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ENGROSSED HOUSE AMENDME NT
TO
ENGROSSED SENATE BILL NO . 796 By: Coleman of the Senate
and
Marti of the House
[ alcoholic beverages - Direct Wine Shipper’s Permit
- reports - shipment - penalties - jurisdiction -
notice - inspection and auditin g - effective date ]
AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
and insert:
"An Act relating to alcoholic beverages; amending 37A
O.S. 2021, Section 3-106, which relates to direct
wine shipper's permit; modifying requiremen ts for
certain reports; providing information to be
reported; prohibiting shipment of wine to consumers
without a permit; providing penalties; providing that
certain shippers have consented to certain state
agency and court jurisdiction; prohibiting certai n
acts; providing penalties; requiring notice to
carriers of shipments that are unlawful; req uiring
inspection and auditing of records; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 37A O.S. 2021, Section 3 -106, is
amended to read as follows:
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Section 3-106. A. A Direct Wine Shipper's Permit may be issued
by the Oklahoma ABLE Commiss ion to a winery licensed in this or any
other state within the United States as a wine producer. A Direct
Wine Shipper's Permit allows a winery to ship up to six nine -liter
cases of wine annually directly to an Oklahoma resident who is
twenty-one (21) years of age or older for such resident's personal
use and not for resale. No resid ent shall be permitted to purchase
more than thirty nine-liter cases of wine per year under the
provisions of this section.
B. The ABLE Commission shall promulgate rules gove rning the
application, issuance and renewal of Direct Wine Shipper 's Permits,
which shall include but not be limited to:
1. Proof of current licensure in this or any other state as a
wine producer;
2. Payment of a registration fee of Three Hundred Dollar s
($300.00) for original permits and One Hundred Fifty Dollars
($150.00) for renewal permits; and
3. Any other document ation that the ABLE Commission believes is
reasonably necessary to verify the identity and physical location of
the winery.
C. With regard to direct wine shipments permitted by this
section, Direct Wine Shipper permi t holders:
1. Shall not ship more than six nine-liter cases of wine
annually to any person for his or her personal use;
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2. Shall not ship wine intended for resale;
3. Shall ensure that all packages containing wine shipped
directly to a resident in this state are conspicuously labeled with
the words "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER
REQUIRED FOR DELIVERY" or are conspicuously labeled with alternative
wording preapproved by the ABLE Commission;
4. Shall require the transporter or comm on carrier that
delivers the wine to ob tain the signature of a person twenty-one
(21) years of age or olde r at the delivery address at the time of
delivery. At the expense of the Direct Wine Shipper, the Direct
Wine Shipper shall receive a delivery confir mation from the express
company, common carrier or contract carrier indicating the location
of delivery and the name and signature of the individual who
accepted the delivery. The ABLE Commission shall design and create
a label or approve a label that mus t be affixed to the shipping
container by the licensee;
5. Shall report to the ABLE Commission annually, quarterly by a
method prescribed by the ABLE Commission, the total amount of wine
shipped into the state the preceding calendar year all of the
following information for each wine shipment into the state pursuant
to this section:
a. the name and address of the Oklahoma resident who
placed the order,
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b. the name of the common or permit carrier engaged in
the shipment,
c. the date of the shipment,
d. the carrier tracking number, and
e. the quantity of wine in the shipment;
6. Shall annually quarterly pay to the Oklahoma Tax Commission
all applicable taxes due on sales authorized by this section to
Oklahoma residents in the preceding calendar year. The am ount of
such taxes shall be calculated as if the sale were in Oklahoma at
the location where delivery is m ade. Upon request, permit holders
shall permit the Tax Commission to perform an audit of the permit
holder's records in order to assure compliance;
7. Shall be deemed to have consented to the jurisdiction of any
agency or court of the State of Oklahoma t asked with the enforcement
of or adjudication of controversies related to this section and any
related laws or rules; and
8. Shall require the consum er to verify, by electronic means or
otherwise, that the consumer is at leas t twenty-one (21) years of
age.
