Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB639 Compare Versions

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Version 2 (New)

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3		-	ENGR. S. B. NO. 639 Page 1 1
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28		-	ENGROSSED SENATE
29		-	BILL NO. 639 By: Coleman of the Senate
	29	+	SENATE FLOOR VERSION
	30	+	February 27, 2023
	31	+	AS AMENDED
	32	+
	33	+	SENATE BILL NO. 639 By: Coleman of the Senate
30	34
31	35		and
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33	37		Marti of the House
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38	43		[ alcoholic beverages - definitions - effective date ]
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42	47		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
43	48		SECTION 1. AMENDATORY 37A O.S. 2021, Section 1 -103, is
44	49		amended to read as follows:
45	50		Section 1-103. As used in the Oklahoma Alcoholic Beverage
46	51		Control Act:
47	52		1. “ABLE Commission” or “Commission” means the Alcoholic
48	53		Beverage Laws Enforcement Commission;
49	54		2. “Alcohol” means and includes hydrated oxide of ethyl, et hyl
50	55		alcohol, ethanol or spirits of wine, f rom whatever source or by
51	56		whatever process produced . It does not include wood alcohol or
52	57		alcohol which has been denatured or p roduced as denatured in
53	58		accordance with Acts of Congress and regulations promulgated
54	59		thereunder;
55	60		3. “Alcoholic beverage” means alcohol, spirits, beer and wine
56	61		as those terms are defined herein and also includes every liquid or
57		-	solid, patented or not, cont aining alcohol, spirits, wine or beer
58		-	and capable of being consumed as a beverage by hu man beings;
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	89	+	solid, patented or not, cont aining alcohol, spirits, wine or beer
	90	+	and capable of being consumed as a beverage by hu man beings;
85	91		4. “Applicant” means any individual, legal or commercial
86	92		business entity, or any individual involved in any legal or
87	93		commercial business entity allowed to h old any license issued in
88	94		accordance with the Oklahoma Alcoholic Beverage Control Act;
89	95		5. “Beer” means any beverage containing more than one -half of
90	96		one percent (0.50%) of alcohol by volume and obtained by the
91	97		alcoholic fermentation of an infusion or deco ction of barley, or
92	98		other grain, malt or similar products . “Beer” may or may not
93	99		contain hops or other vegetable products . “Beer” includes, among
94	100		other things, beer, ale, stout, lager beer, porter and other malt or
95	101		brewed liquors, but does not include sa ke, known as Japanese rice
96	102		wine;
97	103		6. “Beer keg” means any brewer-sealed, single container that
98	104		contains not less than four (4) gallons of be er;
99	105		7. “Beer distributor” means and includes any person licensed to
100	106		distribute beer for retail sale in the state, b ut does not include a
101	107		holder of a small brewer self-distribution license or brewpub self -
102	108		distribution license. The term “distributor”, as used in the
103	109		Oklahoma Alcoholic Beverag e Control Act, shall be construed to refer
104	110		to a beer distributor;
105	111		8. “Bottle club” means any establishment in a county which has
106	112		not authorized the retail sale of alcoholic beverages by the
107		-	individual drink, which is r equired to be licensed to keep, mix and
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	140	+	individual drink, which is r equired to be licensed to keep, mix and
134	141		serve alcoholic beverages belonging to club members on club
135	142		premises;
136	143		9. “Bottle service” means the sale and provision of spirits in
137	144		their original packages by a mixed be verage licensee to be consumed
138	145		in that mixed beverage licensee’s club suite;
139	146		10. “Brand” means any word, name, group of letters, symbol or
140	147		combination thereof, that is adopted and used by a licensed brewer
141	148		to identify a specific beer, wine or spirit and t o distinguish that
142	149		product from another beer, wine or spirit;
143	150		11. “Brand extension” means:
144	151		a. after October 1, 2018, any brand of beer or cider
145	152		introduced by a manufacturer in this state which
146	153		either:
147	154		(1) incorporates all or a substantial part of the
148	155		unique features of a preexisting brand of the
149	156		same licensed brewer, or
150	157		(2) relies to a significant extent on the goodwill
151	158		associated with the preexisting brand, or
152	159		b. any brand of beer that a brewer, the majority of whose
153	160		total volume of all brands of beer dis tributed in this
154	161		state by such brewer on Janu ary 1, 2016, was
155	162		distributed as low-point beer, desires to sell,
156	163		introduces, begins selling or theretofore has sold and
157	164
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183	191		desires to continue selling a strong beer in this
184	192		state which either:
185	193		(1) incorporates or incorporated all or a substantial
186	194		part of the unique features of a preexisting low-
187	195		point beer brand of the same licensed brewer, or
188	196		(2) relies or relied to a sign ificant extent on the
189	197		goodwill associated with a preexisting low -point
190	198		beer brand;
191	199		12. “Brewer” means and includes any person who manufactu res,
192	200		who is the exclusive broker agent, or the primary s ource of a
193	201		national supply representing a person who manufac tures outside of
194	202		the state, for human consumption by the use of raw materials or
195	203		other ingredients any beer or cider upon which a license fee and a
196	204		tax are imposed by any law of this state;
197	205		13. “Brewpub” means a licensed establishment operated on the
198	206		premises of, or on premises located contiguous to, a small brewer,
199	207		that prepares and serves food an d beverages, including alcoholic
200	208		beverages, for on-premises consumption;
201	209		14. “Cider” means any alcoholic beverage obtained by the
202	210		alcoholic fermentation of frui t juice, including but not limited to
203	211		flavored, sparkling or carbonated cider . For the purposes of the
204	212		manufacture of this product, cider may be manufactured by either
205	213		manufacturers or brewers . For the purposes of the distribution of
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232	241		this product, cider may be distributed by either wine and spirits
233	242		wholesalers or beer distributors;
234	243		15. “Club suite” means a designated area within the premises of
235	244		a mixed beverage licensee designed to provide an exclusive space
236	245		which is limited to a patron or patrons specif ically granted access
237	246		by a mixed beverage licensee and is not accessible to other patrons
238	247		of the mixed beverage licensee or the public . A club suite must
239	248		have a clearly designated point of access for a patron or patrons
240	249		specifically granted access by the mixed beverage licensee to ensure
241	250		that persons present in the suite are limited to patrons
242	251		specifically granted access by the mixed beverage licensee and
243	252		employees providing services to the club suite;
244	253		16. “Convenience store” means any person primarily en gaged in
245	254		retailing a limited range of general household items and groceries,
246	255		with extended hours of operation, whether or not engaged in retail
247	256		sales of automotive fuels in combination with such sales;
248	257		17. “Convicted” and “conviction” mean and include a f inding of
249	258		guilt resulting from a plea of guilty or nolo contendere, the
250	259		decision of a court or magistrate or the verdict of a jury,
251	260		irrespective of the pronouncement of judgment or the suspension
252	261		thereof;
253	262		18. “Designated products” means the brands of wine or spirits
254	263		offered for sale by a manufacturer that the manufacturer has
255	264		assigned to a designat ed wholesaler for exclusive distribution;
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282	292		19. “Designated wholesaler ” means a wine and spirits wholesaler
283	293		who has been selected by a manufacturer as a wholesale r appointed to
284	294		distribute designated products;
285	295		20. “Director” means the Director of the ABLE C ommission;
286	296		21. “Distiller” means any person who produces spirits from any
287	297		source or substance, or any person who brews or makes mash, wort or
288	298		wash, fit for distillation or for the production of spirits (except
289	299		a person making or using such material in the authorized production
290	300		of wine or beer, or the production of vinegar by fermentation), or
291	301		any person who by any process separates alcoholic spirits from any
292	302		fermented substance, or any person who, making or keeping mash, wort
293	303		or wash, has also in his or he r possession or use a still;
294	304		22. “Distributor agreement ” means the written agreement between
295	305		the distributor and brewer as set forth in Section 3 -108 of this
296	306		title;
297	307		23. “Drug store” means a person primarily engaged in retailing
298	308		prescription and nonprescr iption drugs and medicines;
299	309		24. “Dual-strength beer” means a brand of beer that,
300	310		immediately prior to April 15, 2017, was being sold and distributed
301	311		in this state:
302	312		a. as a low-point beer pursuant to the Low-Point Beer
303	313		Distribution Act in effect immediatel y prior to
304	314		October 1, 2018, and
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331	342		b. as strong beer pursuant to the Alcoholic Beverage
332	343		Control Act in effect immediately prior to October 1,
333	344		2018,
334	345		and continues to be sold and distributed as such on October 1, 2018.
