An Act
ENROLLED HOUSE
BILL NO. 1715 By: Marti of the House
and
Coleman and Bergstrom of
the Senate
An Act relating to alco holic beverages; authorizing
the ABLE Commission to permit certain license holders
to host off-site events following app lication;
providing details of application; allowing Commission
to assess fee; updating statutory language and
reference; amending 37A O .S. 2021, Section 1-103,
which relates to definitions for the Oklahoma
Alcoholic Beverage Control Act; modifying the
definition of beer; defining seltzer; updating
statutory reference; amending 37A O.S. 2021, Section
2-101, which relates to license fees; modifying fees
for certain license holders based on production;
amending 37A O.S. 2021, Section 2 -102, as amended by
Section 1, Chapter 396, O.S.L. 2021, which relate to
brewer licenses; requiring licensees to sell only the
products covered by licenses; providing for off -site
events; amending 37A O.S. 2021, Section 2-103, which
relates to a distiller license; modi fying where a
distiller may sell spirits produced by the license
holder; providing that consumers after final sale may
add non-alcoholic substances to the spirits;
providing that non-alcoholic substances are not part
of the distilling process; amending 37A O.S. 2021,
Section 2-131, which relates to small farm winery
licenses; allowing certain purchases by small farm
winery license holders; amending 37A O.S. 2021,
Section 3-111, which relates to termination of
distribution agreement; allowing certain individ uals
to purchase interest under certain conditions;
expanding and clarifying when a brewer may
immediately terminate a dist ributor agreement;
providing for compensation for when a brewer
terminates a distribution agreement and the brewer ENR. H. B. NO. 1715 Page 2
obtains a new distributor; providing that
reimbursement of arbitration costs shall be award ed
to the prevailing part; providing that if a
distributor improperly terminated the damages may
include the fair market value of the distribution
rights; requiring agreements to be n ull and void in
violation of certain provisions; updating statutory
reference; amending 37A O.S. 2021, Section 6 -102, as
amended by Section 1, Chapter 300, O.S.L. 2022 (37A
O.S. Supp. 2022, Section 6-102), which relates to
licensee prohibited acts; allowin g the delivery of up
to six bottles or cans of beer at a time for on -
premises consumption; repealing 37A O.S. 2021,
Section 2-102, as amended by Section 1, Chapter 226,
O.S.L. 2019, which relates to brewer license;
providing for codification; and declaring an
emergency.
SUBJECT: Alcoholic beverages
BE IT ENACTED BY THE PEOPLE O F THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2-162 of Title 37A, unless there
is created a duplication in numbering, reads as follows:
A. A brewer, small brewer, or small farm winery licensee shall
be authorized to host an off -site event following the submission and
approval of an application to the ABLE Commission. The lic ensee
shall only be authorized to sell for consumption at the off -site
event alcoholic beverages authorized for sale under the licensee’s
respective license. The licensee shall be limited to hosting four
(4) off-site events per year.
B. The application shall include, but not be limited to, the
location of the off-site event with a designated area within the
location designed to provide an exclusive space whi ch may be limited
to the public and a designated poin t of access for a patron or
patrons specifically granted access to ensure that persons present
in the designated area are above twenty -one (21) years of age. The
Commission may prescribe a filing fee fo r each off-site event
application not to exceed Twent y-five Dollars ($25.00). ENR. H. B. NO. 1715 Page 3
C. The ABLE Commission shall promulgate rules necessary for the
implementation of this section.
SECTION 2. AMENDATORY 37A O.S. 2021, Section 1-103, is
amended to read as follows:
Section 1-103. As used in the Oklahoma Alcoholic Beverage
Control Act:
1. “ABLE Commission” or “Commission” means the Alcoholic
Beverage Laws Enforcement Commission;
2. “Alcohol” means and includes hydrated oxide of ethyl, ethyl
alcohol, ethanol or spirits of wine, f rom whatever source or by
whatever process produc ed. It does not include wood alcohol or
alcohol which has been denatured or produced as denatured in
accordance with Acts of Congress and regulations promulgated
thereunder;
3. “Alcoholic beverage” means alcohol, spirits, beer and wine
as those terms are defined herein and also includes every liquid or
solid, patented or not, containing alcohol, spirits, wine or beer
and capable of being consumed as a beverage by human beings;
4. “Applicant” means any individual, legal or commercial
business entity, or a ny individual involved in any legal or
commercial business entity allowed to hold any license issued in
accordance with the Oklahoma Alcoholic Beverage Control Act;
5. “Beer” means any beverage containing more than on e-half of
one percent (0.50%) of alcohol by volume and obtained by the
alcoholic fermentation of an infusion or decoction of barley, or
other grain, sugar, malt or similar products. For the purposes of
taxation, distribution, sales, and regulation, seltze r shall mean
the same as beer as prov ided in this section. “Beer” Beer may or
may not contain hops or other vegetable products . “Beer” Beer
includes, among other things, beer, ale, stout, lager beer, porter,
seltzer, and other malt or brewed liquors, but does not include
sake, known as Japanese rice wine;
6. “Beer keg” means any brewer-sealed, single container that
contains not less than four (4) gallons of be er;
ENR. H. B. NO. 1715 Page 4
7. “Beer distributor” means and includes any person licensed to
distribute beer for retail sale in the state, but does not include a
holder of a small brewer self-distribution license or brewpub self-
distribution license. The term “distributor” distributor, as used
in the Oklahoma Alcoholic Beverage Control Act, shall be construed
to refer to a beer distributor;
8. “Bottle club” means any establishment in a county which has
not authorized the retail sale of alcoholic beverages by the
individual drink, which is r equired to be licensed to keep, mix and
serve alcoholic beverages belonging to club members on club
premises;
9. “Bottle service” means the sale and provision of spirits in
their original packages by a mixed be verage licensee to be consumed
in that mixed beverage licensee’s club suite;
10. “Brand” means any word, name, group of letters, symbol or
combination thereof, that is adopted and used by a licensed brewer
to identify a specific beer, wine or spirit and t o distinguish that
product from another beer, wine or spirit;
11. “Brand extension” means:
a. after October 1, 2018, any brand o f beer or cider
introduced by a manufacturer in this state which
either:
(1) incorporates all or a substantial part of the
unique features of a preexisting brand of the
same licensed brewer, or
(2) relies to a significant extent on the goodwill
associated with the preexisting brand, or
b. any brand of beer that a brewer, the majority of whose
total volume of all brands of beer dis tributed in this
state by such brewer on Janu ary 1, 2016, was
distributed as low-point beer, desires to sell,
introduces, begins selling or theretofore has sold and
desires to continue selling a strong beer in this
state which either:
ENR. H. B. NO. 1715 Page 5
(1) incorporates or incorporated all or a substantial
part of the unique features of a preexisting low-
point beer brand of the same licensed brewer, o r
(2) relies or relied to a significant extent on the
goodwill associated with a preexisting low-point
beer brand;
12. “Brewer” means and includes any person who manufactu res for
human consumption by the use of raw materials or other ingredie nts
any beer or cider upon which a license fee and a tax are imposed by
any law of this state;
13. “Brewpub” means a licensed establishment operated on the
premises of, or on premises located contiguous to, a small brewer,
that prepares and serves food an d beverages, including alcoholic
beverages, for on-premises consumption;
14. “Cider” means any alcoholic beverage obtained by the
alcoholic fermentation of frui t juice, including but n ot limited to
flavored, sparkling or carbonated cider. For the purposes of the
manufacture of this product, cider may be manufactured by either
manufacturers or brewers. For the purposes of the distribution of
this product, cider may be distributed by ei ther wine and spirits
wholesalers or beer distributors;
15. “Club suite” means a designated area within the premises of
a mixed beverage licensee designed to provide an exclusive space
which is limited to a patron or patrons specif ically granted access
by a mixed beverage licensee and is not accessible to other patrons
of the mixed beverage licensee or the public. A club suite must
have a clearly designated point of access for a patron or patrons
specifically granted access by the mixed beverage licensee to ensure
that persons present in the suite are limited to patrons
specifically granted access by the mixed beverage licensee and
employees providing services to the club suite;
16. “Convenience store” means any person primarily en gaged in
retailing a limited range of general household items and groceries,
with extended hours of operation, whether or not engaged in retail
sales of automotive fuels in combination with such sales;
17. “Convicted” and “conviction” mean and include a f inding of
guilt resulting from a plea of guilty or nolo contendere, the
decision of a court or magistrate or the verdict of a jury, ENR. H. B. NO. 1715 Page 6
irrespective of the pronouncement of judgment or the suspension
thereof;
18. “Designated products” means the brands of wine or spirits
offered for sale by a manufacturer that the manufacturer has
assigned to a designat ed wholesaler for exclusive distribution;
19. “Designated wholesaler” means a wine and spirits wholesaler
who has been selected by a manufacturer as a wholesale r appointed to
distribute designated products;
20. “Director” means the Director of the ABLE C ommission;
21. “Distiller” means any person who produces spirits from any
source or substance, or any person who brews or makes mash, wort or
wash, fit for distillation or for the prod uction of spirits (except
a person making or using such material in the authorized production
of wine or beer, or the production of vinegar by fermentation), or
any person who by any process separates alcoholic spirits from any
fermented substance, or any person who, making or keeping mash, wort
or wash, has also in his or he r possession or use a still;
22. “Distributor agreement” means the written agreement between
the distributor and brewer as set forth in Section 3 -108 of this
title;
23. “Drug store” means a person primarily engaged in retailing
prescription and nonprescr iption drugs and medicines;
24. “Dual-strength beer” means a brand of beer that,
immediately prior to April 15, 2017, was being sold and distributed
in this state:
a. as a low-point beer pursuant to the Low-Point Beer
Distribution Act in effect immediatel y prior to
October 1, 2018, and
b. as strong beer pursuant to the Alcoholic Beverage
Control Act in effect immediately prior to October 1,
2018,
and continues to be sold and distributed as such on October 1, 2018.
Dual-strength beer does not include a bra nd of beer that arose as a
result of a brand extension as defined in this section;
ENR. H. B. NO. 1715 Page 7
25. “Fair market value” means the value in the subject
territory covered by t he written agreement wit h the distributor or
wholesaler that would be determined in an arm ’s length transaction
entered into without duress or threat of termination of the
distributor’s or wholesaler’s rights and shall include all elements
of value, including goodwill and going -concern value;
26. “Good cause” means:
a. failure by the distributor to comply with the material
and reasonable provisions of a written agreement or
understanding with the brewer, o r
b. failure by the distributor to comply with the duty of
good faith;
27. “Good faith” means the duty of each party to any
distributor agreement and all officers, employees or agents thereof
to act with honesty in fact and within reasonable standards of fair
dealing in the trade;
28. “Grocery store” means a person primarily e ngaged in
retailing a general line of food, such as canned or f rozen foods,
fresh fruits and vegetables, and fresh and prepared meats, fish and
poultry;
29. “Hotel” or “motel” means an establishment which is licensed
to sell alcoholic beverages by the indi vidual drink and which
contains guestroom accommodations with respect to which the
predominant relationship existing between the occupants thereof and
the owner or operator of the establishment is that of innkeeper and
guest. For purposes of this section, the existence of other legal
relationships as between some occupants and the owner or operator
thereof shall be immaterial;
30. “Legal newspaper” means a newspaper meeting the requisites
of a newspaper for publication of legal notices as prescribed in
Sections 101 through 114 of Title 25 of the Oklahoma Statutes;
31. “Licensee” means any person holding a license under the
Oklahoma Alcoholic Beverage Control Act, and any agent, ser vant or
employee of such licensee while in the performance of any act or
duty in connection with the licensed business or on the licensed
premises;
ENR. H. B. NO. 1715 Page 8
32. “Low-point beer” shall mean any beverages containing more
than one-half of one percent (1/2 of 1%) alc ohol by volume, and not
more than three and two -tenths percent (3.2%) alcoho l by weight,
including but not limited to, beer or cereal malt beverages obtained
by the alcoholic fermentation of an infusion by barley or other
grain, malt or similar products;
33. “Manufacturer” means a distiller, winemaker, rectifier or
bottler of any alcoholic beverage (other than beer) and its
subsidiaries, affiliates and parent companies;
34. “Manufacturer’s agent” means a salaried or commissioned
salesperson who is the agent authorized to act on behalf of the
manufacturer or nonresident seller in the state;
35. “Meals” means foods commonly ordered at lunch or dinner and
at least part of which is cooked on the licensed premises and
requires the use of dining implements for consumption. Provided,
that the service of only food such as appetizers, sandwiches, salads
or desserts shall not be considered “meals” meals;
36. “Mini-bar” means a closed container, either refrigerated in
whole or in part, or nonrefrigerated, and access to the interior of
which is:
a. restricted by means of a locking device whic h requires
the use of a key, magnetic card or similar device, or
b. controlled at all times by the licensee;
37. “Mixed beverage cooler” means any beverage, by whatever
name designated, consisting of an alcoholic beverage and fruit or
vegetable juice, fruit or vegetable flavorings, dairy products or
carbonated water containing more than one-half of one percent (1/2
of 1%) of alcohol measured by volume but not more than seven percent
(7%) alcohol by volume at sixty (60) degrees Fahrenheit and which is
packaged in a container not larger than three hundred seventy -five
(375) milliliters. Such term shall include but not be limited to
the beverage popularly known as a “wine cooler”;
38. “Mixed beverages” means one or more servings of a beverage
composed in whole or part of an alcoholic beverage in a sealed or
unsealed container of any legal size for consumption on the premises
where served or sold by the holder of a mixed beverage, beer and ENR. H. B. NO. 1715 Page 9
wine, caterer, public event, charitable event or special event
license;
39. “Motion picture theater” means an establishment which is
licensed by Section 2-110 of this title to sell alcoholic beverages
by the individual drink and where motion pictures are exhibited, and
to which the general public is admitted;
40. “Nondesignated products” means the brands of wine or
spirits offered for sal e by a manufacturer that have not been
assigned to a designated wholesaler;
41. “Nonresident seller” means any person licensed pursuant to
Section 2-135 of this title;
42. “Retail salesperson” means a salesperson soliciting orders
from and calling upon retail alcoholic beverage stores with regard
to his or her product;
43. “Occupation” as used in connection with “occupation tax”
means the sites occupied as the places of business of the
manufacturers, brewers, wholesalers, beer distributors, r etailers,
mixed beverage licensees, on-premises beer and wine licensees,
bottle clubs, caterers, public event and special eve nt licensees;
44. “Original package” means any container of alcohol ic
beverage filled and stamped or sealed by the manufacture r or brewer;
45. “Package store” means any sole proprietor or partnership
that qualifies to sell wine, beer and/or spirits for o ff-premises
consumption and that is not a grocery store, convenienc e store or
drug store, or other retail outlet that is not permitted to sell
wine or beer for off-premises consumption;
46. “Patron” means any person, customer or visitor who is not
employed by a licensee or who is not a licensee;
47. “Person” means an individual, any type of partnership,
corporation, association, limited li ability company or any
individual involved in the legal str ucture of any such business
entity;
48. “Premises” means the grounds and all buildings and
appurtenances pertaining to the grounds including any adjacent
premises if under the direct or indire ct control of the licensee and ENR. H. B. NO. 1715 Page 10
the rooms and equipment under th e control of the licensee and used
in connection with or in furtherance of the business covered by a
license. Provided that the ABLE Commission shall have the authority
to designate areas to b e excluded from the licensed premises solely
for the purpose of:
a. allowing the presence and consumption of alcoholic
beverages by private parties which are closed to the
general public, or
b. allowing the services of a caterer serving alcoholic
beverages provided by a private party.
