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ENGROSSED HOUSE
BILL NO. 2640 By: Echols of the House
and
Coleman of the Senate
An Act relating to alcoholic beverages; amending 37A
O.S. 2021, Section 3 -106, which relates to direct
wine shipper's permit; modifying requirements for
certain reports; providing information to be
reported; prohibiting shipment of wine to consumers
without a permit; pr oviding penalties; providing that
certain shippers have consented to c ertain state
agency and court jurisdiction; prohibiting certain
acts; providing penalties; requiring notice to
carriers of shipments that are unlawful; requiring
inspection and auditing of records; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 37A O.S. 2021, Section 3 -106, is
amended to read as follows:
Section 3-106. A. A Direct Wine Ship per's Permit may be issued
by the Oklahoma ABLE Commission to a wine ry licensed in this or any
other state within the United States as a wi ne producer. A Direct
Wine Shipper's Permit allows a winery to ship up to six nine -liter
cases of wine annually dire ctly to an Oklahoma resident who is
twenty-one (21) years of age or older for such resident's personal
use and not for resale. No resident shall be permitted to purchase
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more than thirty nine-liter cases of wine per year under the
provisions of this secti on.
B. The ABLE Commission shall promulgate rules governing the
application, issuance and renewal of Direct Wine Shipper 's Permits,
which shall include but not be limited to:
1. Proof of current licensure in this or any other state as a
wine producer;
2. Payment of a registration fee of Three Hundred Dollars
($300.00) for original permits and One Hundred Fifty Dollars
($150.00) for renewal permits; and
3. Any other document ation that the ABLE Commission believes is
reasonably necessary to verify the ide ntity and physical location of
the winery.
C. With regard to direct wine shipments permitted by this
section, Direct Wine Shipper permit h olders:
1. Shall not ship more than six nine-liter cases of wine
annually to any person for his or her personal use;
2. Shall not ship wine intended for resale;
3. Shall ensure that all packages containing wine shipped
directly to a resident in this sta te are conspicuously labeled with
the words "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER
REQUIRED FOR DELIVERY" or are conspicuously labeled with alternative
wording preapproved by the ABLE Commission;
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4. Shall require the transporter or common carrier that
delivers the wine to ob tain the signature of a person twenty-one
(21) years of age or older at the deliv ery address at the time of
delivery. At the expense of the Direct W ine Shipper, the Direct
Wine Shipper shall receive a delivery confirmat ion from the express
company, common carrier or contract carrier indicating the location
of delivery and the name and signature of the individual who
accepted the delivery. The ABLE Co mmission shall design and create
a label or approve a label that must b e affixed to the shipping
container by the licensee;
5. Shall report to the ABLE Commission annually, quarterly by a
method prescribed by the ABLE Commission, the total amount of wine
shipped into the state the preceding calendar year all of the
following information for each wine shipment into the state pursuant
to this section:
a. the name and address of the Oklahoma resident who
placed the order,
b. for each completed shipment, evidence of signature by
an individual of age 21 or older,
c. the name and license number of the common or permit
carrier engaged in the shipment,
d. for each shipment by a wine fulfillment center
licensee on behalf of the direct wine shipper, the
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name and license number of the wine fulfillment center
licensee engaged in the shipment,
e. the date of the shipment,
f. the carrier tracking number, and
g. the quantity of wine in the shipment;
6. Shall annually quarterly pay to the Oklahoma Tax Commission
all applicable taxes due on sales authorized by this section to
Oklahoma residents in the preceding calendar year. The amount of
such taxes shall be calculated as if the sale were in Oklahoma at
the location where delivery is made. Upon request, permit holders
shall permit the Tax Commission to perform an audit of the permit
holder's records in order to assure compliance;
7. Shall be deemed to have consented to the jurisdiction of any
agency or court of the State of Oklahoma tasked with the enforcement
of or adjudication of controversies related to this section and any
related laws or rules; and
8. Shall require the consumer to verify, by elec tronic means or
otherwise, that the consumer is at leas t twenty-one (21) years of
age.
