HB2354 HFLR 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 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 1st Session of the 59th Legislature (2023) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 2354 By: Echols COMMITTEE SUBSTITUTE An Act relating to alc oholic beverages; amending 37A O.S. 2021, Sections 1-103, which relate to alcoholic beverages; modifying the definition of grocery store; modifying definition of retailer to inclu de grocery retail spirits license holders; creating the grocery retail spirits license; providing fees for a groce ry retail spirits licen se; providing annual surcharges for a grocery retail spirits license; providing that a small brewer self-distribution licensee may self- distribute to a holder of a grocery retail spirits license; providing that a charitable collabora tion brewer licensee if they also possess a self- distribution license may self -distribute to a holder of a grocery retail spirits license; pro viding that a winemaker self-distribution licensee may self - distribute directly to a holder of a grocery retail spirits license; providi ng that a grocery retail spirits licensee may purchase wine and spirits from wholesalers, beer from distributors and hol ders of a small brewer self-distribution license, to sell alcoholic beverages for off premise consumption, and to host alcoholic beverag e tastings; providing that a holder of an employee license shall be allowed to work in licensed grocery retail spirits s tore; modifying the minimum age to sell spirits; providing that a grocery retail spirits licensee shall not be required to have a carrie r license or a private carrier license; requiring applicants seeking to obtain a grocery retail spirits license to first publish their intention to apply for such license; providing required inform ation for an applicant HB2354 HFLR 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 seeking a grocery retail spirits lic ense to provide to the Alcoholic Beverage Law Enforcement (ABLE) Commission; providing grounds to deny a grocery retail spirits license application or renewal; providing grounds for revocation or s uspension of a grocery retail spirits license; providing th at a grocery retail spirits licensee may sell curbside and may deliver; providing re quirements for curbside and deliveries; providing that grocery retail spirits licensee may resell beer only in it s original packing or as individual containers; providing t hat person privileged to sell alcoholic beverages are prohibited from making inducements to grocery retail spirits license holders; prohibiting certain acts by grocery retail spirits licensees; pro hibiting a wholesaler licensee from selling or delivering w ine or spirits to a holder of a grocery retail spirits license on certain days; and providing an 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 ethy l, ethyl 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 denatu red or produced as denatured in HB2354 HFLR 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 accordance with Acts of Congress and regulations promulgat ed 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 n ot, containing alcohol, spirits, wine or beer and capable of being c onsumed as a beverage by human beings; 4. "Applicant" means any individual, legal or commercial business entity, or any individual involved in any legal or commercial business entity allo wed to hold any license issued in accordance with the Oklahoma Alcoh olic Beverage Control Act; 5. "Beer" means any beverage of alcoho l by volume and obtained by the alcoholic fermentation of an infusion or deco ction of barley, or other grain, malt or simi lar 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 beer; 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 brewe r self-distribution license or brewpub self- distribution license . The term "distributor", as used in the HB2354 HFLR 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 Oklahoma Alcoholic Beverag e Control Act, shall be construed to refer to a beer distributor; 8. "Bottle club" means any establishment in a county whic h has not authorized the retail sale of alcoholic beverages by the individual drink, which is required to be licensed to keep, mix and serve alcoholic beverages belonging to club members on club premises; 9. "Bottle service" means the sale and provision o f spirits in their original packages by a mixed beverage 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 licensed brewer to identify a specific beer, wine or spirit and to 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 p reexisting brand of th e same licensed brewer, or (2) relies to a significant extent on the goodwill associated with the preexisting brand, or HB2354 HFLR 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 b. any brand of beer that a brewer, the majori ty of whose total volume of all brands of beer distributed in this state by such brewer on January 1, 2016, was distributed as low-point beer, desires to sell, introduces, begins selling or theretofore has sold and 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 wit h a preexisting low-point beer brand; 12. "Brewer" means and includes any person who manu factures for human consumption by the use of raw materials or other ingredients any beer or cider upon which a license fe e and a tax are imposed by any law of this state; 13. "Brewpub" means a licensed establishment operated on the premises of, or on prem ises located contiguous to, a small brewer, that prepares and serves food and beverages, including alcoholic beverages, for on-premises consumption; 14. "Cider" means any alcoholic beverage obtained by the alcoholic fermentation of f ruit juice, including but not limited to flavored, sparkling or carbonated cider. For the purposes of the HB2354 HFLR 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 manufacture of this product, cider m ay be manufactured by either manufacturers or brewers. For the purposes of the distribution of this product, cider may be distributed by either wine and spirits wholesalers or beer distributors; 15. "Club suite" means a designated area within the premise s of a mixed beverage licensee designed to pr ovide an exclusive space which is limited to a patron or patrons spe cifically granted acce ss 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 poin t of access for a patron or patrons specifically granted access by t he mixed beverage lice nsee 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 engaged in retailing a limited range of general household items and groceries, with extended hours of operation, whether or not engaged in ret ail sales of automotive fuels in combination with such sales; 17. "Convicted" and "conviction" mean and include a finding 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; HB2354 HFLR 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 18. "Designated products" means the brands of w ine or spirits offered for sale by a manufacturer that the manufactur er has assigned to a designated wholesaler for exclusive distribution; 19. "Designated wholesaler " means a wine and spirits wholesaler who has been selected by a manufacturer as a wholes aler appointed to distribute designated products; 20. "Director" means the Director of the ABLE Commission; 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 production of spirits (except a person making or using such material in the authorized production of wine or beer, or th e 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 her possession or use a still; 22. "Distributor agreement" means the written agreement betw een the distributor and brewer as set forth in Section 3-108 of this title; 23. "Drug store" means a person primarily engaged in retaili ng prescription and nonprescription 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: HB2354 HFLR 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 a. as a low-point beer pursuant to the Low-Point Beer Distribution Act in effect immediately prior to October 1, 2018, and 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 distri buted as such on October 1, 2018. Dual-strength beer does not include a brand 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 the written agreemen t with 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 go ing-concern value; 26. "Good cause" means: a. 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 t he duty of good faith; 27. "Good faith" means the duty of each party to any distributor agreement and all officers, employees or agents thereo f HB2354 HFLR 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 to act with honesty in fact and within reas onable standards of fair dealing in the trade; 28. "Grocery store" means a person primari ly engaged in retailing a general line of food, such as canned or frozen foods, fresh fruits and vegetables, and fresh an d prepared meats, fish and poultry, and no more than twenty percent (20%) of the person's monthly sales are comprised of spirits; 29. "Hotel" or "motel" means an establishment which is licensed to sell alcoholic beverages by the indi vidual drink and which contains guestroom accommodations with respe ct to which the predominant relationship existing between the occupa nts thereof and the owner or operator of the establishment is that of innkeeper and guest. For purposes of this section, the existence of other legal relationships as between some occupan ts and the owner or operator thereof shall be immaterial; 30. "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; 31. "Licensee" means any person holding a license under the Oklahoma Alcoholic Beverage Control Act, and any agent, servant 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; HB2354 HFLR 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 32. "Low-point beer" shall mean any beverages containing more than one-half of one percent (1/2 of 1%) alcohol 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 beve rages obtained by the alcoholic fermentation of an infusion by barle y or other grain, malt or similar products; 33. "Manufacturer" means a distiller, winemaker, rectifier or bottler of any alcoholic beverage (other than beer) and its subsidiaries, affilia tes and parent companies; 34. "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. "Meals" means foods commonly ordered at lunch or di nner and at least part of which is cooked on the licensed premises a nd requires the use of dining implements for consumption. Provided, that the service of only food such as appetizers, sandwiches, salads or desserts shall not be considered "meals"; 36. "Mini-bar" means a closed container, either refrigerated in whole or in part, or nonrefrig erated, 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 licensee; HB2354 HFLR 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 37. "Mixed beverage cooler " means any beverage, by whatever name designated, consisting of an alco holic beverage and fruit or vegetable juice, fruit or vegetable flavorings, dairy products or carbonated water containi ng more than one-half of one percent (1/2 of 1%) of alcohol measured by volume but not mor e than 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 limited to the beverage popularly known as a "wine cooler"; 38. "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 o f any legal size for consumption on the premises where served or sold by the holder of a m ixed beverage, beer and wine, caterer, public e vent, charitable event or special event license; 39. "Motion picture theater" means an establishment which is