Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB531 Compare Versions

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28-ENGROSSED SENATE
29-BILL NO. 531 By: Seifried of the Senate
29+SENATE FLOOR VERSION
30+March 6, 2025
3031
31- and
3232
33- Archer of the House
33+COMMITTEE SUBSTITUTE
34+FOR
35+SENATE BILL NO. 531 By: Seifried
3436
3537
3638
3739
38-[ alcoholic beverages - licensees - requirements -
39-refusal - action - rights and ownership interests -
40-effective date ]
40+
41+An Act relating to alcoholic beverages; amending 37A
42+O.S. 2021, Sections 2 -143, 2-144, 2-147, 3-119, 3-
43+120, and 3-121, which relate to licensees; modifying
44+requirements for information to be submitted to the
45+Alcoholic Beverage Laws Enforcement (ABLE) Commission
46+by certain licensees; modifying grounds for refusal
47+of certain licenses; modifying persons prohibited
48+from taking certain action; limiting certain rig hts
49+and ownership interests of certain persons; updating
50+statutory language; updating statutory refe rences;
51+and providing an effective date.
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4657 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
4758 SECTION 1. AMENDATORY 37A O.S. 2021, Section 2-143, is
4859 amended to read as follows:
4960 Section 2-143. A. Any corporation applying for a mixed
5061 beverage, beer and wine, caterer, public event, beer distributor , or
5162 bottle club license, or as an equity partner in a wine and spirits
5263 wholesaler, shall submit to the ABLE Alcoholic Beverage Laws
5364 Enforcement (ABLE) Commission the following:
5465 1. A certificate of good standing from the office Office of the
5566 Secretary of State;
56-2. A list of all corporate officers, directors, executive
57-committee members, or members of a similar governing body and their
58-addresses, except for a charitable organization exempt from taxation
59-under Section 501(c)(3), (4), (5), (6), (7), (8), (9), (10), or (19)
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94+2. A list of all corporate officers, directors, executive
95+committee members, or members of a similar governing body and their
96+addresses, except for a charitable organization exempt from taxation
97+under Section 501(c)(3), (4), (5), (6), (7), (8), (9), (10), or (19)
8698 of the United States Internal Revenue Code of 1986, as amended,
8799 which shall only be required to furnish its corporate officers; and
88100 3. A list of all stockholders owning more than fifteen percent
89101 (15%) or more of the stock and their addresses.
90102 B. Any corporation applying for a retail wine or retail beer
91103 license shall submit to the ABLE Commission the following:
92104 1. A certificate of good standing from the office Office of the
93105 Secretary of State;
94106 2. A list of all corporate officers and directors, except for a
95107 charitable organization exempt from taxation under Section
96108 501(c)(3),(4),(5),(6),(7),(8),(9),(10), or (19) of the United States
97109 Internal Revenue Code of 1986, as amended, which shall only be
98110 required to furnish its corporate officers; and
99111 3. A list of all stockholders owning fifty-one percent (51%) or
100112 more than fifteen percent (15%) of the stock.
101113 C. A corporate licensee shall notify the ABLE Commission in
102114 writing of any change in the officers or directors of the
103115 corporation or in the principal managers of premises licensed to the
104116 corporation and shall pay a fee of On e Hundred Dollars ($100.00) for
105117 each notification of change. Provided, service organizations which
106-are exempt under Section 501(c)(8), (10) , or (14) of the Internal
107-Revenue Code of 1986, as amended, shall be exempt from such fee.
108-D. A corporate licensee shall notify the ABLE Commission any
109-time a person, any type of partnership, limited liability company ,
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145+are exempt under Section 501(c)(8), (10) , or (14) of the Internal
146+Revenue Code of 1986, as amended, shall be exempt from such fee.
