Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB2001 Compare Versions

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4-An Act
5-ENROLLED SENATE
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
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31+STATE OF OKLAHOMA
32+
33+2nd Session of the 59th Legislature (2024)
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35+ENGROSSED SENATE
636 BILL NO. 2001 By: Coleman of the Senate
737
838 and
939
1040 Hays of the House
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1547 An Act relating to alcoholic beverages; amending 37A
1648 O.S. 2021, Section 1-103, as amended by Section 2,
1749 Chapter 338, O.S.L. 2023 (37A O.S. Supp. 2023,
1850 Section 1-103), which relates to definitions;
1951 defining term; amending 37A O.S. 2021, Section 2 -109,
2052 which relates to retail spirits license; permitting
2153 an employee to sample alcoholic beverages under
2254 certain circumstances; specifying amount to be used
2355 in tastings; providing for procedure of tastings that
2456 shall occur; allowing for certain resealing and
2557 storing; exempting samples from certain excise tax
2658 provisions; amending 37A O.S. 2021, Section 5 -132, as
2759 amended by Section 4, Chapter 94, O.S.L. 2023 (37A
2860 O.S. Supp. 2023, Section 5-132), which relates to
2961 brand label requirements; requiring lower annual fee
3062 for certain brand label under certain circumstances;
3163 amending 37A O.S. 2021, Section 6 -105, as amended by
3264 Section 2, Chapter 82, O.S.L. 2022 (37A O.S. Supp.
3365 2023, Section 6-105), which relates to prohibited
3466 acts of mixed beverage, public event, special event,
3567 or on-premises beer and wine licensees; providing
3668 exception; amending 37A O.S. 2021, Section 6 -109,
3769 which relates to prohibited acts; permitting an
3870 employee to sample alcoholic beverages under certain
3971 circumstances; specifying amount to be used in
4072 tastings; providing for procedure of tastings that
4173 shall occur; allowing for certain resealing and
4274 storing; exempting samples from certain excise tax
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43102 provisions; updating sta tutory language; updating
44103 statutory reference; and declaring an emergency.
45104
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47106
48-ENR. S. B. NO. 2001 Page 2
49-
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51-SUBJECT: Alcoholic beverage testing
52107
53108 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
54-
55109 SECTION 1. AMENDATORY 37A O.S. 2021, Section 1 -103, as
56110 amended by Section 2, Chapter 338, O.S.L. 2023 (37A O.S. Supp. 2023,
57111 Section 1-103), is amended to read as follows:
58-
59112 Section 1-103. As used in the Oklahoma Alcoholic Beverage
60113 Control Act:
61-
62114 1. “ABLE Commission” or “Commission” means the Alcoholic
63115 Beverage Laws Enforcement Commission;
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65116 2. “Alcohol” means and includes hydrated oxide of ethyl, ethyl
66117 alcohol, ethanol or spir its of wine, from whatever source or by
67118 whatever process produced. It does not include wood alcohol or
68119 alcohol which has been denatured or produced as denatured in
69120 accordance with Acts of Congress and regulations promulgated
70121 thereunder;
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72122 3. “Alcoholic beverage” means alcohol, spirits, beer and wine
73123 as those terms are defined her ein and also includes every liquid or
74124 solid, patented or not, containing alcohol, spirits, wine or beer
75125 and capable of being consumed as a beverage by human beings;
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77126 4. “Applicant” means any individual, legal or commercial
78127 business entity, or any individua l involved in any legal or
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79155 commercial business entity allowed to hold any license issued in
80156 accordance with the Oklahoma Alcoholic Beverage Control Act;
81-
82157 5. “Beer” means any beverage containing more than one -half of
83158 one percent (0.50%) of alcohol by volume and obtained by the
84159 alcoholic fermentation of an infusion or decoction of barley, or
85160 other grain, sugar, m alt or similar products. For the purposes of
86161 taxation, distribution, sale s, and regulation, seltzer shall mean
87162 the same as beer as provided in this section. Beer may or may not
88163 contain hops or other vegetable products. Beer includes, among
89164 other things, beer, ale, stout, lager beer, porter, seltzer, and
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91-ENR. S. B. NO. 2001 Page 3
92165 other malt or brewed liquors, but does not include sake, known as
93166 Japanese rice wine;
94-
95167 6. “Beer keg” means any brewer -sealed, single container that
96168 contains not less than four (4) gallons of beer;
97-
98169 7. “Beer distributor” means and includes any person licensed to
99170 distribute beer for retail sale in the this state, but does not
100171 include a holder of a small brewer self-distribution license or
101172 brewpub self-distribution license. The term distributor, as used in
102173 the Oklahoma Alcoholic Beverage Control Act, shall be construed to
103174 refer to a beer distributor;
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105175 8. “Bottle club” means any establishment in a county which has
106176 not authorized the retail sale of alcoholic beverages by the
107177 individual drink, which is required to be licensed to keep, mix and
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108205 serve alcoholic beverages belonging to clu b members on club
109206 premises;
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111207 9. “Bottle service” means the sale and provisi on of spirits in
112208 their original packages by a mixed beverage licensee to be consumed
113209 in that mixed beverage licensee’s club suite;
114-
115210 10. “Brand” means any word, name, group of letters, symbol or
116211 combination thereof, that is adopted and used by a licensed br ewer
117212 to identify a specific beer, wine or spirit and to distinguish that
118213 product from another beer, wine or spirit;
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120214 11. “Brand extension” means:
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122215 a. after October 1, 2018, any brand of beer or cider
123216 introduced by a manufacturer in this state which
124217 either:
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126218 (1) incorporates all or a substantial part of the
127219 unique features of a preexisting brand of the
128220 same licensed brewer, or
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130221 (2) relies to a significant extent on the goodwill
131222 associated with the preexisting brand, or
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134-ENR. S. B. NO. 2001 Page 4
135223 b. any brand of beer that a brewer, the ma jority of whose
136224 total volume of all brands of beer distributed in this
137225 state by such brewer on January 1, 2 016, was
138226 distributed as low-point beer, desires to sell,
139227 introduces, begins selling or theretofore has sold and
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140255 desires to continue selling a strong beer in this
141256 state which either:
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143257 (1) incorporates or incorporated all or a substantial
144258 part of the unique f eatures of a preexisting low -
145259 point beer brand of the same licensed brewer, or
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147260 (2) relies or relied to a significant extent on the
148261 goodwill associated with a preexisting low -point
149262 beer brand;
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151263 12. “Brewer” means and includes any person who manufactures for
152264 human consumption by the use of raw materials or other ingredients
153265 any beer or cider upon which a license fee and a tax are imposed by
154266 any law of this state;
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156267 13. “Brewpub” means a licensed establishment operated on the
157268 premises of, or on premises located contiguous to, a small brewer,
158269 that prepares and serves food and beverages, including alcoholic
159270 beverages, for on-premises consumption;
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161271 14. “Cider” means any alcoholic beverage obtained by the
162272 alcoholic fermentation of fruit juice, including but not limit ed to
163273 flavored, sparkling or carbonated cider. For the purposes of the
