SENATE FLOOR VERSION - HB2090 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION April 8, 2024 AS AMENDED ENGROSSED HOUSE BILL NO. 2090 By: Echols, Pae, Lawson, and Bennett of the House and Paxton of the Senate [ alcoholic beverages - delivery service license – delivery of alcoholic beverages - delivery fee - direct shipment of alcohol, liquor, wine, or beer - ABLE Commission - direct hand-to-hand sale – employees or independent contractors of retail beer or wine licensees or delivery service licensees – codification ] BE IT ENACTED BY THE PEOPLE OF TH E STATE OF OKLAHOMA: SECTION 1. 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 follows: A. Any individual, limited li ability company, corporation, or partnership that is registered to do business in this state, regardless of the residency of the ownership of the entity, may apply for and be issued a delivery service license that autho rizes the licensee to deliver alcohol ic beverages from a store holding a retail beer or retail wine license, licensed by the Alcoholic Beverage Law Enforcement (ABLE) Commission to sell alcoholic beverage products, to any person in this state who is at least SENATE FLOOR VERSION - HB2090 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 twenty-one (21) years of age for t he individual's personal use and not for resale. B. To receive a delivery service license, an applicant shall do all of the following: 1. File an application with the Alcoholic Beverage Law Enforcement (ABLE) Commissi on; 2. Provide to the ABLE Commissio n a sample contract that the applicant intends to enter into with a retail beer or retail wine licensee for the delivery of alcoholic beverage products, unless the applicant is the holder of a retail beer or retail wine license or operates under the same p arent company as the retail beer or retail wine license holder; 3. Submit to the ABLE Commission an outline of internal or external training for delivery service personnel that addresses topics such as identifying unde rage persons, intoxicated persons, and fake or altered identification; 4. Provide an attestation that the applicant is at least twenty-one (21) years of age and has not been convicted of a felony in any state or federal court; 5. Provide proof of a general liability insurance policy in an amount not less than One Million Dollars ($1,000,000.00) per occurrence; and 6. Be properly registered to conduct business in Oklahoma. C. A delivery service licensee: SENATE FLOOR VERSION - HB2090 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. May contract with any retail beer or retail wi ne licensee, licensed to sell alcohol ic beverage products for off -premises consumption, for the purpose of delivering alcoholic beverage products; 2. May use its own employees or independent contractors who are at least twenty-one (21) years of age to deliver such alcoholic beverage products, provided such delivery service personnel shall not have been convicted of any criminal offense relating to alcoholic beverages. The delivery service licensee shall complete a criminal history records check on each de livery driver who delivers alcoholic beverages for a licensee; 3. May facilitate orders by telephone, Internet, or by other electronic means for the sale and delivery of alcoholic beverages. If payment is not received at the time of order, the delivery service licensee may act as an agent o f the retail licensee in the collection of payments from the sale of alcoholic beverages, but the full amount of each order must be handled in a manner that gives the retail licensee control over the ultimate receipt of the payment from the consumer with t he retail licensee operating as the merchant of record. The retail beer or retail wine licensee shall remain responsible for the proper remittance of all applicable taxes on the sale of the product; 4. Shall deliver only sealed containers of alcoholic be verage products; SENATE FLOOR VERSION - HB2090 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. Shall obtain from the consumer a confirmation that he or she is at least twenty-one (21) years of age at the time the order is placed; 6. Shall require the recipient, at the time of delivery, to provide valid photo identification veri fying he or she is at least twenty-one (21) years of age and sign for the delivery; 7. Shall possess identification scanning software technology or a state-of-the-art alternative at the point of delivery to authenticate that the recipient is at least twen ty-one (21) years of age, and collect the recipient 's name and date of birth; 8. Shall return all alcoholic beverages to the retail beer or retail wine licensee if the recipient is under twenty -one (21) years of age, appears intoxicated, fails to provide proof of identification, fails or refuses to sign for delivery, fails to complete the identification verification