HB2090 HFLR Page 1 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 1st Session of the 59th Legisl ature (2023) HOUSE BILL 2090 By: Echols AS INTRODUCED An Act relating to alcoholic beverages; creating a delivery service license for delivery of alcoholic beverages; providing requireme nts to receive a delivery service license; providing actions a delivery service licensee may or may not undertake; providing delivery service license renewal amount; allowing a delivery service licensee to charge consumers a delivery fee; prohibiting deliv ery service licensee from charging, adding on , or collecting any portion of the amount of the retail sales price for the alcoholic beverages; prohibiting a retail spirits licensee from using delivery service licensees for the purpose of completing alcoholi c beverage product deliveries to consumers ; exempting a technology services company from needing a license; granting the Alcoholic Beverage Law Enforcement Commission the ability to enforce this act; prohibiting direct shipment of alcohol, liquor, wine, or beer from any manufacturer ; providing nothing shall be construed to authorize the direct shipment of alcohol, liquor, wine, or beer from any manufacturer; providing no person shall use a license or exercise any privile ges granted by the license except as provided by the Oklahoma Alcoholic Beverage Control Act; providing that no package containing alcoholic beverages may be delivered to or left unattended at a residence or business address ; providing that the ABLE Commission is authorized to promulgate rules, regulations, forms, and procedures; providing that deliveries authorized by a licensee to be made to a consumer shall be deemed a direct hand - to-hand sale as though the consumer was physically present on the licensed premises and authorized by HB2090 HFLR Page 2 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 law; amending 37A O.S. 2021, Sections 2-101 and 2- 161, which relate to annual fees and curbside pickup and delivery; providing delivery service license annual fee; providing that a delivery service licensee may transport and del iver alcoholic beverage products; providing that a retail beer or retail wine licensee may sell curbside and deliver; providing that employees or independent contractors of retail beer or retail wine licensees or delivery service licensees shall be licensed to make alcoholic beverage product deliveries; providing that a delivery service licensee shall be held responsible for violations of alcoholic beverage laws or administrative rules of the ABLE Commission; providing for codification; providing an effecti ve date; and declaring an emergency . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 2-162 of Title 37A, unless there is created a duplication in numbering, reads a s follows: A. Any individual, limited liability company, corpor ation, or partnership that is registered to do business in this state, regardless of the residency of the ownership of the entity, may apply for and be issued a delivery service license that authorizes the licensee to deliver alcoholic beverages from a store holding a retail beer or retail wine license, licensed by the Alcoholic Beverage Law Enforcement (ABLE) Commission to sell alcoholic beverage products, to any person in this state who is at least twenty-one (21) years of age for the individual 's personal use and not for resale. HB2090 HFLR Page 3 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. To receive a delivery service license, an applicant shall do all of the following: 1. File an application with the Alcoholic Beverage Law Enforcement (ABLE) Commission; 2. Provide to the ABLE Commission a sample contract that the applicant intends to enter into with a retail beer or retail wine licensee for the delivery of alcoholic beverage products, unless the applicant is the holder of a retail beer or retail wine license or operates under the same parent company as the retail beer or retail wine license holder; 3. Submit to the ABLE Commission an outline of internal or external training for delivery service personnel th at addresses topics such as identifying underage persons, intoxicated persons, and fake or altered identification; 4. Provide an attestation that the applicant is at least twenty-one (21) years of age and has not been convicted of a felony in any state or federal court; 5. Provide proof of a general liability insuran ce policy in an amount not less than One Million Dollars ($1,000,000.00) per occurrence; and 6. Be properly registered to conduct business in Oklahoma. C. A delivery service licensee: 1. May contract with any retail beer or retail wine licensee, licensed to sell alcoholic beverage products for off-premises HB2090 HFLR Page 4 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 consumption, for the purpose of delivering alcoholic beverage products; 2. May use its own employees or independent contractors who are at least twenty-one (21) years of age to deliver such alcoholic beverage products, provided such delivery service personnel shall not have been convicted of any criminal offense relating to alcoholic beverages. The