| 49 | 38 | | An Act relating to alcoholic beverages; amending 37A |
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| 50 | 39 | | O.S. 2021, Sections 2-102, as amended by Section 1, |
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| 51 | 40 | | Chapter 396, O.S.L. 2021, 2-103, 2-104, and 2-131, |
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| 52 | 41 | | which relate to brewer, winemaker, distillery, and |
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| 53 | | - | small farm winery licenses; defining term; |
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| 54 | | - | authorizing the ABLE Commission to permit certain |
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| 55 | | - | license holders to host off-site events following |
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| 56 | | - | application; requiring licensees to sell only the |
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| 57 | | - | products covered by licenses; providing details of |
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| 58 | | - | application; allowing Commission to assess fee; |
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| 59 | | - | updating statutory language and reference; repealing |
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| 60 | | - | 37A O.S. 2021, Section 2-102, as amended by Section |
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| 61 | | - | 1, Chapter 226, O.S.L. 2019 , which relates to brewer |
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| 62 | | - | license; providing for codification; and declaring an |
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| 63 | | - | emergency. |
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| 64 | | - | |
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| 42 | + | small farm winery licenses; allowing certain license |
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| 43 | + | holders to host off-site events under cer tain |
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| 44 | + | conditions; defining term; authorizing the ABLE |
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| 45 | + | Commission to permit certain license holders to host |
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| 46 | + | off-site events following application; requiring |
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| 47 | + | licensees to sell only the products covered by |
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| 48 | + | licenses; providing details of application; allowing |
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| 49 | + | Commission to assess fee; updating statutory language |
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| 50 | + | and reference; repealing 37A O.S. 2021, Section 2- |
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| 51 | + | 102, as amended by Section 1, Chapter 226, O.S.L. |
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| 52 | + | 2019, which relates to brewer license; providing for |
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| 53 | + | codification; and declaring an emergency. |
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| 107 | 96 | | B. A small brewer license shall authorize the holder thereof: |
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| 108 | 97 | | 1. To manufacture, bottle, package and store beer and cider |
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| 109 | 98 | | produced by the licensee on lice nsed premises; |
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| 110 | 99 | | 2. To sell beer and cider in this state to holders of beer |
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| 111 | 100 | | distributor licenses and retail licenses or to sell beer and cider |
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| 112 | 101 | | out of this state to qualified perso ns; |
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| 113 | 102 | | 3. To serve free samples of beer and cider produced by the |
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| 114 | 103 | | licensee to visitors twenty-one (21) years of age or older; |
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| 115 | 104 | | 4. To sell beer and cider produced by the licensee for either |
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| 116 | 105 | | on-premises or off-premises consumption to consumers on the brewery |
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| 117 | 106 | | premises, or on premises located contiguou s thereto; |
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| 118 | 107 | | 5. To sell beer and cider at public events such as attended by |
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| 119 | 108 | | the public including, but not limited to, trade shows or, festivals, |
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| 120 | 109 | | farmers markets, boat shows, RV shows, home and garden shows, fairs, |
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| 121 | 110 | | car shows, swap meets, city events, county events, or state events |
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| 122 | 111 | | for either on-premises or off-premises consumption, regardless of |
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| 123 | 112 | | whether such events are held at premises covered by a license to |
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| 164 | 148 | | C. The holder of multiple small brewer licenses may sell beer |
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| 165 | 149 | | and cider produced at up to three breweries for which the lice nsee |
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| 166 | 150 | | has a license, at any other of such three licensed breweries or on |
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| 167 | 151 | | premises located cont iguous thereto. |
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| 168 | 152 | | D. Nothing in the Oklahoma Alcoholic Beverage Control Act shall |
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| 169 | 153 | | prohibit the holder of a small brewer license from also holding or |
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| 170 | 154 | | owning an interest in the holder of a brewpub license. |
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| 171 | 155 | | E. For purposes of this section, no visitor may samp le more |
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| 172 | 156 | | than a total of twelve (12) fluid ounces of beer and cider per day. |
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| 173 | 157 | | The brewer must restrict the distribution and consumption of beer |
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| 174 | 158 | | and cider samples to an area within the licensed premises designated |
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| 208 | 191 | | anywhere on the premises except for a serving area. Samples of beer |
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| 209 | 192 | | and cider served by a brewery under this section shal l not be |
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| 210 | 193 | | considered a sale of beer and cider within the meaning of Article |
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| 211 | 194 | | XXVIII-A of the Oklahoma Constitution or Section 1-103 of this |
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| 212 | 195 | | title; however, such samples of beer and cider shall be considered |
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| 213 | 196 | | beer and cider removed or withdrawn from the brewery for use or |