9. Shipments of wine to consumers in Oklahoma from persons who
do not possess a current Direct Wine Shippe r Permit pursuant to this
section are prohibited. Any person that violates this section is
guilty of a misdemeanor and subject to a civil penalty as follows:
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for the first offense shall be fined not more than One Thousand Five
Hundred Dollars ($1,500.00), for a second offense shall be fined not
more than Two Thousand Five Hundred Dollars ($2,500.00), and for a
third and subsequent offense shall be f ined not more than Five
Thousand Dollars ($5,000.00).
D. Every express company, common carrier, contract carrier and
every firm or corporation that s hall bring, carry or transport wine
for delivery to any person in the state, except wine or spirit
wholesalers or beer distributors, shall prepare and file quarterly
with the ABLE Commission a report, which shall not be subject to the
Oklahoma Open Records Act, of all known wine shipments containing:
1. The name of the company, carrier, person, firm or
corporation making the report;
2. The period of time covered by the report ;
3. The name and business address of the consigno r shipping the
wine;
4. The weight of the packages shipped;
5. The unique tracking number of the delivery; and
6. The date of delivery.
E. Notwithstanding any other provision of this Section, a
common carrier that willfully refuses to file a report under thi s
subsection shall be fined a penalty of up to five hundred dollars
($500.00).
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F. A common carrier shall not deliver a shipment of wine
pursuant to this section to any person in this state unless the
carrier has verified the validity of the Direct Wi ne Shipper's
Permit prior to accep ting shipment. A carrier may consider a direct
wine shipper's permit to be valid unless notified otherwise by the
ABLE Commission.
G. Every express company, common carrie r, contract carrier and
every firm or corporation that shall bring, carry or transport wine
for delivery to any person in the state, except wi ne or spirit
wholesalers or beer distribu tors, shall be deemed to have consented
to the jurisdiction of any agency or court of the State of Oklahoma
tasked with the enforceme nt of or adjudication of controversies
related to this section and any related law s or rules; and
H. 1. Any express company, common carrier, or contract
carrier, including any representative, agent, or employee on behalf
of an express company, common carrier, or contract carri er, shall
violate this section if it knowingly delivers in this state wine,
beer, or distilled spi rits without obtaining a signature at the time
of delivery by an adult w ho is at least twenty-one (21) years of age
is guilty of a business offense for which th e express company,
common carrier, or contract carrier that transp orts alcoholic liquor
within this state shall be fined in accordance with Paragraph 3 of
Subsection H of this Section.
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2. Any express company, common carrier, or contract carrier
that knowingly delivers wine, beer, or distilled spirits to a person
in this state who is under the age o f twenty-one (21) years of age
is guilty of a business offense for which the express company,
common carrier, or contract carrier that delivered the wine, beer,
or distilled spirits shall be fined in acc ordance with Paragraph 3
of Subsection H of this S ection.
3. Any express company, common carrier, or contract carrie r
that knowingly violates this section for a first offense shall be
fined not more than One Thousand Five Hundred Dollars ($1,500 .00),
for a second offense shall be fined not more than T wo Thousand Five
Hundred Dollars ($2,500.00), and for a third and subsequent offense
shall be fined not more than Five Thousand Dollars ($5,000.00).
4. Any express company, common carrier, or contract carrier
that knowingly carries or transports alcoholic beverages for
delivery within this state in violation of this section for the
first offense shall be fined not more than One Thousand Five Hundred
Dollars ($1,500.00), for a sec ond offense shall be fined not more
than Two Thousand Five Hundred Dollars ($2,500.00), and for a third
and subsequent offense shall be fined not more than Five Thousand
Dollars ($5,000.00).
5. An express company, common carrier, and contract carrier may
be held vicariously liable for the actions of its repr esentatives,
agents, and employees for actions in violati on of this section.
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6. The Commission shall notify common carriers of all shipmen ts
it has good cause to believe were made unlawfully into the s tate
whether those be through a licensed direct shippe r, fulfillment
provider or an unlicensed entity. The Commission may prohibit a
carrier from transporting alcohol on behalf of a consignor
identified as having made an unlawful shipment beginning 15 days
from the date of the notice. A common carrier may r equest, and the
Commission must provide, a hearing to sho w good cause for the
continued shipping by said consignor.
