38 | | - | [ alcoholic beverages - licensees - requirements - |
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39 | | - | refusal - action - rights and ownership interests - |
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40 | | - | effective date ] |
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| 40 | + | |
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| 41 | + | An Act relating to alcoholic beverages; amending 37A |
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| 42 | + | O.S. 2021, Sections 2 -143, 2-144, 2-147, 3-119, 3- |
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| 43 | + | 120, and 3-121, which relate to licensees; modifying |
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| 44 | + | requirements for information to be submitted to the |
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| 45 | + | Alcoholic Beverage Laws Enforcement (ABLE) Commission |
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| 46 | + | by certain licensees; modifying grounds for refusal |
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| 47 | + | of certain licenses; modifying persons prohibited |
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| 48 | + | from taking certain action; limiting certain rig hts |
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| 49 | + | and ownership interests of certain persons; updating |
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| 50 | + | statutory language; updating statutory refe rences; |
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| 51 | + | and providing an effective date. |
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41 | 52 | | |
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42 | 53 | | |
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43 | 54 | | |
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44 | 55 | | |
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45 | 56 | | |
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46 | 57 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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47 | 58 | | SECTION 1. AMENDATORY 37A O.S. 2021, Section 2-143, is |
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48 | 59 | | amended to read as follows: |
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49 | 60 | | Section 2-143. A. Any corporation applying for a mixed |
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50 | 61 | | beverage, beer and wine, caterer, public event, beer distributor , or |
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51 | 62 | | bottle club license, or as an equity partner in a wine and spirits |
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52 | 63 | | wholesaler, shall submit to the ABLE Alcoholic Beverage Laws |
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53 | 64 | | Enforcement (ABLE) Commission the following: |
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54 | 65 | | 1. A certificate of good standing from the office Office of the |
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55 | 66 | | Secretary of State; |
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56 | | - | 2. A list of all corporate officers, directors, executive |
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57 | | - | committee members, or members of a similar governing body and their |
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58 | | - | addresses, except for a charitable organization exempt from taxation |
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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 |
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| 95 | + | committee members, or members of a similar governing body and their |
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| 96 | + | addresses, except for a charitable organization exempt from taxation |
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| 97 | + | under Section 501(c)(3), (4), (5), (6), (7), (8), (9), (10), or (19) |
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86 | 98 | | of the United States Internal Revenue Code of 1986, as amended, |
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87 | 99 | | which shall only be required to furnish its corporate officers; and |
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88 | 100 | | 3. A list of all stockholders owning more than fifteen percent |
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89 | 101 | | (15%) or more of the stock and their addresses. |
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90 | 102 | | B. Any corporation applying for a retail wine or retail beer |
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91 | 103 | | license shall submit to the ABLE Commission the following: |
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92 | 104 | | 1. A certificate of good standing from the office Office of the |
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93 | 105 | | Secretary of State; |
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94 | 106 | | 2. A list of all corporate officers and directors, except for a |
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95 | 107 | | charitable organization exempt from taxation under Section |
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96 | 108 | | 501(c)(3),(4),(5),(6),(7),(8),(9),(10), or (19) of the United States |
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97 | 109 | | Internal Revenue Code of 1986, as amended, which shall only be |
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98 | 110 | | required to furnish its corporate officers; and |
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99 | 111 | | 3. A list of all stockholders owning fifty-one percent (51%) or |
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100 | 112 | | more than fifteen percent (15%) of the stock. |
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101 | 113 | | C. A corporate licensee shall notify the ABLE Commission in |
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102 | 114 | | writing of any change in the officers or directors of the |
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103 | 115 | | corporation or in the principal managers of premises licensed to the |
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104 | 116 | | corporation and shall pay a fee of On e Hundred Dollars ($100.00) for |
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105 | 117 | | each notification of change. Provided, service organizations which |