licensed by Section 2-110 of this title to sell alcoholic beverages by the individual drink and wh ere motion pictures are exhibited, and to which the general public is admitted; 40. "Nondesignated products" means the brands of wine or spirits offered for sale by a manufacturer that have not been assigned to a designated wholesale r; 41. "Nonresident seller" means any person licensed pursuant to Section 2-135 of this title; HB2354 HFLR 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 42. "Retail salesperson" means a salesperson soliciting orders from and calling upon retail alcoholic beverage stores with regard to his or her product; 43. "Occupation" as used in connection with "occupation tax" means the sites occupied as the places of business of the manufacturers, brewers, wholesalers, beer distributors, retailers, mixed beverage licensees, on-premises beer and wine licensees, bottle clubs, caterers, public eve nt and special event licensees; 44. "Original package" means any container of alcohol ic beverage filled and stamped or sealed by the manufacturer or brewer; 45. "Package store" means any sole proprietor or partnership that qualifies to sell wine, beer an d/or spirits for off-premises consumption and that is not a grocery store, convenienc e store or drug store, or other retail outlet that is not permitted to sell wine or beer for off-premises consumption; 46. "Patron" means any person, customer or visitor who is not employed by a licensee or who is not a licensee; 47. "Person" means an individual, any type of partnership, corporation, association, limited liability co mpany or any individual involved in the legal structure of any such business entity; 48. "Premises" means the grounds and all buildings and appurtenances pertaining to the grounds including any adjacent premises if under the direct or indirect control of the licensee and HB2354 HFLR 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 the rooms and equipment under the control of the li censee 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 be excluded fro m the licensed premises solely for the purpose of: a. allowing the presence and consumptio n of alcoholic beverages by private parties whi ch 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 limit the licensee 's concurrent responsibility for any violations of the Oklahoma Alcoholi c Beverage Control Act occurring on the licensed premises; 49. "Private event" means a social gathering or event atten ded by invited guests who share a common cause, membership, business or task and have a prior established relationship. For purposes of this definition, advertisement for general public at tendance or sales of tickets to the general public shall not consti tute a private event; 50. "Public event" means any event that can b e attended by the general public; 51. "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 HB2354 HFLR 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 mash, wort, wash or othe r substance, through c ontinuous closed vessels and pipes, until the p roduction 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 spu rious, imitation or compound liquors for sale, under the name of whiskey, brandy, rum, gin, wine, spirits, cordials or any other name; 52. "Regulation" or "rule" means a formal rule of g eneral application promulgated by the ABLE Commission as herein requi red; 53. "Restaurant" means an establishment that i s licensed to sell alcoholic beverages by the individual drink for on-premises consumption and where food is prepared and sold for imme diate consumption on the premises; 54. "Retail container for spirits and wines" means an original package of any capacit y approved by the United States Bureau of Alcohol, Tobacco and Fire arms; 55. "Retailer" means a package store, grocery store, convenience store or drug stor e licensed to sell alcoholic beverages for off-premises consumption pursuant to a Grocery Retail Spirits License, Retail Spirits License, Retail Wine License or Retail Beer License; 56. "Sale" means any transfer, exchange or barter i n any manner or by any means whatsoever, and includes and means all sales made by HB2354 HFLR 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 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 consumption 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. "Short-order food" means food other than full meals including but not limited to sandw iches, soups and salads. Provided that popcorn, chips and other similar snack food shall not be considered "short-order food"; 58. "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. "Small farm wine" means a wine that is produced by a sm all farm winery with seventy-five percent (75%) or more Oklahoma-grown grapes, berries, other fruits, honey or vegetables; 60. "Small farm winery" means a wine-making establishment that does not annually produce for sale more than fifteen thousand (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. "Sparkling wine" means champagne or any artificially carbonated wine; HB2354 HFLR 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 62. "Special event" means an entertainment, recreation or marketing event that occurs at a single location on an irregular basis and at which alcoholic beverage s are sold; 63. "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 distillation, whether or not mixed with other substances i n solution and include s those products known as whiskey, brandy, rum , gin, vodka, liqueurs, cordials and fortified wines and similar compounds , but shall not include any alcohol liquid completely denatured in accordance with the Acts of Congress and regulations pursuant thereto ; 64. "Strong beer" means beer which, prior t o October 1, 2018, was distributed pursuant to th e Oklahoma Alcoholic Beve rage Control Act, Section 501 et seq. of Title 37 of the Oklahoma Statutes; 65. "Successor brewer" means a primary source of supply, a brewer, a cider manufacturer or an importer th at acquires rights to a beer or cider brand from a predecessor brewer; 66. "Tax Commission" means the Oklahoma Tax Commission; 67. "Territory" means a geographic region with a specified boundary; 68. "Wine and spirits wholesaler" or "wine and spirits distributor" means and includes any sole propri etorship or partnership licensed to distribute wine and spirits in the state. The term "wholesaler", as used in the Oklahoma Alcoholic Beverag e HB2354 HFLR 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 Control Act, shall b e construed to refer to a wine and spirits wholesaler; 69. "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 volum e at sixty (60) degrees Fahrenheit obtained by the fermentation of t he natural contents of fruits, vegetables, h oney, milk or other products containing sugar, whether or not other ingredients are added, and includes vermouth and sake, known as Japanese ric e wine; 70. "Winemaker" means and includes any person or establishm ent who manufactures for human consumption any wine upon which a license fee and a tax are imposed by any law of this state; and 71. "Satellite tasting room" means a licensed establishmen t operated off the lic ensed premises of the holder of a small farm winery or winemaker license, which serves w ine for on-premises or off-premises consumption. Words in the plural include the singular, and vice versa, and words imparting the masculine gende r include the feminine , as well as persons and licensees as defined in this section. SECTION 2. AMENDATORY 37A O.S . 2021, Section 2-101, is amended to read as fol lows: Section 2-101. A. Except as otherwise provided in this section, the licenses issue d by the ABLE Commission, and the annual fees therefor, shall be as follows: HB2354 HFLR 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 1. Brewer License................................ .. $1,250.00 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 L icense............. $3,000.00 8. Beer Distributor License .......................... $750.00 9. The following retail spiri ts license fees shall be determined by the latest Federal Decennial Census: a. Retail Spirits License f or 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 Licens e.............................. $500.00 12. Mixed Beverage License......................... $1,005.00 (initial license) $905.00 (renewal) 13. Mixed Beverage/Caterer Combination Lice nse..... $1,250.00 HB2354 HFLR Page 19 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 14. On-Premises Beer and Wine License................ $500.00 (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 HB2354 HFLR Page 20 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 22. Employee License................................ .. $30.00 23. Industrial License................................ $23.00 24. Carrier License................................ ... $23.00 25. Private Carrier License........................... $23.00 26. Bonded Warehouse License......................... $190.00 27. Storage License ................................ ... $23.00 28. Nonresident Seller Licens e ...................... $750.00 29. Manufacturer Licens e: 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.............. $750.00 35. Annual Public Event License .................... $1,005.00 36. One-Time Public Event License .................... $255.00 37. Small Brewer Self-Distribution License........... $750.00 38. Brewpub License................................ $1,005.00 39. Brewpub Self-Distribution License................ $750.00 HB2354 HFLR Page 21 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 40. Complimentary Beverage License.................... $75.00 41. Satellite Tasting Room License ................... $100.00 42. The following Grocery Retail Spirits License fees shall be determined by the latest Federal Decennial Census: a. Grocery Retail Spirits License for cities and towns from 200 to 2,500 population................$305.00 b. Grocery Retail Spirits License for cities and towns from 2,501 to 5,000 population..............$605.00 c. Grocery Retail Spirits License for cities and towns over 5,000 population....................... $905.00 B. 1. There shall be added to the initial or renewal fees for a Mixed Beverage License an administrative fee, wh ich shall not be deemed to be a license fee, in the amount of Five H undred Dollars ($500.00), which shall be paid at the same time and in the sam e manner as the license fees prescribed by paragraph 12 of subsection A of this section; provided, this fee sha ll not be assessed against service organizations or fraternal benefi ciary 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 H undred Fifty Dollars ($250.00), which shall be paid at the same time and in the same HB2354 HFLR Page 22 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 paragraph 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 benefi ciary societies which are exempt under Section 501(c)(19), (8) or (1 0) of the Internal Revenue Code shall be Five Hundred Dollars ($500. 