164274 manufacture of this product, cider may be manufactured by either
165275 manufacturers or brewers. For the purposes of the distribution of
166276 this product, cider may be distributed by either win e and spirits
167277 wholesalers or beer distributors;
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168304
169305 15. “Club suite” means a designated area within the premises of
170306 a mixed beverage licensee designed t o provide an exclusive space
171307 which is limited to a patron or patrons specifically granted access
172308 by a mixed beverage licensee and is not accessible to other patrons
173309 of the mixed beverage licensee or the public. A club suite must
174310 have a clearly designated point of access for a patron or patrons
175311 specifically granted access by the mixed beverage licensee to ensur e
176312 that persons present in the suite are limited to patrons
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178-ENR. S. B. NO. 2001 Page 5
179313 specifically granted access by the mixed beverage licensee and
180314 employees providing service s to the club suite;
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182315 16. “Convenience store” means any person primarily engaged in
183316 retailing a limited ran ge of general household items and groceries,
184317 with extended hours of operat ion, whether or not engaged in retail
185318 sales of automotive fuels in combinat ion with such sales;
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187319 17. “Convicted” and “conviction” mean and include a finding of
188320 guilt resulting from a plea of guilty or nolo contendere, the
189321 decision of a court or magistrate or the verdict of a jury,
190322 irrespective of the pronouncement of judgment or the suspension
191323 thereof;
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193324 18. “Designated products” means the brands of wine or spirits
194325 offered for sale by a manufacturer that the manufacturer has
195326 assigned to a designated wholesal er for exclusive distribution;
196327
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197354 19. “Designated wholesaler” means a wine an d spirits wholesaler
198355 who has been selected by a manufacturer as a wholesaler appointed to
199356 distribute designated products;
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201357 20. “Director” means the Director of the ABLE Commission;
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203358 21. “Distiller” means any person who produces spirits from any
204359 source or substance, or any person who brews or makes mash, wort or
205360 wash, fit for distillation or for the production o f spirits (except
206361 a person making or using such material in the authorized production
207362 of wine or beer, or the production of vinegar by fermentation), or
208363 any person who by any process separates alcoholic spirits from any
209364 fermented substance, or any person w ho, making or keeping mash, wort
210365 or wash, has also in his or her possession or use a still;
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212366 22. “Distributor agreement” means the written agreement between
213367 the distributor and brewer as set forth in Section 3 -108 of this
214368 title;
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216369 23. “Drug store” means a p erson primarily engaged in retailing
217370 prescription and nonprescription drug s and medicines;
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220-ENR. S. B. NO. 2001 Page 6
221371 24. “Dual-strength beer” means a brand of beer that,
222372 immediately prior to April 15, 2017, was being sold and distributed
223373 in this state:
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225374 a. as a low-point beer pursuant to the Low-Point Beer
226375 Distribution Act in effect immediately prior to
227376 October 1, 2018, and
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229404 b. as strong beer pursuant to the Alcoholic Beverage
230405 Control Act in effect immediately prior to October 1,
231406 2018,
232-
233407 and continues to be sold and distributed as such on October 1, 2018.
234408 Dual-strength beer does not include a brand of beer that arose as a
235409 result of a brand extension as defined in this section;
236-
237410 25. “Fair market value” means the value in the subject
238411 territory covered by the written agreement with the di stributor or
239412 wholesaler that would be determined in an arm’s length transaction
240413 entered into without duress or threat of termination of the
241414 distributor’s or wholesaler’s rights and shall include all elements
242415 of value, including goodwill and going -concern value;
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244416 26. “Good cause” means:
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246417 a. failure by the distributor to comply wit h the material
247418 and reasonable provisions of a written agreement or
248419 understanding with the brewer, or
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250420 b. failure by the distributor to comply with the duty of
251421 good faith;
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253422 27. “Good faith” means the duty of each party to any
254423 distributor agreement and all officers, employees or agents thereof
255424 to act with honesty in fact and within reasonable standards of fair
256425 dealing in the trade;
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258426 28. “Grocery store” means a person primarily engaged in
259427 retailing a general line of food, such as canned or frozen foods,
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260455 fresh fruits and vegetables, and fresh and prepared meats, fish and
261456 poultry;
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265457 29. “Hotel” or “motel” means an establishment which is licensed
266458 to sell alcoholic beverages by the individual d rink and which
267459 contains guestroom guest room accommodations with respect to which
268460 the predominant relationship existing between the occupants thereof
269461 and the owner or operator of the establishment is that of innkeeper
270462 and guest. For purposes of this secti on, the existence of other
271463 legal relationships as between some occupants a nd the owner or
272464 operator thereof shall be immaterial;
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274465 30. “Legal newspaper ” means a newspaper meeting the requisites
275466 of a newspaper for publication of legal notices as prescribed in
276467 Sections 101 through 114 of Title 25 of the Oklahoma Statutes;
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278468 31. “Licensee” means any person holding a license under the
279469 Oklahoma Alcoholic Bever age Control Act, and any agent, servant or
280470 employee of such licensee while in the performance of any act or
281471 duty in connection with the licensed business or on the licensed
282472 premises;
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284473 32. “Low-point beer” shall mean any beverages containing more
285474 than one-half of one percent (1/2 of 1%) alcohol by volume, and not
286475 more than three and two -tenths percent (3.2%) alc ohol by weight,
287476 including but not limited to , beer or cereal malt beverages obtained
288477 by the alcoholic fermentation of an infusion by barley or other
289478 grain, malt or similar products;
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291506 33. “Manufacturer” means a distiller, winemaker, rectifier or
292507 bottler of any alcoholic beverage (other than beer) and its
293508 subsidiaries, affiliates and parent companies;
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295509 34. “Manufacturer’s agent” means a salaried or commi ssioned
296510 salesperson who is the agent authorized to act on behalf of the
297511 manufacturer or nonresident seller in the this state;
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299512 35. “Meals” means foods commonly ordered at lunch or dinner and
300513 at least part of which is cooked on the licensed premises and
301514 requires the use of dining implements for consumption. Provided,
302515 that the service of only food such as appeti zers, sandwiches, salads
303516 or desserts shall not be considered meals;
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307517 36. “Mini-bar” means a closed container, either refrigerated in
308518 whole or in part, or nonrefrigerated unrefrigerated, and access to
309519 the interior of which is:
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311520 a. restricted by means of a lo cking device which requires
312521 the use of a key, magnetic card or similar device, or