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136 | 149 | | or other entity acquires the percentages specified in paragraph 3 of |
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137 | 150 | | subsection A or B of this section, or more, of the stock of the |
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138 | 151 | | corporation. Such notification shall be within thirty (30) days of |
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139 | 152 | | acquisition, and the corporation shall pay a fee of One Hundred |
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140 | 153 | | Dollars ($100.00) for each notification of change. |
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141 | 154 | | E. The ABLE Commission may disapprove a change of officers, |
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142 | 155 | | directors, or principal manager s or the acquisition of more than the |
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143 | 156 | | percentages specified in paragraph 3 of subsection A or B of this |
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144 | 157 | | section of the stock in a licensed corporation if the ABLE |
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145 | 158 | | Commission feels that such change would materially affect the |
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146 | 159 | | conditions under which the lice nse was issued, such that the license |
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147 | 160 | | would not have been issued had such change been in existence at the |
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148 | 161 | | time of the original application. If such disapproval occurs, the |
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149 | 162 | | ABLE Commission shall notify the licensee in writing and in the case |
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150 | 163 | | of a publicly traded corporation, allow a reasonable time for the |
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151 | 164 | | licensee to remove such officer, director , or manager or for the |
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152 | 165 | | stockholder to divest himself or herself of any stock held in excess |
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153 | 166 | | of the percentages specified in paragraph 3 of subsection A or B of |
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154 | 167 | | this section; provided, a reasonable time may not exceed a ninety - |
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155 | 168 | | day period following notification of denial by the ABLE Commission. |
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186 | 200 | | this section or more of the stock in a corporation which has been |
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187 | 201 | | denied a license or had a license revoked or suspended pursuant to |
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188 | 202 | | the provisions of the Oklahoma Alcoholic Beverage Control Act shall |
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189 | 203 | | not own stock in any other corporation seeking a license pursuant to |
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190 | 204 | | the provisions of the Oklahoma Alcoholic Beverage Control Act for a |
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191 | 205 | | period of twelve (12) months from the date the license w as revoked |
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192 | 206 | | or suspended. |
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193 | 207 | | G. Any person who was a manager or a member owning more than |
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194 | 208 | | fifteen percent (15%) of the total membership interests of a limited |
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195 | 209 | | liability company which has been denied a license or had a license |
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196 | 210 | | revoked or suspended pursuant to the provisions of the Oklahoma |
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197 | 211 | | Alcoholic Beverage Control Act shall not own stock in any |
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198 | 212 | | corporation seeking a license pursuant to the provi sions of the |
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199 | 213 | | Oklahoma Alcoholic Beverage Control Act for a period of twelve (12) |
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200 | 214 | | months from the date the license wa s revoked or suspended. |
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201 | 215 | | SECTION 2. AMENDATORY 37A O.S. 2021, Section 2 -144, is |
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202 | 216 | | amended to read as follows: |
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203 | 217 | | Section 2-144. A. Any limited liability company, formed as |
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204 | 218 | | provided for in the Oklahoma Limited Liability Company Act, ma y |
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205 | 219 | | apply for a mixed beverage, beer and wine, bottle club, caterer, |
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235 | 250 | | ABLE Alcoholic Beverage Laws Enforcement (ABLE) Commission, the |
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236 | 251 | | following: |
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237 | 252 | | 1. A Certificate certificate of Good Standing good standing |
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238 | 253 | | from the Office of the Secretary of State; |
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239 | 254 | | 2. The Articles articles of Organization organization with all |
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240 | 255 | | amendments and corrections filed with the Office of the Secretary of |
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241 | 256 | | State with proof that same has been filed in accordance with the |
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242 | 257 | | Oklahoma Limited Liability Company Act; |
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243 | 258 | | 3. The name and address of the resident agent; |
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244 | 259 | | 4. The name and address of th e manager; |
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245 | 260 | | 5. The operating agreement; |
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246 | 261 | | 6. A current list of the full name, social security number , and |
