of the licensee and ENR. H. B. NO. 1715 Page 10
678+premises if under the direct or indire ct control of the li censee and
403679 the rooms and equipment under th e control of the licensee and used
404680 in connection with or in furtherance of the business covered by a
405681 license. Provided that the ABLE Commission shall have the authority
406682 to designate areas to b e excluded from the licensed premises solely
407683 for the purpose of:
408684
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409710 a. allowing the presence and consumption of alcoholic
410711 beverages by private parties which are closed to the
411712 general public, or
412-
413713 b. allowing the services of a caterer serving alcoholic
414714 beverages provided by a private party.
415-
416715 This exception shall in no way li mit the licensee’s concurrent
417716 responsibility for any violat ions of the Oklahoma Alcoholic Beverage
418717 Control Act occurring on the licensed premises;
419-
420718 49. “Private event” means a social gather ing or event attende d
421719 by invited guests who share a common cause, membership, business or
422720 task and have a prior established re lationship. For purposes of
423721 this definition, advertisement for general public at tendance or
424722 sales of tickets to the general publi c shall not constitu te a
425723 private event;
426-
427724 50. “Public event” means any event that can be attended by the
428725 general public;
429-
430726 51. “Rectifier” means any person who rectifies, purifies or
431727 refines spirits or wines b y any process (other than by original and
432728 continuous distillation, or original and continuous processing, from
433729 mash, wort, wash or other substance, through continuous closed
434730 vessels and pipes, until the production thereof is complete ), and
435731 any person who, without rectifying, purifying or refining spirits,
436732 shall by mixing (except for immediate consumption on the premises
437733 where mixed) such spirits, wine or other liquor with any m aterial,
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438760 manufactures any spurious, imitation or compound liquors for sale,
439761 under the name of whiskey, brandy, rum, gin, wine, spirits, cordia ls
440762 or any other name;
441-
442763 52. “Regulation” or “rule” means a formal rule of general
443764 application promulgated by the AB LE Commission as herein required;
444-
445765 53. “Restaurant” means an establishment that i s licensed to
446-sell alcoholic beverages by the individual drink for on-premises ENR. H. B. NO. 1715 Page 11
766+sell alcoholic beverages by the individ ual drink for on-premises
447767 consumption and where food is prepared and sold for immediate
448768 consumption on the premises;
449-
450769 54. “Retail container for spirits and wines ” means an original
451770 package of any capacit y approved by the United States Bureau of
452771 Alcohol, Tobacco and, Firearms and Explosives;
453-
454772 55. “Retailer” means a package store, grocery store,
455773 convenience store or drug store licensed to sell alcoholic beverages
456774 for off-premises consumption purs uant to a Retail Spirits License,
457775 Retail Wine License or Retail Beer Lic ense;
458-
459776 56. “Sale” means any transfer, exchange or barter in any manner
460777 or by any means what soever, and includes and means all sales made by
461778 any person, whether as principal, proprieto r or as an agent, servant
462779 or employee. The term “sale” sale is also declared to be and
463780 include the use or consumption in this state of any alcoholic
464781 beverage obtained within or imported from without this state, upon
465782 which the excise tax levied by the Oklahoma Alcoholic Beverage
466783 Control Act has not been paid or exempted;
467784
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468810 57. “Seltzer” means any beverage containing more than one -half
469811 of one percent (0.50%) of alcohol by volume and obtained by the
470812 alcoholic fermentation of malt, rice, grain of any kind, bran,
471813 glucose, sugar, or molasses and combined with carbonated water and
472814 other flavoring and labeled as “beer” by the Internal Revenue Code;
473815 provided, that seltzer shall not include carbonated beverages mixed
474816 with wine or spirits ;
475-
476817 58. “Short-order food” means food other than full meals
477818 including but not limited to sandwiches, soups and salads . Provided
478819 that popcorn, chips and other s imilar snack food shall not be
479820 considered “short-order food” short-order food;
480-
481821 58. 59. “Small brewer” means a brewer who manufactures less
482822 than sixty-five thousand barrels of beer annually pursuant to a
483823 validly issued Small Brewer License hereunder;
484-
485824 59. 60. “Small farm wine” means a wine that is produced by a
486825 small farm winery with seventy-five percent (75%) or more Oklahoma-
487826 grown grapes, berries, other fruits, h oney or vegetables;
488-
489827 60. 61. “Small farm winery” means a wine-making establishment
490828 that does not annually produce for sale more than fifteen thousand
491-(15,000) gallons of wine as reported on the United States Department ENR. H. B. NO. 1715 Page 12
829+(15,000) gallons of wine as reported on the United States Department
492830 of the Treasury, Alcohol and Tobacco Tax and Trade Bureau, Report of
493831 Wine Premises Operations (TTB Form 5120.17);
494-
495832 61. 62. “Sparkling wine” means champagne or any artificially
496833 carbonated wine;
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497859
498860 62. 63. “Special event” means an entertainment, recreation or
499861 marketing event that occurs at a sing le location on an irregular
500862 basis and at which alcoholic beverages are sold;
501-
502863 63. 64. “Spirits” means any beverage other than wine or beer,
503864 which contains more than one-half of one percent (1/2 of 1%) alcohol
504865 measured by volume, and obtained by distillatio n, whether or not
505866 mixed with other substances in solutio n and includes those products
506867 known as whiskey, brandy, rum, gin, vodka, liqueurs, cordials and
507868 fortified wines and similar compounds, bu t shall not include any
508869 alcohol liquid completely denatured in accordance with the Acts of
509870 Congress and regulations pur suant thereto;
510-
511871 64. 65. “Strong beer” means beer which, prior to October 1,
512872 2018, was distribute d pursuant to the Oklahoma Alcoholic Beve rage
513873 Control Act, Section 501 1-101 et seq. of Title 37 of the Oklahoma
514874 Statutes this title;
515-
516875 65. 66. “Successor brewer” means a primary source of supply, a
517876 brewer, a cider manufacturer or an importer that acquires r ights to
518877 a beer or cider brand from a predecessor brewer;
519-
520878 66. 67. “Tax Commission” means the Oklahoma Tax Commission;
521-
522879 67. 68. “Territory” means a geographic region with a specified
523880 boundary;
524-
525881 68. 69. “Wine and spirits wholesaler ” or “wine and spirits
526882 distributor” means and includes any sole proprietorship or
527883 partnership licensed to distribute wine and spirits in the state.
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528910 The term “wholesaler”, as used in the Oklahoma Alcoholic Beverage
529911 Control Act, shall be construed to refer to a wine and spirits
530912 wholesaler;
531-
532913 69. 70. “Wine” means and includes any beverage containing more
533914 than one-half of one percent (1/2 of 1%) alcohol by volume and not
534915 more than twenty-four percent (24%) alcohol by volume at s ixty (60)
535916 degrees Fahrenheit obtained by the fermentation o f the natural
536-contents of fruits, vegetables, honey, milk or other products ENR. H. B. NO. 1715 Page 13
917+contents of fruits, vegetables, honey, milk or other products
537918 containing sugar, whether or not other ingredients are added, and
538919 includes vermouth and sake, known as Japanese rice wine ;
539-
540920 70. 71. “Winemaker” means and includes any person or
541921 establishment who manufactures for human consumption any wine upon
542922 which a license fee and a tax are imposed by any law of this state;
543923 and
544-
545924 71. 72. “Satellite tasting room” means a licensed establishm ent
546925 operated off the licensed premises of the holder of a s mall farm
547926 winery or winemaker license, which serves wine for on-premises or
548927 off-premises consumption.
549-
550928 Words in the plural include the singular, and vice versa, and
551929 words imparting the masculine gen der include the feminine, as well
552930 as persons and licensees as defined in this section.
553-
554931 SECTION 3. AMENDATORY 37A O.S. 2021, Section 2-101, is
555932 amended to read as follows:
933+
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556958
557959 Section 2-101. A. Except as otherwise provided in this
558960 section, the licenses issued by the ABLE Commission, and the annual
559961 fees therefor, shall be as follows:
560-
561962 1. Brewer License................................ .. $1,250.00
562-
563963 2. Small Brewer License.............................. $125.00
564-
565964 3. Distiller License............................... $3,125.00
566-
567965 4. Winemaker License................................ . $625.00
568-
569966 5. Small Farm Winery License.......................... $75.00
570-
571967 6. Rectifier License ............................... $3,125.00
572-
573968 7. Wine and Spirits Wholesaler License............. $3,000.00
574-
575969 8. Beer Distributor License.......................... $750.00
576-
577970 9. The following retail spirits license fees
578971 shall be determined by the latest Federal
579972 Decennial Census:
580- ENR. H. B. NO. 1715 Page 14
581973 a. Retail Spirits License for cities and
582974 towns from 200 to 2,5 00 population.......... $305.00
583-
584975 b. Retail Spirits License for cities and
585976 towns from 2,501 to 5,000 population ........ $605.00
586-
587977 c. Retail Spirits License for cities and
588978 towns over 5,000 populatio n................. $905.00
589-
590979 10. Retail Wine License............................ $1,000.00
591-
592980 11. Retail Beer License .............................. $500.00
593-
594981 12. Mixed Beverage License......................... $1,005.00
595-
596982 (initial license)
597983
984+Req. No. 8408 Page 20 1
985+2
986+3
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992+9
993+10
994+11
995+12
996+13
997+14
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1000+17
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1008+
5981009 $905.00
599-
6001010 (renewal)
601-
6021011 13. Mixed Beverage/Catere r Combination License..... $1,250.00
603-
6041012 14. On-Premises Beer and Wine License ................ $500.00
605-
6061013 (initial license)
607-
6081014 $450.00
609-
6101015 (renewal)
611-
6121016 15. Bottle Club License ............................ $1,000.00
613-
6141017 (initial license)
615-
6161018 $900.00
617-
6181019 (renewal)
619-
6201020 16. Caterer License ................................ $1,005.00
621-
6221021 (initial license)
623-
6241022 $905.00
625- ENR. H. B. NO. 1715 Page 15
6261023 (renewal)
627-
6281024 17. Annual Special Event License...................... $55.00
629-
6301025 18. Quarterly Special Event License................... $55.00
631-
6321026 19. Hotel Beverage License......................... $1,005.00
633-
6341027 (initial license)
635-
6361028 $905.00
637-
6381029 (renewal)
639-
6401030 20. Airline/Railroad/Commercial Passenger Vessel Bev erage
6411031 License................................ ........ $1,005.00
642-
6431032 (initial license)
6441033
1034+Req. No. 8408 Page 21 1
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1041+8
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1058+
6451059 $905.00
646-
6471060 (renewal)
648-
6491061 21. Agent License................................ ..... $55.00
650-
6511062 22. Employee License ................................ .. $30.00
652-
6531063 23. Industrial License................................ $23.00
654-
6551064 24. Carrier License ................................ ... $23.00
656-
6571065 25. Private Carrier License........................... $23.00
658-
6591066 26. Bonded Warehouse License......................... $190.00
660-
6611067 27. Storage License................................ ... $23.00
662-
6631068 28. Nonresident Seller License ...................... $750.00
664-
6651069 29. Manufacturer License:
666-
6671070 a. 50 cases or less sold in Oklahoma in
6681071 last calendar year........................... $50.00
669- ENR. H. B. NO. 1715 Page 16
6701072 b. 51 to 500 cases sold in Oklahom a in
6711073 last calendar year........................... $75.00
672-
6731074 c. 501 cases or more sold in Oklah oma in
6741075 last calendar year.......................... $150.00
675-
6761076 30. Manufacturer’s Agent License...................... $55.00
677-
6781077 31. Sacramental Wine Supplier Lice nse................ $100.00
679-
6801078 32. Charitable Auction License......................... $1.00
681-
6821079 33. Charitable Alcoholic Bever age License............. $55.00
683-
6841080 34. Winemaker Self-Distribution License :
685-
6861081 a. produced ten thousand (10,000) gallons
6871082 or less in last calendar year............... $350.00
1083+
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6881108
6891109 b. produced more than ten thousand
6901110 (10,000) gallons but no more than
6911111 fifteen thousand (15,000) gallons in
6921112 last calendar year.......................... $750.00
693-
6941113 35. Annual Public Event License.................... $1,005.00
695-
6961114 36. One-Time Public Event License .................... $255.00
697-
6981115 37. Small Brewer Self-Distribution License:
699-
7001116 a. produced fifteen thousand (15,000)
7011117 barrels or less in last calendar year....... $350.00
702-
7031118 b. produced more than fifteen thousand
7041119 (15,000) barrels in last calendar year...... $750.00
705-
7061120 38. Brewpub License................................ $1,005.00
707-
7081121 39. Brewpub Self-Distribution License................ $750.00
709-
7101122 40. Complimentary Beverage Licens e.................... $75.00
711-
7121123 41. Satellite Tasting Room License................... $100.00
713- ENR. H. B. NO. 1715 Page 17
7141124 B. 1. There shall be added to the initial or renewal fees for
7151125 a Mixed Beverage License mixed beverage license an administrative
7161126 fee, which shall not be deemed to be a license fee, in the amount of
7171127 Five Hundred Dollars ($500.00), which shall be paid at the same time
7181128 and in the same manner as the license fees prescribed by paragraph
7191129 12 of subsection A of this section; p rovided, this fee shall not be
7201130 assessed against service organizations or frater nal beneficiary
7211131 societies which are exempt under Section 501(c)(19), (8) or (10) of
7221132 the Internal Revenue Code.
7231133
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7241159 2. There shall be added to the fee for a Mixed Beverage/Caterer
7251160 Combination License mixed beverage/caterer combination license an
7261161 administrative fee, which shall not be deemed to be a license fee,
7271162 in the amount of Two Hundred F ifty Dollars ($250.00), which shall be
7281163 paid at the same time and in the same manner as the license fee
7291164 prescribed by paragraph 13 of s ubsection A of this section.
730-
7311165 C. Notwithstanding the provisions of subsection A of this
7321166 section:
733-
7341167 1. The license fee for a mixed beverage or bottle club license
7351168 for those service organizations or fr aternal beneficiary societies
7361169 which are exempt under Secti on 501(c)(19), (8) or (10) of the
7371170 Internal Revenue Code shall be Five Hundred Dollars ($500.00) per
7381171 year; and
739-
7401172 2. The renewal fee for an airline/railroad/commercial passenger
7411173 vessel beverage license held by a railroad described in 49 U.S.C.,
7421174 Section 24301, shall be One Hundred Dollars ($100.00 ).
743-
7441175 D. An applicant may apply for and receive both an on-premises
7451176 beer and wine license and a caterer license.
746-
7471177 E. All licenses, except as otherwise provided, s hall be valid
7481178 for one (1) year from date of issuance unles s revoked or
7491179 surrendered. Provided, a ll employee licenses shall be valid for two
7501180 (2) years.