This exception shall in no way li mit the licensee’s concurrent
responsibility for any violat ions of the Oklahoma Alcoholic Beverage
Control Act occurring on the licensed premises;
49. “Private event” means a social gather ing or event attended
by invited guests who share a common cause, membership, business or
task and have a prior established re lationship. For purposes of
this definition, advertisement for general public at tendance or
sales of tickets to the general publi c shall not constitute a
private event;
50. “Public event” means any event that can be attended by the
general public;
51. “Rectifier” means any person who rectifies, purifies or
refines spirits or wines b y any process (other than by original and
continuous distillation, or original and continuous processing, from
mash, wort, wash or other substance, through continuous closed
vessels and pipes, until the production thereof is complete ), and
any person who, without rectifying, purifying or refining spirits,
shall by mixing (except for immediate consumption on the premises
where mixed) such spirits, wine or other liquor with any m aterial,
manufactures any spurious, imitation or compound liquors for sale,
under the name of whiskey, brandy, rum, gin, wine, spirits, cordials
or any other name;
52. “Regulation” or “rule” means a formal rule of general
application promulgated by the AB LE Commission as herein required;
53. “Restaurant” means an establishment that i s licensed to
sell alcoholic beverages by the individual drink for on-premises ENR. H. B. NO. 1715 Page 11
consumption and where food is prepared and sold for immediate
consumption on the premises;
54. “Retail container for spirits and wines ” means an original
package of any capacit y approved by the United States Bureau of
Alcohol, Tobacco and, Firearms and Explosives;
55. “Retailer” means a package store, grocery store,
convenience store or drug store licensed to sell alcoholic beverages
for off-premises consumption purs uant to a Retail Spirits License,
Retail Wine License or Retail Beer License;
56. “Sale” means any transfer, exchange or barter in any manner
or by any means what soever, and includes and means all sales made by
any person, whether as principal, proprieto r or as an agent, servant
or employee. The term “sale” sale is also declared to be and
include the use or consumption in this state of any alcoholic
beverage obtained within or imported from without this state, upon
which the excise tax levied by the Oklahoma Alcoholic Beverage
Control Act has not been paid or exempted;
57. “Seltzer” means any beverage containing more than one -half
of one percent (0.50%) of alcohol by volume and obtained by the
alcoholic fermentation of malt, rice, grain of any kind, bran,
glucose, sugar, or molasses and combined with carbonated water and
other flavoring and labeled as “beer” by the Internal Revenue Code;
provided, that seltzer shall not include carbonated beverages mixed
with wine or spirits ;
58. “Short-order food” means food other than full meals
including but not limited to s andwiches, soups and salads. Provided
that popcorn, chips and other s imilar snack food shall not be
considered “short-order food” short-order food;
58. 59. “Small brewer” means a brewer who manufactures less
than sixty-five thousand barrels of beer annually pursuant to a
validly issued Small Brewer License hereunder;
59. 60. “Small farm wine” means a wine that is produced by a
small farm winery with seventy-five percent (75%) or more Oklahoma-
grown grapes, berries, other fruits, h oney or vegetables;
60. 61. “Small farm winery” means a wine-making establishment
that does not annually produce for sale more than fifteen thousand
(15,000) gallons of wine as reported on the United States Department ENR. H. B. NO. 1715 Page 12
of the Treasury, Alcohol and Tobacco Tax and Trade Bureau, Report of
Wine Premises Operations (TTB Form 5120.17);
61. 62. “Sparkling wine” means champagne or any artificially
carbonated wine;
62. 63. “Special event” means an entertainment, recreation or
marketing event that occurs at a sing le location on an irregular
basis and at which alcoholic beverages are sold;
63. 64. “Spirits” means any beverage other than wine or beer,
which contains more than one-half of one percent (1/2 of 1%) alcohol
measured by volume, and obtained by distillatio n, whether or not
mixed with other substances in solution and includes those products
known as whiskey, brandy, rum, gin, vodka, liqueurs, cordials and
fortified wines and similar compounds, bu t shall not include any
alcohol liquid completely denatured in accordance with the Acts of
Congress and regulations pursuant thereto;
64. 65. “Strong beer” means beer which, prior to October 1,
2018, was distribute d pursuant to the Oklahoma Alcoholic Beve rage
Control Act, Section 501 1-101 et seq. of Title 37 of the Oklahoma
Statutes this title;
65. 66. “Successor brewer” means a primary source of supply, a
brewer, a cider manufacturer or an importer that acquires r ights to
a beer or cider brand from a predecessor brewer;
66. 67. “Tax Commission” means the Oklahoma Tax Commission;
67. 68. “Territory” means a geographic region with a specified
boundary;
68. 69. “Wine and spirits wholesaler ” or “wine and spirits
distributor” means and includes any sole proprietorship or
partnership licensed to distribute wine and spirits in the state.
The term “wholesaler”, as used in the Oklahoma Alcoholic Beverage
Control Act, shall be construed to refer to a wine and spirits
wholesaler;
69. 70. “Wine” means and includes any beverage containing more
than one-half of one percent (1/2 of 1%) alcohol by volume and not
more than twenty-four percent (24%) alcohol by volume at s ixty (60)
degrees Fahrenheit obtained by the fermentation o f the natural
contents of fruits, vegetables, honey, milk or other products ENR. H. B. NO. 1715 Page 13
containing sugar, whether or not other ingredients are added, and
includes vermouth and sake, known as Japanese rice wine ;
70. 71. “Winemaker” means and includes any person or
establishment who manufactures for human consumption any wine upon
which a license fee and a tax are imposed by any law of this state;
and
71. 72. “Satellite tasting room” means a licensed establishm ent
operated off the licensed premises of the holder of a s mall farm
winery or winemaker license, which serves wine for on-premises or
off-premises consumption.
Words in the plural include the singular, and vice versa, and
words imparting the masculine gen der include the feminine, as well
as persons and licensees as defined in this section.
SECTION 3. AMENDATORY 37A O.S. 2021, Section 2-101, is
amended to read as follows:
Section 2-101. A. Except as otherwise provided in this
section, the licenses issued by the ABLE Commission, and the annual
fees therefor, shall be as follows:
1. Brewer License................................ .. $1,250.00
2. Small Brewer License.............................. $125.00
3. Distiller License............................... $3,125.00
4. Winemaker License................................ . $625.00
5. Small Farm Winery License.......................... $75.00
6. Rectifier License ............................... $3,125.00
7. Wine and Spirits Wholesaler License............. $3,000.00
8. Beer Distributor License.......................... $750.00
9. The following retail spirits license fees
shall be determined by the latest Federal
Decennial Census:
ENR. H. B. NO. 1715 Page 14
a. Retail Spirits License for cities and
towns from 200 to 2,5 00 population.......... $305.00
b. Retail Spirits License for cities and
towns from 2,501 to 5,000 population ........ $605.00
c. Retail Spirits License for cities and
towns over 5,000 populatio n................. $905.00
10. Retail Wine License............................ $1,000.00
11. Retail Beer License .............................. $500.00
12. Mixed Beverage License......................... $1,005.00
(initial license)
$905.00
(renewal)
13. Mixed Beverage/Catere r Combination License..... $1,250.00
14. On-Premises Beer and Wine License ................ $500.00
(initial license)
$450.00
(renewal)
15. Bottle Club License ............................ $1,000.00
(initial license)
$900.00
(renewal)
16. Caterer License ................................ $1,005.00
(initial license)
$905.00
ENR. H. B. NO. 1715 Page 15
(renewal)
17. Annual Special Event License...................... $55.00
18. Quarterly Special Event License................... $55.00
19. Hotel Beverage License......................... $1,005.00
(initial license)
$905.00
(renewal)
20. Airline/Railroad/Commercial Passenger Vessel Bev erage
License................................ ........ $1,005.00
(initial license)
$905.00
(renewal)
21. Agent License................................ ..... $55.00
22. Employee License ................................ .. $30.00
23. Industrial License................................ $23.00
24. Carrier License ................................ ... $23.00
25. Private Carrier License........................... $23.00
26. Bonded Warehouse License ......................... $190.00
27. Storage License................................ ... $23.00
28. Nonresident Seller License ...................... $750.00
29. Manufacturer License:
a. 50 cases or less sold in Oklahoma in
last calendar year........................... $50.00
ENR. H. B. NO. 1715 Page 16
b. 51 to 500 cases sold in Oklahom a in
last calendar year........................... $75.00
c. 501 cases or more sold in Oklah oma in
last calendar year.......................... $150.00
30. Manufacturer’s Agent License...................... $55.00
31. Sacramental Wine Supplier Lice nse................ $100.00
32. Charitable Auction License......................... $1.00
33. Charitable Alcoholic Bever age License............. $55.00
34. Winemaker Self-Distribution License :
a. produced ten thousand (10,000) gallons
or less in last calendar year............... $350.00
b. produced more than ten thousand
(10,000) gallons but no more than
fifteen thousand (15,000) gallons in
last calendar year.......................... $750.00
35. Annual Public Event License.................... $1,005.00
36. One-Time Public Event License.................... $255.00
37. Small Brewer Self-Distribution License:
a. produced fifteen thousand (15,000)
barrels or less in last calendar year....... $350.00
b. produced more than fifteen thousand
(15,000) barrels in last calendar year...... $750.00
38. Brewpub License................................ $1,005.00
39. Brewpub Self-Distribution License................ $750.00
40. Complimentary Beverage Licens e.................... $75.00
41. Satellite Tasting Room License................... $100.00
ENR. H. B. NO. 1715 Page 17
B. 1. There shall be added to the initial or renewal fees for
a Mixed Beverage License mixed beverage license an administrative
fee, which shall not be deemed to be a license fee, in the amount of
Five Hundred Dollars ($500.00), which shall be paid at the same time
and in the same manner as the license fees prescribed by paragraph
12 of subsection A of this section; provided, this fee shall not be
assessed against service organizations or frater nal beneficiary
societies which are exempt under Section 501(c)(19), (8) or (10) of
the Internal Revenue Code.
2. There shall be added to the fee for a Mixed Beverage/Caterer
Combination License mixed beverage/caterer combination license an
administrative fee, which shall not be deemed to be a license fee,
in the amount of Two Hundred F ifty Dollars ($250.00), which shall be
paid at the same time and in the same manner as the license fee
prescribed by paragraph 13 of s ubsection A of this section.
C. Notwithstanding the provisions of subsection A of this
section:
1. The license fee for a mixed beverage or bottle club license
for those service organizations or fraternal beneficiary societies
which are exempt under Secti on 501(c)(19), (8) or (10) of the
Internal Revenue Code shall be Five Hundred Dollars ($500.00) per
year; and
2. The renewal fee for an airline/railroad/commercial passenger
vessel beverage license held by a railroad described in 49 U.S.C.,
Section 24301, shall be One Hundred Dollars ($100.00 ).
D. An applicant may apply for and receive both an on-premises
beer and wine license and a caterer license.
E. All licenses, except as otherwise provided, shall be valid
for one (1) year from date of issuance unles s revoked or
surrendered. Provided, a ll employee licenses shall be valid for two
(2) years.
F. The holder of a license, issued by the ABLE Commission, for
a bottle club located in a county of this state where the sale of
alcoholic beverages by the indivi dual drink for on-premises
consumption has been authorized, may exchange the bottle club
license for a mixed beverage lice nse or an on-premises beer and wine
license and operate the licensed premises as a mixed beverage
establishment or an on-premises beer and wine establishment subject ENR. H. B. NO. 1715 Page 18
to the provisions of the Oklahoma Alcoholic Beverage Control Act.
There shall be no addit ional fee for such exchange and the mixed
beverage license or on-premises beer and wine license issued shall
expire one (1) year from the date of issuance of the original b ottle
club license.
G. In addition to the applicable licensing fee, the following
surcharge shall be assessed annually on the following licenses:
1. Nonresident Seller License...................... $2,500.00
2. Manufacturer License:
a. 50 cases or less sold in Oklahoma in
last calendar year.......................... $100.00
b. 51 to 500 cases sold in Oklahoma in
last calendar year.......................... $225.00
c. 501 cases or more sold in Oklahoma in
last calendar year.......................... $450.00
3. Wine and Spirits Wholesaler License............. $2,500.00
4. Beer Distributor................................ $1,000.00
5. Retail Spirits License for cities and towns
over 5,000 population.......................... $250.00
6. Retail Spirits Lic ense for cities and towns
from 2,501 to 5,000 population................. $200.00
7. Retail Spirits License for cities and towns
from 200 to 2,500 pop ulation................... $150.00
8. Retail Wine Licens e............................... $250.00
9. Retail Beer License............................... $250.00
10. Mixed Beverage License ............................ $25.00
11. Mixed Beverage/Caterer Combination License........ $25.00
12. Caterer License................................ ... $25.00
ENR. H. B. NO. 1715 Page 19
13. On-Premises Beer and Wine License................. $25.00
14. Annual Public Event License....................... $25.00
15. Small Farm Winery License......................... $25.00
16. Small Brewer License.............................. $35.00
17. Complimentary Beve rage License.................... $25.00
The surcharge shall be paid concurrent with the licensee’s
annual licensing fee and, in addition to Five Dollars ( $5.00) of the
employee license fee, sh all be deposited in the Alcoholic Beverage
Governance Revolving Fund established pur suant to Section 5-128 of
this title.
H. Any license issued by the ABLE Commission under this title
may be relied upon by other licen sees as a valid license, and no
other licensee shall have any obligation to independently determine
the validity of such l icense or be held liable solely as a
consequence of another licensee’s failure to maintain a valid
license.
SECTION 4. AMENDATORY 37A O.S. 2021, Section 2-102, as
amended by Section 1, Chapter 396, O.S.L. 2021, is amended to read
as follows:
Section 2-102. A. A brewer license shall authorize the holder
thereof:
1. To manufacture, bottle, package and store bee r and cider on
the licensed premises; and
2. To sell beer and cider in this state to holders of beer
distributor licenses and to sell beer and cider out of this state to
qualified persons.
B. A small brewer license shall authorize the holder thereof:
1. To manufacture, bottle, package and store beer and cider
produced by the licensee on licensed premises;
2. To sell beer and cider in this state to holders of beer
distributor licenses and retail licenses or to sell beer and cider
out of this state to qualified persons; ENR. H. B. NO. 1715 Page 20
3. To serve free samples of beer and cider produced by the
licensee to visitors twenty-one (21) years of age or older;
4. To sell beer and cider produced by the licensee for either
on-premises or off-premises consumption to consumers on the brewery
premises, or on premises located contiguou s thereto;
5. To sell beer and cider at public events such as attended by
the public including, but not limited to, trade shows or, festivals,
farmers markets, boat shows, RV shows, home and garden shows, fairs,
car shows, swap meets, city events, county events, or state events
for either on-premises or off-premises consumption, regardless of
whether such events are held at premises covered by a license to
sell, serve, or store alcoholic beverages. A small brewer license
holder shall not be required to se cure or control the premises of an
event attended by the public where the small brewer license holder
sells beer or cider;
6. To purchase wine in retail containers from the holder of a
wholesaler license or as specifically provided by law; and
7. To sell, offer for sale and possess wine for on-premises
consumption;
8. To host off-site events pursuant to Section 1 of this act;
and
9. To purchase from licensed brewers, small brewers, and
brewpubs in this state, and to import beer into this state for u se
in manufacturing in accordance with federal laws and regulations .
