SENATE FLOOR VERSION - SB1044 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 20, 2025 COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 1044 By: Coleman [ alcoholic beverages - wine and spirits wholesaler license - payment methods - electronic funds transfer - exceptions - penalty - effective date ] BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 37A O.S. 2021, Section 2 -107, is amended to read as follows: Section 2-107. A. A wine and spirits wholesaler license shall authorize the holder thereof : 1. To purchase and import into this state spirits and wines from persons authorized to sell same who are the holders of a manufacturer or nonresident seller license, and their agents who are the holders of manufacturer ’s agent licenses; 2. To purchase spirits and wines from licensed distillers, rectifiers and winemakers in this state; 3. To purchase spirits and wines from licensed wholesalers, to the extent set forth in subsections B and C of this section; SENATE FLOOR VERSION - SB1044 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. To sell in retail containers in this state to retailers, mixed beverage, caterer, special event, public event, hotel beverage or airline/railroad beverage licensees, spirits and wines which have been received and unloaded at the bonded warehouse facilities of the wholesaler before such sale; 5. To sell to licensed wholesalers, to the extent set forth in subsections B and C of this section, spirits and wines which have been received and unloaded at the bonded warehouse facilities of the wholesaler before such sale; 6. To sell spirits and wines out of this state to qualified persons; and 7. To sell to licensed distillers spirits that were manufactured by that distiller and which have been received and unloaded at a bonded warehouse facility of a wholesaler before such sale. Provided, however, sales of spirits and wine in containers with a capacity of less than one -twentieth (1/20) gallon by a holder of a wholesaler license shall be in full case lots and in the original unbroken case. Wholesalers shall be authorized to place such signs outside their place of business as are required by Acts of Congress and by such laws and regulations promulgated under such Acts. B. A wholesaler may sell spirits and wine to other wholesalers or purchase spirits and wines from other wholesalers without complying with subsection A of this section in the case of the sale, SENATE FLOOR VERSION - SB1044 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 purchase or other transfer or acquisition of the entire business of a wholesaler including the inventory of spirits and wine. C. A wholesaler license shall authorize the holder thereof to : 1. Maintain maintain not more than three (3) self-owned or leased and self-operated bonded warehouses within this state. All invoices shall be stored at the principal place of business for which the wholesaler license was granted ; and 2. Accept as payment cas h, personal check, cashier ’s check, money order or electronic fund transfer from persons licensed to purchase alcoholic beverages; provided, a wholesaler shall not be permitted to accept payment by credit card . SECTION 2. AMENDATORY 37 A O.S. 2021, Section 3 -119, is amended to read as follows: Section 3-119. A. It shall be unlawful for any manufacturer, brewer, wine and spirits wholesaler, beer distributor or person authorized to sell alcoholic beverages to a wholesaler, or any employee, officer, director, stockholder owning fifteen percent (15%) or more of the stock, any type of partner, manager, member or agent thereof, to directly or indirectly: 1. Have any financial interest in any premises upon which any alcoholic beverage is sold at retail or in any business connected with the retailing of alcoholic beverages; provided, nothing in this act Section 1-101 et seq. of this title shall prohibit the operation of a mixed beverage licensee, beer and wine licensee or caterer SENATE FLOOR VERSION - SB1044 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 licensee by an entity which has common owners with the holder of a small brewer license or a brewpub license; 2. Lend any money or other thing of value, or to make any gift or offer any gratuity, to any package store, retail wine, retail beer, mixed beverage, beer and wine, public event or bottle club licensee or caterer; 3. Guarantee any loan or the repayment of any financial obligation of any retailer, mixed beverage, beer and wine, public event or bottle club licensee or caterer; 4. Require any wine and spirit s wholesaler, beer distributor, retailer, mixed beverage, on -premises beer and wine licensee, public event or caterer to purchase and dispose of any quota of alcoholic beverages, or to require any retailer to purchase any kind, type, size, container or brand of alcoholic beverages in order to obtain any other kind, type, size, container or brand of alcoholic beverages; 5. Sell to any retailer, mixed beverage, on -premises beer and wine licensee, public event or caterer any alcoholic beverage on consignment, or upon condition, or with the privilege of return, or on any condition other than a bona fide sale; provided, the following shall not be considered a violation of this paragraph: a. delivery in good faith, through mistake, inadvertence or oversight, of an alc oholic beverage that was not ordered by a retailer, mixed beverage licensee, on - SENATE FLOOR VERSION - SB1044 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 premises beer and wine licensee, caterer, public event or special event licensee to such licensee, b. replacement of product breakage that occurred while the alcoholic beverages were in transit from the wholesaler to the licensee, or c. replacement of cork-tainted wine that makes the product unsaleable as long as the licensee notifies the wine and spirits wholesaler of the defect in writing within ninety (90) days after delivery of the product; or 6. Extend credit to any retailer, other than holders of Federal Liquor Stamps on United States government reservations and installations, mixed beverage, public event or on -premises beer and wine licensee or caterer, other than a state lodge located in a county which has approved the retail sale of alcoholic beverages by the individual drink for on -premises consumption. The acceptance of a postdated check or draft or the failure to deposit for collection a current check or draft by the second banking day after receipt shall be deemed an extension of credit. Violation of this section shall be grounds for suspension of the license. B. All payments by a retail beer, retail wine, or retail spirits licensee to