process, declines to accept the delivery of alcoholic beverages or beer, or if any circumstances in the delivery environment indicate illegal conduct, overconsumption, or an otherwise unsafe environment for the consumption of alcohol. Such return shall occur on the same business day; 9. May not deliver any alcoholic beverage to any person located within a dry jurisdiction in Oklahoma; 10. Shall pick up alcoholic beverages for delivery only during lawful sales hours in that jurisdiction for the retail beer or SENATE FLOOR VERSION - HB2090 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 retail wine licensee holder ; provided, that orders may be delivered and completed on the same day within a reasonable time thereafter; 11. Shall permit the ABLE Commission to perform an audit of the licensee's records upon request and with sufficient notification; 12. Shall be deemed to have consented to the jurisdiction of the ABLE Commission and the Oklahoma courts concerning enforcemen t of this section and any related laws or rules; and 13. Shall be responsible for delivery of alcoholic beverage products as provided in this act and by rule. D. A delivery service licensee may renew its license with the ABLE Commission by maintaining al l qualifications, paying annually a renewal fee of Five Hundred Dollars ($500.00), and providing the Commission with a true copy of its current license. The annual fee for delivery service licensees shall be collected by the ABLE Commission for deposit an d credit to the General Revenue Fund of this state. E. A delivery service licensee shall be authorized to charge the consumer a delivery fee but shall not charge, add on, or collect any portion of the amount of the retail sales price for the alcoholic beverages. F. A retail spirits licensee shall be prohibited from using delivery service licensees for the purpose of completing alcoholic beverage product deliveries to consumers. SENATE FLOOR VERSION - HB2090 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 G. Nothing in this act shall be construe d to require a technology services co mpany to obtain a delivery service license if the company does not employ or contract with delivery agents, but merely provides software or a digital network application that connects consumers and retail beer or retail wine licensee for the delivery of alcoholic beverages from the retail beer or retail wine licensee. However, the act of connecting consumers to retail beer or retail wine licensee shall serve to grant jurisdiction to the State of Oklahoma. H. The ABLE Commission may enforce the requirement s of this section by the same administrative proceedings that apply to all other alcoholic beverage licensees. I. The ABLE Commission may enforce the requirements of this section against any employee or independent contractor of a retail beer or retail wine licensee or delivery service licensee, irrespective of the status of any delivery service personnel as an independent contractor or employee. Delivery to a minor shall be treated as furnishing alcohol to a minor and shall result in any applicable disciplinary action; provided, that the retail beer or retail wine licensee shall not be held liable for violations that occur after transferring possession of the alcohol beverage product to the delivery service licensee. SENATE FLOOR VERSION - HB2090 SFLR Page 7 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 J. Nothing in this act shall be const rued to authorize the direct shipment of alcohol, liquor, wine, or beer from any manufacturer. K. No person shall use a license or exercise any privileges granted by the license except as provided by the Oklahoma Alcoh olic Beverage Control Act. L. No package containing alcoholic beverages may be delivered to or left unattended at a residence or business address except for the delivery of such package in person to the purchaser confirmed to be twenty-one (21) years of age or older. M. The ABLE Commission is authorized to promulgate rules, regulations, forms, and procedures necessary to implement and enforce the provisions of this section. N. For purposes of this section, each delivery authorized by a licensee to be made to a consumer shall be deemed a dir ect hand-to- hand sale as though the consumer was physically present on the licensed premises and authorized by law by such licensee. SECTION 2. AMENDATORY 37A O.S. 2021, Section 2 -101, as amended by Section 3, Chapter 338, O.S.L. 2023 (37A O.S. Supp. 2023, Section 2-101), is amended to read as follows: Section 2-101. A. Except as otherwise provided in this section, the licenses issued by the ABLE Commission, and the annual fees therefor, shall be as follows: 1. Brewer License................................ .. $1,250.00 SENATE FLOOR VERSION - HB2090 SFLR Page 8 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Small Brewer License .............................. $125.00 3. Distiller License ............................... $3,125.00 4. Winemaker License ................................ . $625.00 5. Small Farm Winery License .......................... $75.00 6. Rectifier License ............................... $3,125.00 7. Wine and Spirits Wholesaler License ............. $3,000.00 8. Beer Distributor License .......................... $750.00 9. The following retail spirits license fees shall be determined by the latest Federal Decennial Census: a. Retail Spirits License for cities and towns from 200 to 2,500 population .......... $305.00 b. Retail Spirits License for cities and towns from 2,501 to 5, 000 population........ $605.00 c. Retail Spirits License for cities and towns over 5,000 population ................. $905.00 10. Retail Wine License ............................ $1,000.00 11. Retail Beer License .............................. $500.00 12. Mixed Beverage License ......................... $1,005.00 (initial license) $905.00 (renewal) 13. Mixed Beverage/Caterer Combination License ..... $1,250.00 14. On-Premises Beer and Wine License ................ $500.00 SENATE FLOOR VERSION - HB2090 SFLR Page 9 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (initial license) $450.00 (renewal) 15. Bottle Club License ............................ $1,000.00 (initial license) $900.00 (renewal) 16. Caterer License................................ $1,005.00 (initial license) $905.00 (renewal) 17. Annual Special Event License ...................... $55.00 18. Quarterly Special Event License ................... $55.00 19. Hotel Beverage License ......................... $1,005.00 (initial license) $905.00 (renewal) 20. Airline/Railroad/Commercial Passenger Vessel Beverage License................................ ........ $1,005.00 (initial license) $905.00 (renewal) 21. Agent License................................ ..... $55.00 22. Employee License ................................ .. $30.00 SENATE FLOOR VERSION - HB2090 SFLR Page 10 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 23. Industrial License ................................ $23.00 24. Carrier License ................................ ... $23.00 25. Private Carrier License ........................... $23.00 26. Bonded Warehouse Lice nse......................... $190.00 27. Storage License ................................ ... $23.00 28. Nonresident Seller License ...................... $750.00 29. Manufacturer License: a. 50 cases or less sold in Oklahoma in last calendar year........................... $50.00 b. 51 to 500 cases sold in Oklahoma in last calendar year........................... $75.00 c. 501 cases or more sold in Oklahoma in last calendar year.......................... $150.00 30. Manufacturer's Agent License...................... $55.00 31. Sacramental Wine Supplier License ................ $100.00 32. Charitable Auction License ......................... $1.00 33. Charitable Alcoholic Beverage License ............. $55.00 34. Winemaker Self-Distribution License: a. produced ten thousand (10,000) gallons or less in last calendar year............................... $350.00 b. produced more than ten thousand (10,000) gallons but no more than fifteen thousand (15,000) gallons in last calendar year............................... $750.00 35. Annual Public Event License .................... $1,005.00 SENATE FLOOR VERSION - HB2090 SFLR Page 11 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 36. One-Time Public Event License.................... $255.00 37. Small Brewer Self -Distribution License: a. produced fifteen thousand (15,000) barrels or less in last calendar year.......................... $350.00 b. produced more than fifteen thousand (15,000) barrels in last calendar year....................... $750.00 38. Brewpub License ................................ $1,005.00 39. Brewpub Self-Distribution License ................ $750.00 40. Complimentary Beverage License .................... $75.00 41. Satellite Tasting Room License ................... $100.00 42. Delivery Service License ......................... $500.00 B. 1. There shall be added to the initial or renewal fees for a mixed beverage license an administrative fee, which shall not be deemed to be a license fee, in the amount of Five Hundred Dollars ($500.00), which shall be paid at the same time and in the same manner as the license fees prescr ibed by paragraph 12 of subsection A of this section; provided, this fee shall not be assessed against service organizations or fraternal beneficiary societies which are exempt under Section 501(c)(19), (8) or (10) of the Internal Revenue Code. 2. There shall be added to the fee for a mixed beverage/caterer combination license an administrative fee, which shall not be deemed to be a license fee, in the amount of Two Hundred Fifty Dollars ($250.00), which shall be paid at the