00) per year; and 2. The renewal fee for an airline/railroad/commercial pass enger vessel beverage license held by a rai lroad described in 49 U.S.C., Section 24301, shall be One Hundred Do llars ($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, ex cept 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 l icense, issued by the ABLE Commission, for a bottle club located in a county of this state where t he sale of alcoholic beverages by the individual drink for on -premises consumption has been authorized, may exchange the bottle club license for a mixed bever age license or an on-premises beer and wine license and operate the licensed premises as a mixed b everage HB2354 HFLR Page 23 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 on-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 li cense 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 fol lowing surcharge shall be assessed annually on the foll owing licenses: 1. Nonresident Seller Lice nse...................... $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 Ok lahoma 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 p opulation................. $200.00 7. Retail Spirits Licens e for cities and towns from 200 to 2,500 population ................... $150.00 HB2354 HFLR Page 24 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 18. Grocery Retail Spirits License for citi es and towns over 5,000 po pulation................ $250.00 19. Grocery Retail Spirits License for cities and towns from 2,501 to 5,000 population....... $200.00 20. Grocery Retail Spirits License for citie s and towns from 200 to 2,500 population......... $150.00 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 Commission under this title may be relied upon by other licensee s as a valid license, and no other licensee shall have any obligatio n to independently det ermine HB2354 HFLR Page 25 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 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 2-102, is amended to read as follows: 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 produc ed by the licensee on licensed premises; 2. To sell beer in this state to holders of beer distributor licenses and retail licenses or to sell beer out of this st ate to qualified persons; 3. To serve free samples of beer produced by the licensee to visitors twenty-one (21) years of age or older; 4. To sell beer produced by the licensee for ei ther on-premises or off-premises consumption to consumers on the brewery premises, or on premises located contiguous thereto; HB2354 HFLR Page 26 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. To sell beer at public events such a s trade shows or festivals; 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. C. The holder of multiple small brewer licenses may sell beer produced at up to three breweries for which the licensee ha s a license, at any other of such three licensed breweries or on premises located contiguous thereto. D. Nothing in the Alcoholic Beverage Control Act shall prohibit the holder of a small brewer license from also holding or owning an interest in the holde r of a brewpub license. E. For purposes of this section, no visitor may sample more than a total of twelve (12) fluid ounces of beer per day. The brewer must restrict the distribution and consumption of beer samples to an area within the licensed premise s designated by the brewer. A current floor plan that includes the desi gnated sampling area must be on file with the ABLE Commission. No visitor under twenty-one (21) years of age shall be permitted to enter this designated sampling area when samples are being distributed or consumed. Samples of beer served by a brewery und er this section shall not be considered a sale of beer within the meaning of Article XXVIII-A of the Oklahoma Constitution or Section 1-103 of this HB2354 HFLR Page 27 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 title; however, such samples of beer shall be considered beer 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. F. A small brewer self-distribution license shall au thorize holders of a small brewer license to distribute beer produced only by such licensee to a holder of a retail beer license, grocery retail spirits license, retail spirits license , mixed beverage license, beer and wine license , caterer's license, special event license, public event license, charitable auction license or brewpub license. A small brewer shall elect 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 election shall be made through notice to the ABLE Commission. Any changes to the election shall require immediate notification to the ABLE Commission before the change in election will take effect. A small bre wer that elects to self- distribute in multiple territories shall only be required to have one small brewer self-distribution license. G. All manufacturer's licenses held by brewers du ring the first calendar year beginning October 1, 2018, shall automatica lly convert to brewer licenses and be deemed effective as of the date of the first issuance of the manufacturer's license. Upon the first HB2354 HFLR Page 28 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 renewal of the license, the brewer will need to obtain the appropriate brewer's license. If a brewer elects to marke t 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 4. AMENDATORY 37A O.S. 2021, Section 2-102.1, is amended to read as follo ws: Section 2-102.1 A. A charitable collaboration br ewer license shall authorize the collabo rating licensed brewers and holders thereof: 1. To formulate, manuf acture, bottle, package and store the charitable collaboration beer, or any part thereof, on the licensed premises; 2. To sell the charitable colla boration beer in this state to holders of beer distributor licenses; 3. To sell the charitable collaboratio n beer out of this state to qualified persons for the sole purpose of fundraising for the stated charitable purposes; 4. To sell the charitable col laboration beer in this state to holders of retail licenses; 5. To serve free samples of the charitable col laboration beer produced by the collaborating licensed brewers to visitors twenty - one (21) years of age or older on the collaborating brewery licens ed premises; HB2354 HFLR Page 29 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 6. To sell the charitable collaboration beer produced by the collaborating licensee brewers fo r either on-premises or off- premises consumption to consumers on the brewery premises, or on premises located contiguou s thereto; 7. To sell the charitable collaboration beer produced by the collaborating licensed brewers at public events such as trade sh ows or festivals; and 8. To purchase the charitable collaboration beer produced by the collaborating licensed brewers in retail containers from the holder of a beer distributor license to sell or serve in accordance with this section. B. Nothing in this section shall prohibit the holder of a charitable collaboration brewer license from also hold ing or owning an interest in the holder of a brewpub li cense. C. For purposes of this section, no visitor may sample more than a total of twelve (12) fluid ounces of the charitable collaboration beer per day. The brewer must restrict the distribution and consumption of charitable collaboration beer samples to an area within the licensed premises d esignated by the brewer. A current floor plan that includes the des ignated sampling area must be on file with the ABLE Commission. No visitor under twenty-one (21) years of age shall be permitted to enter this designated sampling area when samples are be ing distributed or consumed. Samples of the charitable collaboratio n beer served by a HB2354 HFLR Page 30 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 collaborating brewery under this section shall not be considered a sale of beer within the meaning o f Article XXVIII-A of the Oklahoma Constitution or Section 1 -103 of Title 37A of the Oklahoma Statutes this title; however, such samples of the charitable colla boration beer shall be considered beer removed or withdrawn from the brewery for use or consumption within the meaning of Section 5-110 of Title 37A of the Oklahoma Statutes this title for excise tax determination and reporting requirements. Sales and sam pling may only occur between the hours of 10:00 a.m. and 2:00 a.m. D. If a small brewer is a licensed charitable coll aborating brewer and such small brewer holds a self-distribution license, it shall authorize the holder thereof to distribute the charitab le collaboration beer produced to a holder of a retail beer license, grocery retail spirits license, retail spirits license, mixed beverage license, beer and wine license, caterer's license, special event license, public event license, charitable auction l icense or brewpub license. If a small brewer has elected to distribute through a distributo r or self-distribute in a subject territory, for purposes of the charitable collaboration brewer license such small brewer and the other collaborating brewer may el ect to do both simultaneously in a subject territory upon notice to the ABLE Commission. HB2354 HFLR Page 31 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 E. The ABLE Commission shall promulgate rules, forms and fees to implement and enforce the charitable coll aboration brewer license. F. When more than one Oklahoma -licensed brewer makes application to the ABLE Commission to develop a charitable collaboration beer offering and seeks t o obtain a charitable collaboration brewer license, the ABLE Commission shall evaluate the application based upon any of the following: 1. Whether the collaboration has a legitimate charitable purpose in this state, another state or a national charitable effort; 2. Whether the formu la needs approval by any federal regulatory authority; 3. Whether the Oklahoma Tax Commission has been notif ied of the request for a tax exemption to allow the collaborators to transfer - in-bond products between the licensed pr emises of the collaborating brewers and whether the Tax Commission approves su ch transfer-in- bond; 4. The license standing of each licens ed collaborating brewer in this state, including, but not limited to, any required storage licenses. Upon consideration of the application facts an d detailed plans submitted by the collaborating b rewers, the ABLE Commission shall make its determination whe ther or not to issue the charitable HB2354 HFLR Page 32 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 collaboration brewer license. Upon approval of a charit able collaboration brewer license, such license shall b e issued to both licensed brewers for the develop ment and manufacture of a charitable collaboration beer offe ring. Each licensed brewer shall be required to post the charitable collaboration brewer li cense at their licensed premises and such license numbe r shall be clearly affixed to any alcohol product s stored or transferred-in-bond between the collaborating breweries. The charitable collaboration beer offering shall require a private label approved by the ABLE Commission according to the label requireme nts promulgated by the ABLE Commission rules. SECTION 5. AMENDATORY 37A O.S. 2021, Section 2-105, is amended to read as follows: Section 2-105. A. A winemaker self -distribution license shall authorize a licensed winemaker within or w ithout this state which is permitted by Article XXVIIIA of the Oklahoma Constitution and this section: 1. To distribute its wine directly to grocery retail spirits, retail spirits, retail wine and retail beer licensees, mi xed beverage licensees, beer and wine licensees, and restaurants in this state; and 2. If such a winemaker elects to do so, to sell and deliver its wines directly to licensed retail package stores, mixed beverage licensees, beer and wine licensees, and re staurants in this state in HB2354 HFLR Page 33 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 full case lots only, and in accordance with the pr ovisions of the Oklahoma Alcoholic Beverage Control Act and such rules as the ABLE Commission shall promulgate. B. A winemaker either within or