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314522 b. controlled at all times by the licensee;
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316523 37. “Mixed beverage co oler” means any beverage, by whatever
317524 name designated, consisting of an alcoholic beverage and fruit or
318525 vegetable juice, fruit or vegetable flavorings, dairy products or
319526 carbonated water containing more than one -half of one percent (1/2
320527 of 1%) of alcohol measured by volume but not more than seven percent
321528 (7%) alcohol by volume at sixty (60) degrees Fahrenheit a nd which is
322529 packaged in a container not larger than three hundred seventy -five
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323557 (375) milliliters. Such term shall include but not be limited to
324558 the beverage popularly known as a “wine cooler”;
325-
326559 38. “Mixed beverages” means one or more servings of a beverag e
327560 composed in whole or in part of an alcoholic beverage in a sealed or
328561 unsealed container of any legal size for consumption on the premises
329562 where served or sold by the holder of a mixed beverage, beer and
330563 wine, caterer, public event, charitable event or sp ecial event
331564 license;
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333565 39. “Motion picture theater” means an establishment which is
334566 licensed by Section 2 -110 of this title to sell alcoholic beverage s
335567 by the individual drink and where motion pictures are exhibited, and
336568 to which the general public is admit ted;
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338569 40. “Nondesignated products” means the brands of wine or
339570 spirits offered for sale by a manufacturer that have not been
340571 assigned to a designated wholesaler;
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342572 41. “Nonresident seller” means any person licensed pursuant to
343573 Section 2-135 of this title;
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345574 42. “Retail salesperson” means a salesperson soliciting orders
346575 from and calling upon retail alcoholic beverage stores with regard
347576 to his or her product;
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351577 43. “Occupation” as used in connection with “occupation tax”
352578 means the sites occupied as the places of business of the
353579 manufacturers, brewers, wholesalers, beer distributors, r etailers,
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354607 mixed beverage licensees, on -premises beer and wine licensees,
355608 bottle clubs, caterers, public event and special event licensees;
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357609 44. “Original package” means any container of alcoholic
358610 beverage filled and stamped or sealed by the manufacturer or brewer;
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360611 45. “Package store” means any sole proprietor or partnership
361612 that qualifies to sell wine, beer and/or spirits for off -premises
362613 consumption and that is not a grocery store, convenience store or
363614 drug store, or other retail outlet that is not permit ted to sell
364615 wine or beer for off -premises consumption;
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366616 46. “Patron” means any person, customer or visitor who is not
367617 employed by a licensee or who is not a licensee;
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369618 47. “Person” means an individual, any type of partnership,
370619 corporation, association, limited liability company or any
371620 individual involved in the legal structure of any such business
372621 entity;
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374622 48. “Premises” means the grounds and all buildings and
375623 appurtenances pertaining to the grounds including any adjacent
376624 premises if under the direct or ind irect control of the licensee and
377625 the rooms and equipment under the control of the licensee and used
378626 in connection with or in furtherance of the business covered by a
379627 license. Provided, that the ABLE Commission shall have the
380628 authority to designate areas to be excluded from the licensed
381629 premises solely for the purpose of:
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383657 a. allowing the presence and consumption of alcoholic
384658 beverages by private parties which are closed to the
385659 general public, or
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387660 b. allowing the services of a caterer serving alcoholic
388661 beverages provided by a private party.
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390662 This exception shall in no way limit the licensee’s concurrent
391663 responsibility for any violations of the Oklahoma Alcoholic Beverage
392664 Control Act occurring on the licensed premises;
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396665 49. “Private event” means a social gathering or event attended
397666 by invited guests who share a common cause, membershi p, business or
398667 task and have a prior established relationship. For purposes of
399668 this definition, advertisem ent for general public attendance or
400669 sales of tickets to the general publi c shall not constitute a
401670 private event;
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403671 50. “Public event” means any event that can be attended by the
404672 general public;
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406673 51. “Rectifier” means any person who rectifies, purifies or
407674 refines spirits or wines by any process (other than by original and
408675 continuous distillation, or original and continuous processing, from
409676 mash, wort, wash or other substance, through continuous closed
410677 vessels and pipes, until the production thereof is comple te), and
411678 any person who, without rectifying, purifying or refining spirits ,
412679 shall by mixing (except for immediate consumption on the premises
413680 where mixed) such spirits, wine or other liquor with any material,
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414708 manufactures any spurious, imitation or compoun d liquors for sale,
415709 under the name of whiskey, brandy, rum, gin, wine, spirits, cordials
416710 or any other name;
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418711 52. “Regulation” or “rule” means a forma l rule of general
419712 application promulgated by the ABLE Commission as herein required;
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421713 53. “Restaurant” mean s an establishment that is licensed to
422714 sell alcoholic beverages by the ind ividual drink for on -premises
423715 consumption and where food is prepared and so ld for immediate
424716 consumption on the premises;
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426717 54. “Retail container for spirits and wines” means an origin al
427718 package of any capacity approved by the United States Bureau of
428719 Alcohol, Tobacco, Firearms and Explosives;
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430720 55. “Retailer” means a package store, grocery store,
431721 convenience store or drug store licensed to sell alcoholic beverages
432722 for off-premises consumption pursuant to a Retail Spirits License
433723 retail spirits license , Retail Wine License retail wine license or
434724 Retail Beer License retail beer license;
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438725 56. “Sale” means any transfer, exchange or barter in any manner
439726 or by any means whatsoever, and includes and means all sales made by
440727 any person, whether as principal, proprietor or as an agent, servant
441728 or employee. The term sale is also declared to be and include the
442729 use or consumption in this state of any alcoholic beverage obtained
443730 within or imported from without this state, upon which the excise
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444758 tax levied by the Oklahoma Alco holic Beverage Control Act has not
445759 been paid or exempted;
446-
447760 57. “Seltzer” means any beverage containing more than one -half
448761 of one percent (0.50%) of alcohol by volume and obtained by the
449762 alcoholic fermentation of malt, rice, grain of any kind, bran,
450763 glucose, sugar, or molasses and combined with carbonated water and
451764 other flavoring and labeled as “beer” by the Internal Revenue Code;
452765 provided, that seltzer shall not include carbonated be verages mixed
453766 with wine or spirits;
454-
455767 58. “Short-order food” means food oth er than full meals
456768 including but not limited to sandwiches, soups and salad s.