same time and in the same SENATE FLOOR VERSION - HB2090 SFLR Page 12 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 manner as the license fee prescribed by pa ragraph 13 of subsection A of this section. C. Notwithstanding the provisions of subsection A of this section: 1. The license fee for a mixed beverage or bottle club license for those service organizations or fraternal beneficiary societies which are exempt under Section 501(c)(19), (8) or (10) of the Internal Revenue Code shall be Five Hundred Dollars ($500.00) per year; and 2. The renewal fee for an airline/railroad/commercial passenger vessel beverage license held by a railroad described in 49 U.S.C., Section 24301, shall be One Hundred Dollars ($100.00). D. An applicant may apply for and receive both an on -premises beer and wine license and a caterer license. E. All licenses, except as otherwise provided, shall be valid for one (1) year from date of issuance unless revoked or surrendered. Provided, all employee licenses shall be valid for two (2) years. F. The holder of a license, issued by the ABLE Commission, for a bottle club located in a county of this state where the sale of alcoholic beverages by the individual drink for on -premises consumption has been authorized, may exchange the bottle club license for a mixed beverage license or an on -premises beer and wine license and operate the licensed premises as a mixed beverage SENATE FLOOR VERSION - HB2090 SFLR Page 13 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 establishment or an o n-premises beer and wine establishment subject to the provisions of the Oklahoma Alcoholic Beverage Control Act. There shall be no additional fee for such exchange and the mixed beverage license or on -premises beer and wine license issued shall expire one (1) year from the date of issuance of the original bottle club license. G. In addition to the applicable licensing fee, the following surcharge shall be assessed annually on the following licenses: 1. Nonresident Seller License ...................... $2,500.00 2. Manufacturer License: a. 50 cases or less sold in Oklahoma in last calendar year.......................... $100.00 b. 51 to 500 cases sold in Oklahoma in last calendar year.......................... $225.00 c. 501 cases or more sold in Oklahoma in last calendar year.......................... $450.00 3. Wine and Spirits Wholesaler License ............. $2,500.00 4. Beer Distributor ................................ $1,000.00 5. Retail Spirits License for cities and towns over 5,000 population .......................... $250.00 6. Retail Spirits License for cities and towns from 2,501 to 5,000 population ................. $200.00 7. Retail Spirits License for cities and towns from 200 to 2,500 population ................... $150.00 SENATE FLOOR VERSION - HB2090 SFLR Page 14 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 8. Retail Wine License ............................... $250.00 9. Retail Beer License ............................... $250.00 10. Mixed Beverage License ............................ $25.00 11. Mixed Beverage/Caterer Combination License ........ $25.00 12. Caterer License ................................ ... $25.00 13. On-Premises Beer and Wine License ................. $25.00 14. Annual Public Event License ....................... $25.00 15. Small Farm Winery License ......................... $25.00 16. Small Brewer License .............................. $35.00 17. Complimentary Beverage License .................... $25.00 The surcharge shall be paid concurrent with the licensee 's annual licensing fee and, in addition to Five Dollars ($5.00) of the employee license fee, shall be deposited in the Alcoholic Beverage Governance Revolving Fund established pursuant to Section 5 -128 of this title. H. Any license issued by the ABLE Commissio n under this title may be relied upon by other licensees as a valid license, and no other licensee shall have any obligation to independently determine the validity of such license or be held liable solely as a consequence of another licensee 's failure to maintain a valid license. SECTION 3. AMENDATORY 37A O.S. 2021, Section 2 -161, is amended to read as follows: SENATE FLOOR VERSION - HB2090 SFLR Page 15 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 2-161. A. Retail spirit licensees may sell curbside and deliver alcoholic beverages including beer, wine, and s pirits in sealed original containers to consumers aged twenty -one (21) years and older as follows: 1. Only employees of the retail spirit licensee shall be permitted to make alcoholic beverage product deliveries to consumers; 2. Payment for alcoholic beverage product delivery by the retail spirit licensee may be made by cash, check, transportable credit/debit card processors or advance on-line online payment methods; and 3. The retail spirit licensee shall be