335	346		Dual-strength beer does not include a bra nd of beer that arose as a
336	347		result of a brand extension as defined in this section;
337	348		25. “Fair market value” means the value in the subject
338	349		territory covered by t he written agreement with the distributor or
339	350		wholesaler that would be determined in an arm ’s length transaction
340	351		entered into without duress or threat of termination of the
341	352		distributor’s or wholesaler’s rights and shall include all elements
342	353		of value, including goodwill and going-concern value;
343	354		26. “Good cause” means:
344	355		a. repeated failure by the distributor to comply with the
345	356		material and reasonable provisions of a written
346	357		agreement or understanding with the brewer, or
347	358		b. failure by the distributor to comply with the duty of
348	359		good faith;
349	360		27. “Good faith” means the duty of each party to any
350	361		distributor agreement and all officers, employees or agents thereof
351	362		to act with honesty in fact and within reasonable standards of fair
352	363		dealing in the trade;
353	364		28. “Grocery store” means a person primarily engaged in
354	365		retailing a general line of food, such as canned or f rozen foods,
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381	393		fresh fruits and vegetables, and fresh and prepared meats, fish and
382	394		poultry;
383	395		29. “Hard seltzer” means any beverage containing more than one -
384	396		half of one percent (0.50%) of alcohol by volume and obtained by the
385	397		alcoholic fermentation of grain o r sugar and combined with
386	398		carbonated water and other flavoring and labeled as a “malt
387	399		beverage” by the United States Department of Tr easury Alcohol and
388	400		Tobacco Tax and Trade Bureau or as beer by the Food and Drug
389	401		Administration. For the purposes of taxation, distribution, sales,
390	402		and regulation, hard seltzer shall mean the same as beer as provided
391	403		in this section; provided, that hard seltzer shall not include
392	404		carbonated beverages mixed with wine and spirits;
393	405		30. “Hotel” or “motel” means an establishment which is licensed
394	406		to sell alcoholic beverages by the indi vidual drink and which
395	407		contains guestroom accommodations with respect to which the
396	408		predominant relationshi p existing between the occupants thereof and
397	409		the owner or operator of the establishmen t is that of innkeeper and
398	410		guest. For purposes of this section, the existence of other legal
399	411		relationships as between some occupants and the owner or operator
400	412		thereof shall be immaterial;
401	413		30. 31. “Legal newspaper” means a newspaper meeting the
402	414		requisites of a newspaper for publication of legal notices as
403	415		prescribed in Sections 101 through 114 of Title 25 of the Oklahoma
404	416		Statutes;
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431	444		31. 32. “Licensee” means any person hold ing a license under the
432	445		Oklahoma Alcoholic Beve rage Control Act, and any agent, servan t or
433	446		employee of such licensee while in the performance of any act or
434	447		duty in connection with the licensed business or on the licensed
435	448		premises;
436	449		32. 33. “Low-point beer” shall mean any beverages containing
437	450		more than one-half of one percent (1/2 of 1%) alc ohol by volume, and
438	451		not more than three and two -tenths percent (3.2%) alcoho l by weight,
439	452		including but not limited to, beer or cereal malt beverages obtained
440	453		by the alcoholic fermentation of an infusion by barley or o ther
441	454		grain, malt or similar products;
442	455		33. 34. “Manufacturer” means a distiller, winemaker, rectifier
443	456		or bottler of any alcoholic beverage (other than beer) and its
444	457		subsidiaries, affiliates and parent companie s;
445	458		34. 35. “Manufacturer’s agent” means a salaried or commissioned
446	459		salesperson who is the agent authorized to act on behalf of the
447	460		manufacturer or nonresident seller in the state;
448	461		35. 36. “Meals” means foods commonly ordered at lunch or dinner
449	462		and at least part of which is cooked on the licensed prem ises and
450	463		requires the use of dining imp lements for consumption. Provided,
451	464		that the service of only food such as appetizers, sandwiches, salads