delivery service licensee shall complete a criminal history records check on each delivery driver who de livers alcoholic beverages for a licensee; 3. May facilitate orders by telephone, Internet, or by other electronic means for the sale and delivery of alcoholic beverage s. If payment is not received at the time of order, the delivery service licensee may act as an agent of the retail licensee in the collection of payments from the sale of alcoholic beverages, but the full amount of each order must be handled in a manner that gives the retail licensee control over the ultimate receipt of the payment from the consumer with the retail licensee operating as the merchant of record. The retail beer or retail wine licensee shall remain responsible for the proper remittance of all applicable taxes on the sale of the product; 4. Shall deliver only sealed container s of alcoholic beverage products; HB2090 HFLR Page 5 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. Shall obtain from the consumer a confirmation that he or she is at least twenty-one (21) years of age at the time the order is placed; 6. Shall require the recipient, at the time of deliv ery, to provide valid photo id entification verifying he or she is at least twenty-one (21) years of age and sign for the delivery ; 7. Shall possess identification scanning software technology or a state-of-the-art alternative at the point of delivery to authenticate that the recipient is at least twenty-one (21) years of age, and collect the recipient's name and date of birth; 8. Shall return all alcoholic beverages to the retail beer or retail wine licensee if the recipient is under twenty-one (21) years of age, appears intoxicated, fails to provide proof of identification, fails or refuses to sign for d elivery, fails to complete the identific ation verification process, declines to accept the delivery of alcoholic bevera ges or beer, or if any circumstance s in the delivery environment indicate illegal conduct, overconsumption, or an otherwise unsafe e nvironment for the consumption of alcoh ol. Such return shall occur on the same business day; 9. May not deliver any alcoho lic beverage to any person located within a dry jurisdiction in O klahoma; 10. Shall pick up alcoholic beverages for delivery only during lawful sales hours in that jurisd iction for the retail beer or HB2090 HFLR Page 6 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 retail wine licensee holder; provided, that orders may be delivered and completed on the sa me day within a reasonable tim e thereafter; 11. Shall permit the ABLE Commission to perform an audit of the licensee's records upon request and with sufficient notificat ion; 12. Shall be deemed to have consented to the jurisdiction of the ABLE Commission and the Oklahoma courts conce rning enforcement of this section and any related laws or rules ; and 13. Shall be responsible for deliv ery of alcoholic beverage products as provided in this act and by rule. D. A delivery service licensee may renew its license with the ABLE Commission by maintaining all qualifications, paying annually a renewal fee of Five Hundred Dollars ($500.00), and providing the Commission with a true copy of its current license. The annual fee for delivery service licensees shall be collected by the ABLE Commission for deposit and credit to the General Revenue Fund of this state. E. A delivery service licensee shall be authorized to charge the consumer a delivery fee but shall not charge, add on , or collect any portion of the amount o f the retail sales price for t he alcoholic beverages. F. A retail spirits licensee shall be prohibited from using delivery service licensees for the purpose of completing alco holic beverage product deliveries to consume rs. HB2090 HFLR Page 7 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 G. Nothing in this act shall be construed to require a technology services company to obtain a delivery service license if the company does not employ or contract with delivery agents, but merely provides software or a digital network application that connects consumers and retail beer or retail wine licensee for the delivery of alcoholic beverages from the retail beer or retail wine licensee. However, the act of connecting consumers to retail beer or retail wine licensee shall serve to grant jurisdic tion to the State of Oklahoma. H. The ABLE Commission may enforce the requirements of this section by the same administrative proceedings that apply to all other alcoholic beverage licensees. I. The ABLE Commission may enforce the requirements of this section against any employee or independent contractor of a retail beer or retail wine licensee or delivery service licensee, irrespective of the status of any delivery service personnel as an independent contracto r or employee. Delivery to a minor shall be treated as furnishing alcohol to a minor and shall result in any applicable disciplinary action; provided, that the retail beer or retail wine licensee shall not be held liable for viol ations that occur after transferring possession of the alcohol b everage product to the delivery service licensee. HB2090 