without this state that annually produces no more than fifteen thou sand (15,000) gallons of wine may elect to sell and self-distribute the wine produced by such winemaker directly to licensed retail package stores, mixed beverage licensees, beer and wine licensees , and restaurants in this state; provided: 1. Any such winemaker which elects to directly sell its win e to package stores, mixed beverage licensees, beer and wine licensees, and restaurants shall not also use a licensed wholesale distributor as a means of distribution, and shall b e required to sell its wines to every package store, mixed beverage licensee, beer and wine licensee, and restaurant licensee who desires to purchase the same, on the same price basis and without discrimination; 2. If a winemaker or winery sells directly to a retail package store, mixed beverage licensee, beer and wine licensee or restaurant, the winemaker shall transport the wine from the winemaker's winery to the premises where the wine is to be delivered only in vehicles owned or leased by the winemaker and not by common or private contract carrier and shall obtain all necessary permits as required by the Oklahoma Alcoholic Beverage Cont rol Act; and HB2354 HFLR Page 34 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 3. If the production volume limit applicable to winemakers is ruled to be unconstitutional by a court of competent jurisdiction, then no winemaker shall be permitted to directly sell its wine to retail package stores, non-package-store retailers, mixed beverage licensees, beer and wine licensees or restaurants in this state. SECTION 6. AMENDATORY 37A O.S. 2021, S ection 2-109, is amended to read as follows: Section 2-109. A. A grocery retail spirits license shall authorize the holder thereof: 1. To purchase wine or spirits from a win e and spirits wholesaler; 2. To purchase beer from a beer distributor or from the holder of a small brewer self-distribution license; 3. To sell same on the license premise in such cont ainers to consumer for off-premises consumption only and not for resale; provided, spirits, wine and beer may be sold to charitable organizations that are holders of charitable alcoholic beverage auction or charitable alcoholic beverage event licenses; and 4. To host alcoholic beverage tastings c onsistent with subsections E and F of this section. B. A retail spirits licen se shall authorize the holder thereof: 1. To purchase wine or spirits from a wine and spirits wholesaler; HB2354 HFLR Page 35 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. To purchase beer from a beer distributor or from the holder of a small brewer self-distribution license; 3. To sell same on the licensed premis es in such containers to consumers for off-premises consumption only and not for resale; provided, spirits, wine and beer may be sold to charitable organizations that are holders of charitable alcoholic be verage auction or charitable alcoholic beverage eve nt licenses; and 4. To host alcoholic bevera ge tastings consistent with subsections D E and E F of this section. B. C. A retail wine license shall authorize the holder thereof: 1. To purchase wine from a wine and spirits wholes aler; 2. To purchase wine from a small farm winemaker who is permitted and has elected to self -distribute as provided in Article XXVIII-A of the Oklahoma Constitution; 3. To sell same on the licensed pr emises in such containers t o consumers for off-premises consumption only and n ot for resale; provided, wine may be sold to charitable organizations that ar e holders of charitable alcoholic beverage auction or charitable alcoholic beverage event licenses; and 4. To host an alcoholic beverage tasting, consis tent with subsections D E and E F of this section. Provided, no holder of a retail wine license may sel l wine with alcohol beverage volume in excess of fifteen percent (15%). C. D. A retail beer license shall authorize the holder thereof: HB2354 HFLR Page 36 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. To purchase beer from a beer distribut or; 2. To purchase beer from the holder of a small brewer self- distribution license; 3. To sell same on the licensed premises in such containers to consumers for off-premises consumption only and not for resale; provided, beer may be sold to charitable organizations that are holders of charitable alcoholic beverage auction or cha ritable alcoholic beverage event licenses; and 4. To host alcoholic beverage tastings consistent with subsections D E and E F of this section. Provided, no holder of a retail bee r license may sell a malt beverage with alcohol beverage volume in excess of fifteen percent (15%). D. E. All tastings conducted under this section shall: 1. Be conducted under the direct supervision of the licensee authorized to host the tasting; 2. Be poured by any ABLE Commission licensee lawfully permitted to serve alcoholic beverages, provided no wine or spirits wholesaler, beer distributor or employee of a wine or spirits wholesaler or beer distrib utor shall be allowed to pour samples for tastings; 3. Use alcoholic beverages purchased by the licensee authorized to host the tastings from a licensed wine and spirits wholesaler, beer distributor, self-distributor, small brewer or self- HB2354 HFLR Page 37 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 distributing winery authorized to sell th e same, and the licensee shall pay the applicable taxes on the alcoholic beverages purchased; provided, the licensee may only provide samples of alcoholic beverages that its license is authorized to sell; 4. Be restricted to perso ns twenty-one (21) years of age or older; 5. Be limited to no more than one (1) fluid ounce of spirits, two (2) fluid ounces of wine or three (3) fluid ounces of beer per consumer per day; and 6. Be consumed on the licensed premises of the licensee authorized to host the tasting s or at a location othe r than the licensed premises, provided no sample s served on the licensed premises shall be permitted to be removed from the licensed premises. E. F. All licensees authorized to serve samples pursuant to subsection D E of this section shall ensure that: 1. All samples are poured only from original sealed packaging; 2. Any alcoholic beverages remaining in unsealed packaging used to provide samples, excluding spirits, are poured out by the end of the day; 3. No more than six (6) bott les of alcoholic beverag es are unsealed at any given time; and 4. No person shall remove any samples f rom the licensed premises or location where the tasting has occurred. HB2354 HFLR Page 38 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 7. AMENDATORY 37A O.S. 2 021, Section 2-121, as amended by Section 1, Chapte r 81, O.S.L. 2022 (37A O.S. Supp. 2022, Section 2-121), is amended to read as follows: Section 2-121. A. An employee license shall aut horize the holder thereof to work in a licensed package store, grocery retail spirits, retail spirits, retail wine or retail beer establishment, brewpub, mixed beverage establishment, beer and wine establishment, bottle club, public event or any establishment where alcohol or alcoholic beverages are sold, mixed or served. Persons employed by a mixed beverage, on-premises beer and wine, retail wine, retail beer, public event or a bottle club license e who do not participate in the service, mixing or sale of mixed beverages shall not be required to have an employee license. Provided, however, that a manager employed by a mixed beverage licensee, public event licensee or a bottle club shall be required to have an employee license whether or not the manager participates in the service, mixing or sale of mixed beverages. Applicants for an employee licens e shall be at least eighteen (18) years of age, except for applicants employed by a grocery store or convenience store who shall be at least sixteen (16) years of age, and have a health card issued by the county in which they are employed, if the county issues such a card; provided, the provisions of this section shal l not be construed to permit any person under twenty-one (21) eighteen (18) years of age to be employed to sell spirits. Employees of a special HB2354 HFLR Page 39 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 event, caterer, unless catering a mixed beverage -licensed premises, or airline/railroad beverage licensee s shall not be required to obtain an employee license; further, employees of beer distributors and other licensees holding licenses issued by the ABLE Commission shall not be required to obtain an em ployee license if such employee only sells alcohol or alc oholic beverages to establishments holding licenses issued by the ABLE Commission and not to the public. Persons employed by a hotel licensee who participate in the stocking of hotel room mini-bars or in the handling of alcoholic beverages to be placed in such devices shall be required to have an em ployee license. As a prerequisite to the issuance of an employee license, not later than fourteen (14) days after initial licensure, the first-time applicant shall be required to have successfully completed a training program conducted by the ABLE Commiss ion, or by another entity approved by the ABLE Commission including an in-house training program conducted by the employer. Proof of training completion shall be made available for inspection by the ABLE Commission at the business location employing the l icensee. The failure of an employee licensee to comply with this section may constitute a revocable offense. B. In the event the ABLE Commission denies an application for an employee license, the Commission s hall provide written notice to the applicant's employer, if any. The notice shall be given at the time notice is provided to the applicant. HB2354 HFLR Page 40 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 8. AMENDATORY 37A O.S. 20 21, Section 2-124, is amended to read as follows: Section 2-124. A. A private carrier licen se may be issued to any carrier other than a common carrier describe d in Section 35 2- 123 of this act title. Such license shall authorize the holder thereof to transport alcoh olic beverages other than wine sold directly by a winemak er or winery to a retail package store or restaurant into, within, or out of this state und er such terms, conditions, limitations and restrictions as the ABLE Commission may prescribe by order issuin g such license and by rule . No carrier license or private carrier license shall be requi red of licensed brewers, distillers, winemakers, rectifiers , wholesalers or beer distributors, to transport alcohol ic beverages from the place of purchase or acquisiti on to the licensed premise s of such licensees and from such licensed premises to the lice nsed premises of the purchaser in vehicles owned or leased by such licensee when such transportation is for a lawfu l purpose and not for hire. B. No carrier license o r private carrier license shall be required of the holder of a grocery retail spirits, retail spirits, retail wine, retail beer, mixed beverage, cat erer, special event, hotel beverage, public event or air line/railroad license to pick u p alcoholic beverage orders from the licensee 's wholesaler, beer distributor or holder of a small brewer self -distribution license or brewpub self-distribution license f rom whom they are purchased and HB2354 HFLR Page 41 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 to transport such alcoho lic beverages from the place of purchase or acquisition to the licensed premis e of such licensees in vehicles owned or under the control of s uch licensee or