Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB796 Compare Versions

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4-
5-An Act
6-ENROLLED SENATE
7-BILL NO. 796 By: Coleman of the Senate
28+ENGROSSED HOUSE AMENDME NT
29+ TO
30+ENGROSSED SENATE BILL NO . 796 By: Coleman of the Senate
831
932 and
1033
1134 Marti of the House
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1336
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16-An Act relating to alcoholic beverages; amending 37A
39+
40+[ alcoholic beverages - Direct Wine Shipper’s Permit
41+- reports - shipment - penalties - jurisdiction -
42+notice - inspection and auditin g - effective date ]
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48+AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
49+and insert:
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51+
52+"An Act relating to alcoholic beverages; amending 37A
1753 O.S. 2021, Section 3-106, which relates to direct
1854 wine shipper's permit; modifying requiremen ts for
1955 certain reports; providing information to be
2056 reported; prohibiting shipment of wine to consumers
2157 without a permit; providing penalties; providing that
2258 certain shippers have consented to certain state
2359 agency and court jurisdiction; prohibiting certai n
2460 acts; providing penalties; requiring notice to
2561 carriers of shipments that are unlawful; req uiring
2662 inspection and auditing of records; and providing an
2763 effective date.
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3167
32-SUBJECT: Alcoholic beverages
68+
3369
3470 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
35-
3671 SECTION 1. AMENDATORY 37A O.S. 2021, Section 3 -106, is
3772 amended to read as follows:
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3898
3999 Section 3-106. A. A Direct Wine Shipper's Permit may be issued
40100 by the Oklahoma ABLE Commiss ion to a winery licensed in this or any
41101 other state within the United States as a wine producer. A Direct
42102 Wine Shipper's Permit allows a winery to ship up to six nine -liter
43103 cases of wine annually directly to an Oklahoma resident who is
44104 twenty-one (21) years of age or older for such resident's personal
45105 use and not for resale. No resid ent shall be permitted to purchase
46106 more than thirty nine-liter cases of wine per year under the
47107 provisions of this section.
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49-ENR. S. B. NO. 796 Page 2
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51108 B. The ABLE Commission shall promulgate rules gove rning the
52109 application, issuance and renewal of Direct Wine Shipper 's Permits,
53110 which shall include but not be limited to:
54-
55111 1. Proof of current licensure in this or any other state as a
56112 wine producer;
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58113 2. Payment of a registration fee of Three Hundred Dollar s
59114 ($300.00) for original permits and One Hundred Fifty Dollars
60115 ($150.00) for renewal permits; and
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62116 3. Any other document ation that the ABLE Commission believes is
63117 reasonably necessary to verify the identity and physical location of
64118 the winery.
65-
66119 C. With regard to direct wine shipments permitted by this
67120 section, Direct Wine Shipper permi t holders:
68-
69121 1. Shall not ship more than six nine-liter cases of wine
70122 annually to any person for his or her personal use;
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72149 2. Shall not ship wine intended for resale;
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74150 3. Shall ensure that all packages containing wine shipped
75151 directly to a resident in this state are conspicuously labeled with
76152 the words "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER
77153 REQUIRED FOR DELIVERY" or are conspicuously labeled with alternative
78154 wording preapproved by the ABLE Commission;
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80155 4. Shall require the transporter or comm on carrier that
81156 delivers the wine to ob tain the signature of a person twenty-one
82157 (21) years of age or olde r at the delivery address at the time of
83158 delivery. At the expense of the Direct Wine Shipper, the Direct
84159 Wine Shipper shall receive a delivery confir mation from the express
85160 company, common carrier or contract carrier indicating the location
86161 of delivery and the name and signature of the individual who
87162 accepted the delivery. The ABLE Commission shall design and create
88163 a label or approve a label that mus t be affixed to the shipping
89164 container by the licensee;
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93165 5. Shall report to the ABLE Commission annually, quarterly by a
94166 method prescribed by the ABLE Commission, the total amount of wine
95167 shipped into the state the preceding calendar year all of the
96168 following information for each wine shipment into the state pursuant
97169 to this section:
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99170 a. the name and address of the Oklahoma resident who
100171 placed the order,
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102198 b. the name of the common or permit carrier engaged in
103199 the shipment,
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105200 c. the date of the shipment,
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107201 d. the carrier tracking number, and
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109202 e. the quantity of wine in the shipment;
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111203 6. Shall annually quarterly pay to the Oklahoma Tax Commission
112204 all applicable taxes due on sales authorized by this section to
113205 Oklahoma residents in the preceding calendar year. The am ount of
114206 such taxes shall be calculated as if the sale were in Oklahoma at
115207 the location where delivery is m ade. Upon request, permit holders
116208 shall permit the Tax Commission to perform an audit of the permit
117209 holder's records in order to assure compliance;
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119210 7. Shall be deemed to have consented to the jurisdiction of any
120211 agency or court of the State of Oklahoma t asked with the enforcement
121212 of or adjudication of controversies related to this section and any
122213 related laws or rules; and
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124214 8. Shall require the consum er to verify, by electronic means or
125215 otherwise, that the consumer is at leas t twenty-one (21) years of
126216 age.
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128217 9. Shipments of wine to consumers in Oklahoma from persons who
129218 do not possess a current Direct Wine Shippe r Permit pursuant to this
130219 section are prohibited. Any person that violates this section is
131220 guilty of a misdemeanor and subject to a civil penalty as follows:
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133247 for the first offense shall be fined not more than One Thousand Five
134248 Hundred Dollars ($1,500.00), for a second offense shall be fined not
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137249 more than Two Thousand Five Hundred Dollars ($2,500.00), and for a
138250 third and subsequent offense shall be f ined not more than Five
139251 Thousand Dollars ($5,000.00).
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141252 D. Every express company, common carrier, contract carrier and
142253 every firm or corporation that s hall bring, carry or transport wine
143254 for delivery to any person in the state, except wine or spirit
144255 wholesalers or beer distributors, shall prepare and file quarterly
145256 with the ABLE Commission a report, which shall not be subject to the
146257 Oklahoma Open Records Act, of all known wine shipments containing:
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148258 1. The name of the company, carrier, person, firm or
149259 corporation making the report;
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151260 2. The period of time covered by the report ;
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153261 3. The name and business address of the consigno r shipping the
154262 wine;
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156263 4. The weight of the packages shipped;
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158264 5. The unique tracking number of the delivery; and
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160265 6. The date of delivery.
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162266 E. Notwithstanding any other provision of this Section, a
163267 common carrier that willfully refuses to file a report under thi s
164268 subsection shall be fined a penalty of up to five hundred dollars
165269 ($500.00).
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167296 F. A common carrier shall not deliver a shipment of wine
168297 pursuant to this section to any person in this state unless the
169298 carrier has verified the validity of the Direct Wi ne Shipper's
170299 Permit prior to accep ting shipment. A carrier may consider a direct
171300 wine shipper's permit to be valid unless notified otherwise by the
172301 ABLE Commission.
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174302 G. Every express company, common carrie r, contract carrier and
175303 every firm or corporation that shall bring, carry or transport wine
176304 for delivery to any person in the state, except wi ne or spirit
177305 wholesalers or beer distribu tors, shall be deemed to have consented
178306 to the jurisdiction of any agency or court of the State of Oklahoma
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181307 tasked with the enforceme nt of or adjudication of controversies
182308 related to this section and any related law s or rules; and
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184309 H. 1. Any express company, common carrier, or contract
185310 carrier, including any representative, agent, or employee on behalf
186311 of an express company, common carrier, or contract carri er, shall
187312 violate this section if it knowingly delivers in this state wine,
188313 beer, or distilled spi rits without obtaining a signature at the time
189314 of delivery by an adult w ho is at least twenty-one (21) years of age
190315 is guilty of a business offense for which th e express company,
191316 common carrier, or contract carrier that transp orts alcoholic liquor
192317 within this state shall be fined in accordance with Paragraph 3 of
193318 Subsection H of this Section.
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195345 2. Any express company, common carrier, or contract carrier
196346 that knowingly delivers wine, beer, or distilled spirits to a person
197347 in this state who is under the age o f twenty-one (21) years of age
198348 is guilty of a business offense for which the express company,
199349 common carrier, or contract carrier that delivered the wine, beer,
200350 or distilled spirits shall be fined in acc ordance with Paragraph 3
201351 of Subsection H of this S ection.
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203352 3. Any express company, common carrier, or contract carrie r
204353 that knowingly violates this section for a first offense shall be
205354 fined not more than One Thousand Five Hundred Dollars ($1,500 .00),
206355 for a second offense shall be fined not more than T wo Thousand Five
207356 Hundred Dollars ($2,500.00), and for a third and subsequent offense
208357 shall be fined not more than Five Thousand Dollars ($5,000.00).
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210358 4. Any express company, common carrier, or contract carrier
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212359 that knowingly carries or transports alcoholic beverages for
213360 delivery within this state in violation of this section for the
214361 first offense shall be fined not more than One Thousand Five Hundred
215362 Dollars ($1,500.00), for a sec ond offense shall be fined not more
216363 than Two Thousand Five Hundred Dollars ($2,500.00), and for a third
217364 and subsequent offense shall be fined not more than Five Thousand
218365 Dollars ($5,000.00).
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220366 5. An express company, common carrier, and contract carrier may
221367 be held vicariously liable for the actions of its repr esentatives,
222368 agents, and employees for actions in violati on of this section.
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226395 6. The Commission shall notify common carriers of all shipmen ts
227396 it has good cause to believe were made unlawfully into the s tate
228397 whether those be through a licensed direct shippe r, fulfillment
229398 provider or an unlicensed entity. The Commission may prohibit a
230399 carrier from transporting alcohol on behalf of a consignor
231400 identified as having made an unlawful shipment beginning 15 days
232401 from the date of the notice. A common carrier may r equest, and the
233402 Commission must provide, a hearing to sho w good cause for the
234403 continued shipping by said consignor.
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236404 I. The ABLE Commission shall inspect and audit the records of
237405 both the direct wine shipp er permit holder, as well as the common
238406 carrier and enforce accordingly.
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240407 J. The provisions of this section do not apply to a motor
241408 carrier or freight forwarder as defined in Section 13102 o f Title 49
242409 of the United States Code or to an air carrier as defin ed in Section
243410 40102 of Title 49 of the United State s Code.
411+SECTION 2. This act shall become effective November 1, 2023."
244412
245-SECTION 2. This act shall become effective November 1, 2023.
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439+Passed the House of Representatives the 27th day of April, 2023.
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250-ENR. S. B. NO. 796 Page 7
251-Passed the Senate the 18th day of May, 2023.
444+
445+Presiding Officer of the House of
446+ Representatives
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448+
449+Passed the Senate the ____ day of _______ ___, 2023.
450+
451+
252452
253453
254454
255455 Presiding Officer of the Senate
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257457
258-Passed the House of Representatives the 27th day of April, 2023.
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483+ENGROSSED SENATE
484+BILL NO. 796 By: Coleman of the Senate
485+
486+ and
487+
488+ Marti of the House
489+
490+
491+
492+
493+[ alcoholic beverages - Direct Wine Shipper’s Permit
494+- reports - shipment - penalties - jurisdiction -
495+notice - inspection and auditing - effective date ]
496+
497+
498+
499+BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
500+SECTION 3. AMENDATORY 37A O.S. 2021, Section 3 -106, is
501+amended to read as follows:
502+Section 3-106. A. A Direct Wine Shipper ’s Permit may be issued
503+by the Oklahoma ABLE Commission to a winery licensed in this or any
504+other state within the United States a s a wine producer. A Direct
505+Wine Shipper’s Permit allows a winery to ship up to six nine -liter
506+cases of wine annually directly to an Oklahoma resident who is
507+twenty-one (21) years of age or older for such resident ’s personal
508+use and not for resale. No re sident shall be permitted to purchase
509+more than thirty nine-liter cases of wine per year under the
510+provisions of this section.
511+B. The ABLE Commission shall prom ulgate rules governing the
512+application, issuance and renewal of Direct Wine Shipper’s Permits,
513+which shall include but not be limited to:
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540+1. Proof of current licensure in this or any other state as a
541+wine producer;
542+2. Payment of a registration fee of Thr ee Hundred Dollars
543+($300.00) for original permits and One Hundre d Fifty Dollars
544+($150.00) for renewal permits; and
545+3. Any other document ation that the ABLE Commission believes is
546+reasonably necessary to verify the identity and physical location of
547+the winery.
548+C. With regard to direct wine shipments permitted by this
549+section, Direct Wine Shipper permit Shipper’s Permit holders:
550+1. Shall not ship more than six nine-liter cases of wine
551+annually to any person for his or her personal use;
552+2. Shall not ship wine inte nded for resale;
553+3. Shall ensure that al l packages containing wine shipped
554+directly to a resident in th is state are conspicuously labeled with
555+the words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER
556+REQUIRED FOR DELIVERY ” or are conspicuously lab eled with alternative
557+wording preapproved by the ABLE Commission;
558+4. Shall require the transporter or c ommon carrier that
559+delivers the wine to ob tain the signature of a person twenty -one
560+(21) years of age or older at the delivery address at the time of
561+delivery. At the expense of the Direct Win e Shipper, the Direct
562+Wine Shipper shall receive a delivery con firmation from the express
563+company, common carrier or contract carrier indicating the location
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590+of delivery and the name and signature of the individual who
591+accepted the delivery. The ABLE Comm ission shall design and create
592+a label or approve a label that must be affixed to the shipping
593+container by the licensee;
594+5. Shall report to the ABLE Commission annually, by a method
595+prescribed by the ABLE Commissi on, the total amount of wine shipped
596+into the state the preceding calendar year quarterly the following
597+information:
598+a. the name and address of the Oklahoma resident who
599+placed the order,
600+b. for each completed shipm ent, evidence of signature by
601+an individual twenty-one (21) years of age or older,
602+c. the name and license number of the com mon or permit
603+carrier engaged in the shipment,
604+d. for each shipment by a fulfillment center on behalf of
605+the Direct Wine Shipper, the name and license numbe r
606+of the fulfillment center engaged in the shipment,
607+e. the date of the shipment,
608+f. the carrier tracking number, and
609+g. the quantity of wine in the shipment ;
610+6. Shall annually pay to the Oklahoma Tax Commission all
611+applicable taxes due on sales authorized by this section to Oklahoma
612+residents in the preceding calendar year. The amount of such taxes
613+shall be calculated a s if the sale were in Oklahoma this state at
614+
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640+the location where delivery i s made. Upon request, permit holders
641+shall permit the Tax Commission to perform an audit of the permit
642+holder’s records in order to ass ure compliance;
643+7. Shall be deemed to have consented to the jurisdiction of any
644+agency or court of the State of Oklahom a this state tasked with the
645+enforcement of or adjudi cation of controversies related to this
646+section and any related laws or rules; and
647+8. Shall require the consumer to ve rify, by electronic means or
648+otherwise, that the consumer is at least twenty -one (21) years of
649+age.
650+D. Shipments of wine to consumers in this state from persons
651+who do not possess a current Direct Wine Shipper’s Permit pursuant
652+to this section are prohibited. Any person in violation of this
653+section is guilty of a misdemeanor and subject to a civil penalt y
654+and a fine not more than:
655+1. One Thousand Five Hundred Dollars ($1,500.00), for the first
656+offense;
657+2. Two Thousand Five Hundred Dollars ($ 2,500.00), for the
658+second offense; and
659+3. Five Thousand Dollars ( $5,000.00), for the third and
660+subsequent offenses.
661+E. Every express company, common car rier, contract carrier and
662+every firm or corporation that shall bring, carry o r transport wine
663+for delivery to any pers on in the state, except wine or spirit
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690+wholesalers or beer distributors, shall prepare and file quarterly
691+with the ABLE Commission a repo rt, which shall not be subject to the
692+Oklahoma Open Records Act, of all known wine, beer, and distilled
693+spirits shipments containing:
694+1. The name of the company, carrier, person, firm or
695+corporation making the report;
696+2. The period of time cover ed by the report;
697+3. The name, direct shipping permit number, and business
698+address of the consignor shipping the wine;
699+4. The weight of the packages shipped;
700+5. The unique tracking number of the delivery; and
701+6. The date of delivery.
702+E. F. A common carrier shall not deliver a shipm ent of wine
703+pursuant to this section to any person in this state unless the
704+carrier has verified the validity of the Direct Wine Shipper’s
705+Permit prior to acce pting shipment. A carrier may consider a D irect
706+Wine Shipper’s Permit to be valid for the remain der of the stated
707+license period unless notified otherwise by the ABLE Commission.
708+G. Every express company, c ommon carrier, contract carrier, and
709+every firm or corporation that shall b ring, carry, or transport wine
710+for delivery to any person in this state, except wine and spirits
711+wholesalers or beer distributors, shall be deemed to have consented
712+to the jurisdiction of any agency or court of this state tasked with
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739+the enforcement of or adjudication of controversies related to this
740+section and any related laws or rules.
741+H. No express company, common carrier, or contract carrier nor
742+any representative, agent, or employee on behalf of a n express
743+company, common carrier, or contract carrier sha ll:
744+1. Knowingly deliver any shi pping container that contains an
745+alcoholic beverage into this state, unless it complies with the
746+provisions of this section; or
747+2. Knowingly deliver any shipping container that is clearl y
748+labeled as containing an alcoholic beverage including, but not
749+limited to, the lawful ship ment of wine under this section, to any
750+person in this state who is under twenty-one (21) years of age at
751+the time of delivery.
752+I. Any express company, common carrier, or contract carrier
753+that carries or transports alcoholic beverages for delivery within
754+this state that violates this section shall be fined not more than:
755+1. One Thousand Five Hundred Dollars ($1,500.00), for the first
756+offense;
757+2. Two Thousand Five Hundre d Dollars ($2,500.00), for the
758+second offense; and
759+3. Five Thousand Dollars ($5,000.00), for the third and
760+subsequent offenses.
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787+An express company, common carrier, and contract carrier may be
788+held vicariously liable for the action of its representatives,
789+agents, and employees for actions in violation of this section.
790+J. The Commission shall notify common carriers of all shipments
791+it has good cause to believe were made unlawfully into this state
792+whether those made through a licensed shipper, fulfillment
793+providers, or an unlicensed entity. The Commission may prohi bit a
794+carrier from transporting alcohol on behalf of a cosigner identified
795+as having made an unlawful shipment beginning fif teen (15) days from
796+the date of the notice. A common carrier may request, and the
797+Commission may provide, a hearing to show good cause f or the
798+continued shipping by the cosigner.
799+K. The Commission shall inspect and audit the records of both
800+the Direct Wine Ship per’s Permit holder, as well as the common
801+carrier and enforce accordingly.
802+L. The provisions of this section do not apply to a motor
803+carrier or freight forwarde r as defined in Section 13102 of Title 49
804+of the United States Code or to an air carrier as defined in Section
805+40102 of Title 49 of the United States Code.
806+SECTION 4. This act shall become effective November 1, 2023.
807+
808+ENGR. S. B. NO. 796 Page 8 1
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833+Passed the Senate the 23rd day of March, 2023.
834+
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837+ Presiding Officer of the S enate
838+
839+
840+Passed the House of Representatives the ____ day of __________,
841+2023.
259842
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261844
262845 Presiding Officer of the House
263846 of Representatives
264847
265-OFFICE OF THE GOVERNOR
266-Received by the Office of the Governor this _______ _____________
267-day of _________________ __, 20_______, at _______ o'clock _______ M.
268-By: _______________________________ __
269-Approved by the Governor of the State of Oklahoma this _____ ____
270-day of _________________ __, 20_______, at _______ o'clock _______ M.
271848
272- _________________________________
273- Governor of the State of Oklahoma
274-
275-
276-OFFICE OF THE SECRETARY OF STATE
277-Received by the Office of the Secretary of State this _______ ___
278-day of __________________, 20 _______, at _______ o'clock _______ M.
279-By: _______________________________ __