HFLR Page 8 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 J. Nothing in this act shall b e construed to authorize the direct shipment of alcohol, liquor, wine, or beer from any manufacturer. K. No person shall use a license or exercise any privileges granted by the license except as provided by the Oklahoma Al coholic Beverage Control Act. L. No package containing alcoholic beverages may be delivered to or left unattended at a residence or business address except for the delivery of such package in person to the purchaser confirmed to be twenty-one (21) years of age or older. M. The ABLE Commission is authorized to promulgate rules, regulations, forms, and procedures necessary to implement and enforce the provisions o f this section. N. For purposes of this section, each delivery authorized by a licensee to be made to a consumer shall be deeme d a direct hand-to- hand sale as though the consumer was physically present on the licensed premises and authorized by law by suc h licensee. SECTION 2. AMENDATORY 37A O.S. 2021, Section 2 -101, is amended to read as follows: Section 2-101. A. Except as otherwise provided in this section, the licenses issued by the ABLE Commission, and the annual fees therefor, shall be as follows: 1. Brewer License................................ .. $1,250.00 2. Small Brewer License .............................. $125.00 HB2090 HFLR Page 9 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. Distiller License............................... $3,125.00 4. Winemaker License................................ . $625.00 5. Small Farm Winery License .......................... $75.00 6. Rectifier License ............................... $3,125.00 7. Wine and Spirits Wholesaler License ............. $3,000.00 8. Beer Distributor License .......................... $750.00 9. The following retail spiri ts license fees shall be determined by the latest Federal Decennial Census: a. Retail Spirits License for cities and towns from 200 to 2,500 population .......... $305.00 b. Retail Spirits License for cities and towns from 2,501 to 5,000 po pulation........ $605.00 c. Retail Spirits License for cities and towns over 5,000 population................. $905.00 10. Retail Wine License ............................ $1,000.00 11. Retail Beer License .............................. $500.00 12. Mixed Beverage License ......................... $1,005.00 (initial license) $905.00 (renewal) 13. Mixed Beverage/Caterer Combination Lice nse..... $1,250.00 14. On-Premises Beer and Wine Lice nse................ $500.00 (initial license) HB2090 HFLR Page 10 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 $450.00 (renewal) 15. Bottle Club License ............................ $1,000.00 (initial license) $900.00 (renewal) 16. Caterer License ................................ $1,005.00 (initial license) $905.00 (renewal) 17. Annual Special Event License...................... $55.00 18. Quarterly Speci al Event License................... $55.00 19. Hotel Beverage License ......................... $1,005.00 (initial license) $905.00 (renewal) 20. Airline/Railroad/Commercial Passenger Vessel Beverage License................................ ........ $1,005.00 (initial license) $905.00 (renewal) 21. Agent License................................ ..... $55.00 22. Employee License................................ .. $30.00 23. Industrial License ................................ $23.00 HB2090 HFLR Page 11 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 24. Carrier License ................................ ... $23.00 25. Private Carrier License ........................... $23.00 26. Bonded Warehouse License ......................... $190.00 27. Storage License ................................ ... $23.00 28. Nonresident Seller Licens e ...................... $750.00 29. Manufacturer License: a. 50 cases or less sold in Oklahoma in last calendar year........................... $50.00 b. 51 to 500 cases sold in Oklahoma in last calendar year........................... $75.00 c. 501 cases or more sold in Oklahoma in last calendar year.......................... $150.00 30. Manufacturer's Agent License...................... $55.00 31. Sacramental Wine Suppl ier License................ $100.00 32. Charitable Auction License ......................... $1.00 33. Charitable Alcoholic Beverage License ............. $55.00 34. Winemaker Self-Distribution License .............. $750.00 35. Annual Public Even t License.................... $1,005.00 36. One-Time Public Event License.................... $255.00 37. Small Brewer Self-Distribution License ........... $750.00 38. Brewpub License ................................ $1,005.00 39. Brewpub Self-Distribution License ................ $750.00 40. Complimentary Beverage License .................... $75.00 41. Satellite Tasti ng Room License................... $100.00 HB2090 HFLR Page 12 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 42. Delivery Service License......................... $500.00 B. 1. There shall be added to the initial or renewal fees for a Mixed Beverage License an administrative fee, which shall not be deemed to be a license fee, in the amount of Five Hundred Dolla rs ($500.00), which shall be paid at the s ame time and in the same manner as the license fees prescribed by paragraph 12 of subsection A of this section; provided, this fee shall not be assessed against service organizations or fraternal beneficiary societ ies which are exempt under Section 501(c)( 19), (8) or (10) of the Internal Revenue Code. 2. There shall be added to the fee for a Mixed Beverage/Caterer Combination License an administrative fee, which shall not be deemed to be a license fee, in the amoun t of Two Hundred Fifty Dollars ($250.00), which shall be paid at the same time and in the same manner as the license fee prescribed by paragraph 13 of subsection A of this section. C. Notwithstanding the provisions of subsection A of this section: 1. The license fee for a mixed beverage or bottl e club license for those service organizations or fraternal beneficiary societies which are exempt under Section 501(c)(19), (8) or (10) of the Internal Revenue Code shall be Five Hundred Dollars ($500.00) per year; and HB2090 HFLR Page 13 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. The renewal fee for an airline/r ailroad/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 licens e. E. All licenses, except as otherwise provided, shall be valid for one (1) year from date of issuance unless revoked or surrendered. Provided, all employee licenses shall be valid for two (2) years. F. The holder of a license, issued by the ABLE Commi ssion, for a bottle club located in a county of this state where the sale of alcoholic beverages by the individual drink for on -premises consumption has been authorized, may exchange the bottle club license for a mixed beverage license or an on -premises beer and wine license and operate the licensed premises as a mixed beverage establishment or an on -premises beer and wine establishment subject to the provisions of the Oklahoma Alcoholic Beverage Control Act. There shall be no additional fee for such excha nge and the mixed beverage license or on-premises beer and wine license issued shall expire one (1) year from the date of issuance of the original bottle club license. G. In addition to the applicable licensing fe e, the following surcharge shall be assess ed annually on the following licenses: 1. Nonresident Seller License ...................... $2,500.00 HB2090 HFLR Page 14 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Manufacturer License: a. 50 cases or less sold in Oklahoma in last calendar year.......................... $100.00 b. 51 to 500 cases sold in Oklahoma in last calendar year.......................... $225.00 c. 501 cases or more sold in Oklahoma in last calendar year.......................... $450.00 3. Wine and Spirits Wholesaler License ............. $2,500.00 4. Beer Distributor ................................ $1,000.00 5. Retail Spirits License for cities and towns over 5,000 population .......................... $250.00 6. Retail Spirits License for cities and town s from 2,501 to 5,000 population................. $200.00 7. Retail Spirits License for cities and towns from 200 to 2,500 population ................... $150.00 8. Retail Wine License ............................... $250.00 9. Retail Beer License ............................... $250.00 10. Mixed Beverage Lice nse............................ $25.00 11. Mixed Beverage/Caterer Com bination License........ $25.00 12. Caterer License................................ ... $25.00 13. On-Premises Beer and Wine License ................. $25.00 14. Annual Public Event License ....................... $25.00 15. Small Farm Winery License ......................... $25.00 16. Small Brewer License .............................. $35.00 HB2090 HFLR Page 15 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 17. Complimentary Beverage License .................... $25.00 The surcharge shall be paid concurrent with the licensee's annual licensing fee and, in addition to Five Dollars ($5.00) of the employee license fee, shall be deposited in the Alcoholic Beverage Governance Revolving Fu nd established pursuant to Section 5 -128 of this title. H. Any license issued by the ABLE Commission under this title may be relied upon by other licensees as a valid license, and no other licensee shall have any obligation to independently determine the validity of such license or be held liable solely as a consequence of another licensee's failure to maintain a valid license. SECTION 3. AMENDATORY 37 A O.S. 2021, Section 2-161, is amended to read as follows: Section 2-161. A. Retail spirit licensees may sell curbside and deliver alcoholic beverages including beer, wine, and spirits in sealed original containers to consumers aged twenty -one (21) years and older as follows: 1. Only employees of the retail spirit licensee shall be permitted to make alcoholic beverage prod uct deliveries to consumers; 2. Payment for alcoholic beverage product delivery by the retail spirit licensee may be made by cash, check, transportable HB2090 HFLR Page 16 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 credit/debit card processors or advance on-line online