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SENATE FLOOR VERSION
April 3, 2023
ENGROSSED HOUSE
BILL NO. 1682 By: Dempsey of the House
and
Coleman of the Senate
An Act relating to alcoholic beverages; amending 37A
O.S. 2021, Section 2 -103, which relates to a
distiller license; modifying where a distiller may
sell spirits produced by the license holder;
providing that spirits sold by the distiller when
mixed with other non -alcoholic substances, shall not
be considered cocktails, mixed beverage s or mixed
drinks and that those substances are not part of the
distilling process; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 37A O.S. 2021, 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;
2. To sell spirits in this state to licensed wholesalers and
manufacturers only;
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3. To sell spirits out of this state to qualified persons; to
purchase from licensed distillers and rectifiers in this state, and
import spirits from without this state for manu facturing 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 tota l of
three (3) fluid ounces of spirits per day. The distiller shall
restrict the distribution and consumption of spirits samples to an
area within the licensed premises designated by the distiller. A
current floor plan that includes the designated sampli ng 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 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or withdrawn from the distillery for use or consumption within the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 exc ise tax determination
and reporting requirements;
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 located
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contiguous to the licensed distillery premises and at one (1)
location controlled by the licensee located not contiguous to the
licensed distillery premises . Product Spirits 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 show s 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.
B. Spirits sold pursuant to paragraphs 5 and 6 of subsection A
of this section shall no t exceed fifteen thousand (15,000) gallons
per calendar year in combination.
C. Spirits sold pursuant to paragraphs 5 and 6 of subsection A
of this section, when mixed with other non -alcoholic substances,
shall not be considered cocktails, mixed beverages or mixed drinks.
Substances used for on premise consumption shall be non-alcoholic in
nature and shall not be considered part of the manufacturing
process.
SECTION 2. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
April 3, 2023 - DO PASS