452	465		or desserts shall not be considered “meals”;
453	466
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479	493		36. 37. “Mini-bar” means a closed container, either
480	494		refrigerated in whole or in part, or nonrefrigerated, and access to
481	495		the interior of which is:
482	496		a. restricted by means of a locking device whic h requires
483	497		the use of a key, magnetic card or similar device, or
484	498		b. controlled at all times by the licensee;
485	499		37. 38. “Mixed beverage cooler” means any beverage, by wha tever
486	500		name designated, consisting of an alcoholic beverage and fruit or
487	501		vegetable juice, fruit or vegetable flavorings, dairy products or
488	502		carbonated water containing more than one-half of one percent (1/2
489	503		of 1%) of alcohol measured by volume but not more t han seven percent
490	504		(7%) alcohol by volume at sixty (60) degrees Fahrenheit and which is
491	505		packaged in a container not larger than three hundred seventy -five
492	506		(375) milliliters. Such term shall include but not be limited to
493	507		the beverage popularly known as a “wine cooler”;
494	508		38. 39. “Mixed beverages” means one or more servings of a
495	509		beverage composed in whole or part of an alcoholic beverage in a
496	510		sealed or unsealed container of a ny legal size for consumption on
497	511		the premises where served or sold by the holder of a mixed beverage,
498	512		beer and wine, caterer, public event, charitable event or special
499	513		event license;
500	514		39. 40. “Motion picture theater” means an establishment which
501	515		is licensed by Section 2-110 of this title to sell alcoho lic
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528	543		beverages by the individual drink a nd where motion pictures are
529	544		exhibited, and to which the general public is admitted;
530	545		40. 41. “Nondesignated products” means the brands of wine or
531	546		spirits offered for sal e by a manufacturer that have not been
532	547		assigned to a designated wholesaler;
533	548		41. 42. “Nonresident seller” means any person licensed pursuant
534	549		to Section 2-135 of this title;
535	550		42. 43. “Retail salesperson” means a salesperson soliciting
536	551		orders from and callin g upon retail alcoholic beverage stores with
537	552		regard to his or her product;
538	553		43. 44. “Occupation” as used in connection with “occupation
539	554		tax” means the sites occupied as the places of business of the
540	555		manufacturers, brewers, wholesalers, beer distributors, r etailers,
541	556		mixed beverage licensees, on-premises beer and wine licensees,
542	557		bottle clubs, caterers, public event and special event licensees;
543	558		44. 45. “Original package” means any container of alcohol ic
544	559		beverage filled and stamped or sealed by the manufacture r or brewer;
545	560		45. 46. “Package store” means any sole proprietor or
546	561		partnership that qualifies to sell wine, beer and/or spirits for
547	562		off-premises consumption and that is not a grocery store,
548	563		convenience store or drug store, or other retail outlet that is no t
549	564		permitted to sell wine or beer for off-premises consumption;
550	565		46. 47. “Patron” means any person, customer or visitor who is
551	566		not employed by a licensee or who is not a licensee;
552	567
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578	594		47. 48. “Person” means an individual, any type of partnership,
579	595		corporation, association, limited liability company or any
580	596		individual involved in the legal structu re of any such business
581	597		entity;
582	598		48. 49. “Premises” means the grounds and all buildings and
583	599		appurtenances pertaining to the grounds including any adjacent
584	600		premises if under the direct or indirect control of the licens ee and
585	601		the rooms and equipment under th e control of the licensee and used
586	602		in connection with or in furtherance of the business covered by a
587	603		license. Provided that the ABLE Commission shall have the authority
588	604		to designate areas to be excluded from the lice nsed premises solely
589	605		for the purpose of:
590	606		a. allowing the presence and consumption of alcoholic
591	607		beverages by private parties which are closed to the
592	608		general public, or
593	609		b. allowing the services of a caterer serving alcoholic
594	610		beverages provided by a private p arty.
