Oklahoma 2023 Regular Session

Oklahoma House Bill HB2090 Compare Versions

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29-HOUSE OF REPRESENTATIVES - FLOOR VERSION
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3128 STATE OF OKLAHOMA
3229
3330 1st Session of the 59th Legisl ature (2023)
3431
3532 HOUSE BILL 2090 By: Echols
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4138 AS INTRODUCED
4239
4340 An Act relating to alcoholic beverages; creating a
4441 delivery service license for delivery of alcoholic
4542 beverages; providing requireme nts to receive a
4643 delivery service license; providing actions a
4744 delivery service licensee may or may not undertake;
4845 providing delivery service license renewal amount;
4946 allowing a delivery service licensee to charge
5047 consumers a delivery fee; prohibiting deliv ery
5148 service licensee from charging, adding on , or
5249 collecting any portion of the amount of the retail
5350 sales price for the alcoholic beverages; prohibiting
5451 a retail spirits licensee from using delivery service
5552 licensees for the purpose of completing alcoholi c
5653 beverage product deliveries to consumers ; exempting a
5754 technology services company from needing a license;
5855 granting the Alcoholic Beverage Law Enforcement
5956 Commission the ability to enforce this act;
6057 prohibiting direct shipment of alcohol, liquor, wine,
6158 or beer from any manufacturer ; providing nothing
6259 shall be construed to authorize the direct shipment
6360 of alcohol, liquor, wine, or beer from any
6461 manufacturer; providing no person shall use a license
6562 or exercise any privileges granted by the license
6663 except as provided by the Oklahoma Alcoholic Beverage
6764 Control Act; providing that no package containing
6865 alcoholic beverages may be delivered to or left
6966 unattended at a residence or business address ;
7067 providing that the ABLE Commission is authorized to
7168 promulgate rules, regulations, forms, and procedures;
7269 providing that deliveries authorized by a licensee to
7370 be made to a consumer shall be deemed a direct hand -
7471 to-hand sale as though the consumer was physically
7572 present on the licensed premises and authorized by
73+law; amending 37A O.S. 2021, Sections 2-101 and 2-
74+161, which relate to annual fees and curbside pickup
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103-law; amending 37A O.S. 2021, Sections 2-101 and 2-
104-161, which relate to annual fees and curbside pickup
105101 and delivery; providing delivery service license
106102 annual fee; providing that a delivery service
107103 licensee may transport and del iver alcoholic beverage
108104 products; providing that a retail beer or retail wine
109105 licensee may sell curbside and deliver; providing
110106 that employees or independent contractors of retail
111107 beer or retail wine licensees or delivery service
112108 licensees shall be licensed to make alcoholic
113109 beverage product deliveries; providing that a
114110 delivery service licensee shall be held responsible
115111 for violations of alcoholic beverage laws or
116112 administrative rules of the ABLE Commission;
117113 providing for codification; providing an effective
118114 date; and declaring an emergency .
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123119 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
124120 SECTION 1. NEW LAW A new section of law to be codified
125121 in the Oklahoma Statutes as Section 2-162 of Title 37A, unless there
126122 is created a duplication in numbering, reads a s follows:
127123 A. Any individual, limited liability company, corpor ation, or
128124 partnership that is registered to do business in this state,
129125 regardless of the residency of the ownership of the entity, may
130126 apply for and be issued a delivery service license that authorizes
131127 the licensee to deliver alcoholic beverages from a store holding a
132128 retail beer or retail wine license, licensed by the Alcoholic
133129 Beverage Law Enforcement (ABLE) Commission to sell alcoholic
134130 beverage products, to any person in this state who is at least
135131 twenty-one (21) years of age for the individual 's personal use and
136132 not for resale.