a beer distributor or a wine and spirits wholesaler licensee for the purchase of beer, wine, or spirits may be made by electronic funds transfer (EFT) payment. No payment to a SENATE FLOOR VERSION - SB1044 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 wholesaler shall be made in cash. All EFT payments shall comply with the following: 1. The beer distributo r or wine and spirits wholesaler licensee shall initiate the EFT payment transmittal by initiating the withdrawal of the funds from the retailer ’s account; 2. The EFT payment transmittal to the banking institution shall occur no later than the next b anking business day from the date of the delivery of the beer, wine, or spirits order to the retailer licensee; and 3. A single EFT payment may be made to a wholesaler licensee making deliveries to multiple locations of a chain retailer on the same business day. The retailer and wholesaler shall maintain a store-by-store detailed record to ensure that individual delivery invoices may be traced to the EFT payment. C. A wholesaler licensee may accept a check or money order in the following instances: 1. When accepting payment for a non -sufficient funds EFT payment; 2. During temporary service interruptions of the third -party payment processing company; or 3. During the thirty-day period following the issuance of a license to a retailer. D. To maintain contro l of its ability to receive payment, the wholesaler licensee shall be solely responsible for selecting a SENATE FLOOR VERSION - SB1044 SFLR Page 7 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 third-party payment processing company to facilitate the EFT payments. A wholesaler licensee shall not select a third -party payment processing co mpany that requires more than thirty (30) days ’ notice from the wholesaler licensee to terminate its agreement with the third-party payment processing company. E. Violation of this section shall be grounds for suspension of the license. SECTION 3. AMENDATORY 37A O.S. 2021, Section 6 -103, as last amended by Section 1, Chapter 200, O.S.L. 2023 (37A O.S. Supp. 2024, Section 6-103), is amended to read as follows: Section 6-103. A. No retail spirits licensee shall: 1. Purchase or receive any alcoholic beverage other than from a wine and spirits wholesaler, beer distributor, winery or small brewer self-distribution licensee who elects to self -distribute; 2. Suffer or permit any retail container to be opened, or any alcoholic beverage to b e consumed on the licensed premises, except when serving samples as authorized by Section 2 -109 of this title or otherwise permitted by law; provided, the licensee shall not permit any alcoholic beverage content or retail container unsealed in connection with sampling authorized by Section 2 -109 of this title to remain on the licensed premises at the close of business on that day, excluding spirits; 3. Sell any alcoholic beverages at any hour other than between the hours of 8:00 a.m. and midnight Monday th rough Saturday, and SENATE FLOOR VERSION - SB1044 SFLR Page 8 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 shall not be permitted to be open on Thanksgiving Day or Christmas Day; provided, a county may, pursuant to the provisions of subsections B and C of Section 3 -124 of this title, elect to allow such sales between the hours of noon a nd midnight on Sunday. Retail spirits licensees shall be permitted to sell alcoholic beverages on the day of any General, Primary, Runoff Primary or Special Election whether on a national, state, county or city election, provided that the election day does not occur on any day on which such sales are otherwise prohibited by law; 4. Sell spirits in a city or town, unless such city or town has a population in excess of two hundred (200) according to the latest Federal Decennial Census; 5. Sell any alcoholi c beverage on credit; provided, that acceptance by a licensee of a cash or debit card or a nationally recognized credit card in lieu of actual cash payment does not constitute the extension of credit; provided , further, as used in this section: a. “cash or debit card” means any instrument or device whether known as a debit card or by any other name, issued with or without fee by an issuer for the use of the cardholder in depositing, obtaining or transferring funds from a consumer banking electronic facility, and SENATE FLOOR VERSION - SB1044 SFLR Page 9 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 b. “nationally recognized credit card ” means any instrument or device, whether known as a credit card, credit plate, charge plate or by any other name, issued with or without fee by an issuer for the use of the cardholder in obtaining money, goods, servic es or anything else of value on credit which is accepted by over one hundred retail locations; or 6. Offer or furnish any prize, premium, gift or similar inducement to a consumer in connection with the sale of alcoholic beverages, except that goods o r merchandise included by the manufacturer in packaging with alcoholic beverages or for packaging with alcoholic beverages shall not be included in this prohibition, but no wholesaler or retailer shall sell any alcoholic beverage prepackaged with other goods or merchandise at a price which is greater than the price at which the alcoholic beverage alone is sold; provided, it shall not be considered inducement or a premium for a retail spirits licensee to have an advertised price posted higher online than the shelf price on the licensed premises ; or 7. Pay for alcoholic beverages by a check or draft which is dishonored by the drawee when presented to such drawee for payment; and the ABLE Commission may cancel or suspend the license of any retailer who has given a check or draft, as maker or endorser, which is so dishonored upon presentation . SENATE FLOOR VERSION - SB1044 SFLR Page 10 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. No retail spirits licensee shall permit any person under twenty-one (21) years of age to enter into or remain within or about the licensed premises unless accompanied by the person’s parent or legal guardian; provided, however, this restriction shall not apply to an employee of a licensed beer distributor or wine and spirits wholesaler who: 1. Is at least eighteen (18) years of age; 2. Is accompanied by a coworker at least twenty-one (21) years of age; and 3. Enters for the sole purpose of merchandising or delivering product to the licensee in the normal course of business. SECTION 4. This act shall become effective November 1, 2025. COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND INSURANCE February 20, 2025 - DO PASS AS AMENDED BY CS