C. The holder of multiple small brewer licenses may sell beer
and cider produced at up to three breweries for which the lice nsee
has a license, at any other of such three licensed breweries or on
premises located contiguous thereto.
D. Nothing in the Oklahoma Alcoholic Beverage Control Act shall
prohibit the holder of a small brewer license from also holding or
owning an interest in the holder of a brewpub license.
E. For purposes of this section, no visitor may sample more
than a total of twelve (12) fluid ounces of beer and cider per day.
The brewer must restrict the distribution and consumption of beer
and cider samples to an area within the licensed premises designated ENR. H. B. NO. 1715 Page 21
by the brewer as defined in this subsection. A current floor plan
that includes the designated sampling serving area must be on file
with the ABLE Commission. No visitor under twenty-one (21) years of
age shall be permitted to enter this designated sampling serving
area when samples are being distributed or consumed. Accompanied
visitors under twenty-one (21) years of age shall be allowed
anywhere on the premises except for a serving area. Samples of beer
and cider served by a brewery under this section shal l not be
considered a sale of beer and cider within the meaning of Article
XXVIII-A of the Oklahoma Constitution or Section 1-103 of this
title; however, such samples of beer and cider shall be considered
beer and cider removed or withdrawn from the brewery for use or
consumption within the meaning of Section 5-110 of this title for
excise tax determination and reporting requirements. Sales and
sampling may only occur between the hours of 10:00 a.m. and 2:00
a.m. For purposes of this subsection, “serving area” means the area
of the bar where drinks are sold, prepared, and served to paying
customers and shall not include other areas of the brewery where
customers consume purchased products.
F. A small brewer self-distribution license shall authorize
holders of a small brewer license to distribute beer and cider
produced only by such licensee to a holder of a retail beer license,
retail spirits license, mixed beverage license, beer and wine
license, caterer’s license, special event license, public event
license, charitable auction license or brewpub license. A small
brewer shall elect whether it will distribute through a distributor
or self-distribute in a subject territory; however, a small brewer
may not elect to do both simultaneously in a subject territory. The
election shall be made through notice to the ABLE Commission. Any
changes to the election shall require immediate notification to the
ABLE Commission before the change in election will take effect. A
small brewer that elects to self-distribute in multiple t erritories
shall only be required to have one small brewer self-distribution
license.
G. All manufacturer’s licenses held by brewers during the first
calendar year beginning October 1, 2018, shall aut omatically convert
to brewer licenses and be deemed eff ective as of the date of the
first issuance of the manufacturer’s license. Upon the first
renewal of the license, the brewer will need to obtain the
appropriate brewer’s license. If a brewer elects t o market wine and
spirits, the brewer will also be requ ired to obtain a manufacturer’s
license and comply with the rules and regulations for both licenses.
ENR. H. B. NO. 1715 Page 22
SECTION 5. AMENDATORY 37A O.S. 2021, Section 2 -103, is
amended to read as follows:
Section 2-103. A. A distiller license shall authorize the
holder thereof:
1. To manufacture, bottle, package and sto re spirits on
licensed premises;
2. To sell spirits in this state to licensed wholesalers and
manufacturers only;
3. To sell spirits out of this state to qualified persons; to
purchase from licensed distillers and rectifiers in this state, and
import spirits from without this state for manufacturing purposes in
accordance with federal laws and regulations;
4. To serve free samples of spirits produced only by the
licensee to visitors twenty-one (21) years of age and older. For
purposes of this section, n o visitor may sample more than a total of
three (3) fluid ounces of spirits per day. The distiller shall
restrict the distribution and consumption of spirits samples to an
area within the licensed premises designated by the distiller. A
current floor plan that includes the designated sampling area shall
be on file with the ABLE Commission. No visitor under t wenty-one
(21) years of age shall be permitted to enter the designated
sampling area when samples are being distributed and consumed.
Samples of spirits served by a distiller under this section shall
not be considered a sale of spirits within the meaning of Article
XXVIII-A of the Oklahoma Constitution or Section 1-103 of this
title; provided, such samples of spirits shall be considered removed
or withdrawn from the distillery for use or consumption within the
meaning of Section 5-110 of this title for exc ise tax determination
and reporting requirements;
5. To sell spirits produced by the licensee for either on-
premises or off-premises consumption to consumers on the licensed
distillery premises or in an area controlled by the licensee located
contiguous to the licensed distillery premises and at one (1)
location controlled by the licensee located in the same county as
the licensed distillery premises but not contiguous to the licensed
distillery premises. Product Spirits offered for sale by the
Oklahoma licensed distiller will have been sold to and shipped to an
Oklahoma licensed wine and spirits wholesaler and then made ENR. H. B. NO. 1715 Page 23
available for purchase by the Oklahoma licensed distiller for sale;
and
6. To sell spirits at public events such as trade show s or
festivals. Products offered for sale by the Oklahoma licensed
distiller will have been sold to and shipped to an Oklahoma licensed
wine and spirits wholesaler and then made available for purchase by
the Oklahoma licensed distiller.
B. Spirits sold pursuant to paragraphs 5 and 6 of subsection A
of this section shall no t exceed fifteen thousand (15,000) gallons
per calendar year in combination.
C. Spirits sold pursuant to paragraphs 5 and 6 of subsection A
of this section shall be a final sale. Licensed distillers may
offer for sale non-alcoholic substances which may be added to
spirits by the consumer after final sale. Substances used for on-
premises consumption shall be non-alcoholic in nature and shall not
be considered part of the manufacturing process.
SECTION 6. AMENDATORY 37A O.S. 2021, Section 2-131, is
amended to read as follows:
Section 2-131. A. A small farm winery license shall authorize
the holder thereof:
1. To manufacture and bottle win es produced by that small farm
winery;
2. To bottle and sell wines produced by another small farm
winery. In order for a small farm winery to bottle and sell another
small farm winery’s products, both the selling winery and the buying
winery shall be small farm winery permit holders;
3. To establish satellit e tasting rooms as defined and
authorized in this act the Oklahoma Alcoholic Beverage Control Act,
where:
a. the winemaker’s products may be tasted, sampled, sold,
and served for on-premises consumption and the
winemaker is permitted to sell its prod ucts in sealed
containers; provided, the small farm winery license is
active and in good standing, or
ENR. H. B. NO. 1715 Page 24
b. beer purchased by the lic ensed small farm winery may
be sold for on-premises consumption .
The wine sold at a satellite tasting room must have been
produced/manufactured by the holder of a small farm winery lice nse
and must have all manufacturing taxes paid. The beer sold at a
satellite tasting room shall be purchased pursuant to paragraph 6 of
this subsection; and
4. The small farm winery licensee shall have the same authority
as the winemaker licensee;
5. To host off-site events pursuant to Section 1 of this act;
and
6. To purchase beer in retail containers from the holder of a
wholesaler, beer distributor, small brewer self -distributor or
brewpub self-distributor license or as specifically provided by law
and to sell, offer for sale and possess be er for on-premises
consumption.
B. A small farm wine may display the trademarked “Oklahoma
Grown” sticker available from the Oklahoma Grape Industry Council.
SECTION 7. AMENDATORY 37A O. S. 2021, Section 3-111, is
amended to read as follows:
Section 3-111. A. Except as provided in subsection F G of this
section, a small brewer is not subject to the termination provisions
of this section.
B. 1. Except as prov ided in subsections C, D and E subsection
C of this section, no brewer shall termi nate a distributor agreement
with any beer distributor without establishing good c ause for such
termination and unless all of the follow ing occur:
a. the brewer establishes g ood cause for such
termination,
b. the beer distributor receives written notificat ion by
certified mail, return receipt requested, from the
brewer of the alleged no ncompliance and is afforded no
less than sixty (60) days in which to cure such
noncompliance. If not capable of being cured within
the sixty-day period, the beer distributor shall begin ENR. H. B. NO. 1715 Page 25
the cure within the sixty-day period and diligently
pursue the cure as promptly as feasible,
c.
b. the beer distributor fai ls to cure such noncompliance
within the allotted cure period, and
d.
c. the brewer provides written notice by certified mail,
return receipt requested, to the beer distributor of
such continued noncomp liance. The notification shall
contain a statement of the intention of the brewer to
terminate the distributor agreement, the reasons for
the termination and the date the terminati on shall
take effect.
2. If a beer distributor cures an alleged noncomplia nce within
the cure period provided in subparagraph b a of paragraph 1 of this
subsection, any notice of termination from a brewer to a beer
distributor shall be null and void.
C. A brewer may immediately terminate a distributor agreement,
effective upon furnishing written notification to the beer
distributor by certified mail, return receipt requested, for any of
the following reasons:
1. The beer distributor’s failure to pay any account when due
and upon written demand by the brewer for such payment, in
accordance with agreed payment terms;
2. The assignment or attempted assignment by the beer
distributor for the benefi t of creditors, the institution of
proceedings in bankrup tcy by or against the beer distributor, the
dissolution or liquidation of the b eer distributor or the insolvency
of the beer distributor;
3. The revocation or suspension of, or the failure to renew for
a period of more than fourteen (14) days, a beer distributor’s
state, local or federal license or permit to sell beer in this
state;
4. The beer distributor h as been convicted of a felony that, in
the brewer’s sole judgment, adversely affects t he goodwill of the ENR. H. B. NO. 1715 Page 26
beer distributor or brewer ; provided, however, an existing
stockholder or stockholders, partner or partners, or member or
members shall have the right to purchase the stock, partnership
interest, or membership interest of the offending s tockholder,
partner, or member prior to the conviction of the offending
stockholder, partner, or member, subject to brewer’s approval, which
shall not be unreasonably withheld, and if the sale is completed
prior to conviction, the provisions of this paragraph shall not
apply;
5. A beer distributor has been convicte d of, found guilty of or
pled guilty or nolo contendere to, a charge of violating a law or
regulation of the United States or of this state if it mater ially
and adversely affects the a bility of the beer distributor or brewer
to continue to sell its beer in this state;
6. Any attempted transfer or change in beneficial ownership of
ownership ten percent (10%) or more of the beer distributor, stoc k
of the beer distributor or stock of any pare nt corporation of the
beer distributor, or any change in the beneficial the ownership or
control of any entity having c ontrol of the beer distributor,
without obtaining the prior writ ten approval of the brewer, which
may not be unreasonably withheld, except as may otherwise be
permitted pursuant to a written agreement be tween the parties;
7. Fraudulent conduct, by or on the part of the beer
distributor or any owner of the beer distributor, or by any employee
as to which the beer distributor or any of its owners or its se nior
management knew or reasonably should have known, in the beer
distributor's dealings with the brewer of beer, including the
intentional sale of beer outside the brewer’s established quality
standards, provided however, in the case of fraudulent conduct by a
beer distributor employee other than the own er or senior management
and only in the event the beer distributor was unaware or should not
have been aware of such fraudulent conduct, the beer distributor
shall be allowed sixty -day cure period following written notice of
such conduct from the brewer, and shall only be terminated for
failing to cure the sam e within sixty (60) days thereof;
8. Cessation of the bee r distributor to conduct bu siness for
five (5) consecutive business days, unless conducting the business
is prevented or rendered impractical due to events beyond the
distributor’s reasonable control as a result of an act of God, an
insured casualty, war o r a condition of national, state or local
emergency; or ENR. H. B. NO. 1715 Page 27
9. Any intentional sale of beer, directly or indirectly, to
customers located outside the territory assigned to the beer
distributor by the brewer unless expressly authorized by the brewer.
Provided, the
D. Any beer distributor terminated by a brewer under subsection
B of this section shall have the opportunity to sell the brewer’s
brands brand rights for one hundred twenty (120) days after
termination in accordance with the distributor agreement . If no
such sale occurs, the bre wer’s newly appointed distributor shall pay
the beer distributor the fair market value of the distribution
rights, which will be lost or diminished by reason of termination .
If the parties cannot agree on the fair mark et value, the parties
shall follow the same pro cedures as set forth in paragraphs 2
through 6 of subsection G of this se ction.
D. E. The brewer shall have the right to terminate an agreement
with a beer distributor at any time by giving the beer distributor
at least ninety-days’ written notice by certified mail, return
receipt requested; provided, the brewer shall give a s imilar notice
to all other beer distributors in all other states who have entered
into the same with which the brewer has a distributor agreement with
the brewer.
E. F. 1. If a particular brand of beer is transferred by
purchase or otherwise from a brewer to a successor brewer, the
following shall occur:
1. The the successor brewer sha ll become obligated to all of
the terms and conditio ns of the agreement in effect on the date of
succession. This subsection applies regardless of the cha racter or
form of the succession. A successor brewer has the right to
contractually require its beer distributor to comply with
operational standards of performance, if the standards are uniformly
established for all of the success or brewer’s distributors.
Provided, however, where the successo r brewer holds a brewer’s
license in the state as of January 1, 2023 , and has an existing
distribution agreement with a beer distributor, the successor brewer
may terminate the distribution agreement, in whole o r in part, in
order to transfer the brand rig hts to the successor brewer’s beer
distributor with at least sixty (60) days’ written notice to the
terminated distributor and with termination effective upon p ayment
to the terminated beer distributor the fair market value of the ENR. H. B. NO. 1715 Page 28
terminated beer distribut or’s business with respect to the
terminated brand or brands .
2. A successor brewer may, upon written notice, terminat e its
agreement, in whole or in part, with a beer distributor of the
brewer it succeeded, for the purpose of transferring the
distribution rights in the beer distributor’s territory to a new
beer distributor, provided that the successor beer distributor fi rst
pays to the existing beer distributor the fair market value of the
existing distributor’s business with respect to the terminated brand
or brands;
2. 3. If the successor brew er decides to terminate its
agreement with the existing beer distributor for pur poses of
transfer, the successor brewer shall notify the existing beer
distributor in writing of the successor brewer’s intent not to
appoint the existing beer distributor for all or part of the
existing beer distributor’s territory. The successor brewer shall
mail the notice of termination by certified mail, return receipt
requested, to the existing beer distributor. The successor brewer
shall include in the notice the names, addresses and telephone
numbers of the successor beer distributor or distributo rs;
3.
4. a. the successor beer distributor shall negot iate with
the existing beer distributor to determine the fair
market value of the existing beer distributor’s right
to distribute in the existing beer distributor’s
territory. The successor beer distribu tor and the
existing beer distributor shall negotiat e the fair
market value in good faith, and
b. the existing beer distributor shall continue to
distribute in good faith until payment of the
compensation agreed to under subparagraph a of this
paragraph, or awarded under paragraph 4 of this
subsection, is received; and
4.