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164159 B. To receive a delivery service license, an applicant shall do
165160 all of the following:
166161 1. File an application with the Alcoholic Beverage Law
167162 Enforcement (ABLE) Commission;
168163 2. Provide to the ABLE Commission a sample contract that the
169164 applicant intends to enter into with a retail beer or retail wine
170165 licensee for the delivery of alcoholic beverage products, unless the
171166 applicant is the holder of a retail beer or retail wine license or
172167 operates under the same parent company as the retail beer or retail
173168 wine license holder;
174169 3. Submit to the ABLE Commission an outline of internal or
175170 external training for delivery service personnel that addresses
176171 topics such as identifying underage persons, intoxicated persons,
177172 and fake or altered identification;
178173 4. Provide an attestation that the applicant is at least
179174 twenty-one (21) years of age and has not been convicted of a felony
180175 in any state or federal court ;
181176 5. Provide proof of a general liability insuran ce policy in an
182177 amount not less than One Million Dollars ($1,000,000.00) per
183178 occurrence; and
184179 6. Be properly registered to conduct business in Oklahoma.
185180 C. A delivery service licensee:
186181 1. May contract with any retail beer or retail wine licensee,
187182 licensed to sell alcoholic beverage products for off-premises
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215209 consumption, for the purpose of delivering alcoholic beverage
216210 products;
217211 2. May use its own employees or independent contractors who are
218212 at least twenty-one (21) years of age to deliver such alcoholic
219213 beverage products, provided such delivery service personnel shall
220214 not have been convicted of any criminal offense relating to
221215 alcoholic beverages. The delivery service licensee shall complete a
222216 criminal history records check on each delivery driver who de livers
223217 alcoholic beverages for a licensee;
224218 3. May facilitate orders by telephone, Internet, or by other
225219 electronic means for the sale and delivery of alcoholic beverage s.
226220 If payment is not received at the time of order, the delivery
227221 service licensee may act as an agent of the retail licensee in the
228222 collection of payments from the sale of alcoholic beverages, but the
229223 full amount of each order must be handled in a manner that gives the
230224 retail licensee control over the ultimate receipt of the payment
231225 from the consumer with the retail licensee operating as the merchant
232226 of record. The retail beer or retail wine licensee shall remain
233227 responsible for the proper remittance of all applicable taxes on the
234228 sale of the product;
235229 4. Shall deliver only sealed container s of alcoholic beverage
236230 products;
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264257 5. Shall obtain from the consumer a confirmation that he or she
265258 is at least twenty-one (21) years of age at the time the order is
266259 placed;
267260 6. Shall require the recipient, at the time of deliv ery, to
268261 provide valid photo id entification verifying he or she is at least
269262 twenty-one (21) years of age and sign for the delivery ;
270263 7. Shall possess identification scanning software technology or
271264 a state-of-the-art alternative at the point of delivery to
272265 authenticate that the recipient is at least twenty-one (21) years of
273266 age, and collect the recipient's name and date of birth;
274267 8. Shall return all alcoholic beverages to the retail beer or
275268 retail wine licensee if the recipient is under twenty-one (21) years
276269 of age, appears intoxicated, fails to provide proof of
277270 identification, fails or refuses to sign for d elivery, fails to
278271 complete the identific ation verification process, declines to accept
279272 the delivery of alcoholic beverages or beer, or if any circumstance s
280273 in the delivery environment indicate illegal conduct,
281274 overconsumption, or an otherwise unsafe e nvironment for the
282275 consumption of alcoh ol. Such return shall occur on the same
283276 business day;
284277 9. May not deliver any alcoholic beverage to any person located
285278 within a dry jurisdiction in O klahoma;
286279 10. Shall pick up alcoholic beverages for delivery only during
287280 lawful sales hours in that jurisd iction for the retail beer or
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315307 retail wine licensee holder; provided, that orders may be delivered
316308 and completed on the sa me day within a reasonable tim e thereafter;
317309 11. Shall permit the ABLE Commission to perform an audit of the
318310 licensee's records upon request and with sufficient notificat ion;
319311 12. Shall be deemed to have consented to the jurisdiction of
320312 the ABLE Commission and the Oklahoma courts conce rning enforcement
321313 of this section and any related laws or rules ; and
322314 13. Shall be responsible for deliv ery of alcoholic beverage
323315 products as provided in this act and by rule.
324316 D. A delivery service licensee may renew its license with the
325317 ABLE Commission by maintaining all qualifications, paying annually a
326318 renewal fee of Five Hundred Dollars ($500.00), and providing the
327319 Commission with a true copy of its current license. The annual fee
328320 for delivery service licensees shall be collected by the ABLE
329321 Commission for deposit and credit to the General Revenue Fund of
330322 this state.