147+D. A corporate licensee shall notify the ABLE Commission any
148+time a person, any type of partnership, limited liability company ,
136149 or other entity acquires the percentages specified in paragraph 3 of
137150 subsection A or B of this section, or more, of the stock of the
138151 corporation. Such notification shall be within thirty (30) days of
139152 acquisition, and the corporation shall pay a fee of One Hundred
140153 Dollars ($100.00) for each notification of change.
141154 E. The ABLE Commission may disapprove a change of officers,
142155 directors, or principal manager s or the acquisition of more than the
143156 percentages specified in paragraph 3 of subsection A or B of this
144157 section of the stock in a licensed corporation if the ABLE
145158 Commission feels that such change would materially affect the
146159 conditions under which the lice nse was issued, such that the license
147160 would not have been issued had such change been in existence at the
148161 time of the original application. If such disapproval occurs, the
149162 ABLE Commission shall notify the licensee in writing and in the case
150163 of a publicly traded corporation, allow a reasonable time for the
151164 licensee to remove such officer, director , or manager or for the
152165 stockholder to divest himself or herself of any stock held in excess
153166 of the percentages specified in paragraph 3 of subsection A or B of
154167 this section; provided, a reasonable time may not exceed a ninety -
155168 day period following notification of denial by the ABLE Commission.
156-Failure to comply with the provisions of this subsec tion may result
157-in revocation or suspension of such license.
158-F. Any person who was an officer or director or who has owned
159-the percentages specified in paragraph 3 of subsection A or B of
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196+Failure to comply with the provisions of this subsection may result
197+in revocation or suspension of such license.
198+F. Any person who was an officer or director or who has owned
199+the percentages specified in paragraph 3 of subsection A or B of
186200 this section or more of the stock in a corporation which has been
187201 denied a license or had a license revoked or suspended pursuant to
188202 the provisions of the Oklahoma Alcoholic Beverage Control Act shall
189203 not own stock in any other corporation seeking a license pursuant to
190204 the provisions of the Oklahoma Alcoholic Beverage Control Act for a
191205 period of twelve (12) months from the date the license w as revoked
192206 or suspended.
193207 G. Any person who was a manager or a member owning more than
194208 fifteen percent (15%) of the total membership interests of a limited
195209 liability company which has been denied a license or had a license
196210 revoked or suspended pursuant to the provisions of the Oklahoma
197211 Alcoholic Beverage Control Act shall not own stock in any
198212 corporation seeking a license pursuant to the provi sions of the
199213 Oklahoma Alcoholic Beverage Control Act for a period of twelve (12)
200214 months from the date the license wa s revoked or suspended.
201215 SECTION 2. AMENDATORY 37A O.S. 2021, Section 2 -144, is
202216 amended to read as follows:
203217 Section 2-144. A. Any limited liability company, formed as
204218 provided for in the Oklahoma Limited Liability Company Act, ma y
205219 apply for a mixed beverage, beer and wine, bottle club, caterer,
206-public event, beer distributor, retail wine , or retail beer license
207-issued pursuant to the Oklahoma Alcoholic Beverage Control Act. Any
208-limited liability company applying for a license shall submit to the
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247+public event, beer distributor, retail wine , or retail beer license
248+issued pursuant to the Oklahoma Alcoholic Beverage Control Act. Any
249+limited liability company applying for a license sha ll submit to the
235250 ABLE Alcoholic Beverage Laws Enforcement (ABLE) Commission, the
236251 following:
237252 1. A Certificate certificate of Good Standing good standing
238253 from the Office of the Secretary of State;
239254 2. The Articles articles of Organization organization with all
240255 amendments and corrections filed with the Office of the Secretary of
241256 State with proof that same has been filed in accordance with the
242257 Oklahoma Limited Liability Company Act;
243258 3. The name and address of the resident agent;
244259 4. The name and address of th e manager;
245260 5. The operating agreement;