9. Shipments of wine to consumers in Oklahom a from persons who
do not possess a current Direct Wine Shippe r Permit pursuant to this
section are prohibited. Any person that violates this section is
guilty of a misdemeanor and subject to a civil penalty as follows:
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for the first offense shall be fined not more than One Thousand Five
Hundred Dollars ($1,500.00), for a second offense shall be fined not
more than Two Thousand Five Hundred Dollars ($2,500.00), and for a
third and subsequent offense shall be fined not more than Five
Thousand Dollars ($5,000.00).
D. Every express company, common car rier, contract carrier and
every firm or corporation that shall bring, carry or transport wine
for delivery to any person in the state, except wine or spirit
wholesalers or beer distributors, shall prepare and fil e quarterly
with the ABLE Commission a repo rt, which shall not be subject to the
Oklahoma Open Records Act, of all known wine, beer and distilled
shipments containing:
1. The name of the company, carrier, person, firm or
corporation making the report;
2. The period of time covered by the report;
3. The name, direct shipping permit number and business address
of the consignor shipping the wine;
4. The weight of the packages shi pped;
5. The unique tracking number of the delivery; and
6. The date of deli very.
E. A common carrier shall not deliver a shipment of wi ne
pursuant to this section to any person in this state unless the
carrier has verified the validity of the Direct Wi ne Shipper's
Permit prior to accepting shipment. A carrier may consider a dire ct
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wine shipper's permit to be valid for the remainder of th e stated
license period unless notified otherwise by the ABLE C ommission.
F. Every express company, common carrier, contract carrier and
every firm or corporation that shall bring, carry or trans port wine
for delivery to any person in the state, except wi ne or spirit
wholesalers or beer distributors, shall be deemed to have consented
to the jurisdiction of any agency or court of the State of Oklahoma
tasked with the enforcement of or adjudication of controversies
related to this section and any related law s or rules; and
G. 1. No express company, common carrier, or c ontract carrier
nor any representative, agent, or emp loyee on behalf of an express
company, common carrier, or contract carrier shall knowingly deliver
any shipping container that contains an alcoholic beverage into this
state, unless it complies with the provisions of this section.
2. No express company, c ommon carrier, or contract carrier nor
any representative, agent, or employee on behalf of an express
company, common carrier, or contract carrier shall knowingly deliver
any shipping container that is c learly labeled as containing an
alcoholic beverage in cluding, but not limited to, the lawful
shipment of wine under this section, to any person in this state who
is under the age of twenty -one (21) years of age at the time of
delivery.
3. Any express company, common carrier, or contract carrier
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that carries or transports alcoholic beverages for delivery within
this state in violation of this section for the fi rst offense shall
be fined not more than One Thousand Five Hundred Dollars
($1,500.00), for a sec ond offense shall be fined not more than Two
Thousand Five Hundred Dollars ($2,500.00), and for a third and
subsequent offense shall be fined not more than Fiv e Thousand
Dollars ($5,000.00).
4. An express company, common carrier, and contract carrier may
be held vicariously liable for the actions of its repr esentatives,
agents, and employees for actions in violation of this section.
5. The Commission shall notify common carriers of all shipmen ts
it has good cause to believe were made unlawfully into the s tate
whether those be through a licensed direct shippe r, fulfillment
provider or an unlicensed entity. The Commission may prohibit a
carrier from transporting alcohol on behalf of a consignor
identified as having made an unlawful shipment beginning 15 days
from the date of the notice. A common carrier may r equest, and the
Commission must provide, a hearing to show good cause for the
continued shipping by said consignor .
H. The ABLE Commission shall inspect and audit the records of
both the direct wine shipp er permit holder, as well as the common
carrier and enforce accordingly.
I. The provisions of this section do not apply to a motor
carrier or freight forwarder as d efined in Section 13102 o f Title 49
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of the United States Code or to an air carrier as defin ed in Section
40102 of Title 49 of the United State s Code.
SECTION 2. This act shall become effective November 1, 2023.
Passed the House of Representatives the 21st day of March, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2023.
Presiding Officer of the Senate