1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3076 By: Hays
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6 AS INTRODUCED
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7 An Act relating to alcoholic beverages; amending 37A
7 O.S. 2021, Section 5-132, as amended by Section 4,
8 Chapter 94, O.S.L. 2023 (37A O.S. Supp. 2023, Section
8 5-132), which relates to brand labels; providing
9 brand label fee for small batch spirits; amending 37A
9 O.S. 2021, Section 1-103, as amended by Section 2,
10 Chapter 338, O.S.L. 2023 (37A O.S. Supp. 2023,
10 Section 1-103), which relates to definitions;
11 defining straw testing; amending 37A O.S. 2021,
11 Section 6-105, as amended by Section 2, Chapter 82,
12 O.S.L. 2022, and Section 6-109 (37A O.S. Supp. 2023,
12 Section 6-105), which relate to prohibited acts;
13 providing for certain license holders to provide
13 alcohol to employees for certain purposes; providing
14 for exception to prohibition of certain employees
14 from consuming alcoholic beverages while on duty;
15 providing certain requirements; providing exemption
15 for straw testing; and declaring an emergency.
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19 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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20 SECTION 1. AMENDATORY 37A O.S. 2021, Section 5-132, as
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21 amended by Section 4, Chapter 94, O.S.L. 2023 (37A O.S. Supp. 2023,
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22 Section 5-132), is amended to read as follows:
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23 Section 5-132. A. Except as provided in subsection D of this
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24 section, no alcoholic beverage shall be labeled, offered or
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 1 advertised for sale in this state unless in accordance with rules
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2 promulgated pursuant to the provisions of Section 5-130 of this
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3 title and unless the brand label shall have been registered with and
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4 approved by the ABLE Commission and the appropriate fee paid as
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5 provided for in this section.
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6 B. An application for registration of a brand label shall be
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7 filed by and fees paid by the manufacturer or brewer, winemaker,
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8 distiller or nonresident seller of the brand. Licensees, other than
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9 the foregoing applicants, shall not be required to verify
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10 registration to the ABLE Commission and shall not be penalized for
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11 any applicant's failure to register its brand label in accordance
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12 with this section. Cordials and wines which differ only as to age
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13 or vintage year, as defined by such rules, shall be considered the
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14 same brand, and those that differ as to type or class may be
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15 considered the same brand by the ABLE Commission where consistent
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16 with the purposes of this section.
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17 C. The application for registration of a brand label shall be
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18 filed on a form prescribed by the ABLE Commission, and shall contain
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19 such information as the ABLE Commission shall require. Such
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20 application shall be accompanied by a certified check, bank
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21 officers' check or draft or money order in the amount of the annual
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22 registration fee, or the properly prorated portion thereof
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23 prescribed by this section.
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 1 D. 1. The annual fee for registration of any brand label for
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2 spirits shall be Three Hundred Seventy-five Dollars ($375.00),
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3 unless total amount of spirits produced in a single year is no
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4 greater than fifty-three (53) gallons, in which case the annual fee
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5 for registration of any brand label shall be Seventy-five Dollars
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6 ($75.00). The annual fee for registration of any brand label for
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7 beer shall be Two Hundred Dollars ($200.00). The annual fee for
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8 registration of any brand label for wine made in the United States,
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9 or for registration of any category of imported wine as defined by
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10 the Tax Commission, shall be Two Hundred Dollars ($200.00). Beer
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11 manufactured in this state shall be exempt from brand label
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12 registration fees.
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13 2. Each brand label registered and approved pursuant to this
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14 section shall be valid for a term of up to one (1) year, expiring on
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15 the June 30 next following registration, and may be renewed for
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16 subsequent terms of one (1) year beginning on the July 1 following
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17 the initial registration. Brand registration fees for labels
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18 registered after July 1 may be prorated through the following June
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19 30 on a quarterly basis. The brand registration fee shall not be
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20 transferable, unless otherwise allowed by law. A nonresident seller
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21 who registered brands prior to May 7, 2019, may transfer brand
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22 registrations to the brewer or manufacturer that produces those
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23 brands, provided the brewer or manufacturer has obtained a license,
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24 at no expense to the nonresident seller, brewer or manufacturer.
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 1 E. If the ABLE Commission shall deny the application for
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2 registration of a brand label, it shall return the registration fee
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3 to the applicant, less twenty-five percent (25%) of such fee.