246261 6. A current list of the full name, social security number , and
247262 address of each member owning more than fifteen percent (15%) of the
248263 total membership interests ; and
249264 7. A copy of the issued Certificate certificate of Membership
250265 Interest membership interest for each member.
251266 B. A limited liability company licensee shall notify the ABLE
252267 Commission in writing of any change in the manager of the licensed
253268 company within thirty (30) days of the change and shall pay a fee o f
254269 One Hundred Dollars ($100.00) for each notification of change.
255-C. A limited liability company shall notify the ABLE Commission
256-in writing any time a membership is assigned or members are added or
257-disassociated of any membership interest of more than fifteen
258-percent (15%) of the total membership interest within thirty (30)
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297+C. A limited liability company shall notify the ABLE Commission
298+in writing any time a membership is assigned or members are added or
299+disassociated of any membership interest of more than fif teen
300+percent (15%) of the total membership interest within thirty (30)
285301 days of the change. The limited liability company shall pay a fee
286302 of One Hundred Dollars ($100.00) for each notification of change.
287303 D. The ABLE Commission may disapprove a change of m anager or
288304 new membership in a licensed liability company if the ABLE
289305 Commission feels that such change would materially affect any
290306 conditions under which the license was issued, such that the license
291307 would not have been issued had such change been in exist ence at the
292308 time of the original application. If such disapproval occurs, the
293309 ABLE Commission shall notify the licensee in writing and allo w a
294310 reasonable time for the licensee to remove such manager or for a
295311 member to be disassociated from the company; pr ovided, a reasonable
296312 time shall not exceed a ninety-day period following notification of
297313 denial by the ABLE Commission. Failure to comply with the
298314 provisions of this subsection may result in revocation or suspension
299315 of such license.
300316 E. Any person who has been a licensee, a partner in a license,
301317 an officer, director , or a stockholder owning more than fifteen
302318 percent (15%) or more stockholder of the stock in a corporation
303319 holding a license revoked or suspended, pursuant to the provisions
304320 of the Oklahoma Alcoholic Beverage Control Act, shall not serve as a
305-manager or be a member owning more than fifteen percent (15%) of the
306-total membership interests in a limited liability company seeking a
307-license pursuant to the provisions of the Oklahoma Alcoholic
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348+manager or be a member owning more than fifteen percent (15%) of the
349+total membership interests in a limited liability company seeking a
350+license pursuant to the provisions of the Oklahoma Alcoholic
334351 Beverage Control Act for a period of twelve (12) months from the
335352 date the license was revoked or suspended.
336353 F. Any person who has been a manager, m ember owning more than
337354 fifteen percent (15%) of the total membership interests, or
338355 participant in any business entit y which was a manager or member
339356 owning more than fifteen percent (15%) of the total membership
340357 interests of a limited liability company which has been denied a
341358 license or has had a license revoked or suspended, pursuant to the
342359 provisions of the Oklahoma Al coholic Beverage Control Act shall not
343360 serve as a manager or member in a limited liability company seeking
344361 a license pursuant to the provisi ons of the Oklahoma Alcoholic
345362 Beverage Control Act for a period of twelve (12) months from the
346363 date the license was revoked or suspended.
347364 G. Any person who has been convicted of a felony for which a
348365 pardon has not been granted shall not be elected as a manager or be
349366 a member of a limited liability company.