457769 Provided, that popcorn, chips and other similar snack food shall not
458770 be considered short-order food;
459-
460771 59. “Small brewer” means a brewer who manufactures less than
461772 sixty-five thousand (65,000) barrels of beer annually pursuant to a
462773 validly issued Small Brewer License small brewer license hereunder;
463-
464774 60. “Small farm wine” means a wine that is produced by a sm all
465775 farm winery with seventy -five percent (75%) or more Oklahoma -grown
466776 grapes, berries, other fruits, honey or vegetables;
467-
468777 61. “Small farm winery” m eans a wine-making establishment that
469778 does not annually produce for sale more than fifteen thousand
470779 (15,000) gallons of wine as reported on the United States Department
471780 of the Treasury Alcohol and Tobacco Tax and Trade Bureau, Report of
472781 Wine Premises Operations (TTB Form 5120.17);
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474809 62. “Sparkling wine” means champagne or any artificially
475810 carbonated wine;
476-
477811 63. “Special event” means an entertainment, recreation or
478812 marketing event that occurs at a single location on an irregular
479813 basis and at which alcoholic be verages are sold;
480-
481-ENR. S. B. NO. 2001 Page 12
482-
483814 64. “Spirits” means any beverage other than wine or beer, which
484815 contains more than one -half of one percent (1/2 of 1%) alcohol
485816 measured by volume, and obtained by distillation, whether or not
486817 mixed with other substances in solution and i ncludes those products
487818 known as whiskey, brandy, rum, gin, vodka, liqueurs, cordials and
488819 fortified wines and similar compounds, but shall not include any
489820 alcohol liquid completely d enatured in accordance with the Acts of
490821 Congress and regulations pursuant t hereto;
491-
492822 65. “Strong beer” means beer which, prior to October 1, 2018,
493823 was distributed pursuant to the Okla homa Alcoholic Beverage Control
494824 Act, Section 1-101 et seq. of this title;
495-
496825 66. “Successor brewer” means a primary source of supply, a
497826 brewer, a cider manufacturer or an importer that acquires rights to
498827 a beer or cider brand from a predecessor brewer;
499-
500828 67. “Tax Commission” means the Oklahoma Tax Commission;
501-
502829 68. “Territory” means a geographic region with a specified
503830 boundary;
504-
505831 69. “Wine and spirits whol esaler” or “wine and spirits
506832 distributor” means and includes any sole proprietorship or
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507860 partnership licensed to distribute wine and spirits in the this
508861 state. The term “wholesaler”, as used in the Oklahoma Alcoholic
509862 Beverage Control Act, shall be construe d to refer to a wine and
510863 spirits wholesaler;
511-
512864 70. “Wine” means and includes any beverage containing more th an
513865 one-half of one percent (1/2 of 1%) alcohol by volume and not more
514866 than twenty-four percent (24%) alcohol by volume at sixty (60)
515867 degrees Fahrenheit obtained by the fermentation of the natural
516868 contents of fruits, vegetables, honey, milk or other product s
517869 containing sugar, whether or not other ingredients are added, and
518870 includes vermouth and sake, known as Japanese rice wine;
519-
520871 71. “Winemaker” means a nd includes any person or establishment
521872 who manufactures for human consumption any wine upon which a licens e
522873 fee and a tax are imposed by any law of this state; and
523-
524-
525-ENR. S. B. NO. 2001 Page 13
526874 72. “Satellite tasting room” means a licensed establishment
527875 operated off the licensed prem ises of the holder of a small farm
528876 winery or winemaker license, which serves wine for on -premises or
529877 off-premises consumption; and
530-
531878 73. “Straw testing” means the consumption of a de minimis
532879 amount of an alcoholic beverage by sanitary means by the holder of
533880 an employee license, twenty -one (21) years of age or older, to
534881 determine the quality or desired flavor pro file of such alcoholic
535882 beverage that has been serviced, or is to be served , to a patron.
536883
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537910 Words in the plural include the singular, and vice versa, an d
538911 words imparting the masculine gender include the feminine, as well
539912 as persons and licensees as defined in this section.
540-
541913 SECTION 2. AMENDATORY 37A O.S. 2021, Section 2 -109, is
542914 amended to read as follows:
543-
544915 Section 2-109. A. A retail spirits license shall authorize the
545916 holder thereof:
546-
547917 1. To purchase wine or spirits from a wine and spi rits
548918 wholesaler;
549-
550919 2. To purchase beer from a beer distributor or from the holder
551920 of a small brewer self -distribution license;
552-
553921 3. To sell same on the licensed premises in such containers to
554922 consumers for off-premises consumption only and not for resale;
555923 provided, spirits, wine and beer may be sold to charitable
556924 organizations that are holders of charitable alcoholic beverage
557925 auction or charitable alcoho lic beverage event licenses; and
558-
559926 4. To host alcoholic beverage tastings consistent with
560927 subsections D and E of this section.