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247 | 262 | | address of each member owning more than fifteen percent (15%) of the |
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248 | 263 | | total membership interests ; and |
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249 | 264 | | 7. A copy of the issued Certificate certificate of Membership |
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250 | 265 | | Interest membership interest for each member. |
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251 | 266 | | B. A limited liability company licensee shall notify the ABLE |
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252 | 267 | | Commission in writing of any change in the manager of the licensed |
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253 | 268 | | company within thirty (30) days of the change and shall pay a fee o f |
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254 | 269 | | One Hundred Dollars ($100.00) for each notification of change. |
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285 | 301 | | days of the change. The limited liability company shall pay a fee |
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286 | 302 | | of One Hundred Dollars ($100.00) for each notification of change. |
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287 | 303 | | D. The ABLE Commission may disapprove a change of m anager or |
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288 | 304 | | new membership in a licensed liability company if the ABLE |
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289 | 305 | | Commission feels that such change would materially affect any |
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290 | 306 | | conditions under which the license was issued, such that the license |
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291 | 307 | | would not have been issued had such change been in exist ence at the |
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292 | 308 | | time of the original application. If such disapproval occurs, the |
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293 | 309 | | ABLE Commission shall notify the licensee in writing and allo w a |
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294 | 310 | | reasonable time for the licensee to remove such manager or for a |
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295 | 311 | | member to be disassociated from the company; pr ovided, a reasonable |
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296 | 312 | | time shall not exceed a ninety-day period following notification of |
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297 | 313 | | denial by the ABLE Commission. Failure to comply with the |
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298 | 314 | | provisions of this subsection may result in revocation or suspension |
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299 | 315 | | of such license. |
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300 | 316 | | E. Any person who has been a licensee, a partner in a license, |
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301 | 317 | | an officer, director , or a stockholder owning more than fifteen |
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302 | 318 | | percent (15%) or more stockholder of the stock in a corporation |
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303 | 319 | | holding a license revoked or suspended, pursuant to the provisions |
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304 | 320 | | of the Oklahoma Alcoholic Beverage Control Act, shall not serve as a |
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334 | 351 | | Beverage Control Act for a period of twelve (12) months from the |
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335 | 352 | | date the license was revoked or suspended. |
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336 | 353 | | F. Any person who has been a manager, m ember owning more than |
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337 | 354 | | fifteen percent (15%) of the total membership interests, or |
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338 | 355 | | participant in any business entit y which was a manager or member |
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339 | 356 | | owning more than fifteen percent (15%) of the total membership |
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340 | 357 | | interests of a limited liability company which has been denied a |
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341 | 358 | | license or has had a license revoked or suspended, pursuant to the |
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342 | 359 | | provisions of the Oklahoma Al coholic Beverage Control Act shall not |
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343 | 360 | | serve as a manager or member in a limited liability company seeking |
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344 | 361 | | a license pursuant to the provisi ons of the Oklahoma Alcoholic |
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345 | 362 | | Beverage Control Act for a period of twelve (12) months from the |
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346 | 363 | | date the license was revoked or suspended. |
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347 | 364 | | G. Any person who has been convicted of a felony for which a |
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348 | 365 | | pardon has not been granted shall not be elected as a manager or be |
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349 | 366 | | a member of a limited liability company. |
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350 | 367 | | SECTION 3. AMENDATORY 37A O.S. 2021, Section 2-147, is |
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351 | 368 | | amended to read as follows: |
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352 | 369 | | Section 2-147. A. The ABLE Alcoholic Beverage Laws Enforcement |
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353 | 370 | | (ABLE) Commission shall refus e to issue a mixed beverage, beer and |
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354 | 371 | | wine, bottle club, public event, caterer, retail wine , or retail |
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384 | 402 | | 1. That the applicant, in the case of a natural person, is |
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385 | 403 | | under twenty-one (21) years of age or has been convicted of a felony |
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386 | 404 | | within fifteen (15) years prior to the application date ; |
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387 | 405 | | 2. That the applicant, in the case of a corporation, has a |
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388 | 406 | | stockholder who owns more than fifteen percent (15%) or more of the |
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389 | 407 | | stock, an officer, or a director who is under twenty -one (21) years |
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390 | 408 | | of age; |
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391 | 409 | | 3. That the applicant, in the case of any type of partnership, |
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392 | 410 | | has a limited partner who owns more than fifteen percent (15%) of |
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393 | 411 | | the total partnership interests or has any general partner who is |
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394 | 412 | | under twenty-one (21) years of age; |
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395 | 413 | | 4. That the applicant, in the case of a limited liability |
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396 | 414 | | company, has a member who owns more than fifteen percent (15%) of |
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397 | 415 | | the total membership interests or has a manager or member who is |
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398 | 416 | | under twenty-one (21) years of age; |
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399 | 417 | | 5. That the applicant or any type of partner, in the case of |
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400 | 418 | | any type of partnership, has a limited partner owning more than |
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401 | 419 | | fifteen percent (15%) of the total partnership interests or has a |
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402 | 420 | | general partner who has been convicted of a felony within fifteen |
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403 | 421 | | (15) years prior to the applic ation date; |
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434 | 453 | | 7. That the applicant, in the case of a limited liability |
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435 | 454 | | company, has a manager or a member owning more than fifteen percent |
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436 | 455 | | (15%) of the total membership interests or a manager who has been |
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437 | 456 | | convicted of a felony within fifteen (15) years prior to the |
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438 | 457 | | application date, and such manager or member has an ownership |
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439 | 458 | | interest greater than fifty percent (50%) ; |
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440 | 459 | | 8. That the applicant has made false statements to the ABLE |
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441 | 460 | | Commission; |
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442 | 461 | | 9. That the applicant is not the legitimate owner of the |
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443 | 462 | | business for which a li cense is sought or that other persons have |
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444 | 463 | | undisclosed ownership interests in the business; |
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445 | 464 | | 10. That the applicant or any partner, within twelve (12) |
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446 | 465 | | months after being issued a license, either on an original |
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447 | 466 | | application or a renewal application, has viol ated any provision of |
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448 | 467 | | the Oklahoma Alcoholic Beverage Control Act or rule of the ABLE |
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449 | 468 | | Commission promulgated pursuant hereto. Provided, how ever, that if |
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450 | 469 | | the ABLE Commission, during the twelve -month period, has suspended |
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451 | 470 | | any license sought to be renewed, s uch renewal application may be |
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452 | 471 | | approved if the term of the suspension has been completed and the |
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484 | 504 | | 12. That the applicant is a person who appoints or is a la w |
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485 | 505 | | enforcement official or is an employee of the ABLE Commission; |
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486 | 506 | | 13. That the applicant does not own or have a writ ten lease for |
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487 | 507 | | the premises for which a license is sought; or |
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488 | 508 | | 14. That the applicant or any partner, spouse, employee , or |
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489 | 509 | | other person affiliated with the applicant is not in compliance with |
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490 | 510 | | the tax laws of this state as required in Article XXVIIIA XXVIII-A |
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491 | 511 | | of the Oklahoma Constitution. |
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492 | 512 | | B. 1. The ABLE Commission may refuse to issue a mixed |
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493 | 513 | | beverage, beer and wine, bottle club, public event , or caterer |
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494 | 514 | | license, either on an original application or a renewal application, |
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495 | 515 | | if it has reasonable grounds to beli eve and finds any of the |
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496 | 516 | | following to be true: |
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497 | 517 | | a. that the applicant or any type of partner , in the case |
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498 | 518 | | of a natural person, has been convicted of a felony |
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499 | 519 | | described in paragraph 2 of this subsection within |
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500 | 520 | | twenty-five (25) years of the application date, |
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501 | 521 | | b. that the applicant, in the case of any type of |
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502 | 522 | | partnership, has a limited partner owning more than |
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534 | 555 | | b. c. that the applicant, in the case of a corporation, |
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535 | 556 | | has a stockholder owning more than fifteen percent |
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536 | 557 | | (15%) of the stock, an officer , or a director who has |
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537 | 558 | | been convicted of a felony described in paragraph 2 of |
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538 | 559 | | this subsection within twenty-five (25) years of the |
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539 | 560 | | application date, and |
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540 | 561 | | c. d. that the applicant, in the case of a li mited |
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541 | 562 | | liability company, has a manager or a member owning |
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542 | 563 | | more than fifteen percent (15%) of the total |
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543 | 564 | | membership interests or a manager who has been |
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544 | 565 | | convicted of a felony described in paragraph 2 of this |
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545 | 566 | | subsection within twenty-five (25) years prior to the |
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546 | 567 | | application date, who has been convicted of a felony |
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547 | 568 | | described in paragraph 2 of this subsection . |
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548 | 569 | | 2. The provisions of this section shall apply to the following |
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549 | 570 | | felony offenses: |
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550 | 571 | | a. an alcohol-related offense, |
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551 | 572 | | b. a violent crime as defined in Section 14 2A-1 of Title |
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552 | 573 | | 21 of the Oklahoma Statutes, or |
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583 | 605 | | Section 3-119. It shall be unlawful for any manufacturer, |
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584 | 606 | | brewer, wine and spirits wholesaler, beer distributor , or person |
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585 | 607 | | authorized to sell alcoholic beverages to a wholesaler, or any |
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586 | 608 | | employee, officer, director, stockholder owning more than fifteen |
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587 | 609 | | percent (15%) or more of the stock, limited partner owning more than |
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588 | 610 | | fifteen percent (15%) of the total partnership interests of a |
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589 | 611 | | limited partnership, limited liability company member owning more |
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590 | 612 | | than fifteen percent (15%) of the total membership interests of a |
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591 | 613 | | limited liability company, any type of general partner, managing |
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592 | 614 | | partner, manager, member, or agent thereof, to directly or |
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593 | 615 | | indirectly: |
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594 | 616 | | 1. Have any financial interest in any premises upon which any |
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595 | 617 | | alcoholic beverage is sold at retail or in any bus iness connected |
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596 | 618 | | with the retailing of alcoholic beverages; provided, nothing in this |
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597 | 619 | | act Section 1-101 et seq. of this title shall prohibit the operation |
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598 | 620 | | of a mixed beverage licensee, beer and wine licensee , or caterer |
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599 | 621 | | licensee by an entity which has common owners with the holder of a |
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600 | 622 | | small brewer license or a brewpub license; |
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601 | 623 | | 2. Lend any money or other thing of value, or to make any gift |
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602 | 624 | | or offer any gratuity, to any package store, retail wine, retail |
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631 | 654 | | 3. Guarantee any loan or the repayment of any financial |
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632 | 655 | | obligation of any retailer , mixed beverage, beer and wine, public |
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633 | 656 | | event, or bottle club licensee or caterer; |
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634 | 657 | | 4. Require any wine and spirits wholesaler, beer distributor, |
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635 | 658 | | retailer, mixed beverage, on -premises beer and wine licensee, public |
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636 | 659 | | event, or caterer to purchase and dispose of any quota of alcoholic |
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637 | 660 | | beverages, or to require any retailer to purchase any kind, type, |
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638 | 661 | | size, container, or brand of alcoholic beverage s in order to obtain |
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639 | 662 | | any other kind, type, size, container , or brand of alcoholic |
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640 | 663 | | beverages; |
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641 | 664 | | 5. Sell to any retaile r, mixed beverage, on -premises beer and |
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642 | 665 | | wine licensee, public event , or caterer any alcoholic beverage on |
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643 | 666 | | consignment, or upon condition, or with the privilege of return, or |
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644 | 667 | | on any condition other than a bona fide sale; provided, the |
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645 | 668 | | following shall not be considered a violation of this paragraph: |
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646 | 669 | | a. delivery in good faith, or through mistake, |
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647 | 670 | | inadvertence, or oversight, of an alcoholic bevera ge |
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648 | 671 | | that was not ordered by a retailer, mixed beverage |
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649 | 672 | | licensee, on-premises beer and wine licensee, caterer, |
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650 | 673 | | public event, or special event licensee to such |
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651 | 674 | | licensee, |
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681 | 705 | | c. replacement of cork-tainted wine that makes the |
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682 | 706 | | product unsaleable as long as the licensee notifies |
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683 | 707 | | the wine and spirits wholesaler of the defect in |
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684 | 708 | | writing within ninety (90) days after delivery of the |
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685 | 709 | | product; or |
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686 | 710 | | 6. Extend credit to any retailer, other than holders of Federal |
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687 | 711 | | Liquor Stamps on United States government r eservations and |
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688 | 712 | | installations, mixed beverage, public event , or on-premises beer and |
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689 | 713 | | wine licensee or caterer, other than a state lodge located in a |
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690 | 714 | | county which has approved the retail sale of alcoholic beverages by |
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691 | 715 | | the individual drink for on -premises consumption. The acceptance of |
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692 | 716 | | a postdated check or draft or the failure to deposit for collection |
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693 | 717 | | a current check or draft by the second ban king day after receipt |
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694 | 718 | | shall be deemed an extension of credit. Violation of this section |
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695 | 719 | | shall be grounds for suspe nsion of the license. |
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696 | 720 | | SECTION 5. AMENDATORY 37A O.S. 2021, Section 3 -120, is |
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697 | 721 | | amended to read as follows: |
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698 | 722 | | Section 3-120. No mixed beverage, beer and wine, caterer, |
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699 | 723 | | public event, or bottle club licensee, general partner in any type |
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700 | 724 | | of partnership, limited partner owning more than fifteen percent |
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701 | 725 | | (15%) of the total partnership interests in any type of limited |
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731 | 756 | | any corporate licensee owning more than fifteen percent (15%) of the |
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732 | 757 | | stock shall have any right, title, lien, claim , or interest, |
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733 | 758 | | financial or otherwise , in, upon, or to the premises, equipment, |
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734 | 759 | | business, or merchandise of any package store, beer distributor, |
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735 | 760 | | brewer, manufacturer , or wholesaler. The provisions of thi s section |
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736 | 761 | | shall not prohibit a person who is an officer or director of a |
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737 | 762 | | fraternal or veteran ’s organization which i s a tax exempt |
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738 | 763 | | organization under Section 501(c)(8), (10) , or (19) of the Internal |
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739 | 764 | | Revenue Code of 1986, as amended, and which holds a license issued |
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740 | 765 | | by the ABLE Alcoholic Beverage Laws Enforcement (ABLE) Commission |
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741 | 766 | | from having a right, title, lien, claim , or interest in the |
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742 | 767 | | premises, equipment, business , or merchandise of a package store. |
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743 | 768 | | SECTION 6. AMENDATORY 37A O. S. 2021, Section 3-121, is |
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744 | 769 | | amended to read as follows: |
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745 | 770 | | Section 3-121. No manufacturer, brewer, wine and spirits |
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746 | 771 | | wholesaler, beer distributor, general partner in any type of |
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747 | 772 | | partnership, limited partner owning more than fifteen percent (15%) |
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748 | 773 | | of the total partnership interests in any type of limited |
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749 | 774 | | partnership, manager or member of a limited liability company owning |
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750 | 775 | | more than fifteen percent (15%) of the total membership interest of |
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751 | 776 | | a limited liability company , or officer, director , or stockholder of |
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