a licensed employee of such licensee under such terms, conditions, limitations and restrictions as the ABLE Commission may prescri be. SECTION 9. AMENDATORY 37A O.S. 2021, Section 2 -141, is amended to read as follow s: Section 2-141. Applicants for original brewer, distill er, winemaker, rectifier, wine and spirits wholesaler, beer distributor, mixed beverage, beer and wine, bottle club, caterer, grocery retail spirits, retail spirits, retail wine or retail beer licenses shall, prior to applying for such license, twice publi sh, in such form and containing such information as the AB LE Commission shall by rule prescribe, a notice of i ts intention to apply for any such license, once a week for two (2) successive weeks in a legal newspaper of general circulation within the county where the proposed premises is to be located, and file pr oof of such publication with the ABLE Commission. Unless otherwise provided, the ABLE Commission shall give notice of approval or disapproval of an application for a license within thirty (30) days after the filing of the application. The ABLE Commission shall give notice of approval or disapproval of an application for a mixed be verage, beer and wine, bottle club or caterer license within sixty (60) days after the filing of the application. Provided, the ABLE Commission may extend the period HB2354 HFLR Page 42 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 for making a determination of whether to approve or disapprove an application an addition al thirty (30) days for good cause. The ABLE Commission may conditionally approve any application which is subject to Section 54 2-142 of this act title if: 1. Construction, modification o r alteration of premises proposed for licensed opera tions is not completed; an d 2. The applicant furnishes a conditional cer tification issued by the municipality or county that the appli cant's plans and specifications indicate that the proposed premises w ill comply with the municipality's or county's zoning, fire, safety and health codes. The ABLE Commission shall issue its fin al notice of approval when the applicant furnishes final certi ficates required by Section 54 2-142 of this act title. SECTION 10. AMENDATORY 37A O.S. 2021, Section 2 -143, is amended to read as fol lows: Section 2-143. A. Any corporation applying for a mixed beverage, beer and wine, caterer, public event, beer distributor or bottle club, or as an equity p artner in a wine and spirits wholesaler, shall sub mit to the ABLE Comm ission the following: 1. A certificate of good standing from t he office of the Secretary of State; 2. A list of all corp orate officers, directors, executive committee members or member s of a similar governing body and their HB2354 HFLR Page 43 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 addresses, except for a charitable organization exempt from taxation under Section 501(c)(3), (4),(5),(6),(7),(8),(9),(10), or (19) of the United States Internal Revenue Code, which shall only be required to furnish its corporate officers; and 3. A list of all stock holders owning fifte en percent (15%) or more of the stock and their addresses. B. Any corporation applying for a grocery retail spirits, retail wine or retail beer license shall submit to the ABLE Commission the following: 1. A certificate of good standing from the office o f the Secretary of State; 2. A list of all corporate officers and directors, except for a charitable organization exempt from taxation under Section 501(c)(3),(4),(5),(6),(7),(8),(9), (10), or (19) of the United States Internal Revenue Code, which shall on ly be required to furnish its corporate officers; and 3. A list of all stockholders owning fifty-one percent (51%) or more of the stock. C. A corporate licensee shall notify the ABLE Commission in writing of any change in the officers or directors of the corporation or in the pri ncipal managers of premises licensed to the corporation and shall pay a fee of One Hundred Dolla rs ($100.00) for each notification of change. Provided, servi ce organizations whi ch HB2354 HFLR Page 44 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 are exempt under Section 501(c)(8), (10), or (14) of the Internal Revenue Code shall be exempt from such fee. D. A corporate licensee shall notify the ABLE Commission any time a person, any type of partnership, limited liability com pany or other entity acquires the percentages specified in paragraph 3 o f subsection A or B of thi s section, or more, of the stock of t he corporation. Such notification shall be within thirty ( 30) days of acquisition, and the corporation shall pay a fee o f One Hundred Dollars ($100.00) for each notification of change. E. The ABLE Commission may disap prove a change of officers, directors or principal managers or the acquisition of more than the percentages specified in paragraph 3 of subsection A or B of t his section of the stock in a licensed corporation if the ABLE Commission feels that such change w ould materially affect the conditions under which the license was issued, such that the license would not have been issued had such change been in existence a t the time of the original application. If such disapproval occurs, the ABLE Commission shall not ify the licensee in writing and in th e case of a publicly traded corporation, allow a reasonable time for the licensee to remove such officer, director or man ager or for the stockholder to divest himself or herself of any stock he ld in excess of the percentages specified in paragraph 3 of sub section A or B of this section; provided, a reasonable time may not exceed a ninety- day period following notification of denial by the ABLE C ommission. HB2354 HFLR Page 45 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 Failure to comply with the provisions of this subsection may resul t in revocation or suspension of such license. F. Any person who was an officer or director or who has owned the percentages specified in paragraph 3 of subs ection A or B of this section or more of the stock in a corporation whic h has been denied a license or had a license revoked or suspend ed pursuant to the provisions of the Oklahoma Alcoholic Bev erage Control Act shall not own stock in any other corporation seeking a license pursuant to the provisions of the Oklahoma Alcoholic Beverage Control Act for a period of twelve (12) months from th e date the license was revoked or suspended. G. Any person who was a manager or a member of a limited liability company which has been denie d a license or had a license revoked or suspended pu rsuant to the provisions of the Oklahoma Alcoholic Beverage Con trol Act shall not own stock in any corporation seeking a l icense pursuant to the provisions of the Oklahoma Alcoholic Be verage Control Act f or a period of twelve (12) months from the date the license was revoked or sus pended. SECTION 11. AMENDATORY 37A O.S. 2021, Section 2-146, as amended by Section 2, Chapter 192, O.S.L. 2022 (37A O.S. S upp. 2022, Section 2-146), is amended to read as follows: Section 2-146. A. The ABLE Commission shall refuse to issue a wine and spirits wholesaler, beer distributor, grocery retail spirits, retail spirits, retail wine or retail beer license, either HB2354 HFLR Page 46 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 on an original application or a renewal application, if it has reasonable grounds to bel ieve and finds any of the following to be true: 1. Except in the case of a beer distributor, that the applicant is not a citizen of the United States or is not a qualified elector in this state, or has not been a continuous resident of this state for the five (5) years next preceding the application for the license; 2. That the applicant is under twenty-one (21) years of age; 3. That the applicant or any partner, or spouse of the applicant or any partner, has been convicted of a felony; 4. That the applicant or any partner, or spouse of the applicant or any partner, has been convicted of a violation of any state or federal law relating to alcoholic beverages, has forfeited a bond while any cha rge of such violation was pending, nor may any license be granted for any purpose under the Oklahoma Alcoholic Beverage Control Act to an Oklahoma resident, who has held or whose spouse has held a Federal Liquor Stamp in Oklahoma before the adoption of Article XXVIII-A of the Oklahoma Constitution unless the Liquor Stamp was granted for supplying alcoholic beverages to a federal military installation, or was granted under the Oklahoma Alcoholic Beverage Control Act; 5. That the applicant or any partner has , within twelve (12) months next preceding the date of the app lication, violated any HB2354 HFLR Page 47 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 provision of the Oklahoma Alcoholic Beverage Control Act or rule of the ABLE Commission promulgate d pursuant hereto. Provided, however, that if the ABLE Commission has, d uring such twelve-month period, suspended any license sought t o be renewed, such renewal application may be approved if the term of the suspension has been completed and the applicant has complied with any special conditions imposed in connection with the suspension; 6. That the applicant is in the habit of using a lcoholic beverages to excess or is mentally incapacitated; 7. That the applicant does not own or have a written lease for the premises for which a license is sought; 8. That the applicant, within t welve (12) months next preceding the date of application, has been the holder of a l icense revoked for cause; 9. That the applicant is not the real party in interest, or intends to carry on the business authorized by the license as the agent of another; 10. That the applicant, in the case of an application for renewal of any license, wo uld not be eligible for such license on a first application; 11. That the applicant is a perso n who appoints or is a law enforcement official or is an employee of the ABLE Commission; 12. That the proposed location of the licens ed premises would violate a valid municipal nondiscriminatory zoning ordinance; HB2354 HFLR Page 48 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 13. That, in the case of an application for a wine and spirits wholesaler license or beer distributor license, any br ewer or manufacturer, including an officer, director or pr incipal stockholder thereof or any partner, has any financial interest in the business to be conducted under the license, unless otherwise permitted by law; 14. That the issuance of the license app lied for would result in a violation of any provision of t he Oklahoma Alcoholic Beve rage Control Act; 15. That, in the case of an application for a wine and spirits wholesaler or beer distributor license, the applicant or any partner, or spouse of the app licant or any partner, is the holder or partner of the holder of any other class of license issued under the provisions of the Oklahoma Alcoholic Beverage Control Act, other than an agent or employee license for employment by the applicant, or a storage license, bonded warehouse license, carrier license or private carrier license; provide d, nothing shall prohibit a wine and spirits wholesaler, who is otherwise qualified, from maint aining beer distributor licenses in the state, nor a beer distributor, who is otherwise qualified, from maintaining a wine and spirits wholesaler license in the state; 16. That, in the case of an application for a grocery retail spirits, retail spirits, retail wine or retail beer license, the applicant or any partner is the holder or partner of the holder, or HB2354 HFLR