561-
562928 B. A retail wine license shall authorize the holder th ereof:
563-
564929 1. To purchase wine from a wine and spirits wholesaler;
565-
566-
567-ENR. S. B. NO. 2001 Page 14
568930 2. To purchase wine from a small farm winemaker who is
569931 permitted and has elected to self -distribute as provided in Ar ticle
570932 XXVIII-A of the Oklahoma Constitution;
933+
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571959
572960 3. To sell same on the licensed premises in such containers to
573961 consumers for off-premises consumption o nly and not for resale;
574962 provided, wine may be sold to charitable organizations that are
575963 holders of charitable alcoholic beverage auction or charitable
576964 alcoholic beverage event licen ses; and
577-
578965 4. To host an alcoholic beverage tasting, consistent with
579966 subsections D and E of this section.
580-
581967 Provided, no holder of a retail wine license may sell wine with
582968 alcohol beverage volume in excess of fifteen percent (15%).
583-
584969 C. A retail beer license shall authorize the holder thereof:
585-
586970 1. To purchase beer from a beer distrib utor;
587-
588971 2. To purchase beer from the holder of a small brewer self -
589972 distribution license;
590-
591973 3. To sell same on the licensed premises in such containers to
592974 consumers for off-premises consumption only and not for resale;
593975 provided, beer may be sold to charitable organizations that are
594976 holders of charitable alcoholic beverage auction or charitable
595977 alcoholic beverage e vent licenses; and
596-
597978 4. To host alcoholic beverage tastings consistent with
598979 subsections D and E of this section.
599-
600980 Provided, no holder of a retail beer license may sell a malt
601981 beverage with alcohol beverage volume in excess of fifteen percent
602982 (15%).
983+D. All tastings conducted under this section shall:
603984
604-D. All tastings conducted under this section shall:
985+SB2001 HFLR Page 20
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6051010
6061011 1. Be conducted under the dir ect supervision of the licensee
6071012 authorized to host the tasting;
608-
609-
610-ENR. S. B. NO. 2001 Page 15
6111013 2. Be poured by any ABLE Commission licensee lawfully permitted
6121014 to serve alcoholic beverages, provided no wine or spi rits
6131015 wholesaler, beer distributor or employee of a wine or spirits
6141016 wholesaler or beer distributor shall be allowed to pour samples for
6151017 tastings;
616-
6171018 3. Use alcoholic beverages purchased by the licensee authorized
6181019 to host the tastings from a licensed wine and spirits wholesaler,
6191020 beer distributor, self -distributor, small brewer or se lf-
6201021 distributing winery authorized to sell the same, and the licensee
6211022 shall pay the applicable taxes on the alcoholic beverages purchased;
6221023 provided, the licensee may only provide samp les of alcoholic
6231024 beverages that its license is authorized to sell;
624-
6251025 4. Be restricted to persons twenty -one (21) years of age or
6261026 older;
627-
6281027 5. Be limited to no more than one (1) fluid ounce of spirits,
6291028 two (2) fluid ounces of wine or three (3) fluid ounces of beer per
6301029 consumer per day; and
631-
6321030 6. Be consumed on the licensed premises of the licensee
6331031 authorized to host the tastings or at a location other than t he
6341032 licensed premises, provided no samples served on the licensed
6351033 premises shall be permitted to be removed from the licensed
6361034 premises.
6371035
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6381062 E. All licensees authorized to serve samples pursuant to
6391063 subsection D of this section shall ensure that:
640-
6411064 1. All samples are poured only from original sealed packaging;
642-
6431065 2. Any alcoholic beverages remaining in unsealed packagin g used
6441066 to provide samples, excluding spirits, are poured out by the end of
6451067 the day;
646-
6471068 3. No more than six (6) bottles of alcoholic beverages are
6481069 unsealed at any given time; and
649-
6501070 4. No person shall remove any samples from the licensed
6511071 premises or location wh ere the tasting has occurred.
652-
653-
654-ENR. S. B. NO. 2001 Page 16
6551072 F. 1. Retail spirits, retail wine, and retail beer licensees
6561073 shall be authorized to host educational alcoholic bevera ge training,
6571074 which includes tastings, for employees who are licensed to sell such
6581075 beverages on the licensed premises in such containers to consumers
6591076 for off-premises consumption onl y. Alcoholic beverages for training
6601077 purposes may be provided by wine and s pirits wholesaler licensees
6611078 and beer distributor licensees.
662-
6631079 2. All such tastings shall be consumed on lice nsed premises of
6641080 the licensee authorized to host the tastings or at a location other
6651081 than the licensed premises, and under the direct supervision of the
6661082 licensee. Samples shall be poured by a licensee who is lawfully
6671083 permitted to serve alcoholic beverages on the licensed premises in
6681084 such containers to consumers for off -premises consumption only in
6691085 this state. Tastings shall be restricted to employees who are
1086+
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6701113 twenty-one (21) years of age or older. Participation in tastings
6711114 for educational purposes may be required by an employer; however,
6721115 the choice to taste or consume alcoholic beverages shall always be
6731116 voluntary. No employee may be required to taste or consume alcohol
6741117 at tastings as a condition of employment.
675-
6761118 3. An educational tasting of beer may consis t of not more than
6771119 six separate individual beers of not more than two (2) ounces each,
6781120 served together at one time. No employee may sample more than a
6791121 total of twelve (12) fluid ounces of beer per day. An educational
6801122 tasting of wine may consist of not mo re than six separate individual
6811123 wines of not more than one (1) ounce each, served together at one
6821124 time. No employee may sample more than a total of six (6) fluid
6831125 ounces of wine per day. An educational tasting of spirits shall
6841126 consist of not more than thr ee separate individual spirits of not
6851127 more than one-half (0.5) ounce each, served together at one time.
