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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL NO. 8 By: Garvin of the Senate
and
Marti of the House
COMMITTEE SUBSTITUTE
An Act relating to alcoholic beverages; amending 37A
O.S. 2021, Sections 2-102, as amended by Section 1,
Chapter 396, O.S.L. 2021, 2-103, 2-104, and 2-131,
which relate to brewer, winemaker, distillery, and
small farm winery licenses; defining term;
authorizing the ABLE Commission to permit certain
license holders to host off-site events following
application; requiring licensees to sell only the
products covered by licenses; providing details of
application; allowing Commission to assess fee;
updating statutory language and reference; repealing
37A O.S. 2021, Section 2-102, as amended by Section
1, Chapter 226, O.S.L. 2019 , which relates to brewer
license; providing for codification; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE S TATE OF OKLAHOMA:
SECTION 1. AMENDATORY 37A O.S. 2021, Section 2-102, as
amended by Section 1, Chapter 396, O .S.L. 2021, is amended to read
as follows:
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Section 2-102. A. A brewer license shall authorize the holder
thereof:
1. To manufacture, bottle, package and store beer and cider on
the licensed premises; and
2. To sell beer and cider in this state to holders of beer
distributor licenses and to sell beer and cider out of this state to
qualified persons.
B. A small brewer license shall authorize the holder thereof:
1. To manufacture, bottle, package and store beer and cider
produced by the licensee on lice nsed premises;
2. To sell beer and cider in this state to holders of beer
distributor licenses and retail licenses or to sell beer and cider
out of this state to quali fied persons;
3. To serve free samples of beer and cider produced by the
licensee to visitors twenty-one (21) years of age or older;
4. To sell beer and cider produced by the licensee for either
on-premises or off-premises consumption to consumers on the brewery
premises, or on premises located contiguou s thereto;
5. To sell beer and cider at public events such as attended by
the public including, but not limited to, trade shows or, festivals,
farmers markets, boat shows, RV shows, home and garden shows, fairs,
car shows, swap meets, city events, county events, or state events
for either on-premises or off-premises consumption, regardless of
whether such events are held at premises covered by a license to
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sell, serve, or store alcoholic beverages. A small brewer license
holder shall not be required to secure or control the premises of an
event attended by the public where the small brewer lice nse holder
sells beer or cider;
6. To purchase wine in retail containers from the holder of a
wholesaler license or as specifically provided by law; and
7. To sell, offer for sale and possess wine for on -premises
consumption;
8. To host off-site events pursuant to Section 5 of this act;
and
9. To purchase from licensed brewers, small brewe rs, and
brewpubs in this state, and to import beer into this state for u se
in manufacturing in accordance with federal laws and regulations.
C. The holder of multiple small brewer licenses may sell beer
and cider produced at up to three breweries for which the licensee
has a license, at any other of such three licensed breweries or on
premises located cont iguous thereto.
D. Nothing in the Oklahoma Alcoholic Beverage Control Act shall
prohibit the holder of a small brewer license from also holding or
owning an interest in the holder of a brewpub license.
E. For purposes of this section, no visitor may samp le more
than a total of twelve (12) fluid ounces of beer and cider per day.
The brewer must restrict the distribution and consumption of beer
and cider samples to an area within the licensed premises designated
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by the brewer as defined in this subsection. A current floor plan
that includes the designated sampling serving area must be on file
with the ABLE Commission. No visitor under twe nty-one (21) years of
age shall be permitted to enter this designated sampling serving
area when samples are being distributed or consumed. Accompanied
visitors under twent y-one (21) years of age shall be allowed
anywhere on the premises except for a serving area. Samples of beer
and cider served by a brewery under this section shal l not be
considered a sale of beer and cider within the meaning of Article
XXVIII-A of the Oklahoma Constitution or Section 1-103 of this
title; however, such samples of beer and cider shall be considered
beer and cider removed or withdrawn from the brewery for use or
consumption within the meaning of Section 5-110 of this title for
excise tax determination and reporting requirements. Sales and
sampling may only occur between the hours of 10:00 a.m. and 2:00
a.m. For purposes of this subsection, “serving area” means the area
of the bar where drinks are sold, prepared, and served to paying
customers and shall not include other areas of the brewery where
customers consume purchased products.