331323 E. A delivery service licensee shall be authorized to charge
332324 the consumer a delivery fee but shall not charge, add on , or collect
333325 any portion of the amount o f the retail sales price for t he
334326 alcoholic beverages.
335327 F. A retail spirits licensee shall be prohibited from using
336328 delivery service licensees for the purpose of completing alco holic
337329 beverage product deliveries to consumers.
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365356 G. Nothing in this act shall be construed to require a
366357 technology services company to obtain a delivery service license if
367358 the company does not employ or contract with delivery agents, but
368359 merely provides software or a digital network application that
369360 connects consumers and retail beer or retail wine licensee for the
370361 delivery of alcoholic beverages from the retail beer or retail wine
371362 licensee. However, the act of connecting consumers to retail beer
372363 or retail wine licensee shall serve to grant jurisdiction to t he
373364 State of Oklahoma.
374365 H. The ABLE Commission may enforce the requirements of this
375366 section by the same administrative proceedings that apply to all
376367 other alcoholic beverage licensees.
377368 I. The ABLE Commission may enforce the requirements of this
378369 section against any e mployee or independent contractor of a retail
379370 beer or retail wine licensee or delivery service licensee,
380371 irrespective of the status of any delivery service personnel as an
381372 independent contracto r or employee. Delivery to a minor shall be
382373 treated as furnishing alcohol to a minor and shall result in any
383374 applicable disciplinary action; provided, that the retail beer or
384375 retail wine licensee shall not be held liable for viol ations that
385376 occur after transferring possession of the alcohol b everage product
386377 to the delivery service licensee.
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414404 J. Nothing in this act shall b e construed to authorize the
415405 direct shipment of alcohol, liquor, wine, or beer from any
416406 manufacturer.
417407 K. No person shall use a license or exercise any privileges
418408 granted by the license except as provided by the Oklahoma Al coholic
419409 Beverage Control Act.
420410 L. No package containing alcoholic beverages may be delivered
421411 to or left unattended at a residence or business address except for
422412 the delivery of such package in person to the purchaser confirmed to
423413 be twenty-one (21) years of age or older.
424414 M. The ABLE Commission is authorized to promulgate rules,
425415 regulations, forms, and procedures necessary to implement and
426416 enforce the provisions o f this section.
427417 N. For purposes of this section, each delivery authorized by a
428418 licensee to be made to a consumer shall be deeme d a direct hand-to-
429419 hand sale as though the consumer was physically present on the
430420 licensed premises and authorized by law by suc h licensee.
431421 SECTION 2. AMENDATORY 37A O.S. 2021, Section 2 -101, is
432422 amended to read as follows:
433423 Section 2-101. A. Except as otherwise provided in this
434424 section, the licenses issued by the ABLE Commission, and the annual
435425 fees therefor, shall be as follows:
436426 1. Brewer License................................ .. $1,250.00
437427 2. Small Brewer License .............................. $125.00
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465454 3. Distiller License............................... $3,125.00
466455 4. Winemaker License................................ . $625.00
467456 5. Small Farm Winery License .......................... $75.00
468457 6. Rectifier License ............................... $3,125.00
469458 7. Wine and Spirits Wholesaler License ............. $3,000.00
470459 8. Beer Distributor License .......................... $750.00
471460 9. The following retail spiri ts license fees
472461 shall be determined by the latest Federal
473462 Decennial Census:
474463 a. Retail Spirits License for cities and
475464 towns from 200 to 2,500 population .......... $305.00
476465 b. Retail Spirits License for cities and
477466 towns from 2,501 to 5,000 population ........ $605.00
478467 c. Retail Spirits License for cities and
479468 towns over 5,000 population................. $905.00
480469 10. Retail Wine License ............................ $1,000.00
481470 11. Retail Beer License .............................. $500.00
482471 12. Mixed Beverage License ......................... $1,005.00
483472 (initial license)
484473 $905.00
485474 (renewal)
486475 13. Mixed Beverage/Caterer Combination Lice nse..... $1,250.00