6861128 No employee may sample more than a total of one and one-half (1.5)
6871129 fluid ounces of spirits per day. No employee may sample more than a
6881130 total of twelve (12) ounces of beer, six (6) ounces of wine, or one
6891131 and one-half (1.5) ounces of spirits per day. Only one type of
6901132 alcoholic beverage of beer, wine , or spirits shall be allowed at any
6911133 education training tasting. No combination tasting shall be
6921134 allowed. Employees who choose to taste an alcoholic beverage but do
6931135 not wish to consume the alcoholic beverage shall be allowed to spit
6941136 the beverage into a c up for disposal. Employees may participate in
1137+
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6951164 educational tastings before, during, or after regular busine ss hours
6961165 unless otherwise prohibited by law. All licensees serving samples
697-
698-ENR. S. B. NO. 2001 Page 17
6991166 of beer shall ensure that all samples are poured only from original
7001167 sealed packaging and any alcoholic beverages remaining in unsealed
7011168 packaging used to provide samples, excluding spirits and wine, are
7021169 poured out by the end of the day. No more than six bottles of
7031170 alcoholic beverages may be unsealed at any given time during a
7041171 tasting. All packaging containing samples of wine and spirits shall
7051172 be clearly marked as a sample and any u nused portions of the sample
7061173 of wine or spirits shall be resealed and retained by the wine and
7071174 spirits wholesaler for use at the next tasting authori zed in this
7081175 paragraph. Wine and spirits wholesaler employees may transport any
7091176 resealed samples of wine an d spirits in their vehicles. Beer, wine,
7101177 and spirits samples shall not be considered withdrawn from the
7111178 inventory of the beer distributor or wine an d spirits wholesaler for
7121179 purposes of the collection of the excise tax on beer, wine, and
7131180 spirits. Tastings offered to licensees by wine and spirits
7141181 wholesalers and beer distributors shall not be deemed discrimination
7151182 or an inducement under Section 3 -123 of this title.
716-
7171183 SECTION 3. AMENDATORY 37A O.S. 2021, Section 5 -132, as
7181184 amended by Section 4, Chapter 94, O.S.L. 2023 (37A O.S. Supp. 2023,
7191185 Section 5-132), is amended to read as follows:
720-
7211186 Section 5-132. A. Except as provided in subs ection D of this
7221187 section, no alcoholic beverage shall be labeled, offered or
1188+
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7231215 advertised for sale in this st ate unless in accordance with rules
7241216 promulgated pursuant to the provisions of Section 5 -130 of this
7251217 title and unless the brand label shall have been registered with and
7261218 approved by the ABLE Commission and the appropriate fee paid as
7271219 provided for in this se ction.
728-
7291220 B. An application for registration of a brand label shall be
7301221 filed by and fees paid by the manufacturer or brewer, winemaker,
7311222 distiller or nonresident seller of the brand. Licensees, other than
7321223 the foregoing applicants, shall not be required to ve rify
7331224 registration to the ABLE Commission and shall not be penalized for
7341225 any applicant’s failure to register its brand label in accordance
7351226 with this section. Cordials and wines which differ only as to age
7361227 or vintage year, as defined by such rules, shall be considered the
7371228 same brand, and those that differ as to type or class may be
7381229 considered the same brand by the ABLE Commission where consistent
7391230 with the purposes of this section.
740-
741-
742-ENR. S. B. NO. 2001 Page 18
7431231 C. The application for registration of a brand label shall be
7441232 filed on a form prescribed by the ABLE Commission, and shall contain
7451233 such information as the ABLE Commission shall require. Such
7461234 application shall be accompanied b y a certified check, bank
7471235 officers’ check or draft or money order in the amount of the annual
7481236 registration fee, or the properly prorated portion thereof
7491237 prescribed by this section.
1238+
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7501264
7511265 D. 1. The annual fee for registration of any brand label for
7521266 spirits shall be Three Hundred Seventy -five Dollars ($375.00) ,
7531267 unless total amount of spirits made available for sale i n a single
7541268 year does not exceed fifty -three (53) gallons, in which case the
7551269 annual fee for registration of any brand label shall be Seventy -five
7561270 Dollars ($75.00). The annual fee for registration of any brand
7571271 label for beer shall be Two Hundred Dollars ($2 00.00). The annual
7581272 fee for registration of any brand label for wine made in the United
7591273 States, or for registration of any category of imported wine as
7601274 defined by the Oklahoma Tax Commission, shall be Two Hundred Dollars
7611275 ($200.00). Beer manufactured in th is state shall be exempt from
7621276 brand label registration fees.
763-
7641277 2. Each brand label registered and approved pursuant to this
7651278 section shall be valid for a term of up to one (1) year, expiring on
7661279 the June 30 next following registration, and may be renewed for
7671280 subsequent terms of one (1) year beginning on the July 1 following
7681281 the initial registration. Brand registration fees for labels
7691282 registered after Jul y 1 may be prorated through the following June
7701283 30 on a quarterly basis. The brand registration fee shall n ot be
7711284 transferable, unless otherwise allowed by law. A nonresident seller
7721285 who registered brands prior to May 7, 2019, may transfer brand
7731286 registrations to the brewer or manufacturer that produces those
7741287 brands, provided the brewer or manufacturer has obtain ed a license,
7751288 at no expense to the nonresident seller, brewer or manufactu rer.
7761289
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7771316 E. If the ABLE Commission shall deny the application for
7781317 registration of a brand label, it shall return the registration fee
7791318 to the applicant, less twenty -five percent (25%) of such fee.
780-
7811319 F. The ABLE Commission may at any time exempt any discontinued
7821320 brand from fee provisions of this section where a manufacturer,
7831321 brewer, beer distributor or wholesaler has an inventory of one
7841322 hundred cases or less of liquor or wine and five hundr ed cases or
785-
786-ENR. S. B. NO. 2001 Page 19
7871323 less of beer, and certifies to the ABLE Commission in writing that
7881324 such brand is being discontinued.
789-
7901325 G. No private labels or control lab els shall be approved for
7911326 sale in this state, except for charity collaboration beer as
7921327 authorized in Sectio n 2-102.1 of this title.
793-
7941328 SECTION 4. AMENDATORY 37A O.S. 2021, Section 6 -105, as
7951329 amended by Section 2, Chapter 82, O.S.L. 20 22 (37A O.S. Supp. 2023,
7961330 Section 6-105), is amended to read as follows:
797-
7981331 Section 6-105. No mixed beverage, public event, special event
7991332 or on-premises beer and wine licensee shall:
800-
8011333 1. Purchase or receive any alcoholic beverage other than from a
8021334 person holding a wine and spirit spirits wholesaler or beer
8031335 distributor license issued pursuant to the Oklahoma Alcoho lic
8041336 Beverage Control Act; provided, a mixed beverage or on -premises beer
8051337 and wine licensee whose premises are a restaurant may purchase wine
8061338 produced at wineries in this state directly from a winemaker as
1339+
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8071366 provided in Section 2 of Article XXVIIIA XXVIII-A of the Oklahoma
8081367 Constitution;
809-
8101368 2. Transport alcoholic beverages from the pl ace of purchase to
8111369 the licensed premises unless the licensee also holds a p rivate
8121370 carrier license issued by the ABLE Commission;
813-
8141371 3. Use or allow the use of any mark or label on a co ntainer of
8151372 alcoholic beverage which is kept for sale which does not clearly and
8161373 precisely indicate the nature of the contents or which might deceive
8171374 or conceal the nature, composition, quantity, age or quality of such
8181375 beverage;
819-
8201376 4. Keep or knowingly permit any alcoholic beverage to be kept,
8211377 brought, or consumed on the licensed p remises which is not allowed
8221378 to be sold or served upon such premises ; provided, that the
8231379 alcoholic beverage may be provided by a wine and spirits wholesaler,
8241380 beer distributor, brewer , small brewer, distiller, winemaker, small
8251381 farm winery, rectifier, manufacturer, or nonresident seller licensee
8261382 and kept, brought, or consumed on th e licensed premises for
8271383 educational training tasting purposes pursuant to Section 6 -109 of
8281384 this title; or
829-
830-ENR. S. B. NO. 2001 Page 20
831-
8321385 5. Allow any person under twenty -one (21) years of age to enter
8331386 into, remain within or loiter about the designated bar area of the
8341387 licensed premises, except for persons who incidentally pass through
8351388 the designated area.
8361389
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8371416 The prohibition in this subsection a gainst persons under twenty -
8381417 one (21) years of age entering or remaining within the designated
8391418 bar area of the licensed premises shall not apply:
840-
8411419 a. if the licensed premises are closed to the public
8421420 during a time the premises are legally permitted to be
8431421 open for business and the premises are used for a
8441422 private party at which alco holic beverages may be
8451423 served to persons twenty -one (21) years of age or
8461424 older. Any alcoholic beverages served at a private
8471425 party on the licensed premises may be purchased from
8481426 the licensee at a negotiated price or purchased
8491427 privately and served at the private party on the
8501428 licensed premises. Any licensee who desires to
8511429 conduct such a private party shall notify the ABLE
8521430 Commission, in writing, at least ten (10) calendar
8531431 days prior to the private party. The notification
8541432 shall include the date, time and pur pose of the
8551433 private party and any other information the ABLE
8561434 Commission may deem necessary,
857-
8581435 b. to a designated bar area which is a concession stand
8591436 serving beer and wine, in addition to food and non-
8601437 alcoholic beverages, which concession stand is located
8611438 at, in, or on the premises of a sports, music or
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8621466 entertainment venue, convent ion center, fairgrounds or
8631467 similar facility, or
864-
8651468 c. to an employee of a beer distributor or wine and
8661469 spirits wholesaler who is at least eighteen (18) years
8671470 of age and enters for the purpose of merchandising or
8681471 delivering product to the licensee in the norma l
8691472 course of business.
870-
8711473 SECTION 5. AMENDATORY 37A O.S. 2021, Section 6 -109, is
8721474 amended to read as follows:
873-
874-ENR. S. B. NO. 2001 Page 21
875-
8761475 Section 6-109. No mixed beverage, beer and wine, bottle club,
8771476 caterer, charitable event, public event or special event licen see or
8781477 any employee, manager, operator or agent thereof shall:
879-
8801478 1. Consume or be under the influence of alc oholic beverages
8811479 during the hours he or she is on duty. For the purposes of this
8821480 section, licensees will be deemed to be on duty from the time the
8831481 licensee first comes on duty until the time the licensee goes off
8841482 duty at the end of the shift including any break periods permitted
8851483 by management. This paragraph shall not apply for purposes of
8861484 employee education training; provided, that:
887-
8881485 a. all tastings are conducted on a licensed premises and
8891486 under the direct supervision of the licensee,
890-
8911487 b. all samples shall be poured by a licensee who is
8921488 lawfully permitted to serve alcoholic beve rages in
8931489 this state,
8941490
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8951517 c. all tastings shall be restricted to employees who a re
8961518 twenty-one (21) years of age or older,
897-
8981519 d. all participation in tastings for educational purposes
8991520 may be required by an employer; however, the choice to
9001521 taste or consume alcoholic beverages shall always be
9011522 voluntary, and
902-
9031523 e. no employee may be required to taste or consume
9041524 alcohol at tastings as a condition of employment.
905-
9061525 An educational tasting of beer may cons ist of not more than six
9071526 separate individual beers of not more than two (2 ) ounces each,
9081527 served together at one time. No employee may sample more th an a
9091528 total of twelve (12) fluid ounces of beer per day. An educational
9101529 tasting of wine may consist of not more than six separate individual
9111530 wines of not more than one (1) ounce each, served together at one
9121531 time. No employee may sample more than a total o f six (6) fluid
9131532 ounces of wine per day. An educational tasting of spirits shall
9141533 consist of not more than t hree separate individual spirits of not
9151534 more than one-half (0.5) ounce eac h, served together at one time.
9161535 No employee may sample more than a total o f one and one-half (1.5)
917-
918-ENR. S. B. NO. 2001 Page 22
9191536 fluid ounces of spirits per day. An education tasting of a mixed
9201537 beverage shall consist of not more than one individual mixed
9211538 beverage consisting of not more than twelve (12) ounces of beer, six
9221539 (6) ounces of wine, or one and one -half (1.5) ounces of spirits,
9231540 combined with an unlimited amount of ingredients that are non -
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9241568 alcoholic in nature, served at one time. No employee may sample
9251569 more than a total of twe lve (12) ounces of beer, six (6) ounces of
9261570 wine, or one and one -half (1.5) ounces of spirits in a mixed
9271571 beverage per day. Only one type of alcoholic beverage, beer, wine,
9281572 spirits, or mixed beverage shall be allowed at any educational
9291573 training tasting. No combination tasting shall be allowed.
9301574 Employees who choose to taste an al coholic beverage but do not wish
9311575 to consume the alcoholic beverage shall be allowed to spit the
9321576 beverage into a cup for disposal. Employees may participate in
9331577 educational tastings before, during, or after regular business hours
9341578 unless otherwise prohibited by law. All licensees serving samples
9351579 of beer shall ensure that all samples are poured only from original
9361580 sealed packaging and any alcoholic beverages remaining in unsealed
9371581 packaging used to provide samples, excluding spirits and wine, are
9381582 poured out by the end of the day. No more than six bottles of
9391583 alcoholic beverages may be unsealed at any given time duri ng a
9401584 tasting. All packaging containing samples of wine and spirits shall
9411585 be clearly marked as a sample and any unused portions of the sample
9421586 of wine or spirits shall be resealed and retained by the wine and
9431587 spirits wholesaler for use at the next tasting a uthorized in this
9441588 paragraph. Wine and spirits wholesaler employees may transport any
9451589 resealed samples of wine and spirits in their vehicles. Beer, wine,
9461590 and spirits samples shall not be considered withdrawn from the
9471591 inventory of the beer distributor or w ine and spirits wholesaler for
1592+
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9481619 purposes of the collection of the excise ta x on beer, wine, and
9491620 spirits. Straw testing during operating hours shall b e permitted.
9501621 Tastings offered to licensees by wine and spirits wholesalers and
9511622 beer distributors shall not be deemed discrimination or an
9521623 inducement under Section 3 -123 of this title. This paragraph shall
9531624 not apply to any person who works on the premises as an entertainer
9541625 only;
955-
9561626 2. Permit or tolerate any conduct or language which is intended
9571627 to threaten another with physical harm or any fighting or offensive
9581628 physical contact, in or upon the licensed premises or areas just
9591629 outside the licensed premises whi ch are controlled by the licensee;
960-
961-
962-ENR. S. B. NO. 2001 Page 23
9631630 3. Permit empty or discarded alcoholic beverage containers to
9641631 be in public view outside the licensed premises. All empty or
9651632 discarded containers shall be disposed of in accordance with ABLE
9661633 Commission rules and regulati ons;
967-
9681634 4. Permit any illegal gambling activity, violations of the
9691635 state narcotic and dangerous drug laws, pr ostitution activity or any
9701636 other criminal conduct to occur on the licensed premises;
971-
9721637 5. Refuse or fail to promptly open a door to the licensed
9731638 premises upon request of an employee of the ABLE Commission or any
9741639 other peace officer to enter the premises whe n the licensee or
9751640 employee knows or should know that such request is made by an
9761641 employee of the ABLE Commission or a peace officer. This provision
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9771669 shall not be construed to deny employees of the ABLE Commission or
9781670 peace officers access at any time to any licensed premises;
979-
9801671 6. Permit a sealed or unsealed container of alcoholic beverage
9811672 to be removed from the licensed premises. Provided, that
9821673 restaurants, hotels and motels may permit the removal of closed
9831674 original wine containers the contents of which have been partially
9841675 consumed and bottle clubs may permit the removal by a club member of
9851676 closed original containers of alcoholic beverages belonging to
9861677 members. The provisions of this paragraph shall not be construed to
9871678 prohibit or restrict:
988-
9891679 a. hotels or motels who are holders of mixed beverage or
9901680 on-premises beer and wine licenses from allowing
9911681 alcoholic beverages to be served away from the bar
9921682 area anywhere on the licensed premises,
993-
9941683 b. licensees, who are lawfully operating in a facility or
9951684 on property owned or operated by any agency, political
9961685 subdivision or public trust of this state, from
9971686 allowing persons to transport alcoholic beverages from
9981687 one licensed premises to another within the same
9991688 building or property, provided that the building or
10001689 property or a part thereof is defined as a common
10011690 drinking area for consumption of alcoho l by resolution
10021691 of the governing body of the agency, political
10031692 subdivision or public trust of this state, or
10041693
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10051719
1006-ENR. S. B. NO. 2001 Page 24
10071720 c. licensees, who are licensed to operate in a facility
10081721 or on property owned or operated by any agency,
10091722 political subdivision or public trust of this state,
10101723 from allowing other licensees to operate on their
10111724 licensed premises for events that are temporary in
10121725 nature. In the event that multiple licensees are
10131726 operating in a facili ty or on property owned or
10141727 operated by any agency, political subdivision o r
10151728 public trust of this state, each licensee shall be
10161729 responsible for violat ions occurring in their area
10171730 designated to be their temporary licensed premises ;,
10181731 or
1019-
10201732 d. licensees, who are lawfully operating in a facility or
10211733 property intended for multiple licensed premises
10221734 within the facility and which also contains a common
10231735 use area, from allowing persons to transport alcoholic
10241736 beverages within the entire premises, which shall be
10251737 designated by the ABLE Commission as a common drinking
10261738 area for the consumption of a lcoholic beverages.
10271739 Provided, further, the property owner and all
10281740 licensees licensed within the facility or property
10291741 desiring the entire premises be designated a common
10301742 drinking area shall notify the ABLE Commission in
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10311770 writing of their consent prior to such area being
10321771 designated a common drinking area; or
1033-
10341772 7. Destroy, damage, al ter, remove or conceal potential
10351773 evidence, or attempt to do so, or refuse to surrender evidence when
10361774 lawfully requested to do so by an inspector, agent or any other
10371775 peace officer or incite another person to do any of the above.
1038-
10391776 SECTION 6. It being immediately necessary for the preservation
10401777 of the public peace, health or safety, an emergency is hereby
10411778 declared to exist, by reason whereof this act shall take effect and
10421779 be in full force from and after its passage and approval.
10431780
1044-
1045-ENR. S. B. NO. 2001 Page 25
1046-Passed the Senate the 12th day of March, 2024.
1047-
1048-
1049-
1050- Presiding Officer of the Senate
1051-
1052-
1053-Passed the House of Representatives the 16th day of April, 2024.
1054-
1055-
1056-
1057- Presiding Officer of the House
1058- of Representatives
1059-
1060-OFFICE OF THE GOVERNOR
1061-Received by the Office of the Governor this _______ _____________
1062-day of _________________ __, 20_______, at _______ o'clock _______ M.
1063-By: _________________________________
1064-Approved by the Governor of t he State of Oklahoma this _______ __
1065-day of _________________ __, 20_______, at _______ o'clock _______ M.
1066-
1067- _________________________________
1068- Governor of the State of Oklahoma
1069-
1070-
1071-OFFICE OF THE SECRETARY OF STATE
1072-Received by the Office of the Secretary of State this __________
1073-day of _________________ _, 20 _______, at _______ o'clock _______ M.
1074-By: _________________________________
1781+COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
1782+SUBSTANCES, dated 04/11/2024 - DO PASS.