F. A small brewer self-distribution license shall authorize
holders of a small brewer license to distribute beer and cider
produced only by such licensee to a holder of a retail beer license,
retail spirits license, mixed beverage license, beer and wine
license, caterer’s license, special event license, public event
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license, winemaker license, charitable auction license or brewpub
license. A small brewer shall ele ct whether it will distribute
through a distributor or self-distribute in a subject territory;
however, a small brewer may not elect to do both simultaneously in a
subject territory. The electio n shall be made through notice to the
ABLE Commission. Any c hanges to the election shall require
immediate notification to the ABLE Commission before the ch ange in
election will take effect. A small brewer that elects to self -
distribute in multiple terri tories shall only be required to have
one small brewer self-distribution license.
G. All manufacturer’s licenses held by brewers during the first
calendar year beginning October 1, 2018, shall automatically convert
to brewer licenses and be deemed effecti ve as of the date of the
first issuance of the manufacturer’s license. Upon the first
renewal of the license, the brewer will need to obtain the
appropriate brewer’s license. If a brewer elects to market wine and
spirits, the brewer will also be required to obtain a manufacturer’s
license and comply with the rules and regulations for both licenses.
SECTION 2. AMENDATORY 37A O.S. 202 1, Section 2-103, is
amended to read as follows:
Section 2-103. A. A distiller license shall authorize the
holder thereof:
1. To manufacture, bottle, package and store spirits on
licensed premises;
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2. To sell spirits in this state to licensed wholesale rs and
manufacturers only;
3. To sell spirits out of this state to qualified perso ns; to
purchase from licensed distillers and rectifiers in this state, and
import spirits from without this state for manufacturing purposes in
accordance with federal laws and regulations;
4. To serve free samples of spirits produced only by the
licensee to visitors twenty-one (21) years of age and older. For
purposes of this section, no visitor may sample more than a total of
three (3) fluid ounces of spirits per day. Th e distiller shall
restrict the distribution and consumption of spirits samples to a n
area within the licensed premises designated by the distiller. A
current floor plan that includes the designated sampling area shall
be on file with the ABLE Commission. No visitor under twenty-one
(21) years of age shall be permitted to enter the desi gnated
sampling area when samples are being distributed and consumed.
Samples of spirits served by a distiller under this section shall
not be considered a sale of spirits within the meaning of Article
XXVIII-A of the Oklahoma Constitution or Section 1 -103 of this
title; provided, such samples of spirits shall be considered removed
or withdrawn from the distillery for use or consumption within the
meaning of Section 5 -110 of this title for excise tax determination
and reporting requirements;
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5. To sell spirits produced by the licensee for either on-
premises or off-premises consumption to consumers on the licensed
distillery premises or in an area controlled by the licensee l ocated
contiguous to the licensed distillery premises. Product offered for
sale by the Oklahoma licensed distiller will have been sold to and
shipped to an Oklahoma licensed wine and spirits wholesaler and then
made available for purchase by the Oklahoma licensed distiller for
sale; and
6. To sell spirits at public events such as trade shows or
festivals. Products offered for sale by the Oklahoma licensed
distiller will have been sold to and shipped to an Oklahoma licensed
wine and spirits wholesaler and then made available for purchase by
the Oklahoma licensed distiller ; and
7. To host off-site events pursuant to Section 5 of this act;
provided, that products offered for sale by the Oklahoma licensed
distiller will have been sold to and shi pped to an Oklahoma licensed
wine and spirits wholesaler and then made available for purchase by
the Oklahoma licensed distiller.
B. Spirits sold pursuant to paragraphs 5 and 6 of subsection A
of this section shall not exceed fifteen thousand (15,000) gallons
per calendar year in combination.