Page 49 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 employee of such holder of any other class of license issued under the provisions of the Oklahoma Alcoholic Beverage Control Act, other than a storage license or an employee license for the proposed licensed premises of the applicant, provided, nothing in this title shall prohibit an applicant for a grocery retail spirits, retail wine and/or retail beer license from maintaining a separate mixed beverage, caterer, mixed beverage/caterer combination lic ense, and/or an on-premises beer and wine license; or 17. That the applicant or any partner, spouse, employee or other person affiliated with the applicant is not in compliance with the tax laws of this s tate as required in Article XXVIII-A of the Oklahoma Constitution. B. The provisions of this section shall not ope rate to prohibit the issuance of a beer distrib utor license to a corporation or partnership or limited liability company. SECTION 12. AMENDATORY 37A O.S. 2021, Section 2 -148, is amended to read as fol lows: Section 2-148. A. Any license issued pursuant to the provisions of the Oklahoma Alcoholic Beverage Control Act by the ABLE Commission, after due notice and hearing, may be revoked or suspended if the ABLE Commission finds or has grounds to believe that the licensee has: 1. Violated any rule promulgated by the ABLE Commission ; HB2354 HFLR Page 50 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. Procured a license through fr aud, or misrepresentation, or concealment of a material fac t; 3. Made any false representation or statement to the ABLE Commission or the Okla homa Tax Commission in order to prevent or induce action by the ABLE Commissio n or the Tax Commission; 4. Maintained an unsanitary establishment or has supplied impure or otherwise deleterious beverages or food; 5. Stored, possessed, mixed or served on t he premises of a bottle club any alcoholic b everage upon which the tax levied by Section 5-101 of this title has not been paid as provided for in the Oklahoma Alcoholic Bev erage Control Act, in a county of this state where the sale of alcoholic beverages b y the individual drink for on-premises consumption has not been authorized; 6. Misrepresented to a customer or t he public any alcoholic beverage sold by the licensee; 7. Had any permit or license issued by the Tax Commission and required by the Oklahoma Alcoholic Beverage Control Act, suspended or revoked by the Tax Commission; or 8. Is not in compliance with the tax laws of this state as required in Article XXVIII-A of the Oklahoma Constitution. B. The ABLE Commission may revoke or suspend the license of any mixed beverage, caterer or bottle clu b licensee if the ABLE Commission finds or has grounds to believe tha t such licensee: HB2354 HFLR Page 51 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. Has acted as an agent of a manufacture r, brewer or wholesaler of alcoholic beverages; 2. Is a manufacturer, brewer or who lesaler of alcoholic beverages; 3. Has borrowed money or property or accepted gratuities or rebates from a manuf acturer, brewer or wholesaler of alcoholic beverages; 4. Has obtained the use of equipment from any manufacturer, brewer or wholesaler of alco holic beverages or any agent thereof; 5. Has violated any of the provisions o f the Oklahoma Alcoholic Beverage Control Act for which mandatory revocation or suspension is not required; 6. Has been convicted within the past twenty-five (25) years, of a violation of any state or federal law relating to alcoholic beverage for which m andatory revocation or suspension i s not required; or 7. Is not in compliance with the tax la ws of this state as required in Article XXVIII-A of the Oklahoma Constitution. C. The ABLE Commission may revoke or suspend the license of any retail, mixed beverage, caterer or bottle club licens ee if the ABLE Commission finds or has grounds to believe t hat such licensee has borrowed money or property or accepted gratuities, discounts, rebates, free goods, allowances or other ind ucements from a wine and spirits wholesaler or beer distributor. HB2354 HFLR Page 52 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 D. The ABLE Commission shall have the authority to revoke the license of any licensee if the ABLE Commission finds: 1. That the licensee knowingl y sold alcoholic beverages or allowed such beverages to be sold, delivered or furnished to any person under the age of twenty-one (21) years or to any person visibly intoxicated or adjudged insane or mentally deficient; 2. That the licensee, any general o r limited partner of the licensee, or in the case of a corporation, an officer or director of the corporation, has been convicted of a felony or is not in compliance with the tax laws of this state as required in Article XXVIII-A of the Oklahoma Constituti on. Provided, an employee license may be issued and held by a person who has been convicted of a felony if such conviction was not for a violent offense specified in paragraph 2 of Section 571 of Title 57 of the Oklahoma Statutes or an offense under the p rovisions of this title; 3. That, in the case of a wine and spirits wholesale r, beer distributor, grocery retail spirits, retail spirits, retail wine or retail beer licensee, the holder of the license or any member of a general or limited partners hip which is the holder of such a license, has been convicted of a prohibitory law rel ating to the sale, manufacture or t ransportation of alcoholic beverages which constitutes a felony. E. If the ABLE Commission shall find by a preponderance of the evidence as in civil cases that a licensee has knowingly s old any HB2354 HFLR Page 53 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 alcoholic beverage to any person under the age of twenty -one (21) years, after a public hearing, the ABLE Commission sha ll revoke such license and no discretion as to the revocation shall be exerc ised by the ABLE Commission. F. The ABLE Commission shall have the authority to promu lgate rules to establish a penalty schedule for violations of any provision of the Oklahoma Al coholic Beverage Control Act or any rule of the ABLE Commission. The schedu le shall provide for suspension or revocation of any license for major and minor viola tions as determined by the ABLE Com mission. Penalties shall be increasingly severe with each violation by a licensee. Provided, that for a fourth major violation by a li censee within a twenty-four-month period, the penalt y shall be mandatory revocation of license. The twenty-four-month period shall be calculated from the date of the most recent v iolation as set forth in an order signed by the Director or the designee of the Director. G. The ABLE Commission or the Tax Com mission may impose a monetary penalty in lieu of or in addition to su spension of a license. The amount of the fine for a major violation shall be computed by multiplying the proposed number of days of th e suspension period by One Hundred Dollars ($100.00) . The amount of the fine for a minor violation shall be computed by multiplying the number of days of the proposed suspension p eriod by Fifty Dollars ($50.00). HB2354 HFLR Page 54 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 H. The failure of any licensee to pay a fi ne or serve a suspension imposed by the ABLE Commiss ion or the Tax Commission shall result in the revocation of the licen se of the licensee. I. If the ABLE Commission or the Tax C ommission finds that public health, safety or welfare require emergency acti on, and incorporates a finding to that effect in its order, summary suspension of a license may be ordered pending procee ding for revocation or other action, pursuant to the provis ions of Section 314 of Title 75 of the Oklahoma Statutes. SECTION 13. AMENDATORY 37A O.S. 2021, Se ction 2-161, is amended to read as foll ows: Section 2-161. A. Retail spirit Grocery retail spirits and retail spirits licensees may sell curbside and deliver alcoholic beverages including beer, wine, and spirits in sealed original containers to consumers aged twenty -one (21) years and older as follows: 1. Grocery retail spiri ts licensees are permitted to make alcoholic beverage product deliveries to consumers using an employee, third-party delivery service, or i ndependent contractor delivering on behalf of the license e; 2. Only employees of the retail spirit spirits licensee shall be permitted to make alcoholic beverage product del iveries to consumers; HB2354 HFLR Page 55 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. 3. Payment for alcoholic beverage product delivery by the grocery retail spirits licensee or retail spirit spirits licensee may be made by cash, check, transportable credit/debit card processors or advance on-line payment methods; and 3. 4. The grocery retail spirits licensee and retail spirit spirits licensee shall be responsibl e for his or her delivery employees as provided in Sectio n 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 lic ensed small brewer or small farm winery shall be permitted to make alcoholic beverage product deliveries to consumers; 2. Payment for alcoholic beverage product delivery by licensed small brewers or small farm winerie s may be made by cash, check, transportable credit/debit card processors, or advance on-line payment methods; and 3. Small brewers and small farm wineries shall be responsi ble for their delivery employees as provided in Secti on 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 HB2354 HFLR Page 56 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 Commission may sell c urbside and deliver only closed packages o f 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 pack age delivery by licensed restaurants, bars and clubs may be made by cash, check, transportable credit/debit card processors, or advance on-line payment methods; and 3. Restaurants, bars and clubs licensed by the O klahoma ABLE Commission shall be responsib le 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 grocery retail spirits, retail beer and/or retail wine license issued by the Oklahoma ABLE Commissio n may sell curbside and de liver original sealed containers of spirits, beer and/or wine only according to the license held to consumers a ged twenty-one (21) years and older as follows: 1. Only employees of such licensed grocery o r convenience store shall be permitted to make alcoholic beverage product deliveries to consumers Grocery and convenience store licensees are permitted to make alcoholic beverage deliveries to consumers using an emplo yee, HB2354 HFLR Page 57 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 third-party delivery service, or i ndependent contractor deli vering on behalf of the licensee; 2. Payment for alcoholic beverage product delivery by a licensed grocery or convenience store may be m ade by cash, check, transportable credit/debit card processors or advance on -line payment methods; and 3. Grocery and convenience store license es shall be responsible for their delivery employees as provided in Section 2-133 of Title 37A of the Oklahoma S tatutes this title. E. Licensees authorized by this section to make alcoholic beverage product del iveries 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 ex ecutive orders incumbent on su ch licensee. G. The Oklahoma ABLE Commission is authorized to promulgate rules, regulations, forms and procedures necessary to implement and enforce the provisions of this section. H. For purposes of this section each delive ry authorized by a licensee to be made by his or her employee, third-party delivery service, or