5. a. if the successor beer distributor and the existing
beer distributor fail to reach a written agreement on
the fair market value within thirty (30) days after
the existing beer distributo r receives the notice ENR. H. B. NO. 1715 Page 29
required pursuant to paragraph 2 of this subsection,
the successor beer distributor or the existing beer
distributor shall send a written notice to the ot her
party requesting arbitration pursuant to the Uniform
Arbitration Act, Part 2 of Article 22 of Title 13,
C.R.S. Arbitration shall be held for the purpose of
determining the fair market value of the existing beer
distributor’s right to distribute in the existing beer
distributor territory,
b. notice of intent to arbitrate shall be s ent, as
provided in subparagraph a of this paragraph , not
later than forty (40) days after the existing beer
distributor receives the notice required pursuant to
paragraph 2 of this subsection. The arbitration
proceeding shall conclude not later than sixt y (60)
days after the date the notice of intent to a rbitrate
is mailed to a party, unless this time is extended by
mutual agreement of the parties and the arbitrator,
c. any arbitration held pursuant to this subsection shall
be conducted in a city within t his state that:
(1) is closest to the existing beer distributor, and
(2) has a population of more than twenty thousand
(20,000) people,
d. any arbitration held pursuant to this paragraph shall
be conducted before one impartial arbitrator to be
selected by the American Arbitration Association or
its successor. The arbitration shall be conducted in
accordance with the rules and procedures of the
Uniform Arbitration Act, Part 2 of Article 22 of Title
13, C.R.S.,
e. an arbitrator’s award in any arbitration hel d pursuant
to this paragraph shall be monetary only and shall not
enjoin or compel conduct. Any arbitration held
pursuant to this paragraph shall be in lieu of all
other remedies and procedures,
f. the cost of the arbitrator and any other direct costs
of an arbitration held pursuant to this paragraph
shall be equally divided by the parties engaged in the ENR. H. B. NO. 1715 Page 30
arbitration. All other costs shall be paid by the
party incurring them,
g. the arbitrator in any arbitration held pursuant to
this paragraph shall render a written decision not
later than thirty (30) days after the conclusion of
the arbitration, unless this time is extended by
mutual agreement of the parties and the arbitrator.
The decision of the arbitrator is final and binding on
the parties. The arbit rator’s award may be enforced
by commencing a civil action in any court of competent
jurisdiction. Under no circumstances may the parties
appeal the decision of the arbitrator ,
h. an existing beer distributor or successor beer
distributor who fails to par ticipate in the
arbitration hearings in any arbitrat ion held pursuant
to this paragraph waives all rights the existing beer
distributor or successor beer distributor would have
had in the arbitration and is considered to have
consented to the determination of the arbitrator, and
i. if the existing beer dist ributor does not receive
payment from the successor beer distributor of the
settlement or arbitration award required under
paragraph 2 or 3 of this subsection within thirty (30)
days after the date of the settlement or arbitration
award:
(1) the existing beer distributor shall remain the
beer distributor in the existing beer
distributor’s territory to at least the same
extent that the existing beer distributor
distributed the beer immediately before the
successor brewer acquired rights to the brand,
and
(2) the existing beer distributor is not entitled to
the settlement or arbitration award.
F. G. 1. In addition to termination rights that may be set
forth in a distributor agreement, a small brewer who manufactures
less than twenty-five thousand barrels of bee r annually may
terminate a distributor agreement with any beer distributor;
provided, that, prior to the effective date o f the termination, the ENR. H. B. NO. 1715 Page 31
small brewer pays the beer distributor the fair market va lue of the
distribution rights which will be lost or dim inished by reason of
the termination.
2. If such small brewer and beer distributor cannot mutually
agree to the fair ma rket value of the applicable distribution rights
lost or diminished by reason of the termination, then the brewer
shall pay the beer dis tributor a good faith estimate of the fair
market value of the applicable distribution rights.
3. If the beer distribut or being terminated under paragraph 2
of this subsection disputes that the payme nt made by the small
brewer was less than the fair marke t value of the distribution
rights, then the beer distributor may within forty-five (45) days of
termination submit the question of fair market value of the
applicable distribution rights lost or dimi nished by reason of the
termination to binding arbitrati on before a panel of three neutral
arbitrators appointed in accordance with the commercial arbitration
rules of the American Arbitration Association, which panel shall
determine by majority decision w hether the small brewer’s payment
meets the requirements of paragraph 2 of this subsection.
4. If the arbitration panel rules that the payment made by the
small brewer to the beer distributor upon termination was less than
the fair market value of distrib ution rights lost or diminished by
reason of the termina tion, then the small brewer must pay the beer
distributor the difference between the payment made to the beer
distributor and the determined fair market value plus interest.
5. If the arbitration pan el rules that the payment made by the
small brewer to the beer distributor upon termination was more than
the fair market value of distribution rights lost or diminished by
reason of the termination, then the beer distributor must pay the
small brewer the difference between the payment made to the beer
distributor and the determined fair market value, plus interest.
6. All arbitration fees and expenses shall be equally divided
among the parties to the arbitration, except if the arbitration
panel determines that the small brewer’s payment upon termination
was not a good-faith estimate of the fair market value, then the
panel may award up to one hundred percent (100%) of the arbit ration
costs to the small brewer prevailing party.
G. H. 1. Any beer distribut or or brewer who is aggrieved by a
violation of any provision of subsections B and D of this section ENR. H. B. NO. 1715 Page 32
shall be entitled to the recovery of damages caused by the
violation. If a beer distributor is not terminated in accordance
with the provisions of this se ction, damages may additionally
include the fair market value of the distribution rights. Except
for a dispute arising under subsection E of this section, damages
Damages shall be sought in a civil action in any court of competent
jurisdiction.
2. Any dispute arising under subsections B and D of this
section may also be settled by such dispute resolution procedures as
may be provided by a written agreement between the parties.
H. I. Nothing in this section shall be construed to limit or
prohibit good-faith settlements voluntarily entered into by the
parties.
I. Nothing J. Except as otherwise provided herein, nothing in
this section shall be construed to give a beer distributor any right
to compensation if an agreement with the beer distributor is
terminated by a brewer pursuant to subsections B, C and D of this
section.
J. K. No brewer shall require any beer distributor to waive
compliance with any provision of the Oklahoma Alcoholic Beverage
Control Act and any provisions of the Oklahoma Alcoholic Beverage
Control Act shall supersede any provisions of a dis tributor
agreement in conflict in this section.
K. L. No brewer shall charge or accept, and no beer distributor
shall pay or provide, in a material way, any money, property,
gratuity, rebate, free goods, shipping charges different than those
charged for all beer distributors, allowances, thing of value or
other inducement, as defined in Section 3-123 of this title, from a
beer distributor in exchange for the brewer entering into a
distributor agreement with the beer distributor. However, a brewer
who also holds a beer distributor license and desires to sell all or
a portion of its beer distribut ion rights and business, or a holder
of small brewer license who desires to change its election from
self-distribution to the use of a distributor agreement may acc ept a
payment for the fair market value of its existing and established
distribution busines s in the subject territory.
L. M. This section shall apply to any agreement entered i nto
and any renewals, extensions, amendments or conduct constituting a ENR. H. B. NO. 1715 Page 33
modification of a distributor agreement by a brewer or cider
manufacturer existing on or after the effective date of this act.
M. N. Where a cider manufacturer distributes cider throug h a
beer distributor, the rights and obligations of the cider
manufacturer, the distributor, a successor cider manufacturer and a
successor distributor shall be the same as the rights and
obligations provided in this section for a brewer, beer distributor,
successor brewer and successor beer distributor.
