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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 1035 By: Coleman
AS INTRODUCED
An Act relating to alcoholic beverages; amending 37A
O.S. 2021, Section 1 -103, which relates to
definitions; defining term; expanding definition; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 37A O. S. 2021, Section 1-103, is
amended to read as follows:
Section 1-103. As used in the Oklaho ma 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, et hyl
alcohol, ethanol or spirits of wine, f rom whatever source or by
whatever process produced . 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;
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3. “Alcoholic beverage” means alcohol, spirits, beer a nd wine
as those terms are defined herein and also includes every liquid or
solid, patented or not, containing alcohol, spirits, wine or b eer
and capable of being consumed as a beverage by hu man beings;
4. “Applicant” means any individual, legal or commer cial
business entity, or any 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 of alcoho l by volume and obtained
by the alcoholic fermentation of an infusion or decoction of barley,
or other grain, malt or similar products . “Beer” may or may not
contain hops or other vegetable products . “Beer” includes, among
other things, beer, ale, stout, lager beer, porter and ot her malt or
brewed liquors, but does not include sake, known as Japanese rice
wine;
6. “Beer keg” means any brewer-sealed, single contain er that
contains not less than four (4) gallons of be er;
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 sel f-
distribution license . The term “distributor”, as used in the
Oklahoma Alcoholic Beverag e Control Act, shall be cons trued to refer
to a beer distributor;
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8. “Bottle club” means any establishment in a county which has
not authorized the retail sale of al coholic 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 beverage 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 spir it and to distinguish that
product from another beer, wine or spirit;
11. “Brand extension” means:
a. after October 1, 2018, any brand of 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 g oodwill
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 distributed in this
state by such brewer on Janu ary 1, 2016, was
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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:
(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, or
(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 in gredients
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 estab lishment operated on the
premises of, or on premises located contiguous to, a small brewer,
that prepares and serves f ood and beverages, including alcoholic
beverages, for on-premises consumption;
14. “Cider” means any alcoholic beverage obtained by the
alcoholic fermentation of fruit 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 distrib ution of
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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 specifically 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 patron s
specifically granted access by the mixed beverage licensee and
employees providing services to the club suite;
16. “Cocktail” means a type of mixed beverage as defined in
Section 7-102 of this title;
17. “Convenience store” means any person primarily e ngaged 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. 18. “Convicted” and “conviction” mean and include a finding
of guilt resulting from a plea of guilty or nolo contendere, the
decision of a court or magistrate or the verdict of a jury,
irrespective of the pronouncement of judgment or the suspension
thereof;
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18. 19. “Designated products” means the brands of wine or
spirits offered for sale by a manufacturer that the manufacturer has
assigned to a designated wholesaler for exclusive distri bution;
19. 20. “Designated wholesaler ” means a wine and spirits
wholesaler who has been selected by a manufacturer a s a wholesaler
appointed to distribut e designated products;
20. 21. “Director” means the Director of the ABLE Commission;
21. 22. “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 her possession or use
a still;
22. 23. “Distributor agreement ” means the written agreement
between the distributor and brewer as set forth in Section 3-108 of
this title;
23. 24. “Drug store” means a person primarily engaged in
retailing prescription and nonprescription drugs a nd medicines;
24. 25. “Dual-strength beer” means a brand of beer th at,
immediately prior to April 15, 2017, was being sold and distributed
in this state:
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a. as a low-point beer pursuant to the Low-Point Beer
Distribution Act in effect immediately prior to
October 1, 2018, and
b. as strong beer pursuant to the Alcoholic Be verage
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 brand of beer that arose as a
result of a brand extension as defined in this sect ion;
25. 26. “Fair market value” means the value in the subject
territory covered by the 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 t he
distributor’s or wholesaler’s rights and shall include all elements
of value, including goodwill and going -concern value;
26. 27. “Good cause” means:
a. failure by the distributor to c omply with the material
and reasonable provisions of a written agree ment or
understanding with the brewer, or
b. failure by the distributor to comply with the duty of
good faith;
27. 28. “Good faith” means the duty of each party to any
distributor agreement and all officers, employees or agents thereof
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to act with honesty in fact and within reasonable standards of fair
dealing in the trade;
28. 29. “Grocery store” means a person primarily en gaged in
retailing a general line of food, such as canned or froz en foods,
fresh fruits and vegetables, and fresh and prepared meats, fish and
poultry;
29. 30. “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 o ccupants and the owner or operator
thereof shall be immaterial;
30. 31. “Legal newspaper” means a newspaper meeting t he
requisites of a newspaper for publication of legal notices as
prescribed in Sections 101 through 114 of Title 25 of the Oklahoma
Statutes;
31. 32. “Licensee” means any person holding a license under the
Oklahoma Alcoholic Beverage Control Act, and any agent, servant 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;
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32. 33. “Low-point beer” shall mean any beverag es containing
more than one-half of one percent (1 /2 of 1%) alcohol by volume, and
not more than three and two -tenths percent (3.2%) alcoho l by weight,
including but not limited to, beer o r cereal malt beverages obtained
by the alcoholic fermentation of an infusion by barley or other
grain, malt or simila r products;
33. 34. “Manufacturer” means a distiller, winemaker, rectifier
or bottler of any alcoholic beverage (other than beer) and its
subsidiaries, affiliates and parent companies;
34. 35. “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. 36. “Meals” means foods commonly ordered at lunch or dinner
and at least part of which is coo ked 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 no t be considered “meals”;
36. 37. “Mini-bar” means a closed containe r, either
refrigerated in whole or in part, or non refrigerated, 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 licens ee;
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37. 38. “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 b ut 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. 39. “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 consu mption on
the premises where served or sold by the holder of a mixed beverage,
beer and wine, caterer, public event, charitable event or special
event license; provided, that a beer, c ider, or wine mixed with
ingredients nonalcoholic in nature including, but not limited to,
water, juice, sugar, fruits, or vegetables and sold by a small
brewer, brewpub, small fa rm winery, or winema ker, shall not be
considered a mixed beverage;
39. 40. “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;
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40. 41. “Nondesignated products” means the brands of wine or
spirits offered for sale by a ma nufacturer that have not been
assigned to a design ated wholesaler;
41. 42. “Nonresident seller” means any person licensed pursuant
to Section 2-135 of this title;
42. 43. “Retail salesperson” means a salesperson soliciting
orders from and calling upon re tail alcoholic beverage stores with
regard to his or her product;
43. 44. “Occupation” as used in connection with “occupation
tax” means the sites occupied as the places of business of the
manufacturers, brewers, wholesalers, beer distributors, retailers,
mixed beverage licensees, on -premises beer and wi ne licensees,
bottle clubs, caterers, public event and special event licensees;
44. 45. “Original package” means any container of alcohol ic
beverage filled and stamped or sealed by the manufacturer or brew er;
45. 46. “Package store” means any sole propri etor or
partnership that qualifies to sell wine, beer and/or spirits for
off-premises consumption and that is not a grocery store,
convenience store or drug store, or other retail outlet that is not
permitted to sell wine or beer for off -premises consumption;
46. 47. “Patron” means any person, customer or visitor who is
not employed by a licensee or who is not a licensee;
47. 48. “Person” means an individual, any type of partnership,
corporation, associati on, limited liability company or any
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individual involved in the legal structure of any such business
entity;
48. 49. “Premises” means the grounds and all buildings and
appurtenances pertaining to the grounds including any adjacent
premises if under the di rect or indirect control of the licensee and
the rooms and equipment under the 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 be excluded from the licensed premise s 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 alcoh olic
beverages provided by a private party.
This exception shall in no way limit the licensee ’s concurrent
responsibility for any violations of the Oklahoma Alcoholic Beverage
Control Act occurring on the licensed premises;
49. 50. “Private event” means a social gathering or event
attended by invited gue sts who share a common cause, membership,
business or task and have a prior established relationship . For
purposes of this definition, ad vertisement for general public
attendance or sales of tickets to the general public shall not
constitute a private eve nt;
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50. 51. “Public event” means any event that can be attended by
the general public;
51. 52. “Rectifier” means any person who rectifie s, purifies or
refines spirits or wines b y any process (other than by original and
continuous distillation, or origina l and continuous processing, from
mash, wort, wash or other substance, through continuous closed
vessels and pipes, until the production t hereof is complete), and
any person who, without rectifying, purifying or refining spirits,
shall by mixing (except fo r immediate consumption on the premises
where mixed) such spirits, wine or other liquor with any material,
manufactures any spurious, imit ation or compound liquors for sale,
under the name of whiskey, brandy, rum, gin, wine, spirits, cordials
or any other name;
52. 53. “Regulation” or “rule” means a formal rule of general
application promulgated by the ABLE Commission as herein required;
53. 54. “Restaurant” means an establishment that i s licensed to
sell alcoholic beverages by the individual drink for on -premises
consumption and where food is prepared and sold for immediate
consumption on the premises;
54. 55. “Retail container for spirit s and wines” means an
original package of any capacit y approved by the United States
Bureau of Alcohol, Tobacco and Fi rearms;
55. 56. “Retailer” means a package store, grocery store,
convenience store or drug store licensed to sell alcoholic beverages
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for off-premises consumption purs uant to a Retail Spirits Li cense,
Retail Wine License or Retail Beer License;
56. 57. “Sale” means any transfer, exchange or barter in any
manner or by any means whatsoever, 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” 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. 58. “Short-order food” means food other than full meals
including but not limited to sandwiches, soups and salads . Provided
that popcorn, chips and other s imilar snack food shall not be
considered “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 seven ty-five percent (75%) or more Oklahoma-
grown grapes, berries, other fruits, honey or vegetables;
60. 61. “Small farm winery” means a wine-making establishment
that does not annually produ ce for sale more than fifteen thousand
(15,000) gallons of wine as r eported on the United States Department
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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 single 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 distillation, 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, but 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 distributed pursuant to th e Oklahoma Alcoholic Beverage
Control Act, Section 501 et seq. of Title 37 of the Oklahoma
Statutes;
65. 66. “Successor brewer” means a primary source of supply, a
brewer, a cider manufacturer or an importer that acquires rights to
a beer or cider brand from a predecessor brewer;
66. 67. “Tax Commission” means the Oklahoma Tax Commission;
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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 propr ietorship or
partnership licensed to dist ribute wine and spirits in the state.
The term “wholesaler”, as used in the Oklahoma Alcoholic Beverage
Control Act, shall be construed to refer t o 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 sixty (60)
degrees Fahrenheit obtai ned by the fermentation of the natural
contents of fruits, vegetable s, honey, milk or other products
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 consu mption any wine upon
which a license fee and a ta x are imposed by any law of this state;
and
71. 72. “Satellite tasting room ” means a licensed establishment
operated off the licensed prem ises of the holder of a small farm
winery or winemaker license, whic h serves wine for on-premises or
off-premises consumption.
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Words in the plural include the singular, and vice versa, and
words imparting the masculine gender include the feminine, as well
as persons and licensees as defined in this section.
SECTION 2. This act shall become effective Novem ber 1, 2023.
59-1-546 MR 1/19/2023 12:49:56 PM