595	611		This exception shall in no way li mit the licensee’s concurrent
596	612		responsibility for any violations of the Oklahoma Alcoholic Beverage
597	613		Control Act occurring on the licensed premises;
598	614		49. 50. “Private event” means a social gathering or event
599	615		attended by invited guests who share a common caus e, membership,
600	616		business or task and have a prior established relationship . For
601	617		purposes of this definition, advertisement for general public
602	618
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628	645		attendance or sales of tickets to the general public shall not
629	646		constitute a private event;
630	647		50. 51. “Public event” means any event that can be attended by
631	648		the general public;
632	649		51. 52. “Rectifier” means any person who rectifies, purifies or
633	650		refines spirits or wines b y any process (other than by original and
634	651		continuous distillation , or original and continuous processing , from
635	652		mash, wort, wash or other substance, through continuous closed
636	653		vessels and pipes, until the production thereof is complete ), and
637	654		any person who, without rectifying, purifying or refining spirits,
638	655		shall by mixing (except for immediate consumption on the premises
639	656		where mixed) such spirits, wine or other liquor with any material,
640	657		manufactures any spurious, imitation or compound liquors for sale,
641	658		under the name of whiskey, brandy, rum, gin, wine, spirits, cordials
642	659		or any other name;
643	660		52. 53. “Regulation” or “rule” means a formal rule of general
644	661		application promulgated by the ABLE Commission as herein required;
645	662		53. 54. “Restaurant” means an establishment that i s licensed to
646	663		sell alcoholic beverages by the individual drink for on-premises
647	664		consumption and where food is prepared and sold for immediate
648	665		consumption on the premises;
649	666		54. 55. “Retail container for spirits and wines ” means an
650	667		original package of any capacit y approved by the United States
651	668		Bureau of Alcohol, To bacco and Firearms;
652	669
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677	695
678	696		55. 56. “Retailer” means a package store, grocery store,
679	697		convenience store or drug store licensed to sell alcoholic beverages
680	698		for off-premises consumption purs uant to a Retail Spirits Li cense,
681	699		Retail Wine License or Retail Beer License ;
682	700		56. 57. “Sale” means any transfer, e xchange or barter in any
683	701		manner or by any means whatsoever, and includes and means all sales
684	702		made by any person, whether as principal, proprieto r or as an agent,
685	703		servant or employee. The term “sale” is also declared to be and
686	704		include the use or consumptio n in this state of any alcoholic
687	705		beverage obtained within or imported from without this state, upon
688	706		which the excise tax levied by the Oklahoma Alcoholic Beverage
689	707		Control Act has not been paid or exempted;
690	708		57. 58. “Short-order food” means food other than full meals
691	709		including but not limited to sandwiches, soups and salads . Provided
692	710		that popcorn, chips and other similar snack food shall not be
693	711		considered “short-order food”;
694	712		58. 59. “Small brewer” means a brewer who m anufactures less
695	713		than sixty-five thousand barrels of beer annually pursuant to a
696	714		validly issued Small Brewer License hereunder;
697	715		59. 60. “Small farm wine” means a wine that is produced by a
698	716		small farm winery with seventy-five percent (75%) or more Oklahoma-
699	717		grown grapes, berries, other fruits, h oney or vegetables;
700	718		60. 61. “Small farm winery” means a wine-making establishment
701	719		that does not annually produce for sale more than fifteen thousand
702	720