I. The ABLE Commission shall inspect and audit the records of
both the direct wine shipp er permit holder, as well as the common
carrier and enforce accordingly.
J. The provisions of this section do not apply to a motor
carrier or freight forwarder as defined in Section 13102 o f Title 49
of the United States Code or to an air carrier as defin ed in Section
40102 of Title 49 of the United State s Code.
SECTION 2. This act shall become effective November 1, 2023."
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Passed the House of Representatives the 27th day of April, 2023.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of _______ ___, 2023.
Presiding Officer of the Senate
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ENGROSSED SENATE
BILL NO. 796 By: Coleman of the Senate
and
Marti of the House
[ alcoholic beverages - Direct Wine Shipper’s Permit
- reports - shipment - penalties - jurisdiction -
notice - inspection and auditing - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 3. AMENDATORY 37A O.S. 2021, Section 3 -106, is
amended to read as follows:
Section 3-106. A. A Direct Wine Shipper ’s Permit may be issued
by the Oklahoma ABLE Commission to a winery licensed in this or any
other state within the United States a s a wine producer. A Direct
Wine Shipper’s Permit allows a winery to ship up to six nine -liter
cases of wine annually directly to an Oklahoma resident who is
twenty-one (21) years of age or older for such resident ’s personal
use and not for resale. No re sident shall be permitted to purchase
more than thirty nine-liter cases of wine per year under the
provisions of this section.
B. The ABLE Commission shall prom ulgate rules governing the
application, issuance and renewal of Direct Wine Shipper’s Permits,
which shall include but not be limited to:
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1. Proof of current licensure in this or any other state as a
wine producer;
2. Payment of a registration fee of Thr ee Hundred Dollars
($300.00) for original permits and One Hundre d Fifty Dollars
($150.00) for renewal permits; and
3. Any other document ation that the ABLE Commission believes is
reasonably necessary to verify the identity and physical location of
the winery.
C. With regard to direct wine shipments permitted by this
section, Direct Wine Shipper permit Shipper’s Permit holders:
1. Shall not ship more than six nine-liter cases of wine
annually to any person for his or her personal use;
2. Shall not ship wine inte nded for resale;
3. Shall ensure that al l packages containing wine shipped
directly to a resident in th is state are conspicuously labeled with
the words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER
REQUIRED FOR DELIVERY ” or are conspicuously lab eled with alternative
wording preapproved by the ABLE Commission;
4. Shall require the transporter or c ommon carrier that
delivers the wine to ob tain the signature of a person twenty -one
(21) years of age or older at the delivery address at the time of
delivery. At the expense of the Direct Win e Shipper, the Direct
Wine Shipper shall receive a delivery con firmation from the express
company, common carrier or contract carrier indicating the location
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of delivery and the name and signature of the individual who
accepted the delivery. The ABLE Comm ission shall design and create
a label or approve a label that must be affixed to the shipping
container by the licensee;
5. Shall report to the ABLE Commission annually, by a method
prescribed by the ABLE Commissi on, the total amount of wine shipped
into the state the preceding calendar year quarterly the following
information:
a. the name and address of the Oklahoma resident who
placed the order,
b. for each completed shipm ent, evidence of signature by
an individual twenty-one (21) years of age or older,
c. the name and license number of the com mon or permit
carrier engaged in the shipment,
d. for each shipment by a fulfillment center on behalf of
the Direct Wine Shipper, the name and license numbe r
of the fulfillment center engaged in the shipment,
e. the date of the shipment,
f. the carrier tracking number, and
g. the quantity of wine in the shipment ;
6. Shall annually pay to the Oklahoma Tax Commission all
applicable taxes due on sales authorized by this section to Oklahoma
residents in the preceding calendar year. The amount of such taxes
shall be calculated a s if the sale were in Oklahoma this state at
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the location where delivery i s made. Upon request, permit holders
shall permit the Tax Commission to perform an audit of the permit
holder’s records in order to ass ure compliance;
7. Shall be deemed to have consented to the jurisdiction of any
agency or court of the State of Oklahom a this state tasked with the
enforcement of or adjudi cation of controversies related to this
section and any related laws or rules; and
8. Shall require the consumer to ve rify, by electronic means or
otherwise, that the consumer is at least twenty -one (21) years of
age.