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| 214 | 197 | | consumption within the meaning of Section 5-110 of this title for |
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| 215 | 198 | | excise tax determination and reporting requirements. Sales and |
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| 216 | 199 | | sampling may only occur between the hours of 10:00 a.m. and 2:00 |
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| 217 | 200 | | a.m. For purposes of this subsection, “serving area” means the area |
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| 218 | 201 | | of the bar where drinks are sold, prepared, and served to paying |
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| 219 | 202 | | customers and shall not include other areas of the brewery where |
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| 220 | 203 | | customers consume purchased products. |
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| 221 | 204 | | F. A small brewer self-distribution license shall authorize |
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| 222 | 205 | | holders of a small brewer license to distribute beer and cider |
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| 223 | 206 | | produced only by such licensee to a holder of a retail beer license, |
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| 224 | 207 | | retail spirits license, mixed beverage license, beer and wine |
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| 225 | 208 | | license, caterer’s license, special event license, public event |
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| 259 | 241 | | immediate notification to the ABLE Commission before the ch ange in |
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| 260 | 242 | | election will take effect. A sm all brewer that elects to self - |
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| 261 | 243 | | distribute in multiple terri tories shall only be required to have |
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| 262 | 244 | | one small brewer self-distribution license. |
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| 263 | 245 | | G. All manufacturer’s licenses held by brewers during the first |
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| 264 | 246 | | calendar year beginning October 1, 2018, shall aut omatically convert |
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| 265 | 247 | | to brewer licenses and be deemed effecti ve as of the date of the |
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| 266 | 248 | | first issuance of the manufacturer’s license. Upon the first |
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| 267 | 249 | | renewal of the license, the brewer will need to obtain the |
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| 268 | 250 | | appropriate brewer’s license. If a brewer elects t o market wine and |
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| 269 | 251 | | spirits, the brewer will also be required to obtain a manufacturer’s |
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| 270 | 252 | | license and comply with the rules and regulations for both licenses. |
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| 271 | 253 | | SECTION 2. AMENDATORY 37A O.S. 2021, Section 2 -103, is |
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| 272 | 254 | | amended to read as follows: |
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| 273 | 255 | | Section 2-103. A. A distiller license shall authorize the |
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| 274 | 256 | | holder thereof: |
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| 275 | 257 | | 1. To manufacture, bottle, package and store spirits on |
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| 276 | 258 | | licensed premises; |
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| 310 | 291 | | 4. To serve free samples of spirits produced only by the |
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| 311 | 292 | | licensee to visitors twenty-one (21) years of age and older. For |
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| 312 | 293 | | purposes of this section, no visitor may sample more than a total of |
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| 313 | 294 | | three (3) fluid ounces of spirits per day. The distiller shall |
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| 314 | 295 | | restrict the distribution and consumption of spirits samples to a n |
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| 315 | 296 | | area within the licensed premises designated by the distiller. A |
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| 316 | 297 | | current floor plan that includes the designated sampling area shall |
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| 317 | 298 | | be on file with the ABLE Commission. No visitor under twenty-one |
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| 318 | 299 | | (21) years of age shall be permitted to enter the desi gnated |
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| 319 | 300 | | sampling area when samples are being distributed and consumed. |
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| 320 | 301 | | Samples of spirits served by a distiller under this section shall |
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| 321 | 302 | | not be considered a sale of spirits w ithin the meaning of Article |
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| 322 | 303 | | XXVIII-A of the Oklahoma Constitution or Section 1 -103 of this |
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| 323 | 304 | | title; provided, such samples of spirits shall be considered removed |
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| 324 | 305 | | or withdrawn from the distillery for use or consumption within the |
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| 325 | 306 | | meaning of Section 5 -110 of this title for excise tax determination |
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| 326 | 307 | | and reporting requirements; |
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| 360 | 340 | | made available for purchase by the Oklahoma l icensed distiller for |
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| 361 | 341 | | sale; and |
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| 362 | 342 | | 6. To sell spirits at public events such as trade shows or |
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| 363 | 343 | | festivals. Products offered for sale by the Oklahoma licensed |
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| 364 | 344 | | distiller will have been sold to and shipped to an Oklahoma licensed |
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| 365 | 345 | | wine and spirits wholesaler and then made available for purchase by |
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| 366 | 346 | | the Oklahoma licensed distiller ; and |
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| 367 | 347 | | 7. To host off-site events pursuant to Section 5 of this act; |
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| 368 | 348 | | provided, that products offered for sale by the Oklahoma licensed |
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| 369 | 349 | | distiller will have been sold to and shi pped to an Oklahoma licensed |
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| 370 | 350 | | wine and spirits wholesaler and then made available for purchase by |
