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ENGROSSED SENATE
BILL NO. 639 By: Coleman of the Senate
and
Marti of the House
[ alcoholic beverages - definitions - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
SECTION 1. AMENDATORY 37A O.S. 2021, Section 1-103, is
amended to read as follows:
Section 1-103. As used in the Oklahoma 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 p roduced as denatured in
accordance with Acts of Congress and regulations promulgated
thereunder;
3. “Alcoholic beverage” means alcohol, spirits, beer and wine
as those terms are defined herein and also includes every liquid or
solid, patented or not, cont aining alcohol, spirits, wine or beer
and capable of being consumed as a beverage by hu man beings;
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4. “Applicant” means any individual, legal or commercial
business entity, or any individual involved in any legal or
commercial business entity allowed to h old any license issued in
accordance with the Oklahoma Alcoholic Beverage Control Act;
5. “Beer” means any beverage containing more than one -half of
one percent (0.50%) of alcohol by volume and obtained by the
alcoholic fermentation of an infusion or deco ction 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 other malt or
brewed liquors, but does not include sa ke, known as Japanese rice
wine;
6. “Beer keg” means any brewer-sealed, single container 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, b ut does not include a
holder of a small brewer self-distribution license or brewpub self -
distribution license. The term “distributor”, as used in the
Oklahoma Alcoholic Beverag e Control Act, shall be construed to refer
to a beer distributor;
8. “Bottle club” means any establishment in a county which has
not authorized the retail sale of alcoholic beverages by the
individual drink, which is r equired to be licensed to keep, mix and
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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 be verage 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 li censed brewer
to identify a specific beer, wine or spirit and t o 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 goodwill
associated with the preexisting brand, or
b. any brand of beer that a brewe r, the majority of whose
total volume of all brands of beer dis tributed in this
state by such brewer on Janu ary 1, 2016, was
distributed as low-point beer, desires to sell,
introduces, begins selling or theretofore has sold and
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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 sign ificant extent on the
goodwill associated with a preexisting low-point
beer brand;
12. “Brewer” means and includes any person who manufactu res,
who is the exclusive broker agent, or the primary s ource of a
national supply representing a person who manufac tures outside of
the state, for human consumption by the use of raw materials or
other ingredients 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 establishment operated on the
premises of, or on premises located contiguous to, a small brewer,
that prepares and serves food an d beverages, including alcoholic
beverages, for on-premises consumption;
14. “Cider” means any alcoholic beverage obtained by the
alcoholic fermentation of frui t 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 distribution 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 specif ically 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 patrons
specifically granted access by the mixed beverage licensee and
employees providing services to the club suite;
16. “Convenience store” means any person primarily en gaged 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. “Convicted” and “conviction” mean and include a f inding 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;
18. “Designated products” means the brands of wine or spirits
offered for sale by a manufacturer that the manufacturer has
assigned to a designat ed wholesaler for exclusive distribution;
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19. “Designated wholesaler ” means a wine and spirits wholesaler
who has been selected by a manufacturer as a wholesale r appointed to
distribute designated products;
20. “Director” means the Director of the ABLE C ommission;
21. “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 he r possession or use a still;
22. “Distributor agreement ” means the written agreement between
the distributor and brewer as set forth in Section 3 -108 of this
title;
23. “Drug store” means a person primarily engaged in retailing
prescription and nonprescr iption drugs and medicines;
24. “Dual-strength beer” means a brand of beer that,
immediately prior to April 15, 2017, was being sold and distributed
in this state:
a. as a low-point beer pursuant to the Low-Point Beer
Distribution Act in effect immediatel y prior to
October 1, 2018, and
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b. as strong beer pursuant to the Alcoholic Beverage
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 bra nd of beer that arose as a
result of a brand extension as defined in this section;
25. “Fair market value” means the value in the subject
territory covered by t he 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 the
distributor’s or wholesaler’s rights and shall include all elements
of value, including goodwill and going -concern value;
26. “Good cause” means:
a. repeated failure by the distributor to comply with the
material and reasonable provisions of a written
agreement or understanding with the brewer, or
b. failure by the distributor to comply with the duty of
good faith;
27. “Good faith” means the duty of each party to any
distributor agreement and all officers, employees or agents thereof
to act with honesty in fact and within reasonable standards of fair
dealing in the trade;
28. “Grocery store” means a person primarily e ngaged in
retailing a general line of food, such as canned or f rozen foods,
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fresh fruits and vegetables, and fresh and prepared meats, fish and
poultry;
29. “Hard seltzer” means any beverage containing more than one -
half of one percent (0.50%) of alcohol by volume and obtained by the
alcoholic fermentation of grain o r sugar and combined with
carbonated water and other flavoring and labeled as a “malt
beverage” by the United States Department of Tr easury Alcohol and
Tobacco Tax and Trade Bureau or as beer by the Food and Drug
Administration. For the purposes of taxation, distribution, sales,
and regulation, hard seltzer shall mean the same as beer as provided
in this section; provided, that hard seltzer shall not include
carbonated beverages mixed with wine and spirit s;
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 relationshi p existing between the occupants thereof an d
the owner or operator of the establishmen t is that of innkeeper and