independent contract or shall be deemed a direct han d-to- hand sale as though the consumer was physically pres ent on the licensed premises and authorized by law b y such licensee. HB2354 HFLR Page 58 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 14. AMENDATORY 37A O.S. 2021, Section 3-114, is amended to read as follows: Section 3-114. A. This section applies to all retailers authorized to sell beer f or consumption off the premises. B. The holder of a retail beer, grocery retail spirits or retail spirits license may resell beer only in the packaging in which the holder received the beer or may resell the contents of the packages as individual containe rs. C. Except for purposes of resale as indivi dual containers, the licensee shall not: 1. Mutilate, tear apart or cut apart original packaging in which beer was received; or 2. Repackage beer in a manner misleading to the consumer or that results in required labeling being omitted or obscured. D. The ABLE Commission shall impose the following penalties for a violation of subsection B or C of this section: 1. After notice and hearing, immediately revoke the license of the licensee committing the violati on; and 2. Impose a fine of not more than One Thousand Dollars ($1,000.00) for each violation. Any licensee whose license is revoked pursuant to this subsection shall not be eligible to reapply for a license for at least three (3) months from the date of the revocation. Any stock of beer in undamaged original packaging in the posse ssion of such HB2354 HFLR Page 59 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 licensee shall be repurchased by the distributor as long as the repurchased inventory falls within the date considered by the brewer of the product to be appropria te for sale to a consumer. E. Administrative f ines collected pursuant to this section shall be enforceable in the district courts of this state. All administrative fines collected by the ABLE Commission pursuant to this section shall be forwarded to the State Treasurer for deposit in the General Revenue Fund. SECTION 15. AMENDATORY 37A O.S. 2021, Section 3-123, is amended to read as follows: Section 3-123. A. It shall be unla wful for any person privileged to sell alcoholic bevera ges to wholesalers, beer distributors or retailers: 1. To discriminate, direct ly or indirectly, in price between one wine and spirits wholesaler and another wine and sp irits wholesaler, when that manu facturer has not designated a single wine and spirits wholesaler, or between one retailer and another retailer purchasing alcoholic be verages bearing the same brand or trade name and of like age and quality, unless otherwise provided by law; or 2. To grant, directly or indirectly, any discount, rebate, free goods, allowance or other inducement. B. The ABLE Commission is hereby authoriz ed to promulgate rules which are necessary to carry out the purpose of this section and to prevent its circumvention by of fering or giving of any rebate, HB2354 HFLR Page 60 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 allowance, free goods, discount or any other thing or service of value; provided, the posting or invoi cing of charges per order for processing minimum orders or per case for the handling or re packing of goods by wine and spi rits wholesalers and beer distributors for sales in less than full case lots shall not constitute a violation of this section. C. For the violation of any provision of this section or of any rule duly promulgated under this section, the ABLE Commission ma y suspend or revoke a license as follows: 1. For a first offense, not exceeding ten (10) days' suspension of license; 2. For a second offense, not exceeding thirty (30) days' suspension of license; and 3. For a third offe nse, the ABLE Commission shall r evoke the license. D. For purposes of this section, and except as otherwise provided in subsection E of this section, "inducement" means directly or indirectly offering, selling, trading, giving or furnishing any discount, free goods, electronic or nonele ctronic refrigerated equipment, barrels, tubs, fixtures , dispensing equipment, outdoor electric or nonelectric advertising structure displaying the retailer's name, permanent shelving, supplies, gifts, prizes, instantly rede emable coupons, premiums, retail er rebates, services of any employee including but not limited to affixing price HB2354 HFLR Page 61 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 labels or tags, routinely stocking product on shelves other than the stocking of cold boxes, paying a third party for entering product and price information into a retailer 's computer system, portal, website, spreadsheet or third -party system, handling product that was not sold to the retailer by the license e, paying a slotting fee, selling on consignment, operating a retailer's cash register, conducting janitorial services, de coration, samples of alcoholic beverages, personal prop erty or other inducement or thing of value to any grocery retail spirits, retail spirit spirits, retail beer, retail wine, beer and wine, mixed beverage, caterer, bottle club or special event licensee, wine a nd spirits wholesaler or beer distributor, their agents or employees. E. It shall not be deemed an inducement for a brewer, beer distributor, small brewer self-distributor or brewpub self- distributor to voluntarily t ake the following merchandising actions with the permission of the retail licensee: 1. Furnish point-of-sale advertising materials and consumer advertising specialties, as those terms are defined in 27 C.F.R., Section 6.84 and in compliance with the other limits and restrictions provided in 27 C.F.R., Section 6.84; 2. Give or sell product display s, including but not limited to barrels and tubs, provided that the value of such displays does not exceed the limits and restrictions provided in 27 C.F.R., Sect ion 6.83; HB2354 HFLR Page 62 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 3. Build product displays, a ccessible to the customer and without disturbing compet itors' products, for the product being delivered by the beer distributor; 4. Affix pricing to the shelf strip or product display for the product being delivered by the beer distributor, small brewer s elf- distributor or brewpub self -distributor, or brewed by the brewer; 5. Routinely stock and restock shelves and cold boxes and rotate product that has been sold to the retail licensee by the beer distributor, small brewer self-distributor or brewpub self - distributor, or brewed by the brewer; 6. Furnish things of value to a temporary retailer, as defined in 27 C.F.R., Section 6.85; 7. Sell equipment or supplies to a retail licensee, provided the equipment or supplie s are sold at a price not less than the cost to the industry member and payment is collected w ithin thirty (30) days of the sale; 8. Install dispensing accessories at the retail location, as long as the retailer bears the cost of installation including equipment; or furnish, give or sell coil cleaning services to a retailer; 9. Withdraw quantitie s of beer or cider in undamaged, original packaging from the retail licensee's stock, provided the beer distributor, small brewer self-distributor, brewpub self -distributor or brewer sold such beer, di rectly or indirectly, to the retail HB2354 HFLR Page 63 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 licensee and such removal is otherwise permitted under Section 3-115 of this title; provided, however, replacing with beer or cider of equivalent value shall not be considered a con signment sale; 10. Provide mail-in rebates for beer, cider and nonalcoholic beverage merchandise items, funded by the brewer and redeemed by the brewer, either by itself or through a third-party fulfillment company, for a discount or rebate on the beer, c ider or nonalcoholic item; 11. Provide a recommended shelf plan or shelf schematic to a retail licensee for all or any portion of the inventory sold by the retail licensee; 12. Furnish or give a sample of beer or cider to a retailer who has not purchased the brand from that brewer, beer distr ibutor, small brewer self-distributor or brewpub self -distributor within the last twelve (12) months, provided that the brewer, beer distributor, small brewer self-distributor or brewpub self-distributor may not give more than thirty-six (36) ounces of any brand of beer or cider to a specific retailer; 13. Furnish or give newspaper cuts, mats or engraved blocks for use in retailers' advertisements; 14. Package and distribute beer or cider in combination with other nonalcoholic items for sale to consumers; 15. Give or sponsor educational seminars for employee s of retailers either at the brewer, beer distributor, small brewer self- HB2354 HFLR Page 64 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 distributor or brewpub self-distributor's premises or at the retailer's establishment, including seminars dealing with use of a retailer's equipment, training seminars for employees o f retailers or tours of the brewer, beer distributor, small brewer self- distributor, or brewpub self-distributor's plant premises, provided that the brewer, beer distributor, small brewer self -distributor or brewpub self-distributor shall not pay the retai ler for the employees' travel, lodging or other expenses in conjunction with an educational seminar but may provide nominal hospitality during the event; 16. Conduct tasting or sampling activities at a retail establishment and purchase the products to be used from the retailer so long as the purchase price paid does not exceed the ordinary retail price; provided, a beer distributor shall not be required to provide labor for such sampling activities; 17. Offer contest prizes, premium offers, refunds and li ke items directly to consumers so long as officers, employees and representatives of brewers, beer distributors, small brewer self- distributors, brewpub self-distributors and licensed retailers are excluded from participation; 18. List the names and addre sses of two or more unaffiliated retailers selling the products of a brewer, beer distributor, small brewer, small brewer self-distributor or brewpub self-distributor in an advertisement of such brewer , beer distributor, small brewer, HB2354 HFLR Page 65 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 small brewer self-distributor or brewpub self-distributor so long as the requirements of 27 C.F.R., Section 6.98 are satisfied, considering applicable guidance issued by the United St ates Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau; provided, nothing in the Oklahoma Alcoholic Beverage Control Act shall prohibit a retail, mixed beverage, on-premises beer and wine, public event, special event, charitable auction, charitable alcoholic beverage event, or complimentary beverage licensee from communicating with a brewer, beer distributor, small brewer, small brewer self-distributor or brewpub self-distributor on social media or sharing media on the social media page or site of a brewer, beer distributor, small brewer, small brewer self -distributor or brewpub self-distributor. A retail, mixed beverage, on-premises beer and wine, public event, special event, charitable auction, charitable alcoholic beverage event, or com plimentary beverage licensee may request free social media advertising from a brewer, beer distributor, small brewer, small brewer self-distributor or brewpub self-distributor; provided, nothing in this section shall prohibit a brewer, beer distributor, sm all brewer, small brewer self - distributor or brewpub self-distributor from sharing, reposting or forwarding a social media post by a retail, mixed beverage, on- premises beer and wine, public event, special event, charitable auction, charitable alcoholic be verage event, or complimentary beverage licensee, as long as the sharing, reposting or forward ing HB2354 HFLR Page 66 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 of the social media post does not contain the retail price of any alcoholic beverage. No brewer, beer distributor, small brewer, small brewer self-distributor or brewpub self-distributor shall pay or reimburse a retail, mixed beverage, on -premises beer and wine, public event, special event, charitable auction, charitable alcoholic beverage event, or complimentary beverage licensee, directly or indirectly, for any social media advertising services. No retail, mixed beverage, on -premises beer and wine, public event, special event, charitable auction, charitable alcoholic beverage event, or complimentary beverage licensee shall accept any payment or reimbursement, directly or indirectly, for any socia l media advertising service offered by a brewer, beer d istributor, small brewer, small brewer self-distributor or brewpub self-distributor. For purposes of this paragraph, "social media" means a service, platform or site where users communicate with one a nother and share media, such as pictures, videos, music and blogs, with other users free of charge; or 19. Entering product and price information into a retailer's portal, website, spreadsheet or third-party system. A brewer may pay for a third-party system that provides data and pricing services to the brewer or a beer distributor. F. It shall not be deemed an inducement for a brewer, beer distributor, small brewer self-distributor or brewpub self- distributor to engage in the following marketing activit ies, HB2354 HFLR Page 67 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 provided that the brewer, beer distributor, small brewer self- distributor or brewpub self-distributor shall not pay the retailer's travel costs other than those for local transportation or lodging: 1. Provide tickets to a retailer for a sporting or entertainment event so long as a representative of the b rewer, beer distributor, small brewer self-distributor or brewpub self- distributor attends the event with the retailer; 2. Provide food and beverage to a retaile r for immediate consumption: a. at a meeting at which the primary purpose is the discussion of business, b. at a convention when the food and beverages are offered to all participants, or c. at a sports or entertainment event that the representatives of a brewer, beer distributor, small brewer self-distributor or brewpub self -distributor attend with the retailer; 3. Participate in retailer association activities by engaging in the following actions: a. displaying products at a convention or trade show, b. renting display booth space if the rent al fee is the same as paid by all exhibitors at the eve nt, c. providing its own hospitality which is independent from association-sponsored activities, HB2354 HFLR Page 68 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 d. purchasing tickets to functions and paying registration fees if the payments or fees are the same as paid by all attendees, participants or exhibitors at the event, or e. making payments for advertisements in programs or brochures issued by retailer associations at a convention or trade show; or 4. Giving or selling outdoor signs to a retailer so long as the following requirements of 27 C.F.R., Section 6.102 are satisfied: a. the sign bears conspicuous and substantial advertising matter about the product or the brewer, beer distributor, small brewer self-distributor or brewpub self-distributor which is pe rmanently inscribed or securely affixed, b. the retailer is not compensated, directly or indirectly, such as through a sign company, for displaying the signs, and c. a permanent outdoor sign does not contain the retailer's name. SECTION 16. AMENDATORY 37A O.S. 2021, Section 6 -103, as amended by Section 1, Chapter 82, O.S.L. 2022 (37A O.S. Supp. 2022, Section 6-103), is amended to read as follows: Section 6-103. A. No grocery retail spirits licensee shall: HB2354 HFLR Page 69 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. Purchase or receive any alcoholic beverage other than from a wine and spirits wholesaler, beer distributor, winery or small brewer self-distribution licensee who elects to self-distribute; 2. Suffer or permit any retail container to be opened, or any alcoholic beverage to be consumed on the licensed premises, except when serving samples as authorized by Section 2 -109 of this title or otherwise permitted by law; provided, the licensee shall not permit any alcoholic beverage content or retail container unsealed in connection with sampling authorized by Section 2 -109 of this title to remain on the licensed premises at the close of business on that day, excluding spirits; 3. Sell any alcoholic beverages at any hour other than between the hours of 6:00 a.m. and 2:00 a.m. ; 4. Sell any alcoholic beverage on credit; provided, that acceptance by a licensee of a cash or debit c ard or a nationally recognized credit card in lieu of actual cash payment does not constitute the extension of credit; provided, further, as used in this section: a. "cash or debit card" means any instrument or device whether known as a debit card or by an y other name, issued with or without fee by an issuer for the use of the cardholder in depositing, obtaining or transferring funds from a consumer banking electronic facility, and HB2354 HFLR Page 70 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 b. "nationally recognized credit card " means any instrument or device, wheth er known as a credit card, credit plate, charge plate or by any other name, issued with or without fee by an issuer for the use of the cardholder in obtaining money, goods, services or anything else of value on credit which is accepted by over one hundred retail locations; 5. Offer or furnish any prize, premium, gift or similar inducement to a consumer in connection with the sale of alcoholic beverages, except that goods or merchandise included by the manufacturer in packaging with alcoholic beverages or f or packaging with alcoholic beverages shall not be included in this prohibition, but no wholesaler or retailer shall sell any alcoholic beverage prepackaged with other goods or merchandise at a price which is greater than the price at which the alcoholic b everage alone is sold; or 6. Pay for alcoholic beverages by a check or draft which is dishonored by the drawee when presented to such drawee for payment; and the ABLE Commission may cancel or suspend the license of a ny retailer who has given a check or dr aft, as maker or endorser, which is so dishonored upon presentation. B. No retail spirits licensee shall: HB2354 HFLR Page 71 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. Purchase or receive any alcoholic beverage other than from a wine and spirits wholesaler, beer distributor, winery or small brewer self-distribution licensee who elects to self-distribute; 2. Suffer or permit any retail container to be opened, or any alcoholic beverage to be consumed on the licensed premises, except when serving samples as authorized by Section 2-109 of this title or otherwise permitted by law; provided, the licensee shall not permit any alcoholic beverage content or retail container unsealed in connection with sampling authorized by Section 2 -109 of this title to remain on the licensed premises at the close of business on that day, excluding spirits; 3. Sell any alcoholic beverages at any hour other than between the hours of 8:00 a.m. and midnight Monday through Saturday, and shall not be permitted to be open on Thanksg iving Day or Christmas Day; provided, a county may, pursuant to the provisions of subsections B and C of Section 3-124 of this title, elect to allow such sales between the hours of noon and midnight on Sunday. Retail spirits licensees shall be permitted t o sell alcoholic beverages on the day of any General, Primary, Runoff Primary or Special Election whether on a national, state, county or city election, provided that the election day does not occur on any day on which such sales are otherwise prohibited b y law; HB2354 HFLR Page 72 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 4. Sell spirits in a city or town, unless such city or town has a population in excess of two hundred (200) according to the latest Federal Decennial Census; 5. Sell any alcoholic beverage on credit; provided, that acceptance by a licensee of a cash or debit card or a nationally recognized credit card in lieu of actual cash payment does not constitute the extension of credit; provided, further, as used in this section: a. "cash or debit card" means any instrument or device whether known as a deb it card or by any other name, issued with or without fee by an issuer for the use of the cardholder in depositing, obtaining or transferring funds from a consumer banking electronic facility, and b. "nationally recognized credit card " means any instrument or device, whether known as a credit card, credit plate, charge plate or by any other name, issued with or without fee by an issuer for the use of the cardholder in obtaining money, goods, services or anything else of value on credit which is accepted by over one hundred retail locations; 6. Offer or furnish any prize, premium, gift or similar inducement to a consumer in connection with the sale of alcoholic beverages, except that goods or merchandise included by the HB2354 HFLR Page 73 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 manufacturer in packaging with alcoho lic beverages or for packaging with alcoholic beverages shall not be included in this prohibition, but no wholesaler or retailer shall sell any alcoholic beverage prepackaged with other goods or merchandise at a price which is greater than the price at whi ch the alcoholic beverage alone is sold; or 7. Pay for alcoholic beverages by a check or draft which is dishonored by the drawee when presented to such drawee for payment; and the ABLE Commission may cancel or suspend the license of any retailer who has given a check or draft, as maker or endorser, which is so dishonored upon presentation. B. No retail spirits licensee shall permit any person under twenty-one (21) years of age to enter into or remain within or about the licensed premises unless accompan ied by the person's parent or legal guardian; provided, however, this restriction shall not apply to an employee of a licensed beer distributor or wine and spirits wholesaler who: 1. Is at least eighteen (18) years of age; 2. Is accompanied by a coworker at least twenty -one (21) years of age; and 3. Enters for the sole purpose of merchandising or delivering product to the licensee in the normal course of business. SECTION 17. AMENDATORY 37A O.S. 2021, Section 6 -104, is amended to read as follo ws: HB2354 HFLR Page 74 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 6-104. No wine or spirits wholesaler li censee shall sell or deliver, and no win e, grocery retail spirits or retail spirits retail licensee shall receive: 1. Any amount of spirits or wines to any licensee on Sunday; or 2. Any amount of spirits or wines to an y licensee on New Year's Day, the Fourth of July, Thanksgiving Day or Christ mas Day. SECTION 18. This act shall become effective November 1, 2023. COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED SUBSTANCES, dated 03/02/2023 - DO PASS, As Amended.