751-
7521181 F. The holder of a license, issued by the ABLE Commission, for
7531182 a bottle club located in a county of this state where the sale of
1183+
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7541209 alcoholic beverages by the indivi dual drink for on-premises
7551210 consumption has been authorized, may exchange the bottle club
7561211 license for a mixed beverage lice nse or an on-premises beer and wine
7571212 license and operate the licensed premise s as a mixed beverage
758-establishment or an on-premises beer and wine establishment subject ENR. H. B. NO. 1715 Page 18
1213+establishment or an on-premises beer and wine establishment subject
7591214 to the provisions of the Oklahoma Alcoholic Beverage Control Act.
7601215 There shall be no addit ional fee for such exchange and the mixed
7611216 beverage license or on-premises beer and wine license issued shall
7621217 expire one (1) year from the date of issuance of the original b ottle
7631218 club license.
764-
7651219 G. In addition to the applicable licensing fee, the following
7661220 surcharge shall be assessed annually on the following licenses:
767-
7681221 1. Nonresident Seller License...................... $2,500.00
769-
7701222 2. Manufacturer License:
771-
7721223 a. 50 cases or less sold in Oklahoma in
7731224 last calendar year.......................... $100.00
774-
7751225 b. 51 to 500 cases sold in Oklahoma in
7761226 last calendar year.......................... $225.00
777-
7781227 c. 501 cases or more sold in Oklahoma in
7791228 last calendar year.......................... $450.00
780-
7811229 3. Wine and Spirits Wholesaler License............. $2,500.00
782-
7831230 4. Beer Distributor................................ $1,000.00
784-
7851231 5. Retail Spirits License for cities and towns
7861232 over 5,000 population.......................... $250.00
7871233
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1258+
7881259 6. Retail Spirits Lic ense for cities and towns
7891260 from 2,501 to 5,000 population................. $200.00
790-
7911261 7. Retail Spirits License for cities and towns
7921262 from 200 to 2,500 pop ulation................... $150.00
793-
7941263 8. Retail Wine Licens e............................... $250.00
795-
7961264 9. Retail Beer License............................... $250.00
797-
7981265 10. Mixed Beverage License ............................ $25.00
799-
8001266 11. Mixed Beverage/Caterer Combination License........ $25.00
801-
8021267 12. Caterer License ................................ ... $25.00
803- ENR. H. B. NO. 1715 Page 19
8041268 13. On-Premises Beer and Wine License................. $25.00
805-
8061269 14. Annual Public Event License....................... $25.00
807-
8081270 15. Small Farm Winery License......................... $25.00
809-
8101271 16. Small Brewer License.............................. $35.00
811-
8121272 17. Complimentary Beve rage License.................... $25.00
813-
8141273 The surcharge shall be paid concurrent with the licensee ’s
8151274 annual licensing fee and, in addition to Five Dollars ( $5.00) of the
8161275 employee license fee, sh all be deposited in the Alcoholic Beverage
8171276 Governance Revolving Fund established pur suant to Section 5-128 of
8181277 this title.
819-
8201278 H. Any license issued by the ABLE Com mission under this title
8211279 may be relied upon by other licen sees as a valid license, and no
8221280 other licensee shall have any obligation to independently determine
8231281 the validity of such l icense or be held liable solely as a
1282+
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8241308 consequence of another licensee ’s failure to maintain a valid
8251309 license.
826-
8271310 SECTION 4. AMENDATORY 37A O.S. 2021, Section 2-102, as
8281311 amended by Section 1, Chapter 396, O.S.L. 2021, is amended to read
8291312 as follows:
830-
8311313 Section 2-102. A. A brewer license shall authorize the holder
8321314 thereof:
833-
8341315 1. To manufacture, bottle, package and store bee r and cider on
8351316 the licensed premises; and
836-
8371317 2. To sell beer and cider in this state to holders of beer
8381318 distributor licenses and to sell beer and cider out of this state to
8391319 qualified persons.
840-
8411320 B. A small brewer license shall authorize the holder thereof:
842-
8431321 1. To manufacture, bottle, package and store beer and cider
8441322 produced by the licensee on licensed premises;
845-
8461323 2. To sell beer and cider in this state to holders of beer
8471324 distributor licenses and retail l icenses or to sell beer and cider
848-out of this state to qualified persons; ENR. H. B. NO. 1715 Page 20
849-
1325+out of this state to qualified persons;
8501326 3. To serve free samples of beer and cider produced by the
8511327 licensee to visitors twenty-one (21) years of age or older;
852-
8531328 4. To sell beer and cider produced by the licensee for either
8541329 on-premises or off-premises consumption to consumers on the brewery
8551330 premises, or on premises located contiguou s thereto;
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8561356
8571357 5. To sell beer and cider at public events such as attended by
8581358 the public including, but not limited to, trade shows or, festivals,
8591359 farmers markets, boat shows, RV shows, home and garden shows, fairs,
8601360 car shows, swap meets, city events, county events, or state events
8611361 for either on-premises or off-premises consumption, regardless of
8621362 whether such events are held at premises covered by a license to
8631363 sell, serve, or store alcoholic beverages. A small brewer license
8641364 holder shall not be required to se cure or control the premises of an
8651365 event attended by the public where the small brewer license holder
8661366 sells beer or cider;
867-
8681367 6. To purchase wine in retail containers from the holder of a
8691368 wholesaler license or as specifically provided by law; and
870-
8711369 7. To sell, offer for sale and possess wine for on-premises
8721370 consumption;
873-
874-8. To host off-site events pursuant to Section 1 of this act;
1371+8. To host off-site events pursuant to Section 4 of this act;
8751372 and
876-
8771373 9. To purchase from licensed brewers, small brewers, and
8781374 brewpubs in this state, and to import beer into this state for u se
8791375 in manufacturing in accordance with federal laws and regulations .
880-
8811376 C. The holder of multiple small brewer licenses may sell beer
8821377 and cider produced at up to three breweries for which the lice nsee
8831378 has a license, at any other of such three licensed breweries or on
8841379 premises located contiguous thereto.
8851380
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8861406 D. Nothing in the Oklahoma Alcoholic Beverage Control Act shall
8871407 prohibit the holder of a small brewer license from also holding or
8881408 owning an interest in the holder of a brewpub license.
889-
8901409 E. For purposes of this section, no visitor may sample more
8911410 than a total of twelve (12) fluid ounces of beer and cider per day.
8921411 The brewer must restrict the distribution and consumption of beer
893-and cider samples to an area within the licensed premises designated ENR. H. B. NO. 1715 Page 21
1412+and cider samples to an area within the licensed premises designated
8941413 by the brewer as defined in this subsection. A current floor plan
8951414 that includes the designated sampling serving area must be on file
8961415 with the ABLE Commission. No visitor under twenty-one (21) years of
8971416 age shall be permitted to enter this designated sampling serving
8981417 area when samples are being distributed or consumed. Accompanied
8991418 visitors under twenty-one (21) years of age shall be allowed
9001419 anywhere on the premises except for a serving area. Samples of beer
9011420 and cider served by a brewery under this section shal l not be
9021421 considered a sale of beer and cider within the meaning of Article
9031422 XXVIII-A of the Oklahoma Constitution or Section 1-103 of this
9041423 title; however, such samples of beer and cider shall be considered
9051424 beer and cider removed or withdrawn from the brewery for use or
9061425 consumption within the meaning of Section 5-110 of this title for
9071426 excise tax determination and reporting requirements. Sales and
9081427 sampling may only occur between the hours of 10:00 a.m. and 2:00
9091428 a.m. For purposes of this subsection, “serving area” means the area
9101429 of the bar where drinks are sold, prepared, and served to paying
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9111456 customers and shall not include other areas of the brewery where
9121457 customers consume purchased products.