487476 14. On-Premises Beer and Wine Lice nse................ $500.00
488477 (initial license)
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516504 $450.00
517505 (renewal)
518506 15. Bottle Club License ............................ $1,000.00
519507 (initial license)
520508 $900.00
521509 (renewal)
522510 16. Caterer License ................................ $1,005.00
523511 (initial license)
524512 $905.00
525513 (renewal)
526514 17. Annual Special Event License...................... $55.00
527515 18. Quarterly Speci al Event License................... $55.00
528516 19. Hotel Beverage License ......................... $1,005.00
529517 (initial license)
530518 $905.00
531519 (renewal)
532520 20. Airline/Railroad/Commercial Passenger Vessel Beverage
533521 License................................ ........ $1,005.00
534522 (initial license)
535523 $905.00
536524 (renewal)
537525 21. Agent License................................ ..... $55.00
538526 22. Employee License................................ .. $30.00
539527 23. Industrial License ................................ $23.00
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567554 24. Carrier License ................................ ... $23.00
568555 25. Private Carrier License ........................... $23.00
569556 26. Bonded Warehouse License ......................... $190.00
570557 27. Storage License ................................ ... $23.00
571558 28. Nonresident Seller Licens e ...................... $750.00
572559 29. Manufacturer License:
573560 a. 50 cases or less sold in Oklahoma in
574561 last calendar year........................... $50.00
575562 b. 51 to 500 cases sold in Oklahoma in
576563 last calendar year........................... $75.00
577564 c. 501 cases or more sold in Oklahoma in
578565 last calendar year.......................... $150.00
579566 30. Manufacturer's Agent License...................... $55.00
580567 31. Sacramental Wine Suppl ier License................ $100.00
581568 32. Charitable Auction License ......................... $1.00
582569 33. Charitable Alcoholic Beverage License ............. $55.00
583570 34. Winemaker Self-Distribution License .............. $750.00
584571 35. Annual Public Event License .................... $1,005.00
585572 36. One-Time Public Event License.................... $255.00
586573 37. Small Brewer Self-Distribution License ........... $750.00
587574 38. Brewpub License ................................ $1,005.00
588575 39. Brewpub Self-Distribution License ................ $750.00
589576 40. Complimentary Beverage License .................... $75.00
590577 41. Satellite Tasting Room License ................... $100.00
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618604 42. Delivery Service License......................... $500.00
619605 B. 1. There shall be added to the initial or renewal fees for
620606 a Mixed Beverage License an administrative fee, which shall not be
621607 deemed to be a license fee, in the amount of Five Hundred Dollars
622608 ($500.00), which shall be paid at the s ame time and in the same
623609 manner as the license fees prescribed by paragraph 12 of subsection
624610 A of this section; provided, this fee shall not be assessed against
625611 service organizations or fraternal beneficiary societies which are
626612 exempt under Section 501(c)( 19), (8) or (10) of the Internal Revenue
627613 Code.
628614 2. There shall be added to the fee for a Mixed Beverage/Caterer
629615 Combination License an administrative fee, which shall not be deemed
630616 to be a license fee, in the amount of Two Hundred Fifty Dollars
631617 ($250.00), which shall be paid at the same time and in the same
632618 manner as the license fee prescribed by paragraph 13 of subsection A
633619 of this section.
634620 C. Notwithstanding the provisions of subsection A of this
635621 section:
636622 1. The license fee for a mixed beverage or bottl e club license
637623 for those service organizations or fraternal beneficiary societies
638624 which are exempt under Section 501(c)(19), (8) or (10) of the
639625 Internal Revenue Code shall be Five Hundred Dollars ($500.00) per
640626 year; and
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668653 2. The renewal fee for an airline/r ailroad/commercial passenger
669654 vessel beverage license held by a railroad described in 49 U.S.C.,
670655 Section 24301, shall be One Hundred Dollars ($100.00).
671656 D. An applicant may apply for and receive both an on -premises
672657 beer and wine license and a caterer licens e.
673658 E. All licenses, except as otherwise provided, shall be valid
674659 for one (1) year from date of issuance unless revoked or
675660 surrendered. Provided, all employee licenses shall be valid for two
676661 (2) years.