350367 SECTION 3. AMENDATORY 37A O.S. 2021, Section 2-147, is
351368 amended to read as follows:
352369 Section 2-147. A. The ABLE Alcoholic Beverage Laws Enforcement
353370 (ABLE) Commission shall refus e to issue a mixed beverage, beer and
354371 wine, bottle club, public event, caterer, retail wine , or retail
355-beer license, either on an original application or a renewal
356-application, if it has reasonable grounds to believe and finds any
357-of the following to be true:
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399+beer license, either on an original application or a renewal
400+application, if it has reasonable grounds to believe and finds any
401+of the following to be true:
384402 1. That the applicant, in the case of a natural person, is
385403 under twenty-one (21) years of age or has been convicted of a felony
386404 within fifteen (15) years prior to the application date ;
387405 2. That the applicant, in the case of a corporation, has a
388406 stockholder who owns more than fifteen percent (15%) or more of the
389407 stock, an officer, or a director who is under twenty -one (21) years
390408 of age;
391409 3. That the applicant, in the case of any type of partnership,
392410 has a limited partner who owns more than fifteen percent (15%) of
393411 the total partnership interests or has any general partner who is
394412 under twenty-one (21) years of age;
395413 4. That the applicant, in the case of a limited liability
396414 company, has a member who owns more than fifteen percent (15%) of
397415 the total membership interests or has a manager or member who is
398416 under twenty-one (21) years of age;
399417 5. That the applicant or any type of partner, in the case of
400418 any type of partnership, has a limited partner owning more than
401419 fifteen percent (15%) of the total partnership interests or has a
402420 general partner who has been convicted of a felony within fifteen
403421 (15) years prior to the applic ation date;
404-6. That the applicant, in the case of a corporation, has a
405-stockholder owning more than fifteen percent (15%) of the stock, an
406-officer, or a director who has been convicted of a felony within
407-fifteen (15) years prior to the application date;
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449+6. That the applicant, in the case of a corporation, has a
450+stockholder owning more than fifteen percent (15%) of the stock, an
451+officer, or a director who has been convicted of a felony within
452+fifteen (15) years prior to the application date;
434453 7. That the applicant, in the case of a limited liability
435454 company, has a manager or a member owning more than fifteen percent
436455 (15%) of the total membership interests or a manager who has been
437456 convicted of a felony within fifteen (15) years prior to the
438457 application date, and such manager or member has an ownership
439458 interest greater than fifty percent (50%) ;
440459 8. That the applicant has made false statements to the ABLE
441460 Commission;
442461 9. That the applicant is not the legitimate owner of the
443462 business for which a li cense is sought or that other persons have
444463 undisclosed ownership interests in the business;
445464 10. That the applicant or any partner, within twelve (12)
446465 months after being issued a license, either on an original
447466 application or a renewal application, has viol ated any provision of
448467 the Oklahoma Alcoholic Beverage Control Act or rule of the ABLE
449468 Commission promulgated pursuant hereto. Provided, how ever, that if
450469 the ABLE Commission, during the twelve -month period, has suspended
451470 any license sought to be renewed, s uch renewal application may be
452471 approved if the term of the suspension has been completed and the
453-applicant has complied with any special conditions imposed in
454-connection with the suspen sion;
455-11. That the applicant is not the real party in interest, or
456-intends to carry on the business authorized by the license as the
457-agent of another;
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499+applicant has complied with any special conditions imposed in
500+connection with the suspension;
501+11. That the applicant is not the real party in interest, or
502+intends to carry on the business authorized by the license as the
503+agent of another;
484504 12. That the applicant is a person who appoints or is a la w
485505 enforcement official or is an employee of the ABLE Commission;
486506 13. That the applicant does not own or have a writ ten lease for
487507 the premises for which a license is sought; or
488508 14. That the applicant or any partner, spouse, employee , or
489509 other person affiliated with the applicant is not in compliance with
490510 the tax laws of this state as required in Article XXVIIIA XXVIII-A
491511 of the Oklahoma Constitution.
492512 B. 1. The ABLE Commission may refuse to issue a mixed
493513 beverage, beer and wine, bottle club, public event , or caterer
494514 license, either on an original application or a renewal application,
495515 if it has reasonable grounds to beli eve and finds any of the
496516 following to be true:
497517 a. that the applicant or any type of partner , in the case
498518 of a natural person, has been convicted of a felony
499519 described in paragraph 2 of this subsection within
500520 twenty-five (25) years of the application date,
501521 b. that the applicant, in the case of any type of
502522 partnership, has a limited partner owning more than
503-fifteen percent (15%) of the total par tnership
504-interests or a general partner who has been convicted
505-of a felony described in paragraph 2 of this
506-subsection within twenty-five (25) years of the
507-application date,
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550+fifteen percent (15%) of the total par tnership
551+interests or a general partner who has been convicted
552+of a felony described in paragraph 2 of this
553+subsection within twenty-five (25) years of the
554+application date,
534555 b. c. that the applicant, in the case of a corporation,
535556 has a stockholder owning more than fifteen percent
536557 (15%) of the stock, an officer , or a director who has
537558 been convicted of a felony described in paragraph 2 of
538559 this subsection within twenty-five (25) years of the
539560 application date, and
540561 c. d. that the applicant, in the case of a li mited
541562 liability company, has a manager or a member owning
542563 more than fifteen percent (15%) of the total
543564 membership interests or a manager who has been
544565 convicted of a felony described in paragraph 2 of this
545566 subsection within twenty-five (25) years prior to the
546567 application date, who has been convicted of a felony
547568 described in paragraph 2 of this subsection .
548569 2. The provisions of this section shall apply to the following
549570 felony offenses:
550571 a. an alcohol-related offense,
551572 b. a violent crime as defined in Section 14 2A-1 of Title
552573 21 of the Oklahoma Statutes, or
553-c. a crime which would subject a person to registration
554-pursuant to the Sex Offenders Registration Act.
555-SECTION 4. AMENDATORY 37A O.S. 2021, Section 3 -119, is
556-amended to read as follows:
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601+c. a crime which would subject a person to registration
602+pursuant to the Sex Offenders Registration Act.
603+SECTION 4. AMENDATORY 37A O.S. 2021, Section 3 -119, is
604+amended to read as follows:
583605 Section 3-119. It shall be unlawful for any manufacturer,
584606 brewer, wine and spirits wholesaler, beer distributor , or person
585607 authorized to sell alcoholic beverages to a wholesaler, or any
586608 employee, officer, director, stockholder owning more than fifteen
587609 percent (15%) or more of the stock, limited partner owning more than
588610 fifteen percent (15%) of the total partnership interests of a
589611 limited partnership, limited liability company member owning more
590612 than fifteen percent (15%) of the total membership interests of a
591613 limited liability company, any type of general partner, managing
592614 partner, manager, member, or agent thereof, to directly or
593615 indirectly:
594616 1. Have any financial interest in any premises upon which any
595617 alcoholic beverage is sold at retail or in any bus iness connected
596618 with the retailing of alcoholic beverages; provided, nothing in this
597619 act Section 1-101 et seq. of this title shall prohibit the operation
598620 of a mixed beverage licensee, beer and wine licensee , or caterer
599621 licensee by an entity which has common owners with the holder of a
600622 small brewer license or a brewpub license;
601623 2. Lend any money or other thing of value, or to make any gift
602624 or offer any gratuity, to any package store, retail wine, retail
603-beer, mixed beverage, beer and wine, public event , or bottle club
604-licensee or caterer;
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652+beer, mixed beverage, beer and wine, public event , or bottle club
653+licensee or caterer;
631654 3. Guarantee any loan or the repayment of any financial
632655 obligation of any retailer , mixed beverage, beer and wine, public
633656 event, or bottle club licensee or caterer;
634657 4. Require any wine and spirits wholesaler, beer distributor,
635658 retailer, mixed beverage, on -premises beer and wine licensee, public
636659 event, or caterer to purchase and dispose of any quota of alcoholic
637660 beverages, or to require any retailer to purchase any kind, type,
638661 size, container, or brand of alcoholic beverage s in order to obtain
639662 any other kind, type, size, container , or brand of alcoholic
640663 beverages;
641664 5. Sell to any retaile r, mixed beverage, on -premises beer and
642665 wine licensee, public event , or caterer any alcoholic beverage on
643666 consignment, or upon condition, or with the privilege of return, or
644667 on any condition other than a bona fide sale; provided, the
645668 following shall not be considered a violation of this paragraph:
646669 a. delivery in good faith, or through mistake,
647670 inadvertence, or oversight, of an alcoholic bevera ge
648671 that was not ordered by a retailer, mixed beverage
649672 licensee, on-premises beer and wine licensee, caterer,
650673 public event, or special event licensee to such
651674 licensee,
652-b. replacement of product breakage that occurred while
653-the alcoholic beverages were in transit from the
654-wholesaler to the licensee, or
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702+b. replacement of product breakage that occurred while
703+the alcoholic beverages were in transit from the
704+wholesaler to the licensee, or
681705 c. replacement of cork-tainted wine that makes the
682706 product unsaleable as long as the licensee notifies
683707 the wine and spirits wholesaler of the defect in
684708 writing within ninety (90) days after delivery of the
685709 product; or
686710 6. Extend credit to any retailer, other than holders of Federal
687711 Liquor Stamps on United States government r eservations and
688712 installations, mixed beverage, public event , or on-premises beer and
689713 wine licensee or caterer, other than a state lodge located in a
690714 county which has approved the retail sale of alcoholic beverages by
691715 the individual drink for on -premises consumption. The acceptance of
692716 a postdated check or draft or the failure to deposit for collection
693717 a current check or draft by the second ban king day after receipt
694718 shall be deemed an extension of credit. Violation of this section
695719 shall be grounds for suspe nsion of the license.