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4 F. The ABLE Commission may at any time exempt any discontinued
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5 brand from fee provisions of this section where a manufacturer,
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6 brewer, beer distributor or wholesaler has an inventory of one
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7 hundred cases or less of liquor or wine and five hundred cases or
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8 less of beer, and certifies to the ABLE Commission in writing that
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9 such brand is being discontinued.
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10 G. No private labels or control labels shall be approved for
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11 sale in this state, except for charity collaboration beer as
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12 authorized in Section 2-102.1 of this title.
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13 SECTION 2. AMENDATORY 37A O.S. 2021, Section 1-103, as
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14 amended by Section 2, Chapter 338, O.S.L. 2023 (37A O.S. Supp. 2023,
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15 Section 1-103), is amended to read as follows:
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16 Section 1-103. As used in the Oklahoma Alcoholic Beverage
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17 Control Act:
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18 1. “ABLE Commission” or “Commission” means the Alcoholic
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19 Beverage Laws Enforcement Commission;
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20 2. “Alcohol” means and includes hydrated oxide of ethyl, ethyl
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21 alcohol, ethanol or spirits of wine, from whatever source or by
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22 whatever process produced. It does not include wood alcohol or
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23 alcohol which has been denatured or produced as denatured in
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 1 accordance with Acts of Congress and regulations promulgated
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2 thereunder;
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3 3. “Alcoholic beverage” means alcohol, spirits, beer and wine
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4 as those terms are defined herein and also includes every liquid or
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5 solid, patented or not, containing alcohol, spirits, wine or beer
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6 and capable of being consumed as a beverage by human beings;
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7 4. “Applicant” means any individual, legal or commercial
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8 business entity, or any individual involved in any legal or
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9 commercial business entity allowed to hold any license issued in
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10 accordance with the Oklahoma Alcoholic Beverage Control Act;
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11 5. “Beer” means any beverage containing more than one-half of
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12 one percent (0.50%) of alcohol by volume and obtained by the
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13 alcoholic fermentation of an infusion or decoction of barley, or
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14 other grain, sugar, malt or similar products. For the purposes of
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15 taxation, distribution, sales, and regulation, seltzer shall mean
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16 the same as beer as provided in this section. Beer may or may not
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17 contain hops or other vegetable products. Beer includes, among
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18 other things, beer, ale, stout, lager beer, porter, seltzer, and
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19 other malt or brewed liquors, but does not include sake, known as
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20 Japanese rice wine;
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21 6. “Beer keg” means any brewer-sealed, single container that
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22 contains not less than four (4) gallons of beer;
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23 7. “Beer distributor” means and includes any person licensed to
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24 distribute beer for retail sale in the state, but does not include a
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 1 holder of a small brewer self-distribution license or brewpub self-
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2 distribution license. The term distributor, as used in the Oklahoma
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3 Alcoholic Beverage Control Act, shall be construed to refer to a
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4 beer distributor;
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5 8. “Bottle club” means any establishment in a county which has
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6 not authorized the retail sale of alcoholic beverages by the
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7 individual drink, which is required to be licensed to keep, mix and
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8 serve alcoholic beverages belonging to club members on club
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9 premises;
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10 9. “Bottle service” means the sale and provision of spirits in
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11 their original packages by a mixed beverage licensee to be consumed
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12 in that mixed beverage licensee’s club suite;
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13 10. “Brand” means any word, name, group of letters, symbol or
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14 combination thereof, that is adopted and used by a licensed brewer
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15 to identify a specific beer, wine or spirit and to distinguish that
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16 product from another beer, wine or spirit;
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17 11. “Brand extension” means:
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18 a. after October 1, 2018, any brand of beer or cider
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19 introduced by a manufacturer in this state which
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20 either:
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21 (1) incorporates all or a substantial part of the
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22 unique features of a preexisting brand of the
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23 same licensed brewer, or
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 1 (2) relies to a significant extent on the goodwill
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2 associated with the preexisting brand, or
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3 b. any brand of beer that a brewer, the majority of whose
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4 total volume of all brands of beer distributed in this
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5 state by such brewer on January 1, 2016, was
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6 distributed as low-point beer, desires to sell,
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7 introduces, begins selling or theretofore has sold and
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8 desires to continue selling a strong beer in this
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9 state which either:
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10 (1) incorporates or incorporated all or a substantial
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11 part of the unique features of a preexisting low-
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12 point beer brand of the same licensed brewer, or
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13 (2) relies or relied to a significant extent on the
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14 goodwill associated with a preexisting low-point
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15 beer brand;
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16 12. “Brewer” means and includes any person who manufactures for
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17 human consumption by the use of raw materials or other ingredients
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18 any beer or cider upon which a license fee and a tax are imposed by
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19 any law of this state;
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20 13. “Brewpub” means a licensed establishment operated on the
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21 premises of, or on premises located contiguous to, a small brewer,
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22 that prepares and serves food and beverages, including alcoholic
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23 beverages, for on-premises consumption;
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 1 14. “Cider” means any alcoholic beverage obtained by the
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2 alcoholic fermentation of fruit juice, including but not limited to
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3 flavored, sparkling or carbonated cider. For the purposes of the
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4 manufacture of this product, cider may be manufactured by either
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5 manufacturers or brewers. For the purposes of the distribution of
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6 this product, cider may be distributed by either wine and spirits
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7 wholesalers or beer distributors;
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8 15. “Club suite” means a designated area within the premises of
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9 a mixed beverage licensee designed to provide an exclusive space
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10 which is limited to a patron or patrons specifically granted access
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11 by a mixed beverage licensee and is not accessible to other patrons
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12 of the mixed beverage licensee or the public. A club suite must
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13 have a clearly designated point of access for a patron or patrons
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14 specifically granted access by the mixed beverage licensee to ensure
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15 that persons present in the suite are limited to patrons
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16 specifically granted access by the mixed beverage licensee and
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17 employees providing services to the club suite;
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18 16. “Convenience store” means any person primarily engaged in
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19 retailing a limited range of general household items and groceries,
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20 with extended hours of operation, whether or not engaged in retail
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21 sales of automotive fuels in combination with such sales;
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22 17. “Convicted” and “conviction” mean and include a finding of
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23 guilt resulting from a plea of guilty or nolo contendere, the
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24 decision of a court or magistrate or the verdict of a jury,
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 1 irrespective of the pronouncement of judgment or the suspension
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2 thereof;
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3 18. “Designated products” means the brands of wine or spirits
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4 offered for sale by a manufacturer that the manufacturer has
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5 assigned to a designated wholesaler for exclusive distribution;
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6 19. “Designated wholesaler” means a wine and spirits wholesaler
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7 who has been selected by a manufacturer as a wholesaler appointed to
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8 distribute designated products;
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9 20. “Director” means the Director of the ABLE Commission;
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10 21. “Distiller” means any person who produces spirits from any
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11 source or substance, or any person who brews or makes mash, wort or
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12 wash, fit for distillation or for the production of spirits (except
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13 a person making or using such material in the authorized production
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14 of wine or beer, or the production of vinegar by fermentation), or
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15 any person who by any process separates alcoholic spirits from any
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16 fermented substance, or any person who, making or keeping mash, wort
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17 or wash, has also in his or her possession or use a still;
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18 22. “Distributor agreement” means the written agreement between
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19 the distributor and brewer as set forth in Section 3-108 of this
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20 title;
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21 23. “Drug store” means a person primarily engaged in retailing
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22 prescription and nonprescription drugs and medicines;
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 1 24. “Dual-strength beer” means a brand of beer that,
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2 immediately prior to April 15, 2017, was being sold and distributed
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3 in this state:
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4 a. as a low-point beer pursuant to the Low-Point Beer
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5 Distribution Act in effect immediately prior to
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6 October 1, 2018, and
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7 b. as strong beer pursuant to the Alcoholic Beverage
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8 Control Act in effect immediately prior to October 1,
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9 2018,
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10 and continues to be sold and distributed as such on October 1, 2018.
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11 Dual-strength beer does not include a brand of beer that arose as a
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12 result of a brand extension as defined in this section;
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13 25. “Fair market value” means the value in the subject
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14 territory covered by the written agreement with the distributor or
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15 wholesaler that would be determined in an arm’s length transaction
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16 entered into without duress or threat of termination of the
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17 distributor’s or wholesaler’s rights and shall include all elements
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18 of value, including goodwill and going-concern value;
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19 26. “Good cause” means:
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20 a. failure by the distributor to comply with the material
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21 and reasonable provisions of a written agreement or
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22 understanding with the brewer, or
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23 b. failure by the distributor to comply with the duty of
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24 good faith;
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 1 27. “Good faith” means the duty of each party to any
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2 distri