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| 371 | 351 | | the Oklahoma licensed distiller. |
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| 372 | 352 | | B. Spirits sold pursuant to paragraphs 5 and 6 of subsection A |
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| 373 | 353 | | of this section shall not exceed fifteen thousand (15,000) gallons |
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| 374 | 354 | | per calendar year in combination. |
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| 375 | 355 | | SECTION 3. AMENDATORY 37A O.S. 2021, Section 2-104, is |
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| 376 | 356 | | amended to read as follows: |
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| 410 | 389 | | sizes authorized shall be limited to the capacities ap proved by the |
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| 411 | 390 | | United States Alcohol and Tobacco Tax and Trade Bureau; |
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| 412 | 391 | | 2. To sell wine in this state to licensed wholesalers and |
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| 413 | 392 | | manufacturers; |
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| 414 | 393 | | 3. To sell wine produced at the winery from grapes and other |
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| 415 | 394 | | fruits and berries grown in this state, if availab le, for either on- |
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| 416 | 395 | | premises or off-premises consumption to consumers on the pr emises of |
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| 417 | 396 | | the winery; |
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| 418 | 397 | | 4. To serve free samples of wine produced at the winery to |
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| 419 | 398 | | visitors twenty-one (21) years of age and older. For purposes of |
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| 420 | 399 | | this section, no visitor may sa mple more than a total of six (6 ) |
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| 421 | 400 | | fluid ounces of wine per day. The winery s hall restrict the |
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| 422 | 401 | | distribution and consumption of wine samples to an area within the |
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| 423 | 402 | | licensed premises designated by the winery. A current floor plan |
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| 424 | 403 | | that includes the designated sampling area shall be on file with the |
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| 425 | 404 | | ABLE Commission. No visitor under t wenty-one (21) years of age |
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| 426 | 405 | | shall be permitted to enter the designated sampling area when |
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| 427 | 406 | | samples are being distributed and consumed. Samples of wine served |
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| 461 | 439 | | 5. To serve free samples of wine produced at the winery at |
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| 462 | 440 | | public events such as festivals and trade shows; |
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| 463 | 441 | | 6. To sell wine produced at the win ery, for either on-premises |
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| 464 | 442 | | or off-premises consumption at public events such as festivals and |
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| 465 | 443 | | trade shows; |
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| 466 | 444 | | 7. To sell wine out of this state to qualified persons; |
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| 467 | 445 | | 8. To purchase from licensed winemakers, distillers and |
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| 468 | 446 | | rectifiers in this state, and to i mport into this state wine, bran dy |
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| 469 | 447 | | and fruit spirits for use in manufacturing in accordance with |
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| 470 | 448 | | federal laws and regulations; |
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| 471 | 449 | | 9. To sell and serve Oklahoma-manufactured wine, mulled wine, |
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| 472 | 450 | | or spiced wine, mixed with nonalcoholic beverages or food items su ch |
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| 473 | 451 | | as water, sugar, fruits and v egetables, at any temperature for |
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| 474 | 452 | | either on-premises or off-premises consumption; |
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| 475 | 453 | | 10. To purchase beer in retail containers from the holder of a |
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| 476 | 454 | | wholesaler, beer distributor, small brewer self-distributor or |
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| 477 | 455 | | brewpub self-distributor license or as specific ally provided by law; |
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| 512 | 489 | | winery license or winemaker license is active and in good standing. |
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| 513 | 490 | | The wine sold at a satellite tas ting room must have been |
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| 514 | 491 | | produced/manufactured by the holder of a small farm winery license |
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| 515 | 492 | | or winemaker license and must have all manufacturing taxes paid; and |
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| 516 | 493 | | 13. To host off-site events pursuant to Section 5 of this act. |
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| 517 | 494 | | SECTION 4. AMENDATORY 37A O.S. 2021, Section 2-131, is |
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| 518 | 495 | | amended to read as follows: |
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| 519 | 496 | | Section 2-131. A. A small farm winery license shall authorize |
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| 520 | 497 | | the holder thereof: |
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| 521 | 498 | | 1. To manufacture and bottle win es produced by that small farm |
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| 522 | 499 | | winery; |
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| 523 | 500 | | 2. To bottle and sell wines produced by another small farm |
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| 524 | 501 | | winery. In order for a small farm winery to bottle and sell another |
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| 525 | 502 | | small farm winery’s products, both the selling winery and the buying |
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| 526 | 503 | | winery shall be small farm winery permit holders; |
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| 527 | 504 | | 3. To establish satellite tasting r ooms as defined and |
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| 528 | 505 | | authorized in this act the Oklahoma Alcoholic Beverage Control Act |
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| 506 | + | where the winemaker’s products may be tasted, sampled, sold and |
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| 507 | + | served for on-premises consumption and the winemaker is permitted to |
