Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB1044 Compare Versions

Version 1 (Old)

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29		-	SENATE FLOOR VERSION
30		-	February 20, 2025
	28	+	STATE OF OKLAHOMA
31	29
	30	+	1st Session of the 60th Legislature (2025)
32	31
33	32		COMMITTEE SUBSTITUTE
34	33		FOR
35		-	SENATE BILL ~~NO.~~ 1044 By: Coleman
	34	+	SENATE BILL 1044 By: Coleman
36	35
37	36
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40	39
41		-	[ alcoholic beverages - wine and spirits wholesaler
42		-	license - payment methods - electronic funds transfer
43		-	- exceptions - penalty - effective date ]
	40	+	COMMITTEE SUBSTITUTE
	41	+
	42	+	An Act relating to alcoholic beverages; amending 37A
	43	+	O.S. 2021, Sections 2 -107, 3-119, and 6-103, as last
	44	+	amended by Section 1, Chapter 200, O.S.L. 2023 (37A
	45	+	O.S. Supp. 2024, Section 6 -103), which relate to wine
	46	+	and spirits wholesaler license and limitations on
	47	+	rights and interests; allowing certain payment
	48	+	methods; allowing payments from certain licensees to
	49	+	certain wholesalers or distributors to be made by
	50	+	electronic funds transfer (EFT); establishing
	51	+	requirements for EFT payments; providing certain
	52	+	exceptions; imposing certain penalty; conforming
	53	+	language; updating statutory language; updating
	54	+	statutory reference; and providing an effective date .
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49	60		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
50	61		SECTION 1. AMENDATORY 37A O.S. 2021, Section 2 -107, is
51	62		amended to read as follows:
52	63		Section 2-107. A. A wine and spirit s wholesaler license shall
53	64		authorize the holder thereof:
54	65		1. To purchase and import into this state spiri ts and wines
55	66		from persons authorized to sell same who are the holders of a
56		-	manufacturer or nonresident seller license, and their agents who are
57		-	the holders of manufacturer ’s agent licenses;
58		-	2. To purchase spirits and wines from licensed distillers,
59		-	rectifiers and winemakers in this state;
60		-	3. To purchase spirits and wines from licensed wholesalers, to
61		-	the extent set forth in subsections B and C of this section;
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	93	+	manufacturer or nonresident seller license, and their agents who are
	94	+	the holders of manufacturer ’s agent licenses;
	95	+	2. To purchase spirits and wines from licensed distillers,
	96	+	rectifiers and winemakers in this state;
	97	+	3. To purchase spirits and wines from licensed wholesalers, to
	98	+	the extent set forth in subsections B and C of this section;
89	99		4. To sell in retail containers in this state to retailers,
90	100		mixed beverage, caterer, special ev ent, public event, hotel beverage
91	101		or airline/railroad beverage licensees, spirits and wines which have
92	102		been received and unloaded at the bonded warehou se facilities of the
93	103		wholesaler before such sale;
94	104		5. To sell to licensed wholesalers, to the extent set forth in
95	105		subsections B and C of this section, spirits and wines which have
96	106		been received and unloaded at the bonded wa rehouse facilities of the
97	107		wholesaler before such sale;
98	108		6. To sell spirits and wines out of this state to qualified
99	109		persons; and
100	110		7. To sell to licensed distillers spirits that were
101	111		manufactured by that distiller and which have been received and
102	112		unloaded at a bonded warehouse facility of a wholesaler before such
103	113		sale.
104	114		Provided, however, sales of spirits and wine in containers with
105	115		a capacity of less than one -twentieth (1/20) gallon by a holder of a
106	116		wholesaler license shall be in full case lots and in the or iginal
107		-	unbroken case. Wholesalers shall be authorized to place such signs
108		-	outside their place of business as are required by Acts of Congress
109		-	and by such laws and regulations promulgated under such Acts.
110		-	B. A wholesaler may sell spirits and wine to other wholesalers
111		-	or purchase spirits and wines from other wholesalers without
112		-	complying with subsection A of this section in the case of the sale,
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	143	+	unbroken case. Wholesaler s shall be authorized to place such signs
	144	+	outside their place of business as are required by Acts of Cong ress
	145	+	and by such laws and regulations promulgated under such Acts.
	146	+	B. A wholesaler may sell spirits and wine to other wholesalers
	147	+	or purchase spirits and wines from other wholesalers without
	148	+	complying with subsection A of this section in the case of the sale,
140	149		purchase or other transfer or acquisition of the entire business of
141	150		a wholesaler including the inventory of spiri ts and wine.
142	151		C. A wholesaler lic ense shall authorize the holder thereof to :
143	152		1. Maintain maintain not more than three (3) self-owned or
144	153		leased and self-operated bonded warehouses within this state. All
145	154		invoices shall be stored at the principal place of business for
146	155		which the wholesaler license was granted; and
147	156		2. Accept as payment cash, personal check, cashier ’s check,
148	157		money order or electronic fund transfer from persons licensed to
149	158		purchase alcoholic beverages; provided, a wholesaler shall not be
150	159		permitted to accept payment by credit c ard.
151	160		SECTION 2. AMENDATORY 37A O.S. 2021, Section 3 -119, is
152	161		amended to read as follows:
153	162		Section 3-119. A. It shall be unlawful for any manufacturer,
154	163		brewer, wine and spirits wholesaler, beer distributor or person
155	164		authorized to sell alcoholic beverages to a wholesaler, or any
156	165		employee, officer, director, stockholder owning fifteen percent
157		-	(15%) or more of the stock, any type of partner, manager, member or
158		-	agent thereof, to directly or indirectly:
159		-	1. Have any financial interest in any premises upon which any
160		-	alcoholic beverage is sold at retail or in any business connected
161		-	with the retailing of alcoholic beverages; provided, nothing in this
162		-	act Section 1-101 et seq. of this title shall prohibit the operation
163		-	of a mixed beverage licensee, beer and wine licensee or caterer
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	192	+	(15%) or more of the stock, any type of partner, manager, member or
	193	+	agent thereof, to directly or indirectly:
	194	+	1. Have any financial interest in any premises upon which any
	195	+	alcoholic beverage is sold at retail or in any business connected
	196	+	with the retailing of alcoholic beverages; provided, nothing in this
	197	+	act Section 1-101 et seq. of this title shall prohibit the operation
	198	+	of a mixed beverage lic ensee, beer and wine licensee or caterer
191	199		licensee by an entity which has common owners with the holder of a
192	200		small brewer license or a brewpub license;
193	201		2. Lend any money or other thing of value, or to make any gift
194	202		or offer any gratuity, to any package sto re, retail wine, retail
195	203		beer, mixed beverage, beer and wine, public event or bottle club
196	204		licensee or caterer;
197	205		3. Guarantee any loan or the repayment of any financial
198	206		obligation of any retailer, mixed beverage, beer and wine, public
199	207		event or bottle club li censee or caterer;
200	208		4. Require any wine and spirits wholesaler, beer distributor,
201	209		retailer, mixed beverage, on -premises beer and wine licensee, public
202	210		event or caterer to purchase and dispose of any quota of alcoholic
203	211		beverages, or to require any retailer to purchase any kind, type,
204	212		size, container or brand of alcoholic beverages in order to obtain
205	213		any other kind, type, size, container or brand of alcoholic
206	214		beverages;
207		-	5. Sell to any retailer, mixed beverage, on -premises beer and
208		-	wine licensee, public event or caterer any alcoholic beverage on
209		-	consignment, or upon condition, or with the privilege of return, or
210		-	on any condition other than a bona fide sale; provided, the
211		-	following shall not be considered a violation of this paragraph:
212		-	a. delivery in good faith, through mistake, inadvertence
213		-	or oversight, of an alc oholic beverage that was not
214		-	ordered by a retailer, mixed beverage licensee, on -
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	241	+	5. Sell to any retailer, mixed beverage, on -premises beer and
	242	+	wine licensee, public event or caterer any alcoholic beverage on
	243	+	consignment, or upon condition, or with the privilege of return, or
	244	+	on any condition other than a bona fide sale; provided, the
	245	+	following shall not be considered a violation of this par agraph:
	246	+	a. delivery in good faith , through mistake, inadvertence
	247	+	or oversight, of an alcoholic beverage that was not
	248	+	ordered by a retailer , mixed beverage licensee, on -
242	249		premises beer and wine licensee, caterer, public event
243	250		or special event licensee to such licensee,
244	251		b. replacement of product breakage that occurred while
245	252		the alcoholic beverages were in transit from the
246	253		wholesaler to the licensee, or
247	254		c. replacement of cork-tainted wine that makes the
248	255		product unsaleable as long as the licensee notifies
249	256		the wine and spirits wholesaler of the d efect in
250	257		writing within ninety (90) days after delivery of the
251	258		product; or
252	259		6. Extend credit to any retai ler, other than holders of Federal
253	260		Liquor Stamps on United States government reservations and
254	261		installations, mixed beverage, public event or on -premises beer and
255	262		wine licensee or caterer, other than a state lodge located in a
256	263		county which has approved the retail sale of alcoholic beverages by
257	264		the individual drink for on -premises consumption. The acceptance of
258		-	a postdated check or draft or the failure to deposit for collection
259		-	a current check or draft by the second banking day after receipt
260		-	shall be deemed an extension of credit. Violation of this section
261		-	shall be grounds for suspension of the license.
262		-	B. All payments by a retail beer, retail wine, or retail
263		-	spirits licensee to a beer distributor or a wine and spirits
264		-	wholesaler licensee for the purchase of beer, wine, or spirits may
265		-	be made by electronic funds transfer (EFT) payment. No payment to a
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	291	+	a postdated check or draft or the failure to deposit for collection
	292	+	a current check or draft by the second banking day after receipt
	293	+	shall be deemed an extension of credit. Violation of this section
	294	+	shall be grounds for suspension of the license.
	295	+	B. All payments by a retail beer, retail wine, or r etail
	296	+	spirits licensee to a beer distributor or a wine and spirits
	297	+	wholesaler licensee for the purchase of beer, wine, or spirits may
	298	+	be made by electronic funds transfer (EFT) payment. No payment to a
293	299		wholesaler shall be made in cash. All EFT payments s hall comply
294	300		with the following:
295	301		1. The beer distributor or wine and spirits wholesaler licensee
296	302		shall initiate the EFT payment transmittal by initiating the
297	303		withdrawal of the funds from the retailer ’s account;
298	304		2. The EFT payment transmittal to the bankin g institution shall
299	305		occur no later than the next banking business day from the date of
300	306		the delivery of the beer, wine, or spirits order to the retailer
301	307		licensee; and
302	308		3. A single EFT payment may be made to a wholesaler lice nsee
303	309		making deliveries to multipl e locations of a chain retailer on the
304	310		same business day. The retailer and wholesaler shall maintain a
305	311		store-by-store detailed record to ensure that individual delivery
306	312		invoices may be traced to the EFT payment.
307	313		C. A wholesaler licensee may accept a chec k or money order in
308	314		the following instances:
309		-	1. When accepting payment for a non -sufficient funds EFT
310		-	payment;
311		-	2. During temporary service interruptions of the third -party
312		-	payment processing company; or
313		-	3. During the thirty-day period following the issuance of a
314		-	license to a retailer.
315		-	D. To maintain contro l of its ability to receive payment, the
316		-	wholesaler licensee shall be solely responsible for selecting a
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	341	+	1. When accepting payment for a non -sufficient funds EFT
	342	+	payment;
	343	+	2. During temporary service interruptions of the third -party
	344	+	payment processing company; or
	345	+	3. During the thirty-day period following the issuance of a
	346	+	license to a retailer.
	347	+	D. To maintain control of its ability to receive payment, the
	348	+	wholesaler licensee shall be solely responsible for selecting a
344	349		third-party payment processing company to facilitate the EFT
345	350		payments. A wholesaler licensee sh all not select a third -party
346	351		payment processing company that requires more than thirty (30) days ’
347	352		notice from the wholesaler licensee to terminate its agreement with
348	353		the third-party payment processing company.
349	354		E. Violation of this section shall be grounds for suspension of
350	355		the license.
351	356		SECTION 3. AMENDATORY 37A O.S. 2021, Section 6 -103, as
352	357		last amended by Section 1, Chapter 200, O.S.L. 2023 (37A O.S. Supp.
353	358		2024, Section 6-103), is amended to read as follows:
354	359		Section 6-103. A. No retail spirits licensee shall:
355	360		1. Purchase or receive any alcoholic beverage other than from a
356	361		wine and spirits wholesaler, beer distributor, winery or small
357	362		brewer self-distribution licensee who elects to self -distribute;
358	363		2. Suffer or permit any retail container to be opened, or any
359	364		alcoholic beverage to be consumed on the licensed premises, except
360		-	when serving samples as authorized by Section 2 -109 of this title or
361		-	otherwise permitted by law; provided, the licensee shall not permit
362		-	any alcoholic beverage content or retail container unsealed in
363		-	connection with sampling authorized by Section 2 -109 of this title
364		-	to remain on the licensed premises at the close of business on that
365		-	day, excluding spirits;
366		-	3. Sell any alcoholic beverages at any hour other than between
367		-	the hours of 8:00 a.m. and midnight Monday th rough Saturday, and
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	391	+	when serving samples as authorized by Section 2 -109 of this title or
	392	+	otherwise permitted by law; provided, the licensee shall not permit
	393	+	any alcoholic bevera ge content or retail container unsealed in
	394	+	connection with sampling authorized by Section 2 -109 of this title
	395	+	to remain on the licensed premises at the close of business on that
	396	+	day, excluding spirits;
	397	+	3. Sell any alcoholi c beverages at any hour other tha n between
	398	+	the hours of 8:00 a.m. and midnight Monday through Saturday, and
395	399		shall not be permitted to be o pen on Thanksgiving Day or Christmas
396	400		Day; provided, a county may, pursuant to the provisions of
397	401		subsections B and C of Section 3 -124 of this title, ele ct to allow
398	402		such sales between the hours of noon and midnight on Sunday. Retail
399	403		spirits licensees shall be permitted to sell alcoholic beverages on
400	404		the day of any General, Primary, Runoff Primary or Special Election
401	405		whether on a national, state, county or city election, provided that
402	406		the election day does not occur on any day on which such sales are
403	407		otherwise prohibited by law;
404	408		4. Sell spirits in a city or town, unless such city or town has
405	409		a population in excess of two hundred (200) according to the late st
406	410		Federal Decennial Census;
407	411		5. Sell any alcoholic beverage on credit; provided, that
408	412		acceptance by a licensee of a cash or debit card or a nationally
409	413		recognized credit card in lieu of actual cash payment does not
410		-	constitute the extension of credit; provided , further, as used in
411		-	this section:
412		-	a. “cash or debit card” means any instrument or device
413		-	whether known as a debit card or by any other name,
414		-	issued with or without fee by an issuer for the use of
415		-	the cardholder in depositing, obtaining or
416		-	transferring funds from a consumer banking electronic
417		-	facility, and
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	440	+	constitute the extension of credit; provi ded, further, as used in
	441	+	this section:
	442	+	a. “cash or debit card” means any instrument or device
	443	+	whether known as a debit card or by any other name,
	444	+	issued with or without fee by an issuer for the use of
	445	+	the cardholder in depositing, obtaining or
	446	+	transferring funds from a consumer banking electronic
	447	+	facility, and
445	448		b. “nationally recognized credit card ” means any
446	449		instrument or device, whether known as a credit card,
447	450		credit plate, charge plate or by any other name,
448	451		issued with or without fee by an issuer for the use of
449	452		the cardholder in obtaining money, goods, services or
450	453		anything else of value on credit which is ac cepted by
451	454		over one hundred retail locations; or
452	455		6. Offer or furnish any prize, premium, gift or similar
453	456		inducement to a consumer in connection with th e sale of alcoholic
454	457		beverages, except that goods or merchandise included by the
455	458		manufacturer in packaging with alcoholic beverages or for packaging
456	459		with alcoholic beverages shall not be included in this prohibition,
457	460		but no wholesaler or retailer shall sell any alcoholic beverage
458	461		prepackaged with other goods or merchandise at a price which is
459	462		greater than the price at which the alcoholic beverage alone is
460	463		sold; provided, it shall not be considered inducement or a premium
461		-	for a retail spirits licensee to have an advertised price posted
462		-	higher online than the shelf price on the licensed premises ; or
463		-	7. Pay for alcoholic beverages by a check or draft which is
464		-	dishonored by the drawee when presented to such drawee for payment;
465		-	and the ABLE Commission may cancel or suspend the license of any
466		-	retailer who has given a check or draft, as maker or endorser, which
467		-	is so dishonored upon presentation .
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	490	+	for a retail spirits licensee to have an advertised price posted
	491	+	higher online than the shelf price on the licensed premises ; or
	492	+	7. Pay for alcoholic beverages by a check or draft which is
	493	+	dishonored by the drawee when presented to such drawee for payment;
	494	+	and the ABLE Commission may cancel or suspend the license of any
	495	+	retailer who has given a check or draft, as maker or endorser, which
	496	+	is so dishonored upon presentation .
495	497		B. No retail spirits licensee shall permit any person under
496	498		twenty-one (21) years of age to enter into or remain within or about
497	499		the licensed premises unless accompanied by the person ’s parent or
498	500		legal guardian; provided, however, this restriction shall not apply
499	501		to an employee of a licensed beer distributor or wine and spirits
500	502		wholesaler who:
501	503		1. Is at least eighteen (18) years of age;
502	504		2. Is accompanied by a coworker at least twenty -one (21) years
503	505		of age; and
504	506		3. Enters for the sole purpose of merchandising or delivering
505	507		product to the licensee in the normal course of business.
506	508		SECTION 4. This act shall be come effective November 1, 2025.
507		-	~~COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND INSURANCE~~
508		-	~~February~~ 20, 2025 ~~- DO PASS AS AMENDED BY CS~~
	509	+
	510	+	60-1-1697 CAD 2/20/2025 11:11:36 AM