responsible for his or her delivery employees as provided in Section 2 -133 of Title 37A of the Oklahoma Statutes this title. B. Small brewers and small farm wineries licensed by the Oklahoma ABLE Commission may sell curbside only alcoholic beverages produced by such licensee in sealed original containers to consumers aged twenty-one (21) years and older as follows: 1. Only employees of the licensed small brewer or small farm winery shall be permitted to make alcoholic beverage product deliveries to consumers; 2. Payment for alcoholic beverage produ ct delivery by licensed small brewers or small farm wineries may be made by cash, check, SENATE FLOOR VERSION - HB2090 SFLR Page 16 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 transportable credit/debit card processors, or advance on-line online payment methods; and 3. Small brewers and small farm wineries shall be responsible for their delivery employees as provided in Sectio n 2-133 of Title 37A of the Oklahoma Statutes this title. C. Restaurants, bars and clubs holding mixed beverage, beer and wine, or caterer/mixed beverage licenses issued by the Oklahoma ABLE Commission may sell curbsid e and deliver only closed packages of beer and wine to consumers aged twenty -one (21) years and older as follows: 1. Only employees of such restaurant, bar or club licensee shall be permitted to make alcoholic beverage package deliveries to consumers; 2. Payment for alcoholic beverage packa ge delivery by licensed restaurants, bars and clubs may be made by cash, check, transportable credit/debit card processors, or advance on-line online payment methods; and 3. Restaurants, bars and clubs licensed by the Oklahoma ABLE Commission shall be res ponsible for their delivery employees as provided in Section 2 -133 of Title 37A of the Oklahoma Statutes this title. D. Grocery and convenience stores holding a retail beer and/or retail wine license issued by the Oklahoma ABLE Commission may sell curbside and deliver original sealed containers of beer and/or wine SENATE FLOOR VERSION - HB2090 SFLR Page 17 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 only according to the license held to consumers aged twenty -one (21) years and older as follows: 1. Only employees of such licensed grocery or convenience st ore shall be permitted to make alcoho lic beverage product deliveries to consumers; 2. Payment for alcoholic beverage product delivery by a licensed grocery or convenience store may be made by cash, check, transportable credit/debit card processors or advance on-line online payment methods; and 3. Grocery and convenience store licensees shall be responsible for their delivery employees as provided in Section 2 -133 of Title 37A of the Oklahoma Statutes this title. E. Licensees authorized by this section to make alcoholic beverage product deli veries to consumers are prohibited from utilizing third-party vendors or delivery services for purposes of completing such product deliveries to consumers. F. Licensees authorized by this section to make alcoholic beverage product deliveries to consumers shall comply with the laws, rules, procedures and executive orders incumbent on such licensee. G. The Oklahoma ABLE Commission is authorized to promulgate rules, regulations, forms and procedures necessary to implement and enforce the provisions of this s ection. H. For purposes of this section each delivery authorized by a licensee to be made by his or her employee shall be deemed a direct SENATE FLOOR VERSION - HB2090 SFLR Page 18 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 hand-to-hand sale as though the consumer was physically present on the licensed premises and authorized by law by suc h licensee. I. Notwithstanding any law or rule to the contrary, a delivery service licensee, or an employee or independent contractor of a delivery service licensee, in accordance with Section 1 of this act, may transport and deliver alcoholic beverage pr oducts, including curbside, from a retail beer or retail wine licensees to consumers aged twenty-one (21) years and older for the consumer 's personal use and not for resale. J. Employees or independent contractors of licensed grocery stores or convenience stores or delivery service licensees shall be permitted to make alcoholic beverage product deliveries to consumers aged twenty-one (21) years and older for the consumer 's personal use and not for resale. K. A delivery service licensee who is authorized b y law and by contractual agreement with a grocery or convenience store licensee to deliver alcoholic beverage products to a consumer shall be held responsible for violations of alcoholic beverage laws or administrative rules of the ABLE Commission affectin g his or her license privilege to deliver alcoholic beverage products to consumers. COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE April 8, 2024 - DO PASS AS AMENDED