913-
9141458 F. A small brewer self-distribution license shall authorize
9151459 holders of a small brewer license to distribute beer and cider
9161460 produced only by such licensee to a holder of a retail beer license,
9171461 retail spirits license, mixed beverage license, beer and wine
9181462 license, caterer’s license, special event license, public event
9191463 license, charitable auction license or brewpub license. A small
9201464 brewer shall elect whether it will distribute through a distributor
9211465 or self-distribute in a subject territory; however, a small brewer
9221466 may not elect to do both simultaneously in a subject territory. The
9231467 election shall be made through notice to the ABLE Commission. Any
9241468 changes to the election shall require immediate notification to the
9251469 ABLE Commission before the change in election will take effect. A
9261470 small brewer that elects to self-distribute in multiple t erritories
9271471 shall only be required to have one small brewer self-distribution
9281472 license.
929-
9301473 G. All manufacturer’s licenses held by brewers during the first
9311474 calendar year beginning October 1, 2018, shall aut omatically convert
9321475 to brewer licenses and be deemed eff ective as of the date of the
9331476 first issuance of the manufacturer’s license. Upon the first
9341477 renewal of the license, the brewer will need to obtain the
9351478 appropriate brewer’s license. If a brewer elects t o market wine and
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9361505 spirits, the brewer will also be requ ired to obtain a manufacturer’s
9371506 license and comply with the rules and regulations for both licenses.
938- ENR. H. B. NO. 1715 Page 22
9391507 SECTION 5. AMENDATORY 37A O.S. 2021, Section 2 -103, is
9401508 amended to read as follows:
941-
9421509 Section 2-103. A. A distiller license shall authorize the
9431510 holder thereof:
944-
9451511 1. To manufacture, bottle, package and sto re spirits on
9461512 licensed premises;
947-
9481513 2. To sell spirits in this state to licensed wholesalers and
9491514 manufacturers only;
950-
9511515 3. To sell spirits out of this state to qualified persons; to
9521516 purchase from licensed distillers and rectifiers in this state, and
9531517 import spirits from without this state for man ufacturing purposes in
9541518 accordance with federal laws and regulations;
955-
9561519 4. To serve free samples of spirits produced only by the
9571520 licensee to visitors twenty-one (21) years of age and older. For
9581521 purposes of this section, n o visitor may sample more than a tot al of
9591522 three (3) fluid ounces of spirits per day. The distiller shall
9601523 restrict the distribution and consumption of spirits samples to an
9611524 area within the licensed premises designated by the distiller. A
9621525 current floor plan that includes the designated sampl ing area shall
9631526 be on file with the ABLE Commission. No visitor under t wenty-one
9641527 (21) years of age shall be permitted to enter the designated
9651528 sampling area when samples are being distributed and consumed.
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9661555 Samples of spirits served by a distiller under thi s section shall
9671556 not be considered a sale of spirits within the meaning of Article
9681557 XXVIII-A of the Oklahoma Constitution or Section 1-103 of this
9691558 title; provided, such samples of spirits shall be considered removed
9701559 or withdrawn from the distillery for use o r consumption within the
9711560 meaning of Section 5-110 of this title for exc ise tax determination
9721561 and reporting requirements;
973-
9741562 5. To sell spirits produced by the licensee for either on-
9751563 premises or off-premises consumption to consumers on the licensed
9761564 distillery premises or in an area controlled by the licensee located
9771565 contiguous to the licensed distillery premises and at one (1)
9781566 location controlled by the licensee located in the same county as
9791567 the licensed distillery premises but not contiguous to the licensed
9801568 distillery premises. Product Spirits offered for sale by the
9811569 Oklahoma licensed distiller will have been sold to and shipped to an
982-Oklahoma licensed wine and spirits wholesaler and then made ENR. H. B. NO. 1715 Page 23
1570+Oklahoma licensed wine and spirits wholesaler and then made
9831571 available for purchase by the Oklahoma licensed distiller for sale ;
9841572 and
985-
9861573 6. To sell spirits at public events such as trade show s or
9871574 festivals. Products offered for sale by the Oklahoma licensed
9881575 distiller will have been sold to and shipped to an Oklahoma licensed
9891576 wine and spirits wholesaler and then made available for pu rchase by
9901577 the Oklahoma licensed distiller.
9911578
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9921604 B. Spirits sold pursuant to paragraphs 5 and 6 of subsection A
9931605 of this section shall no t exceed fifteen thousand (15,000) gallons
9941606 per calendar year in combination.
995-
9961607 C. Spirits sold pursuant to paragraphs 5 and 6 of subsection A
9971608 of this section shall be a final sale. Licensed distillers may
9981609 offer for sale non-alcoholic substances which may be added to
999-spirits by the consumer after final sale. Substances used for on-
1000-premises consumption shall be non-alcoholic in nature and shall not
1610+spirits by the consumer after final sale. Substances used for on
1611+premise consumption shall be non-alcoholic in nature and shall not
10011612 be considered part of the manufacturing process.
1002-
10031613 SECTION 6. AMENDATORY 37A O.S. 2021, Section 2-131, is
10041614 amended to read as follows:
1005-
10061615 Section 2-131. A. A small farm winery license shall authorize
10071616 the holder thereof:
1008-
10091617 1. To manufacture and bottle win es produced by that small farm
10101618 winery;
1011-
10121619 2. To bottle and sell wines produced by another small farm
10131620 winery. In order for a small farm winery to bottle and sell another
10141621 small farm winery’s products, both the selling winery and the buying
10151622 winery shall be small farm winery permit holders;
1016-
10171623 3. To establish satellit e tasting rooms as defined and
10181624 authorized in this act the Oklahoma Alcoholic Beverage Control Act,
10191625 where:
1020-
10211626 a. the winemaker’s products may be tasted, sampled, sold,
10221627 and served for on-premises consumption and the
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10231654 winemaker is permitted to sell its prod ucts in sealed
10241655 containers; provided, the small farm winery license is
10251656 active and in good standing, or
1026- ENR. H. B. NO. 1715 Page 24
10271657 b. beer purchased by the licensed small farm winer y may
10281658 be sold for on-premises consumption .
1029-
10301659 The wine sold at a satellite tasting room must have been
10311660 produced/manufactured by the holder of a small farm winery lice nse
10321661 and must have all manufacturing taxes paid. The beer sold at a
10331662 satellite tasting roo m shall be purchased pursuant to paragraph 6 of
10341663 this subsection; and
1035-
10361664 4. The small farm winery licensee shall have the same authority
10371665 as the winemaker licensee;
1038-
1039-5. To host off-site events pursuant to Section 1 of this act;
1666+5. To host off-site events pursuant to Section 4 of this act;
10401667 and
1041-
10421668 6. To purchase beer in retail c ontainers from the holder of a
10431669 wholesaler, beer distributor, small brewer self -distributor or
10441670 brewpub self-distributor license or as specifically provided by law
10451671 and to sell, offer for sale and possess be er for on-premises
10461672 consumption.
1047-
10481673 B. A small farm wine may display the trademarked “Oklahoma
10491674 Grown” sticker available from the Oklahoma Grape Industry Council.
1050-
10511675 SECTION 7. AMENDATORY 37A O. S. 2021, Section 3-111, is
10521676 amended to read as follows:
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10531702
10541703 Section 3-111. A. Except as provided in subsection F G of this
10551704 section, a small brewer is not subject to the termination provisions
10561705 of this section.
1057-
10581706 B. 1. Except as prov ided in subsections C, D and E subsection
10591707 C of this section, no brewer shall termi nate a distributor agreement
10601708 with any beer distributor without establishing good c ause for such
10611709 termination and unless all of the follow ing occur:
1062-
10631710 a. the brewer establishes g ood cause for such
10641711 termination,
1065-
10661712 b. the beer distributor receives written notificat ion by
10671713 certified mail, return receipt request ed, from the
10681714 brewer of the alleged no ncompliance and is afforded no
10691715 less than sixty (60) days in which to cure such
10701716 noncompliance. If not capable of being cured within
1071-the sixty-day period, the beer distributor shall begin ENR. H. B. NO. 1715 Page 25
1717+the sixty-day period, the beer distributor shall begin
10721718 the cure within the sixty-day period and diligently
10731719 pursue the cure as promptly as feasible,
1074-
1075-c.
1076-
1077-b. the beer distributor fai ls to cure such noncompliance
1720+c. b. the beer distributor fai ls to cure such noncompliance
10781721 within the allotted cure period, and
1079-
1080-d.
1081-
1082-c. the brewer provides written notice by certified mail,
1722+d. c. the brewer provides written notice by certified mail,
10831723 return receipt requested, to the beer distributor of
10841724 such continued noncomp liance. The notification shall
10851725 contain a statement of the intention of the brewer to
10861726 terminate the distributor agreement, the reasons for
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10871753 the termination and the date the termination shall
10881754 take effect.
1089-
10901755 2. If a beer distributor cures an alleged noncomplia nce within
10911756 the cure period provided in subparagraph b a of paragraph 1 of this
10921757 subsection, any notice of termination from a brewer to a beer
10931758 distributor shall be null and void.
1094-
10951759 C. A brewer may immediately terminate a d istributor agreement,
10961760 effective upon furnishing written notification to the beer
10971761 distributor by certified mail, return receipt requested, for any of
10981762 the following reasons:
1099-
11001763 1. The beer distributor’s failure to pay any account when due
11011764 and upon written dema nd by the brewer for such payment, in
11021765 accordance with agreed payment terms;
1103-
11041766 2. The assignment or attempted assignment by the beer
11051767 distributor for the benefi t of creditors, the institution of
11061768 proceedings in bankruptcy by or against the beer distributor, th e
11071769 dissolution or liquidation of the b eer distributor or the insolvency
11081770 of the beer distributor;
1109-
11101771 3. The revocation or suspension of, or the failure to renew for
11111772 a period of more than fourteen (14) days, a beer distributor ’s
11121773 state, local or federal license or permit to sell beer in this
11131774 state;
1114-
11151775 4. The beer distributor h as been convicted of a felony that, in
1116-the brewer’s sole judgment, adversely affects t he goodwill of the ENR. H. B. NO. 1715 Page 26
1776+the brewer’s sole judgment, adversely affects t he goodwill of the
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11171803 beer distributor or brewer ; provided, however, an existing
11181804 stockholder or stockholders, partner or partners, or member or
11191805 members shall have the right to purchase the stock, partnership
11201806 interest, or membership interest of the offending s tockholder,
11211807 partner, or member prior to the conviction of the offending
11221808 stockholder, partner, or member, subject to brewer’s approval, which
11231809 shall not be unreasonably withheld, and if the sale is completed
11241810 prior to conviction, the provisions of this paragraph shall not
11251811 apply;
1126-
11271812 5. A beer distributor has been convicted of, found guilty of or
11281813 pled guilty or nolo contendere to, a charge of violating a law or
11291814 regulation of the United States or of this state if it mater ially
11301815 and adversely affects the a bility of the beer distributor or brewer
11311816 to continue to sell its beer in this state ;
1132-
11331817 6. Any attempted transfer or change in beneficial ownership of
11341818 ownership ten percent (10%) or more of the beer distributor, stoc k
11351819 of the beer distributor or stock of any pare nt corporation of the
11361820 beer distributor, or any change in the beneficial the ownership or
11371821 control of any entity having c ontrol of the beer distributor,
11381822 without obtaining the prior writ ten approval of the brewer, which
11391823 may not be unreasonably withheld, except as may otherwise be
11401824 permitted pursuant to a written agreement betw een the parties;
1141-
11421825 7. Fraudulent conduct, by or on the part of the beer
11431826 distributor or any owner of the beer distributor, or by any employee
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11441853 as to which the beer distributor or any of its owners or its se nior
11451854 management knew or reasonably should have known, in the beer
11461855 distributor's dealings with the brewer of b eer, including the
11471856 intentional sale of beer outside the brewer’s established quality
11481857 standards, provided however, in the case of fraudulent conduct by a
11491858 beer distributor employee other than the owner or senior management
11501859 and only in the event the beer dist ributor was unaware or should not
11511860 have been aware of such fraudulent conduct, the beer distributor
11521861 shall be allowed sixty -day cure period following written notice of
11531862 such conduct from the brewer, and shall only be terminated for
11541863 failing to cure the sam e within sixty (60) days thereof;
1155-
11561864 8. Cessation of the bee r distributor to conduct bu siness for
11571865 five (5) consecutive business days, unless conducting the business
11581866 is prevented or rendered impractical due to events beyond the
11591867 distributor’s reasonable control as a result of an act of God, an
11601868 insured casualty, war o r a condition of national, state or local
1161-emergency; or ENR. H. B. NO. 1715 Page 27
1162-
1869+emergency; or
11631870 9. Any intentional sale of beer, directly or indirectly, to
11641871 customers located outside the territory assigned to the beer
11651872 distributor by the brewe r unless expressly authorized by the brewer.
1166-
11671873 Provided, the
1168-
11691874 D. Any beer distributor terminated by a brewer under subsection
11701875 B of this section shall have the opportunity to sell the brewer’s
11711876 brands brand rights for one hundred twenty (120) days after
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11721903 termination in accordance with the distributor agreement . If no
11731904 such sale occurs, the bre wer’s newly appointed distributor shall pay
11741905 the beer distributor the fair market value of the distribution
11751906 rights, which will be lost or diminished by reason of termination .
11761907 If the parties cannot agree on the fair mark et value, the parties
11771908 shall follow the same pro cedures as set forth in paragraphs 2
11781909 through 6 of subsection G of this se ction.
1179-
11801910 D. E. The brewer shall have the right to terminate an agreement
11811911 with a beer distributor at any time by giving the beer distributor
11821912 at least ninety-days’ written notice by certified mail, return
11831913 receipt requested; provided, the brewer shall give a s imilar notice
11841914 to all other beer distributors in all other states who have entered
11851915 into the same with which the brewer has a distributor agreement with
11861916 the brewer.
1187-
11881917 E. F. 1. If a particular brand of beer is transferred by
11891918 purchase or otherwise from a brewer to a successor brewer, the
11901919 following shall occur:
1191-
11921920 1. The the successor brewer sha ll become obligated to all of
11931921 the terms and conditio ns of the agreement in effect on the date of
11941922 succession. This subsection applies regardless of the cha racter or
11951923 form of the succession. A successor brewer has the right to
11961924 contractually require its beer distributor to comply with
11971925 operational standards of performance, if the standards are uniformly
11981926 established for all of the success or brewer’s distributors.
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11991953 Provided, however, where the successor brewer holds a brewer’s
12001954 license in the state as of January 1, 20 23, and has an existing
12011955 distribution agreement with a beer distributor, the successor brewer
12021956 may terminate the distribution agreement, in whole o r in part, in
12031957 order to transfer the brand rights to the successor brewer’s beer
12041958 distributor with at least sixty (60) days’ written notice to the
12051959 terminated distributor and with termination effective upon p ayment
1206-to the terminated beer distributor the fair market value of the ENR. H. B. NO. 1715 Page 28
1960+to the terminated beer distributor the fair market value of the
12071961 terminated beer distributor’s business with respect to the
12081962 terminated brand or brands .
1209-
12101963 2. A successor brewer may, upon written notice, terminat e its
12111964 agreement, in whole or in part, with a beer distributor of the
12121965 brewer it succeeded, for the purpose of transferring the
12131966 distribution rights in the beer distributor ’s territory to a new
12141967 beer distributor, provided that the successor beer distributor fi rst
12151968 pays to the existing beer distributor the fair market value of the
12161969 existing distributor’s business with respect to the terminated brand
12171970 or brands;
1218-
12191971 2. 3. If the successor brew er decides to terminate its
12201972 agreement with the existing beer distributor for pur poses of
12211973 transfer, the successor brewer shall notify the existing beer
12221974 distributor in writing of the successor brewer’s intent not to
12231975 appoint the existing beer distributor for all or part of the
12241976 existing beer distributor’s territory. The successor brewer shall
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12252003 mail the notice of termination by certified mail, return receipt
12262004 requested, to the existing beer distributor. The successor brewer
12272005 shall include in the notice the names, addresses and telephone
12282006 numbers of the successor beer distributor or distributo rs;
1229-
12302007 3.
1231-
12322008 4. a. the successor beer distributor shall negot iate with
12332009 the existing beer distributor to determine the fair
12342010 market value of the existing beer distributor ’s right
12352011 to distribute in the existing beer distributor’s
12362012 territory. The successor beer distribu tor and the
12372013 existing beer distributor shall negotiat e the fair
12382014 market value in good faith, and
1239-
12402015 b. the existing beer distributor shall continue to
12412016 distribute in good faith until payment of the
12422017 compensation agreed to under subparagraph a of this
12432018 paragraph, or awarded under paragraph 4 of this
12442019 subsection, is received; and
1245-
12462020 4.
1247-
12482021 5. a. if the successor beer distributor and the existing
12492022 beer distributor fail to reach a written agreement on
12502023 the fair market value within thirty (30) days after
1251-the existing beer distributo r receives the notice ENR. H. B. NO. 1715 Page 29
2024+the existing beer distributo r receives the notice
12522025 required pursuant to paragraph 2 of this subsection,
12532026 the successor beer distributor or the existing beer
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12542053 distributor shall send a written notice to the ot her
12552054 party requesting arbitration pursuant to the Uniform
12562055 Arbitration Act, Part 2 of Article 22 of Title 13,
12572056 C.R.S. Arbitration shall be held for the purpose of
12582057 determining the fair market value of the existing beer
12592058 distributor’s right to distribute in the existing beer
12602059 distributor territory,
1261-
12622060 b. notice of intent to arbitrate shall be s ent, as
12632061 provided in subparagraph a of this paragraph , not
12642062 later than forty (40) days after the existing beer
12652063 distributor receives the notice required pursuant to
12662064 paragraph 2 of this subsection. The arbitration
12672065 proceeding shall conclude not later than sixt y (60)
12682066 days after the date the notice of intent to a rbitrate
12692067 is mailed to a party, unless this time is extended by
12702068 mutual agreement of the parties and the arbitrator,
1271-
12722069 c. any arbitration held pursuant to this subsection shall
12732070 be conducted in a city within t his state that:
1274-
12752071 (1) is closest to the existing beer distributor, and
1276-
12772072 (2) has a population of more than twenty thousand
12782073 (20,000) people,
1279-
12802074 d. any arbitration held pursuant to this paragraph shall
12812075 be conducted before one impartial arbitrator to be
12822076 selected by the American Arbitration Association or
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12832103 its successor. The arbitration shall be conducted in
12842104 accordance with the rules and procedures of the
12852105 Uniform Arbitration Act, Part 2 of Article 22 of Title
12862106 13, C.R.S.,
1287-
12882107 e. an arbitrator’s award in any arbitration hel d pursuant
12892108 to this paragraph shall be monetary only and shall not
12902109 enjoin or compel conduct. Any arbitration held
12912110 pursuant to this paragraph shall be in lieu of all
12922111 other remedies and procedures,
1293-
12942112 f. the cost of the arbitrator and any other direct costs
12952113 of an arbitration held pursuant to this paragraph
1296-shall be equally divided by the parties engaged in the ENR. H. B. NO. 1715 Page 30
2114+shall be equally divided by the parties engaged in the
12972115 arbitration. All other costs shall be paid by the
12982116 party incurring them,
1299-
13002117 g. the arbitrator in any arbitration held pursuant to
13012118 this paragraph shall render a written decision not
13022119 later than thirty (30) days after the conclusion of
13032120 the arbitration, unless this time is extended by
13042121 mutual agreement of the parties and the arbitrator.
13052122 The decision of the arbitrator is final and binding on
13062123 the parties. The arbit rator’s award may be enforced
13072124 by commencing a civil action in any court of competent
13082125 jurisdiction. Under no circumstances may the parties
13092126 appeal the decision of the arbitrator ,
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13112153 h. an existing beer distributor or successor beer
13122154 distributor who fails to par ticipate in the
13132155 arbitration hearings in any arbitrat ion held pursuant
13142156 to this paragraph waives all rights the existing beer
13152157 distributor or successor beer distributor would have
13162158 had in the arbitration and is considered to have
13172159 consented to the determination of the arbitrator, and
1318-
13192160 i. if the existing beer dist ributor does not receive
13202161 payment from the successor beer distributor of the
13212162 settlement or arbitration award required under
13222163 paragraph 2 or 3 of this subsection within thirty (30)
13232164 days after the date of the settlement or arbitration
13242165 award:
1325-
13262166 (1) the existing beer distributor shall remain the
13272167 beer distributor in the existing beer
13282168 distributor’s territory to at least the same
13292169 extent that the existing beer distributor
13302170 distributed the beer immediately before the
13312171 successor brewer acquired rights to the brand,
13322172 and
1333-
13342173 (2) the existing beer distributor is not entitled to
13352174 the settlement or arbitration award.
1336-
13372175 F. G. 1. In addition to termination rights that may be set
13382176 forth in a distributor agreement, a small brewer who manufactures
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13392203 less than twenty-five thousand barrels of bee r annually may
13402204 terminate a distributor agreement with any beer distributor;
1341-provided, that, prior to the effective date o f the termination, the ENR. H. B. NO. 1715 Page 31
2205+provided, that, prior to the effective date o f the termination, the
13422206 small brewer pays the beer distributor the fair market va lue of the
13432207 distribution rights which will be lost or dim inished by reason of
13442208 the termination.
1345-
13462209 2. If such small brewer and beer distributor cannot mutually
13472210 agree to the fair ma rket value of the applicable distribution rights
13482211 lost or diminished by reason of the termination, then the brewer
13492212 shall pay the beer dis tributor a good faith estimate of the fair
13502213 market value of the applicable distribution rights.
1351-
13522214 3. If the beer distribut or being terminated under paragraph 2
13532215 of this subsection disputes that the payme nt made by the small
13542216 brewer was less than the fair marke t value of the distribution
13552217 rights, then the beer distributor may within forty-five (45) days of
13562218 termination submit the question of fair market value of the
13572219 applicable distribution rights lost or dimi nished by reason of the
13582220 termination to binding arbitrati on before a panel of three neutral
13592221 arbitrators appointed in accordance with the commercial arbitration
13602222 rules of the American Arbitration Association, which panel shall
13612223 determine by majority decision w hether the small brewer’s payment
13622224 meets the requirements of paragraph 2 of this subsection.
1363-
13642225 4. If the arbitration panel rules that the payment made by the
13652226 small brewer to the beer distributor upon termination was less than
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13662253 the fair market value of distrib ution rights lost or diminished by
13672254 reason of the termina tion, then the small brewer must pay the beer
13682255 distributor the difference between the payment made to the beer
13692256 distributor and the determined fair market value plus interest.
1370-
13712257 5. If the arbitration pan el rules that the payment made by the
13722258 small brewer to the beer distributor upon termination was more than
13732259 the fair market value of distribution rights lost or diminished by
13742260 reason of the termination, then the beer distributor must pay the
13752261 small brewer the difference between the payment made to the beer
13762262 distributor and the determined fair market value, plus interest.
1377-
13782263 6. All arbitration fees and expenses shall be equally divided
13792264 among the parties to the arbitration, except if the arbitration
13802265 panel determines that the small brewer’s payment upon termination
13812266 was not a good-faith estimate of the fair market value, then the
13822267 panel may award up to one hundred percent (100%) of the arbit ration
13832268 costs to the small brewer prevailing party.
1384-
13852269 G. H. 1. Any beer distribut or or brewer who is aggrieved by a
1386-violation of any provision of subsections B and D of this section ENR. H. B. NO. 1715 Page 32
2270+violation of any provision of subsections B and D of this section
13872271 shall be entitled to the recovery of damages caused by the
13882272 violation. If a beer distributor is not terminated in accordance
13892273 with the provisions of this se ction, damages may additionally
13902274 include the fair market value of the distribution rights. Except
13912275 for a dispute arising under subsectio n E of this section, damages
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13922302 Damages shall be sought in a civil action in any court of competent
13932303 jurisdiction.
1394-
13952304 2. Any dispute arising under subsections B and D of this
13962305 section may also be settled by such dispute resolution procedures as
13972306 may be provided by a written agreement between the parties.
1398-
13992307 H. I. Nothing in this section shall be construed to limit or
14002308 prohibit good-faith settlements voluntarily entered into by the
14012309 parties.
1402-
1403-I. Nothing J. Except as otherwise provided herein, nothing in
1404-this section shall be construed to give a beer distributor any right
1405-to compensation if an agreement with the beer distributor is
1406-terminated by a brewer pursuant to subsections B, C and D of this
1407-section.
1408-
2310+I. Nothing
2311+J. Except as otherwise provided herein, nothing in this section
2312+shall be construed to give a beer distributor any right to
2313+compensation if an agreement with the beer distributor is term inated
2314+by a brewer pursuant to subsections B, C and D of this section.
14092315 J. K. No brewer shall require any beer distributor to waive
14102316 compliance with any provision of the Oklahoma Alcoholic Beverage
14112317 Control Act and any provisions of the Oklahoma Alcoholic Beverage
14122318 Control Act shall supersede any provisions of a dis tributor
14132319 agreement in conflict in this section.
1414-
14152320 K. L. No brewer shall charge or accept, and no beer distributor
14162321 shall pay or provide, in a material way, any money, property,
14172322 gratuity, rebate, free goods, shipping charges different than those
14182323 charged for all beer distributors, allowances, thing of value or
14192324 other inducement, as defined in Section 3-123 of this title, from a
14202325 beer distributor in exchange for the brewer entering into a
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14212352 distributor agreement with the beer distributor. However, a brewer
14222353 who also holds a beer distributor license and desires to sell all or
14232354 a portion of its beer distribut ion rights and business, or a holder
14242355 of small brewer license who desires to change its election from
14252356 self-distribution to the use of a distributor agreement may acc ept a
14262357 payment for the fair market value of its existing and established
14272358 distribution busines s in the subject territory.
1428-
14292359 L. M. This section shall apply to any agreement entered i nto
1430-and any renewals, extensions, amendments or conduct constituting a ENR. H. B. NO. 1715 Page 33
2360+and any renewals, extensions, amendments or conduct constituting a
14312361 modification of a distributor agreement by a brewer or cider
14322362 manufacturer existing on or after the effective date of this act.
1433-
14342363 M. N. Where a cider manufacturer distributes cider throug h a
14352364 beer distributor, the rights and obligations of the cider
14362365 manufacturer, the distributor, a successor cider manufacturer and a
14372366 successor distributor sh all be the same as the rights and
14382367 obligations provided in this section for a brewer, beer distributor,
14392368 successor brewer and successor beer distributor.
1440-
14412369 SECTION 8. AMENDATORY 37A O.S. 2021, Section 6 -102, as
14422370 amended by Section 1, Chapter 300, O.S.L. 2022 (37A O.S. Supp. 2022,
14432371 Section 6-102), is amended to read as follows:
1444-
14452372 Section 6-102. A. No licensee of the ABLE Commission shall:
1446-
14472373 1. Receive, possess or sell any alcohol ic beverage except as
14482374 authorized by the Oklahoma Alcoholic Beverage Control Act and by th e
14492375 license or permit which the licensee holds;
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14512402 2. Employ any person under eigh teen (18) years of age in the
14522403 selling of beer or wine or employ any person under twenty-one (21)
14532404 years of age in the selling of spirits. Provided:
1454-
14552405 a. a mixed beverage, beer and wine, caterer, public
14562406 event, special event, bottle club, retail wine or
14572407 retail beer licensee may employ servers or sales
14582408 clerks who are at least eighteen (18) years of age,
14592409 except persons under twenty-one (21) years of age may
14602410 not serve in designated bar o r lounge areas, and
1461-
14622411 b. a mixed beverage, beer and wine, caterer, public
14632412 event, special event or bottle club licensee may
14642413 employ or hire musical bands who have musician s who
14652414 are under eighteen (18) years of age if each such
14662415 musician is either accompanied by a parent or legal
14672416 guardian or has on their person, to be made available
14682417 for inspection upon demand by any employee of the ABLE
14692418 Commission or law enforcement officer, a written,
14702419 notarized affidavit from the parent or legal guardian
14712420 giving the underage musi cian permission to perform in
14722421 designated bar or lounge areas;
1473- ENR. H. B. NO. 1715 Page 34
14742422 3. Give any alcoholic beverage as a prize, premium or
14752423 consideration for any lottery, game of chance or s kill or any type
14762424 of competition;
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14782451 4. Use any of the following means or inducements to sti mulate
14792452 the consumption of alcoholic beverages, including but not limited
14802453 to:
1481-
14822454 a. deliver more than two drinks to one person at one
14832455 time, except:
1484-
14852456 (1) as provided for serving tasting flights defined
14862457 in Section 6-102.1 of this title, or
1487-
14882458 (2) up to six (6) bottles or cans of beer in the
14892459 original packaging for on-premises consumption
14902460 may be delivered to one person at one time in a
14912461 reusable container, including but not limited to
14922462 a bucket or insulated cooler which may be cooled
14932463 by ice or another cooling method,
1494-
14952464 b. sell or offer to sell to any person or group of
14962465 persons any drinks at a price that is less than six
14972466 percent (6%) below the markup of the cost to the mixed
14982467 beverage licensee; provided, a mixed beverage licensee
14992468 shall be permitted to offer these drink specials on
15002469 any particular hour of any particular day and shall
15012470 not be required to offer these drink specials for an
15022471 entire calendar week or from open to close, and shall
15032472 not be required to offer such drink specials at all
15042473 venues operating under the same mixed beverage
15052474 license; provided, a mixed beverage licensee selling
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15062501 wine, beer, or cocktails to-go shall be permitted to
15072502 offer these to-go drinks at a different price than on-
15082503 premises drinks,
1509-
15102504 c. sell or offer to sell to an y person an unlimited
15112505 number of drinks during any set period of time for a
15122506 fixed price, except at private functions not open to
15132507 the public,
1514-
15152508 d. sell or offer to sell drinks to any person or group of
15162509 persons on any one day or portion thereof at prices
1517-less than those charged the general public on that ENR. H. B. NO. 1715 Page 35
2510+less than those charged the general public on that
15182511 day, except at private functions not open to the
15192512 public,
1520-
15212513 e. increase the volume of alcoholic beverages contained
15222514 in a drink without increasing proportionately the
15232515 price regularly charged for such drink during the same
15242516 calendar week, or
1525-
15262517 f. encourage or permit, on the licensed premises, any
15272518 game or contest which invo lves drinking or the
15282519 awarding of drinks as prizes.