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728	747		(15,000) gallons of wine as reported on the United States Department
729	748		of the Treasury, Alcohol and Tobacco Tax and Trade Bureau, Report of
730	749		Wine Premises Operations (TTB Form 5120.17);
731	750		61. 62. “Sparkling wine” means champagne or any artificially
732	751		carbonated wine;
733	752		62. 63. “Special event” means an entertainment, recreation or
734	753		marketing event that occurs at a sing le location on an irregular
735	754		basis and at which alcoholic beverages are sold;
736	755		63. 64. “Spirits” means any beverage other than wine or beer,
737	756		which contains more than one-half of one percent (1/2 of 1%) alcohol
738	757		measured by volume, and obtained by distillatio n, whether or not
739	758		mixed with other substances in solution and includes those products
740	759		known as whiskey, brandy, rum, gin, vodka, liqueurs, cordials and
741	760		fortified wines and similar compounds, but shall not include any
742	761		alcohol liquid completely denatured in accordance with the Acts of
743	762		Congress and regulations pursuant thereto;
744	763		64. 65. “Strong beer” means beer which, prior to October 1,
745	764		2018, was distributed pursuant to th e Oklahoma Alcoholic Beverage
746	765		Control Act, Section 501 et seq. of Title 37 of the Oklaho ma
747	766		Statutes;
748	767		65. 66. “Successor brewer” means a primary source of supply, a
749	768		brewer, a cider manufacturer or an importer that acquires rights to
750	769		a beer or cider brand fro m a predecessor brewer;
751	770		66. 67. “Tax Commission” means the Oklahoma Tax Commission;
752	771
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778	798		67. 68. “Territory” means a geographic region with a specified
779	799		boundary;
780	800		68. 69. “Wine and spirits wholesaler ” or “wine and spirits
781	801		distributor” means and includes any s ole proprietorship or
782	802		partnership licensed to d istribute wine and spirits in the state.
783	803		The term “wholesaler”, as used in the Oklahoma Alcoholic Beverage
784	804		Control Act, shall be construed to refer to a wine and spirits
785	805		wholesaler;
786	806		69. 70. “Wine” means and includes any beverage containing more
787	807		than one-half of one percent (1/2 of 1%) alcohol by volume and not
788	808		more than twenty-four percent (24%) alcohol by volume at sixty (60)
789	809		degrees Fahrenheit obtained by the fermentation of the natural
790	810		contents of fruits, vegetables, honey, milk or other products
791	811		containing sugar, whether or not other ingredients are added, and
792	812		includes vermouth and sake, known as Japanese rice wine;
793	813		70. 71. “Winemaker” means and includes any person or
794	814		establishment who manufactures for hu man consumption any wine upon
795	815		which a license fee and a tax are imposed by any law of this state;
796	816		and
797	817		71. 72. “Satellite tasting room ” means a licensed establishment
798	818		operated off the licensed premises of the holder of a small farm
799	819		winery or winemaker lice nse, which serves wine for on-premises or
800	820		off-premises consumption.
801	821
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827	848		Words in the plural include the singular, and vice versa, and
828	849		words imparting the masculine gender include the feminine, as well
829	850		as persons and licensees as defined in this section.
830	851		SECTION 2. This act shall become effective November 1, 2023.
831		-	Passed the Senate the 20th day of March, 2023.
832		-
833		-
834		-
835		-	Presiding Officer of the Senate
836		-
837		-
838		-	Passed the House of Representatives the ____ day of __________,
839		-	2023.
840		-
841		-
842		-
843		-	Presiding Officer of the House
844		-	of Representatives
845		-
	852	+	COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
	853	+	February 27, 2023 - DO PASS AS AMENDED