payment methods; and 3. The retail spirit licen see shall be responsible for hi s or her delivery employees as provided in Section 2-133 of Title 37A of the Oklahoma Statutes this title. B. Small brewers and small farm wineries licensed by the Oklahoma ABLE Commission may sell curbside only alcoholic be verages produced by such licens ee in sealed original containers to consumers aged twenty-one (21) years and older as follows: 1. Only employees o f the licensed small brew er or small farm winery shall be permitted to make alcoholic beverage product deliveries to consumers; 2. Payment for alcoholic beverage product delivery by licensed small brewers or small farm wineries may be made by cash, check, transportable credit/deb it card processors, or a dvance on-line online payment methods; and 3. Small brewers and small farm wineries shall b e responsible for their delivery employees as provided in Section 2 -133 of Title 37A of the Oklahoma Statutes this title. C. Restaurants, bars and clubs holding mixed beverage, beer and wine, or caterer/mixed beverage licens es issued by the Oklahoma ABLE Commission may sell curbside and deliver only closed packages of beer and wine to consumers aged twenty -one (21) years and older as follows: HB2090 HFLR Page 17 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Only employees of such restaurant, ba r or club licensee shall be permitted to ma ke alcoholic beverage package d eliveries to consumers; 2. Payment for alcoholic beverage package delivery by licensed restaurants, bars and clubs may be made by cash, check, transportable credit/debit card proces sors, or advance on-line online payment methods; and 3. Restaurants, bars and clubs licensed by th e Oklahoma ABLE Commission shall be responsible for their delivery employees as provided in Section 2 -133 of Title 37A of the Oklahoma Statutes this title. D. Grocery and convenience stores holding a retail beer and/or retail wine license issued by the Ok lahoma ABLE Commission may sell curbside and deliver original sealed containers of beer and/or wine only according to the license held to consumers aged twent y-one (21) years and older as follows: 1. Only employees of such license d grocery or convenience store shall be permitted to make alcoholic beverage product deliveries to consumers; 2. Payment for alcoholic beverage product d elivery by a licensed grocery or convenience store may be made by cash, check, transportable credit/de bit card processors or ad vance on-line online payment methods; and HB2090 HFLR Page 18 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. Grocery and convenience store licensees shall be responsible for their delivery employees as provided in Section 2-133 of Title 37A of the Oklahoma Statutes this title. E. Licensees authorized by this section to make alcoholic beverage product deliveries to consumers are prohibited from utilizing third-party vendors or delivery services for pu rposes of completing such product deliveries to consumers . F. Licensees authorized by this sec tion to make alcoholic beverage product deliveries to consumers shall comply with the laws, rules, procedures and executive orders incum bent on such licensee. G. The Oklahoma ABLE Commission is authorized to promulgat e rules, regulations, forms and proced ures necessary to impleme nt and enforce the provisions of this section. H. For purposes of this section each delivery authorized by a licensee to be made by his or her employee shall be deemed a direct hand-to-hand sale as though the consumer was physical ly present on the licensed premises and authorized by law by such licensee. I. Notwithstanding any law or rule to the contrary, a deliv ery service licensee, or an employee or independent contractor of a delivery service licensee, in accordance with Sectio n 1 of this act, may transport and deliver alcoholic beverage products, including curbside, from a retail beer or retail wine licensee s to consumers aged twenty-one (21) years and older for the consumer's personal use and not for resale. HB2090 HFLR Page 19 BOLD FACE denotes Committee Amendments . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 J. Employees or independent contractors of licensed grocery stores or convenience stores or delivery service licensees shall be permitted to make al coholic beverage product deliveries to consumers aged twenty-one (21) years and older for the consumer's personal use and not for resale. K. A delivery service licensee who is authorized by law and by contractual agreement with a grocery or convenience s tore licensee to deliver alcoholic beverage products to a consumer shall be held responsible for violations of alcoholic bever age laws or administrative rules of the ABLE Commission affecting his or her license privilege to deliver alcoholic beverage produ cts to consumers. SECTION 4. This act shall become effective July 1, 202 3. SECTION 5. It being immediately necessary for the preservation of the public peace, health or safe ty, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and a pproval. COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED SUBSTANCES, dated 03/01/2023 - DO PASS.