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| 508 | + | sell its products in sealed containers; provided, the small farm |
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| 509 | + | winery license is active and in good standing. The wine sold at a |
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| 510 | + | satellite tasting room must have been produced/manufactured by the |
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| 511 | + | holder of a small farm winery license and must have all |
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| 512 | + | manufacturing taxes paid; and |
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| 556 | | - | where the winemaker’s products may be tasted, sampled, sold and |
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| 557 | | - | served for on-premises consumption and the wine maker is permitted to |
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| 558 | | - | sell its products in sealed containers; provided, the small farm |
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| 559 | | - | winery license is active and in good standing. The wine sold at a |
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| 560 | | - | satellite tasting room must have been produced/manufactured by the |
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| 561 | | - | holder of a small farm winery licen se and must have all |
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| 562 | | - | manufacturing taxes paid; and |
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| 563 | 539 | | 4. To host off-site events pursuant to Section 5 of this act; |
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| 564 | 540 | | and |
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| 565 | 541 | | 5. The small farm winery licensee shall have t he same authority |
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| 566 | 542 | | as the winemaker licensee. |
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| 567 | 543 | | B. A small farm wine may display the trademarked “Oklahoma |
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| 568 | 544 | | Grown” sticker available from the Oklahoma Grape Industry Council. |
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| 569 | 545 | | SECTION 5. NEW LAW A new section of law to be codified |
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| 570 | 546 | | in the Oklahoma Statutes as Section 2-162 of Title 37A, unless there |
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| 571 | 547 | | is created a duplication in numbering, reads as follows: |
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| 572 | | - | A. A small brewer, winemaker, distiller, or small farm winery |
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| 573 | | - | licensee shall be authorized to host an off-site event following the |
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| 574 | | - | submission and approval of an application to the ABLE Commission. |
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| 575 | | - | The licensee shall only be authorized to sell for consumption at the |
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| 576 | | - | off-site event alcoholic beverages authorized for sale under the |
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| 577 | | - | licensee’s respective license. The licensee shall be limited to |
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| 578 | | - | hosting four (4) off-site events per year. |
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| 548 | + | A. A brewer, small brewer, winemaker, distiller, or small farm |
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| 549 | + | winery licensee shall be authorized to host an off-site event |
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| 550 | + | following the submission and approval of an application to the ABLE |
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| 551 | + | Commission. The licensee shall only be authorized to sell for |
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| 552 | + | consumption at the off-site event alcoholic beverages authorized for |
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| 553 | + | sale under the licensee’s respective license. The licensee shall be |
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| 554 | + | limited to hosting four (4) off-site events per year. |
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| 555 | + | B. The application shall include, but not be limited to, the |
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| 556 | + | location of the off-site event with a designated area within the |
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| 557 | + | location designed to provide an exclusive space which may be limited |
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| 558 | + | to the public and a designated point of access for a pat ron or |
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| 559 | + | patrons specifically granted acces s to ensure that persons presen t |
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| 560 | + | in the designated area are above twenty-one (21) years of age. The |
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| 561 | + | Commission may prescribe a filing fee for each off-site event |
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| 562 | + | application not to exceed Twenty-five Dollars ($25.00). |
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| 606 | | - | B. The application shall include, but not be limited to, the |
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| 607 | | - | location of the off-site event with a designated area within the |
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| 608 | | - | location designed to provide an exclusive space which may be limited |
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| 609 | | - | to the public and a designated point of access for a pat ron or |
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| 610 | | - | patrons specifically granted acces s to ensure that persons present |
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| 611 | | - | in the designated area are above twenty-one (21) years of age. The |
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| 612 | | - | Commission may prescribe a filing fee for each off-site event |
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| 613 | | - | application not to exceed Twenty-five Dollars ($25.00). |
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| 614 | 589 | | C. The ABLE Commission shall prom ulgate rules necessary for the |
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| 615 | 590 | | implementation of this section. |
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| 616 | 591 | | SECTION 6. REPEALER 37A O.S. 2021, Section 2-102, as |
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| 617 | 592 | | amended by Section 1, Chapter 226, O.S.L. 2019, is hereby repealed. |
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| 618 | 593 | | SECTION 7. It being immediately necessary for the preservation |
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| 619 | 594 | | of the public peace, health or safety, an emergency is hereby |
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| 620 | 595 | | declared to exist, by reason whereof this act shall take effect and |
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| 621 | 596 | | be in full force from and after its passage and appro val. |
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