677662 F. The holder of a license, issued by the ABLE Commi ssion, for
678663 a bottle club located in a county of this state where the sale of
679664 alcoholic beverages by the individual drink for on -premises
680665 consumption has been authorized, may exchange the bottle club
681666 license for a mixed beverage license or an on -premises beer and wine
682667 license and operate the licensed premises as a mixed beverage
683668 establishment or an on -premises beer and wine establishment subject
684669 to the provisions of the Oklahoma Alcoholic Beverage Control Act.
685670 There shall be no additional fee for such excha nge and the mixed
686671 beverage license or on-premises beer and wine license issued shall
687672 expire one (1) year from the date of issuance of the original bottle
688673 club license.
689674 G. In addition to the applicable licensing fee, the following
690675 surcharge shall be assess ed annually on the following licenses:
691676 1. Nonresident Seller License ...................... $2,500.00
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719703 2. Manufacturer License:
720704 a. 50 cases or less sold in Oklahoma in
721705 last calendar year.......................... $100.00
722706 b. 51 to 500 cases sold in Oklahoma in
723707 last calendar year.......................... $225.00
724708 c. 501 cases or more sold in Oklahoma in
725709 last calendar year.......................... $450.00
726710 3. Wine and Spirits Wholesaler License ............. $2,500.00
727711 4. Beer Distributor ................................ $1,000.00
728712 5. Retail Spirits License for cities and towns
729713 over 5,000 population .......................... $250.00
730714 6. Retail Spirits License for cities and town s
731715 from 2,501 to 5,000 population................. $200.00
732716 7. Retail Spirits License for cities and towns
733717 from 200 to 2,500 population ................... $150.00
734718 8. Retail Wine License ............................... $250.00
735719 9. Retail Beer License ............................... $250.00
736720 10. Mixed Beverage License ............................ $25.00
737721 11. Mixed Beverage/Caterer Com bination License........ $25.00
738722 12. Caterer License................................ ... $25.00
739723 13. On-Premises Beer and Wine License ................. $25.00
740724 14. Annual Public Event License ....................... $25.00
741725 15. Small Farm Winery License ......................... $25.00
742726 16. Small Brewer License .............................. $35.00
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770753 17. Complimentary Beverage License .................... $25.00
771754 The surcharge shall be paid concurrent with the licensee's
772755 annual licensing fee and, in addition to Five Dollars ($5.00) of the
773756 employee license fee, shall be deposited in the Alcoholic Beverage
774757 Governance Revolving Fund established pursuant to Section 5 -128 of
775758 this title.
776759 H. Any license issued by the ABLE Commission under this title
777760 may be relied upon by other licensees as a valid license, and no
778761 other licensee shall have any obligation to independently determine
779762 the validity of such license or be held liable solely as a
780763 consequence of another licensee's failure to maintain a valid
781764 license.
782765 SECTION 3. AMENDATORY 37 A O.S. 2021, Section 2-161, is
783766 amended to read as follows:
784767 Section 2-161. A. Retail spirit licensees may sell curbside
785768 and deliver alcoholic beverages including beer, wine, and spirits in
786769 sealed original containers to consumers aged twenty -one (21) years
787770 and older as follows:
788771 1. Only employees of the retail spirit licensee shall be
789772 permitted to make alcoholic beverage prod uct deliveries to
790773 consumers;
791774 2. Payment for alcoholic beverage product delivery by the
792775 retail spirit licensee may be made by cash, check, transportable
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820802 credit/debit card processors or advance on-line online payment
821803 methods; and
822804 3. The retail spirit licen see shall be responsible for hi s or
823805 her delivery employees as provided in Section 2-133 of Title 37A of
824806 the Oklahoma Statutes this title.
825807 B. Small brewers and small farm wineries licensed by the
826808 Oklahoma ABLE Commission may sell curbside only alcoholic be verages
827809 produced by such licens ee in sealed original containers to consumers
828810 aged twenty-one (21) years and older as follows:
829811 1. Only employees o f the licensed small brew er or small farm
830812 winery shall be permitted to make alcoholic beverage product
831813 deliveries to consumers;
832814 2. Payment for alcoholic beverage product delivery by licensed
833815 small brewers or small farm wineries may be made by cash, check,
834816 transportable credit/deb it card processors, or a dvance on-line
835817 online payment methods; and
836818 3. Small brewers and small farm wineries shall b e responsible
837819 for their delivery employees as provided in Section 2 -133 of Title
838820 37A of the Oklahoma Statutes this title.
839821 C. Restaurants, bars and clubs holding mixed beverage, beer and
840822 wine, or caterer/mixed beverage licens es issued by the Oklahoma ABLE
841823 Commission may sell curbside and deliver only closed packages of
842824 beer and wine to consumers aged twenty -one (21) years and older as
843825 follows:
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871852 1. Only employees of such restaurant, ba r or club licensee
872853 shall be permitted to ma ke alcoholic beverage package d eliveries to
873854 consumers;
874855 2. Payment for alcoholic beverage package delivery by licensed
875856 restaurants, bars and clubs may be made by cash, check,
876857 transportable credit/debit card proces sors, or advance on-line
877858 online payment methods; and
878859 3. Restaurants, bars and clubs licensed by th e Oklahoma ABLE
879860 Commission shall be responsible for their delivery employees as
880861 provided in Section 2 -133 of Title 37A of the Oklahoma Statutes this
881862 title.
882863 D. Grocery and convenience stores holding a retail beer and/or
883864 retail wine license issued by the Ok lahoma ABLE Commission may sell
884865 curbside and deliver original sealed containers of beer and/or wine
885866 only according to the license held to consumers aged twenty -one (21)
886867 years and older as follows:
887868 1. Only employees of such license d grocery or convenience store
888869 shall be permitted to make alcoholic beverage product deliveries to
889870 consumers;
890871 2. Payment for alcoholic beverage product d elivery by a
891872 licensed grocery or convenience s tore may be made by cash, check,
892873 transportable credit/de bit card processors or ad vance on-line online
893874 payment methods; and
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921901 3. Grocery and convenience store licensees shall be responsible
922902 for their delivery employees as provided in Section 2 -133 of Title
923903 37A of the Oklahoma Statutes this title.
924904 E. Licensees authorized by this section to make alcoholic
925905 beverage product deliveries to consumers are prohibited from
926906 utilizing third-party vendors or delivery services for pu rposes of
927907 completing such product deliveries to consumers .
928908 F. Licensees authorized by this sec tion to make alcoholic
929909 beverage product deliveries to consumers shall comply with the laws,
930910 rules, procedures and executive orders incum bent on such licensee.
931911 G. The Oklahoma ABLE Commission is authorized to promulgat e
932912 rules, regulations, forms and proced ures necessary to impleme nt and
933913 enforce the provisions of this section.
934914 H. For purposes of this section each delivery authorized by a
935915 licensee to be made by his or her employee shall be deemed a direct
936916 hand-to-hand sale as though the consumer was physical ly present on
937917 the licensed premises and authorized by law by such licensee.
938918 I. Notwithstanding any law or rule to the contrary, a deliv ery
939919 service licensee, or an employee or independent contractor of a
940920 delivery service licensee, in accordance with Sectio n 1 of this act,
941921 may transport and deliver alcoholic beverage products, including
942922 curbside, from a retail beer or retail wine licensee s to consumers
943923 aged twenty-one (21) years and older for the consumer 's personal use
944924 and not for resale.
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972951 J. Employees or independent contractors of licensed grocery
973952 stores or convenience stores or delivery service licensees shall be
974953 permitted to make al coholic beverage product deliveries to consumers
975954 aged twenty-one (21) years and older for the consumer's personal use
976955 and not for resale.
977956 K. A delivery service licensee who is authorized by law and by
978957 contractual agreement with a grocery or convenience s tore licensee
979958 to deliver alcoholic beverage products to a consumer shall be held
980959 responsible for violations of alcoholic bever age laws or
981960 administrative rules of the ABLE Commission affecting his or her
982961 license privilege to deliver alcoholic beverage produ cts to
983962 consumers.
984963 SECTION 4. This act shall become effective July 1, 202 3.
985964 SECTION 5. It being immediately necessary for the preservation
986965 of the public peace, health or safe ty, an emergency is hereby
987966 declared to exist, by reason whereof this act shall take effect and
988967 be in full force from and after its passage and a pproval.
989968
990-COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
991-SUBSTANCES, dated 03/01/2023 - DO PASS.
969+59-1-6070 JL 01/07/23