1529-
15302520 Provided, that the provisions of this paragraph shall not
15312521 prohibit the advertising or offering o f food, entertainment or
15322522 bottle service in li censed establishments;
1533-
15342523 5. Permit or allow any patron or person to exit the licensed
15352524 premises with an open container of any alcoholic beverage.
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15362551 Provided, this prohibition shall not be applicable to closed
15372552 original containers of alcoholic beverages which a re carried from
15382553 the licensed premises of a bottle club by a patr on, closed original
15392554 wine containers removed from the premises of restaurants, hotels and
15402555 motels, or to closed original containers of alcoholic bev erages
15412556 transported to and from the place of bu siness of a licensed caterer
15422557 by the caterer or an employee of th e caterer;
1543-
15442558 6. Serve or sell alcoholic beverages with an expired license
15452559 issued by the ABLE Commission;
1546-
15472560 7. Permit any person to be drunk or int oxicated on the
15482561 licensee’s licensed premises; or
1549-
15502562 8. Permit or allow any patron to serve or pour himself or
15512563 herself any alcoholic beverage, except a licensee may offer a patron
15522564 self-pour service of beer or wine, or both, from automated devices
15532565 on licensed premises so long as:
1554-
15552566 a. the licensee monitors an d has the ability to control
15562567 the dispensing of such beer or wine , or both, from the
15572568 automated devices. “Automated device” shall mean any
15582569 mechanized device capable of dispensing wine or beer,
15592570 or both, directly to a patron in exchange for
15602571 compensation that a licensee has received directly
15612572 from the patron, and
1562- ENR. H. B. NO. 1715 Page 36
15632573 b. each licensee offering a patron self-pour service of
15642574 wine or beer, or both, from any automated device shall
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15652601 provide constant video monitoring of the automated
15662602 device at all times during which the lic ensee is open
15672603 to the public. The licensee shall keep recorded
15682604 footage from the video monitoring for at least sixty
15692605 (60) days, and shall provide the footage, upon
15702606 request, to any agent of the Director of t he ABLE
15712607 Commission or other authorized law enforcem ent agent.
1572-
15732608 B. 1. The compensation required by subparagraph a o f paragraph
15742609 8 of subsection A of this section shall be in the form of a radio
15752610 frequency identification (RFID) device, mobile application or any
15762611 other technology approved by the ABLE Commission containing a fixed
15772612 amount of volume of thirty-two (32) ounces for beer and ten (10)
15782613 ounces for wine that may be directly exchanged for beer or wine
15792614 dispensed from the automated device:
1580-
15812615 a. RFID devices may be assigned, used or reactivated only
15822616 during a business day,
1583-
15842617 b. each RFID device shall be obtained from the licens ee
15852618 by a patron,
1586-
15872619 c. a licensee shall not issue more than one active RFID
15882620 device to a patron, and
1589-
15902621 d. an RFID device shall be deemed active if the RFID
15912622 device contains volume credit or has not ye t been used
15922623 to dispense ten (10) ounces of wine or thirty -two (32)
15932624 ounces of beer.
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15942650
15952651 2. In order to obtain an RFID device from a licensee, each
15962652 patron shall produce a valid driver license, identificat ion card or
15972653 other government-issued document that contain s a photograph of the
15982654 individual and demonstrates that the indiv idual is at least twenty-
15992655 one (21) years of age. Each RFID device shall be programmed to
16002656 require the production of the patron’s valid identification before
16012657 the RFID device can be used for the first time during any business
16022658 day or for any subsequent reactiv ation.
1603-
16042659 3. Each RFID device shall become inactive at the end of each
16052660 business day.
1606- ENR. H. B. NO. 1715 Page 37
16072661 4. Each RFID device shall be programmed to allow the dispensing
16082662 of no more than ten (10) ounces of wine or t hirty-two (32) ounces of
16092663 beer to a patron:
1610-
16112664 a. once an RFID device has been used to dispense ten (10)
16122665 ounces of wine or thirty-two (32) ounces of beer to a
16132666 patron, the RFID device shall become inac tive, and
1614-
16152667 b. any patron in possession of an inactive RFID de vice
16162668 may, upon production of the patron’s valid
16172669 identification to the licensee or licensee’s employee,
16182670 have the RFID device reactivated to allow the
16192671 dispensing of an additional ten (10) ounces of wine or
16202672 thirty-two (32) ounces of beer from an automated
16212673 device.
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16232700 Paragraphs 1, 2, 3 and 4 of this subsection shall not apply to wine
16242701 or beer that is dispensed directly to the licensee or the licensee’s
16252702 agent or employee.
1626-
16272703 C. A mixed beverage or beer and wine licensee shall not be
16282704 deemed to have violated the provisi ons of paragraph 5 of subsection
16292705 A of this section if it allowed a patron to leave the licensed
16302706 premises with an open container of beer or wine only and:
1631-
16322707 1. The otherwise prohibited act was committed during the hours
16332708 of 8 a.m. to midnight on the day of a scheduled home football game
16342709 of institutions within The Oklahoma State System of Higher
16352710 Education, and the establishment is located within two thousand
16362711 (2,000) feet of the institution;
1637-
16382712 2. The licensee is participating by invitation in a municipally
16392713 sanctioned art, music or sporting event within city limits when the
16402714 municipality has provided written notice of the event and a list of
16412715 invited licensees to the ABLE Commission at least five (5) days
16422716 prior to the event; or
1643-
16442717 3. The patron remains on the connected , physical property of
16452718 the licensee or in a public area adjacent to the physical property
16462719 of the licensee with prior municipal approval; provided, that
16472720 written notice of the use of the connected, physical property of the
16482721 licensee or public area shall be pr ovided to the ABLE Commission at
16492722 least five (5) days prior to suc h use.
1650- ENR. H. B. NO. 1715 Page 38
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16512749 SECTION 9. REPEALER 37A O.S. 2021, Section 2-102, as
16522750 amended by Section 1, Chapter 226, O.S.L. 2019, is hereby repealed.
1653-
16542751 SECTION 10. It being immediately necessary for the preservation
16552752 of the public peace, health or safety, an emergency is hereby
16562753 declared to exist, by reason whereof this act shall take effect and
16572754 be in full force from and after its passage and approval.
16582755
1659-
1660-
1661- ENR. H. B. NO. 1715 Page 39
1662-Passed the House of Representatives the 25th day of May, 2023.
1663-
1664-
1665-
1666-
1667- Presiding Officer of the House
1668- of Representatives
1669-
1670-
1671-Passed the Senate the 25th day of May, 2023.
1672-
1673-
1674-
1675- Presiding Officer of the Senate
1676-
1677-
1678-OFFICE OF THE GOVERNOR
1679-Received by the Office of the Governor this ____________________
1680-day of ___________________, 20_______, at _______ o'clock _______ M.
1681-By: _________________________________
1682-Approved by the Governo r of the State of Oklahoma this _________
1683-day of ___________________, 20_______, at _______ o'clock _______ M.
1684-
1685-
1686- _________________________________
1687- Governor of the State of Oklahoma
1688-
1689-OFFICE OF THE SECRETARY OF STATE
1690-Received by the Office of the Secretary of State this __________
1691-day of ___________________, 20_______, at _______ o'clock _______ M.
1692-By: _________________________________
2756+59-1-8408 JL 05/23/23
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