SECTION 3. AMENDATORY 37A O.S. 2021, Section 2-104, is
amended to read as follows:
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Section 2-104. A winemaker license shall authorize the holder
thereof:
1. To manufacture (including such mixing, blendi ng and cellar
treatment as authorized by federal law), bottle, package and store
on licensed premises wine containing not more than twenty-four
percent (24%) alcohol by volume,; provided, the bottle or package
sizes authorized shall be limited to the capac ities approved by the
United States Alcohol and Tobacco Tax and Trade Bureau;
2. To sell wine in this state to licensed wholesalers and
manufacturers;
3. To sell wine produced at the winery from grapes and other
fruits and berries grown in this state, if available, for either on-
premises or off-premises consumption to consumers on the pr emises of
the winery;
4. To serve free samples of wine produced at the winery to
visitors twenty-one (21) years of age and older. For purposes of
this section, no visito r may sample more than a total of six (6)
fluid ounces of wine per day. The winery s hall restrict the
distribution and consumption of wine samples to an area within the
licensed premises designated by the winery. A current floor plan
that includes the de signated sampling area shall be on file with the
ABLE Commission. No visitor under t wenty-one (21) years of age
shall be permitted to enter the designated sampling area when
samples are being distributed and consumed. Samples of wine served
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by a winery under this section shall not be considered a sale of
wine within the meaning of Articl e XXVIII-A of the Oklahoma
Constitution or Section 1-103 of this title; provided, such samples
of wine shall be considered removed or withdrawn from the winery for
use or consumption within the meaning of Section 5-110 of this title
for excise tax determin ation and reporting requirements;
5. To serve free samples of wine produced at the winery at
public events such as festivals and trade shows;
6. To sell wine produced at the winery, for either on-premises
or off-premises consumption at public events such as festivals and
trade shows;
7. To sell wine out of this state to qualified persons;
8. To purchase from licensed winemakers, distillers and
rectifiers in this state, and to import into this state wine, brandy
and fruit spirits for use in manufacturing in accordance with
federal laws and regulations;
9. To sell and serve Oklahoma-manufactured wine, mulled wine,
or spiced wine, mixed with nonalcoholic beverages or food items such
as water, sugar, fruits and vegetables, at any temperature for
either on-premises or off-premises consumption;
10. To purchase beer in retail containers from the holder of a
wholesaler, beer distributor, small brewer self-distributor or
brewpub self-distributor license or as specifically provided by law;
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11. To sell, offer for sale and possess beer for on-premises
consumption; and
12. To establish satellite tasting rooms as defined and
authorized in this act the Oklahoma Alcoholic Bever age Control Act
where the winemaker’s products may be tasted, sampled, sold and
served for on-premises consumption and the winemaker is permitted to
sell its products in sealed containers; provided, the small farm
winery license or winemaker license is active and in good standing.
The wine sold at a satellite tasting room must have been
produced/manufactured by the holder of a small farm winery license
or winemaker license and must have all manufacturing taxes paid; and
13. To host off-site events pursuant to Section 5 of this act.
SECTION 4. AMENDATORY 37A O.S. 2021, Section 2-131, is
amended to read as follows:
Section 2-131. A. A small farm winery license shall authorize
the holder thereof:
1. To manufacture and bottle win es produced by that small farm
winery;
2. To bottle and sell wines produced by another small farm
winery. In order for a small farm winery to bottle and sell another
small farm winery’s products, both the selling winery and the buying
winery shall be small farm winery permit holders;
3. To establish satellite tasting rooms as defined and
authorized in this act the Oklahoma Alcoholic Beverage Control Act
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where the winemaker’s products may be tasted, sampled, sold and
served for on-premises consumption and the wine maker is permitted to
sell its products in sealed containers; provided, the small farm
winery license is active and in good standing. The wine sold at a
satellite tasting room must have been produced/manufactured by the
holder of a small farm winery licen se and must have all
manufacturing taxes paid; and
4. To host off-site events pursuant to Section 5 of this act;
and
5. The small farm winery licensee shall have t he same authority
as the winemaker licensee.
B. A small farm wine may display the trademar ked “Oklahoma
Grown” sticker available from the Oklahoma Grape Industry Council.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2-162 of Title 37A, unless there
is created a duplication in numbering, reads as foll ows:
A. A small brewer, winemaker, distiller, or small farm winery
licensee shall be authorized to host an off-site event following the
submission and approval of an application to the ABLE Commission.
The licensee shall only be authorized to sell for consumption at the
off-site event alcoholic beverages authorized for sale under the
licensee’s respective license. The licensee shall be limited to
hosting four (4) off-site events per year.
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B. The application shall include, but not be limited to, the
location of the off-site event with a designated area within the
location designed to provide an exclusive space which may be limited
to the public and a designated point of access for a pat ron or
patrons specifically granted acces s to ensure that persons present
in the designated area are above twenty-one (21) years of age. The
Commission may prescribe a filing fee for each off-site event
application not to exceed Twenty-five Dollars ($25.00).
C. The ABLE Commission shall prom ulgate rules necessary for the
implementation of this section.
SECTION 6. REPEALER 37A O.S. 2021, Section 2-102, as
amended by Section 1, Chapter 226, O.S.L. 2019, is hereby repealed.
SECTION 7. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and appro val.
COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
SUBSTANCES, dated 04/13/2023 - DO PASS, As Amended.