guest. For purposes of this section, the existence of other legal
relationships as between some occupants and the owner or operator
thereof shall be immaterial;
30. 31. “Legal newspaper” means a newspaper meeting the
requisites of a newspaper for publication of legal notices as
prescribed in Sections 101 through 114 of Title 25 of the Oklahoma
Statutes;
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31. 32. “Licensee” means any person hold ing a license under the
Oklahoma Alcoholic Beverage Control Act, and any agent, servan t 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;
32. 33. “Low-point beer” shall mean any beverag es containing
more than one-half of one percent (1/2 of 1%) alc ohol by volume, and
not more than three and two -tenths percent (3.2%) alcoho l by weight,
including but not limited to, beer or cereal malt beverages obtained
by the alcoholic fermentation of an infusion by barley or other
grain, malt or similar products;
33. 34. “Manufacturer” means a distiller, winemaker, rectifier
or bottler of any alcoholic beverage (other than beer) and its
subsidiaries, affiliates and parent companie s;
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 imp lements for consumption. Provided,
that the service of only food such as appetizers, sandwiches, salads
or desserts shall not be considered “meals”;
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36. 37. “Mini-bar” means a closed containe r, either
refrigerated in whole or in part, or nonrefrigerated, 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;
37. 38. “Mixed beverage cooler” means any beverage, by wha tever
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 but not more t han 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 limi ted 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 a ny 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;
39. 40. “Motion picture theater” means an establishment which
is licensed by Section 2-110 of this title to sell al coholic
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beverages by the individual drink a nd where motion pictures are
exhibited, and to which the general public is admitted;
40. 41. “Nondesignated products” means the brands of wine or
spirits offered for sal e by a manufacturer tha t have not been
assigned to a designated 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 callin g upon retail 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, r etailers,
mixed beverage licensees, on-premises beer and wine 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 manufacture r or brewer;
45. 46. “Package store” means any sole proprietor 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 no t
permitted to sell win e 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;
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47. 48. “Person” means an individual, any type of partnership,
corporation, association, limited li ability company or a ny
individual involved in the legal structu re 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 direct or indire ct control of the li censee and
the rooms and equipment under th e 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 b e excluded from the licensed premises 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 alcoholic
beverages provided by a private party.
This exception shall in no way li mit 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 gather ing or event
attended by invited guests who share a common caus e, membership,
business or task and have a prior established relationship . For
purposes of this definition, advertisement for general public
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attendance or sales of tickets to the general publi c shall not
constitute a private event;
50. 51. “Public event” means any event that can be attended by
the general public;
51. 52. “Rectifier” means any person who rectifies, purifies or
refines spirits or wines b y any process (other than by original and
continuous distillation, or original and continuous processing , from
mash, wort, wash or other substance, through continuous closed
vessels and pipes, until the production thereof is complete ), and
any person who, without rectifying, purifying or refining spirits,
shall by mixing (except for immediate consumption on the premises
where mixed) such spirits, wine or other liquor with any material,
manufactures any spurious, imitation or compound liquors for sale,
under the name of whiskey, brandy, rum, gin, w ine, spirits, cordia ls
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 individ ual drink for on-premises
consumption and where food is prepared and sold for immediate
consumption on the premises;
54. 55. “Retail container for spirits and wines ” means an
original package of any capacit y approved by the United States
Bureau of Alcohol, Tobacco and Firearms;
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55. 56. “Retailer” means a package store, grocery store,
convenience store or drug store licensed to sell alcoholic beverages
for off-premises consumption purs uant to a Retail Spirits Li cense,
Retail Wine License or Retail Beer Lic ense;
56. 57. “Sale” means any transfer, e xchange 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 consumptio n 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 similar 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 seventy-five percent (75%) or more Oklahoma-
grown grapes, berries, other fruits, h oney or vegetables;
60. 61. “Small farm winery” means a wine-making establishment
that does not annually produce for sale more than fifteen thousand
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(15,000) gallons of wine as reported on the United States Department
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 sing le 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 distillatio n, 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, bu t 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 Beve rage
Control Act, Section 501 et seq. of Title 37 of the Oklaho ma
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 fro m 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 s ole proprietorship or
partnership licensed to distribute wine and spirits in the state.
The term “wholesaler”, as used in the Oklahoma Alcoholic Beverage
Control Act, shall be construed to refer to 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 obtained by the fermentation of the natural
contents of fruits, vegetables, 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 hu man consumption any wine upon
which a license fee and a tax are imposed by any law of this state;
and
71. 72. “Satellite tasting room ” means a licensed establishment
operated off the licensed premises of the holder of a small farm
winery or winemaker lice nse, which 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 November 1, 2023.
Passed the Senate the 20th day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives