1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 2001 By: Coleman
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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 1-103, as amended by Section 2,
8 Chapter 338, O.S.L. 2023 (37A O.S. Supp. 2023,
8 Section 1-103), which relates to definitions;
9 defining term; amending 37A O.S. 2021, Section 6-105,
9 as amended by Section 2, Chapter 82, O.S.L. 2022 (37A
10 O.S. Supp. 2023, Section 6-105), which relates to
10 prohibited acts of mixed beverage, public event,
11 special event, or on-premises beer and wine
11 licensees; providing exception; amending 37A O.S.
12 2021, Section 6-109, which relates to prohibited
12 acts; permitting an employee to sample alcoholic
13 beverages under certain circumstances; specifying
13 amount to be used in tastings; providing for
14 procedure of tastings that shall occur; and declaring
14 an emergency.
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17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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18 SECTION 1. AMENDATORY 37A O.S. 2021, Section 1-103, as
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19 amended by Section 2, Chapter 338, O.S.L. 2023 (37A O.S. Supp. 2023,
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20 Section 1-103), is amended to read as follows:
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21 Section 1-103. As used in the Oklahoma Alcoholic Beverage
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22 Control Act:
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23 1. “ABLE Commission” or “Commission” means the Alcoholic
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24 Beverage Laws Enforcement Commission;
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 1 2. “Alcohol” means and includes hydrated oxide of ethyl, ethyl
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2 alcohol, ethanol or spirits of wine, from whatever source or by
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3 whatever process produced. It does not include wood alcohol or
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4 alcohol which has been denatured or produced as denatured in
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5 accordance with Acts of Congress and regulations promulgated
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6 thereunder;
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7 3. “Alcoholic beverage” means alcohol, spirits, beer and wine
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8 as those terms are defined herein and also includes every liquid or
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9 solid, patented or not, containing alcohol, spirits, wine or beer
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10 and capable of being consumed as a beverage by human beings;
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11 4. “Applicant” means any individual, legal or commercial
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12 business entity, or any individual involved in any legal or
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13 commercial business entity allowed to hold any license issued in
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14 accordance with the Oklahoma Alcoholic Beverage Control Act;
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15 5. “Beer” means any beverage containing more than one-half of
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16 one percent (0.50%) of alcohol by volume and obtained by the
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17 alcoholic fermentation of an infusion or decoction of barley, or
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18 other grain, sugar, malt or similar products. For the purposes of
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19 taxation, distribution, sales, and regulation, seltzer shall mean
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20 the same as beer as provided in this section. Beer may or may not
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21 contain hops or other vegetable products. Beer includes, among
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22 other things, beer, ale, stout, lager beer, porter, seltzer, and
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23 other malt or brewed liquors, but does not include sake, known as
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24 Japanese rice wine;
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 1 6. “Beer keg” means any brewer-sealed, single container that
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2 contains not less than four (4) gallons of beer;
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3 7. “Beer distributor” means and includes any person licensed to
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4 distribute beer for retail sale in the state, but does not include a
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5 holder of a small brewer self-distribution license or brewpub self-
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6 distribution license. The term distributor, as used in the Oklahoma
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7 Alcoholic Beverage Control Act, shall be construed to refer to a
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8 beer distributor;
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9 8. “Bottle club” means any establishment in a county which has
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10 not authorized the retail sale of alcoholic beverages by the
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11 individual drink, which is required to be licensed to keep, mix and
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12 serve alcoholic beverages belonging to club members on club
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13 premises;
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14 9. “Bottle service” means the sale and provision of spirits in
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15 their original packages by a mixed beverage licensee to be consumed
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16 in that mixed beverage licensee’s club suite;
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17 10. “Brand” means any word, name, group of letters, symbol or
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18 combination thereof, that is adopted and used by a licensed brewer
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19 to identify a specific beer, wine or spirit and to distinguish that
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20 product from another beer, wine or spirit;
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21 11. “Brand extension” means:
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22 a. after October 1, 2018, any brand of beer or cider
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23 introduced by a manufacturer in this state which
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24 either:
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 1 (1) incorporates all or a substantial part of the
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2 unique features of a preexisting brand of the
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3 same licensed brewer, or
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4 (2) relies to a significant extent on the goodwill
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5 associated with the preexisting brand, or
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6 b. any brand of beer that a brewer, the majority of whose
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7 total volume of all brands of beer distributed in this
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8 state by such brewer on January 1, 2016, was
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9 distributed as low-point beer, desires to sell,
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10 introduces, begins selling or theretofore has sold and
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11 desires to continue selling a strong beer in this
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12 state which either:
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13 (1) incorporates or incorporated all or a substantial
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14 part of the unique features of a preexisting low-
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15 point beer brand of the same licensed brewer, or
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16 (2) relies or relied to a significant extent on the
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17 goodwill associated with a preexisting low-point
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18 beer brand;
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19 12. “Brewer” means and includes any person who manufactures for
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20 human consumption by the use of raw materials or other ingredients
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21 any beer or cider upon which a license fee and a tax are imposed by
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22 any law of this state;
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23 13. “Brewpub” means a licensed establishment operated on the
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24 premises of, or on premises located contiguous to, a small brewer,
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 1 that prepares and serves food and beverages, including alcoholic
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2 beverages, for on-premises consumption;
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3 14. “Cider” means any alcoholic beverage obtained by the
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4 alcoholic fermentation of fruit juice, including but not limited to
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5 flavored, sparkling or carbonated cider. For the purposes of the
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6 manufacture of this product, cider may be manufactured by either
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7 manufacturers or brewers. For the purposes of the distribution of
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8 this product, cider may be distributed by either wine and spirits
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9 wholesalers or beer distributors;
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10 15. “Club suite” means a designated area within the premises of
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11 a mixed beverage licensee designed to provide an exclusive space
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12 which is limited to a patron or patrons specifically granted access
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13 by a mixed beverage licensee and is not accessible to other patrons
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14 of the mixed beverage licensee or the public. A club suite must
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15 have a clearly designated point of access for a patron or patrons
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16 specifically granted access by the mixed beverage licensee to ensure
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17 that persons present in the suite are limited to patrons
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18 specifically granted access by the mixed beverage licensee and
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19 employees providing services to the club suite;
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20 16. “Convenience store” means any person primarily engaged in
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21 retailing a limited range of general household items and groceries,
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22 with extended hours of operation, whether or not engaged in retail
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23 sales of automotive fuels in combination with such sales;
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 1 17. “Convicted” and “conviction” mean and include a finding of
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2 guilt resulting from a plea of guilty or nolo contendere, the
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3 decision of a court or magistrate or the verdict of a jury,
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4 irrespective of the pronouncement of judgment or the suspension
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5 thereof;
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6 18. “Designated products” means the brands of wine or spirits
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7 offered for sale by a manufacturer that the manufacturer has
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8 assigned to a designated wholesaler for exclusive distribution;
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9 19. “Designated wholesaler” means a wine and spirits wholesaler
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10 who has been selected by a manufacturer as a wholesaler appointed to
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11 distribute designated products;
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12 20. “Director” means the Director of the ABLE Commission;
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13 21. “Distiller” means any person who produces spirits from any
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14 source or substance, or any person who brews or makes mash, wort or
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15 wash, fit for distillation or for the production of spirits (except
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16 a person making or using such material in the authorized production
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17 of wine or beer, or the production of vinegar by fermentation), or
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18 any person who by any process separates alcoholic spirits from any
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19 fermented substance, or any person who, making or keeping mash, wort
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20 or wash, has also in his or her possession or use a still;
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21 22. “Distributor agreement” means the written agreement between
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22 the distributor and brewer as set forth in Section 3-108 of this
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23 title;
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 1 23. “Drug store” means a person primarily engaged in retailing
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2 prescription and nonprescription drugs and medicines;
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3 24. “Dual-strength beer” means a brand of beer that,
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4 immediately prior to April 15, 2017, was being sold and distributed
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5 in this state:
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6 a. as a low-point beer pursuant to the Low-Point Beer
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7 Distribution Act in effect immediately prior to
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8 October 1, 2018, and
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9 b. as strong beer pursuant to the Alcoholic Beverage
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10 Control Act in effect immediately prior to October 1,
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11 2018,
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12 and continues to be sold and distributed as such on October 1, 2018.
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13 Dual-strength beer does not include a brand of beer that arose as a
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14 result of a brand extension as defined in this section;
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15 25. “Fair market value” means the value in the subject
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16 territory covered by the written agreement with the distributor or
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17 wholesaler that would be determined in an arm’s length transaction
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18 entered into without duress or threat of termination of the
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19 distributor’s or wholesaler’s rights and shall include all elements
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20 of value, including goodwill and going-concern value;
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21 26. “Good cause” means:
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22 a. failure by the distributor to comply with the material
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23 and reasonable provisions of a written agreement or
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24 understanding with the brewer, or
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 1 b. failure by the distributor to comply with the duty of
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2 good faith;
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3 27. “Good faith” means the duty of each party to any
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4 distributor agreement and all officers, employees or agents thereof
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5 to act with honesty in fact and within reasonable standards of fair
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6 dealing in the trade;
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7 28. “Grocery store” means a person primarily engaged in
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8 retailing a general line of food, such as canned or frozen foods,
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9 fresh fruits and vegetables, and fresh and prepared meats, fish and
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10 poultry;
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11 29. “Hotel” or “motel” means an establishment which is licensed
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12 to sell alcoholic beverages by the individual drink and which
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13 contains guestroom accommodations with respect to which the
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14 predominant relationship existing between the occupants thereof and
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15 the owner or operator of the establishment is that of innkeeper and
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16 guest. For purposes of this section, the existence of other legal
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17 relationships as between some occupants and the owner or operator
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18 thereof shall be immaterial;
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19 30. “Legal newspaper” means a newspaper meeting the requisites
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20 of a newspaper for publication of legal notices as prescribed in
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21 Sections 101 through 114 of Title 25 of the Oklahoma Statutes;
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22 31. “Licensee” means any person holding a license under the
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23 Oklahoma Alcoholic Beverage Control Act, and any agent, servant or
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24 employee of such licensee while in the performance of any act or
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 1 duty in connection with the licensed business or on the licensed
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2 premises;
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3 32. “Low-point beer” shall mean any beverages containing more
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4 than one-half of one percent (1/2 of 1%) alcohol by volume, and not
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5 more than three and two-tenths percent (3.2%) alcohol by weight,
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6 including but not limited to, beer or cereal malt beverages obtained
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7 by the alcoholic fermentation of an infusion by barley or other
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8 grain, malt or similar products;
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9 33. “Manufacturer” means a distiller, winemaker, rectifier or
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10 bottler of any alcoholic beverage (other than beer) and its
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11 subsidiaries, affiliates and parent companies;
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12 34. “Manufacturer’s agent” means a salaried or commissioned
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13 salesperson who is the agent authorized to act on behalf of the
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14 manufacturer or nonresident seller in the state;
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15 35. “Meals” means foods commonly ordered at lunch or dinner and
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16 at least part of which is cooked on the licensed premises and
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17 requires the use of dining implements for consumption. Provided,
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18 that the service of only food such as appetizers, sandwiches, salads
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19 or desserts shall not be considered meals;
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20 36. “Mini-bar” means a closed container, either refrigerated in
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21 whole or in part, or nonrefrigerated, and access to the interior of
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22 which is:
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23 a. restricted by means of a locking device which requires
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24 the use of a key, magnetic card or similar device, or
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 1 b. controlled at all times by the licensee;
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2 37. “Mixed beverage cooler” means any beverage, by whatever
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3 name designated, consisting of an alcoholic beverage and fruit or
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4 vegetable juice, fruit or vegetable flavorings, dairy products or
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5 carbonated water containing more than one-half of one percent (1/2
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6 of 1%) of alcohol measured by volume but not more than seven percent
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7 (7%) alcohol by volume at sixty (60) degrees Fahrenheit and which is
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8 packaged in a container not larger than three hundred seventy-five
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9 (375) milliliters. Such term shall include but not be limited to
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10 the beverage popularly known as a “wine cooler”;
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11 38. “Mixed beverages” means one or more servings of a beverage
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12 composed in whole or part of an alcoholic beverage in a sealed or
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13 unsealed container of any legal size for consumption on the premises
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14 where served or sold by the holder of a mixed beverage, beer and
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15 wine, caterer, public event, charitable event or special event
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16 license;
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17 39. “Motion picture theater” means an establishment which is
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18 licensed by Section 2-110 of this title to sell alcoholic beverages
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19 by the individual drink and where motion pictures are exhibited, and
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20 to which the general public is admitted;
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21 40. “Nondesignated products” means the brands of wine or
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22 spirits offered for sale by a manufacturer that have not been
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23 assigned to a designated wholesaler;
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 1 41. “Nonresident seller” means any person licensed pursuant to
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2 Section 2-135 of this title;
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3