SECTION 8. AMENDATORY 37A O.S. 2021, Section 6-102, as
amended by Section 1, Chapter 300, O.S.L. 2022 (37A O.S. Supp. 2022,
Section 6-102), is amended to read as follows:
Section 6-102. A. No licensee of the ABLE Commission shall:
1. Receive, possess or sell any alcohol ic beverage except as
authorized by the Oklahoma Alcoholic Beverage Control Act and by th e
license or permit which the licensee holds;
2. Employ any person under eigh teen (18) years of age in the
selling of beer or wine or employ any person under twenty-one (21)
years of age in the selling of spirits. Provided:
a. a mixed beverage, beer and wine, caterer, public
event, special event, bottle club, retail wine or
retail beer licensee may employ servers or sales
clerks who are at least eighteen (18) years of age,
except persons under twenty-one (21) years of age may
not serve in designated bar o r lounge areas, and
b. a mixed beverage, beer and wine, caterer, public
event, special event or bottle club licensee may
employ or hire musical bands who have musician s who
are under eighteen (18) years of age if each such
musician is either accompanied by a parent or legal
guardian or has on their person, to be made available
for inspection upon demand by any employee of the ABLE
Commission or law enforcement officer, a written,
notarized affidavit from the parent or legal guardian
giving the underage musi cian permission to perform in
designated bar or lounge areas;
ENR. H. B. NO. 1715 Page 34
3. Give any alcoholic beverage as a prize, premium or
consideration for any lottery, game of chance or s kill or any type
of competition;
4. Use any of the following means or inducements to sti mulate
the consumption of alcoholic beverages, including but not limited
to:
a. deliver more than two drinks to one person at one
time, except:
(1) as provided for serving tasting flights defined
in Section 6-102.1 of this title, or
(2) up to six (6) bottles or cans of beer in the
original packaging for on-premises consumption
may be delivered to one person at one time in a
reusable container, including but not limited to
a bucket or insulated cooler which may be cooled
by ice or another cooling method,
b. sell or offer to sell to any person or group of
persons any drinks at a price that is less than six
percent (6%) below the markup of the cost to the mixed
beverage licensee; provided, a mixed beverage licensee
shall be permitted to offer these drink specials on
any particular hour of any particular day and shall
not be required to offer these drink specials for an
entire calendar week or from open to close, and shall
not be required to offer such drink specials at all
venues operating under the same mixed beverage
license; provided, a mixed beverage licensee selling
wine, beer, or cocktails to-go shall be permitted to
offer these to-go drinks at a different price than on-
premises drinks,
c. sell or offer to sell to any person an unlimited
number of drinks during any set period of time for a
fixed price, except at private functions not open to
the public,
d. sell or offer to sell drinks to any person or group of
persons on any one day or portion thereof at prices
less than those charged the general public on that ENR. H. B. NO. 1715 Page 35
day, except at private functions not open to the
public,
e. increase the volume of alcoholic beverages contained
in a drink without increasing proportionately the
price regularly charged for such drink during the same
calendar week, or
f. encourage or permit, on the licensed premises, any
game or contest which invo lves drinking or the
awarding of drinks as prizes.
Provided, that the provisions of this paragraph shall not
prohibit the advertising or offering of food, entertainment or
bottle service in li censed establishments;
5. Permit or allow any patron or person to exit the licensed
premises with an open container of any alcoholic beverage.
Provided, this prohibition shall not be applicable to closed
original containers of alcoholic beverages which a re carried from
the licensed premises of a bottle club by a patr on, closed original
wine containers removed from the premises of restaurants, hotels and
motels, or to closed original containers of alcoholic beverages
transported to and from the place of bu siness of a licensed caterer
by the caterer or an employee of th e caterer;
6. Serve or sell alcoholic beverages with an expired license
issued by the ABLE Commission;
7. Permit any person to be drunk or intoxicated on the
licensee’s licensed premises; or
8. Permit or allow any patron to serve or pour himself or
herself any alcoholic beverage, except a licensee may offer a patron
self-pour service of beer or wine, or both, from automated devices
on licensed premises so long as:
a. the licensee monitors an d has the ability to control
the dispensing of such beer or wine , or both, from the
automated devices. “Automated device” shall mean any
mechanized device capable of dispensing wine or beer,
or both, directly to a patron in exchange for
compensation that a licensee has received directly
from the patron, and
ENR. H. B. NO. 1715 Page 36
b. each licensee offering a patron self-pour service of
wine or beer, or both, from any automated device shall
provide constant video monitoring of the automated
device at all times during which the lic ensee is open
to the public. The licensee shall keep recorded
footage from the video monitoring for at least sixty
(60) days, and shall provide the footage, upon
request, to any agent of the Director of the ABLE
Commission or other authorized law enforcem ent agent.
B. 1. The compensation required by subparagraph a o f paragraph
8 of subsection A of this section shall be in the form of a radio
frequency identification (RFID) device, mobile application or any
other technology approved by the ABLE Commission containing a fixed
amount of volume of thirty-two (32) ounces for beer and ten (10)
ounces for wine that may be directly exchanged for beer or wine
dispensed from the automated device:
a. RFID devices may be assigned, used or reactivated only
during a business day,
b. each RFID device shall be obtained from the licens ee
by a patron,
c. a licensee shall not issue more than one active RFID
device to a patron, and
d. an RFID device shall be deemed active if the RFID
device contains volume credit or has not ye t been used
to dispense ten (10) ounces of wine or thirty -two (32)
ounces of beer.
2. In order to obtain an RFID device from a licensee, each
patron shall produce a valid driver license, identification card or
other government-issued document that contain s a photograph of the
individual and demonstrates that the indiv idual is at least twenty-
one (21) years of age. Each RFID device shall be programmed to
require the production of the patron’s valid identification before
the RFID device can be used for the first time during any business
day or for any subsequent reactiv ation.
3. Each RFID device shall become inactive at the end of each
business day.
ENR. H. B. NO. 1715 Page 37
4. Each RFID device shall be programmed to allow the dispensing
of no more than ten (10) ounces of wine or t hirty-two (32) ounces of
beer to a patron:
a. once an RFID device has been used to dispense ten (10)
ounces of wine or thirty-two (32) ounces of beer to a
patron, the RFID device shall become inactive, and
b. any patron in possession of an inactive RFID de vice
may, upon production of the patron’s valid
identification to the licensee or licensee’s employee,
have the RFID device reactivated to allow the
dispensing of an additional ten (10) ounces of wine or
thirty-two (32) ounces of beer from an automated
device.
Paragraphs 1, 2, 3 and 4 of this subsection shall not apply to wine
or beer that is dispensed directly to the licensee or the licensee’s
agent or employee.
C. A mixed beverage or beer and wine licensee shall not be
deemed to have violated the provisi ons of paragraph 5 of subsection
A of this section if it allowed a patron to leave the licensed
premises with an open container of beer or wine only and:
1. The otherwise prohibited act was committed during the hours
of 8 a.m. to midnight on the day of a scheduled home football game
of institutions within The Oklahoma State System of Higher
Education, and the establishment is located within two thousand
(2,000) feet of the institution;
2. The licensee is participating by invitation in a municipally
sanctioned art, music or sporting event within city limits when the
municipality has provided written notice of the event and a list of
invited licensees to the ABLE Commission at least five (5) days
prior to the event; or
3. The patron remains on the connected , physical property of
the licensee or in a public area adjacent to the physical property
of the licensee with prior municipal approval; provided, that
written notice of the use of the connected, physical property of the
licensee or public area shall be pr ovided to the ABLE Commission at
least five (5) days prior to suc h use.
ENR. H. B. NO. 1715 Page 38
SECTION 9. REPEALER 37A O.S. 2021, Section 2-102, as
amended by Section 1, Chapter 226, O.S.L. 2019, is hereby repealed.
SECTION 10. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
ENR. H. B. NO. 1715 Page 39
Passed the House of Representatives the 25th day of May, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the 25th day of May, 2023.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governo r of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________