696720 SECTION 5. AMENDATORY 37A O.S. 2021, Section 3 -120, is
697721 amended to read as follows:
698722 Section 3-120. No mixed beverage, beer and wine, caterer,
699723 public event, or bottle club licensee, general partner in any type
700724 of partnership, limited partner owning more than fifteen percent
701725 (15%) of the total partnership interests in any type of limited
702-partnership, manager or member of a limited liability c ompany owning
703-more than fifteen percent (15%) of the total membership interest of
704-a limited liability company , officer, director, or stockholder of
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753+partnership, manager or member of a limited liability company owning
754+more than fifteen percent (15%) of the total membership i nterest of
755+a limited liability company , officer, director, or stockholder of
731756 any corporate licensee owning more than fifteen percent (15%) of the
732757 stock shall have any right, title, lien, claim , or interest,
733758 financial or otherwise , in, upon, or to the premises, equipment,
734759 business, or merchandise of any package store, beer distributor,
735760 brewer, manufacturer , or wholesaler. The provisions of thi s section
736761 shall not prohibit a person who is an officer or director of a
737762 fraternal or veteran ’s organization which i s a tax exempt
738763 organization under Section 501(c)(8), (10) , or (19) of the Internal
739764 Revenue Code of 1986, as amended, and which holds a license issued
740765 by the ABLE Alcoholic Beverage Laws Enforcement (ABLE) Commission
741766 from having a right, title, lien, claim , or interest in the
742767 premises, equipment, business , or merchandise of a package store.
743768 SECTION 6. AMENDATORY 37A O. S. 2021, Section 3-121, is
744769 amended to read as follows:
745770 Section 3-121. No manufacturer, brewer, wine and spirits
746771 wholesaler, beer distributor, general partner in any type of
747772 partnership, limited partner owning more than fifteen percent (15%)
748773 of the total partnership interests in any type of limited
749774 partnership, manager or member of a limited liability company owning
750775 more than fifteen percent (15%) of the total membership interest of
751776 a limited liability company , or officer, director , or stockholder of
752-any nonresident seller, brewer, or manufacturer lic ensee, owning
753-more than fifteen percent (15%) of the stock shall have any right,
754-title, claim, or interest, financial or otherwise , in, upon, or to
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804+any nonresident seller, brewer, or manufacturer licensee, owning
805+more than fifteen percent (15%) of the stock shall have a ny right,
806+title, claim, or interest, financial or otherwise , in, upon, or to
781807 the premises, equipment, business , or merchandise of any mixed
782808 beverage, beer and wine, caterer, public event , or bottle club
783809 licensee.
784810 SECTION 7. This act shall become effective November 1, 2025.
785-Passed the Senate the 27th day of March, 2025.
786-
787-
788-
789- Presiding Officer of the Senate
790-
791-
792-Passed the House of Representatives the ____ day of __________,
793-2025.
794-
795-
796-
797- Presiding Officer of the House
798- of Representatives
799-
811+COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND INSURANCE
812+March 6, 2025 - DO PASS AS AMENDED BY CS