D. Shipments of wine to consumers in this state from persons
who do not possess a current Direct Wine Shipper’s Permit pursuant
to this section are prohibited. Any person in violation of this
section is guilty of a misdemeanor and subject to a civil penalt y
and a fine not more than:
1. One Thousand Five Hundred Dollars ($1,500.00), for the first
offense;
2. Two Thousand Five Hundred Dollars ($ 2,500.00), for the
second offense; and
3. Five Thousand Dollars ( $5,000.00), for the third and
subsequent offenses.
E. Every express company, common car rier, contract carrier and
every firm or corporation that shall bring, carry o r transport wine
for delivery to any pers on in the state, except wine or spirit
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wholesalers or beer distributors, shall prepare and file quarterly
with the ABLE Commission a repo rt, which shall not be subject to the
Oklahoma Open Records Act, of all known wine, beer, and distilled
spirits shipments containing:
1. The name of the company, carrier, person, firm or
corporation making the report;
2. The period of time cover ed by the report;
3. The name, direct shipping permit number, and business
address of the consignor shipping the wine;
4. The weight of the packages shipped;
5. The unique tracking number of the delivery; and
6. The date of delivery.
E. F. A common carrier shall not deliver a shipm ent of wine
pursuant to this section to any person in this state unless the
carrier has verified the validity of the Direct Wine Shipper’s
Permit prior to acce pting shipment. A carrier may consider a D irect
Wine Shipper’s Permit to be valid for the remain der of the stated
license period unless notified otherwise by the ABLE Commission.
G. Every express company, c ommon carrier, contract carrier, and
every firm or corporation that shall b ring, carry, or transport wine
for delivery to any person in this state, except wine and spirits
wholesalers or beer distributors, shall be deemed to have consented
to the jurisdiction of any agency or court of this state tasked with
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the enforcement of or adjudication of controversies related to this
section and any related laws or rules.
H. No express company, common carrier, or contract carrier nor
any representative, agent, or employee on behalf of a n express
company, common carrier, or contract carrier sha ll:
1. Knowingly deliver any shi pping container that contains an
alcoholic beverage into this state, unless it complies with the
provisions of this section; or
2. Knowingly deliver any shipping container that is clearl y
labeled as containing an alcoholic beverage including, but not
limited to, the lawful ship ment of wine under this section, to any
person in this state who is under twenty-one (21) years of age at
the time of delivery.
I. Any express company, common carrier, or contract carrier
that carries or transports alcoholic beverages for delivery within
this state that violates this section shall be fined not more than:
1. One Thousand Five Hundred Dollars ($1,500.00), for the first
offense;
2. Two Thousand Five Hundre d Dollars ($2,500.00), for the
second offense; and
3. Five Thousand Dollars ($5,000.00), for the third and
subsequent offenses.
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An express company, common carrier, and contract carrier may be
held vicariously liable for the action of its representatives,
agents, and employees for actions in violation of this section.
J. The Commission shall notify common carriers of all shipments
it has good cause to believe were made unlawfully into this state
whether those made through a licensed shipper, fulfillment
providers, or an unlicensed entity. The Commission may prohi bit a
carrier from transporting alcohol on behalf of a cosigner identified
as having made an unlawful shipment beginning fif teen (15) days from
the date of the notice. A common carrier may request, and the
Commission may provide, a hearing to show good cause f or the
continued shipping by the cosigner.
K. The Commission shall inspect and audit the records of both
the Direct Wine Ship per’s Permit holder, as well as the common
carrier and enforce accordingly.
L. The provisions of this section do not apply to a motor
carrier or freight forwarde r as defined in Section 13102 of Title 49
of the United States Code or to an air carrier as defined in Section
40102 of Title 49 of the United States Code.
SECTION 4. This act shall become effective November 1, 2023.
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Passed the Senate the 23rd day of March, 2023.
Presiding Officer of the S enate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives