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SENATE FLOOR VERSION
February 20, 2025
AS AMENDED
SENATE BILL NO. 1099 By: Mann
[ alcoholic beverages - exceptions - vintage
distilled spirits - codification - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 37A O.S. 2021, Section 1-103, as
last amended by Section 1, Chapter 416, O.S.L. 2024 (37A O.S. Supp.
2024, Section 1-103), is amended to read as follows:
Section 1-103. As used in the Oklahoma Alcoholic Beverage
Control Act:
1. “ABLE Commission” or “Commission” means the Alcoholic
Beverage Laws Enforcement Commission;
2. “Alcohol” means and includes hydrated oxide of ethyl, ethyl
alcohol, ethanol or spirits of wine, from whatever source or by
whatever process produced. It does not include wood alcohol or
alcohol which has been denatured or produced as denatured in
accordance with Acts of Congress and regulations promulgated
thereunder;
3. “Alcoholic beverage” means alcohol, spirits, beer and wine
as those terms are defined herein and also includes every liquid or
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solid, patented or not, containing alcohol, spirits, wine or beer
and capable of being consumed as a beverage by human beings;
4. “Applicant” means any individual, legal or commercial
business entity, or any individual involved in any legal or
commercial business entity allowed to hold any license issued in
accordance with the Oklahoma Alcoholic Beverage Control Act;
5. “Beer” means any beverage containing more than one-half of
one percent (0.50%) of alcohol by volume and obtained by the
alcoholic fermentation of an infusion or decoction of barley, or
other grain, sugar, malt or similar products. For the purposes of
taxation, distribution, sales, and regulation, seltzer shall mean
the same as beer as provided in this section. Beer may or may not
contain hops or other vegetable products. Beer includes, among
other things, beer, ale, stout, lager beer, porter, seltzer, and
other malt or brewed liquors, but does not include sake, known as
Japanese rice wine;
6. “Beer keg” means any brewer-sealed, single container that
contains not less than four (4) gallons of beer;
7. “Beer distributor” means and includes any person licensed to
distribute beer for retail sale in this state, but does not include
a holder of a small brewer self-distribution license or brewpub
self-distribution license. The term distributor, as used in the
Oklahoma Alcoholic Beverage Control Act, shall be construed to refer
to a beer distributor;
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8. “Bottle club” means any establishment in a county which has
not authorized the retail sale of alcoholic beverages by the
individual drink, which is required to be licensed to keep, mix and
serve alcoholic beverages belonging to club members on club
premises;
9. “Bottle service” means the sale and provision of spirits in
their original packages by a mixed beverage licensee to be consumed
in that mixed beverage licensee’s club suite;
10. “Brand” means any word, name, group of letters, symbol or
combination thereof, that is adopted and used by a licensed brewer
to identify a specific beer, wine or spirit and to distinguish that
product from another beer, wine or spirit;
11. “Brand extension” means:
a. after October 1, 2018, any brand of beer or cider
introduced by a manufacturer in this state which
either:
(1) incorporates all or a substantial part of the
unique features of a preexisting brand of the
same licensed brewer, or
(2) relies to a significant extent on the goodwill
associated with the preexisting brand, or
b. any brand of beer that a brewer, the majority of whose
total volume of all brands of beer distributed in this
state by such brewer on January 1, 2016, was
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distributed as low-point beer, desires to sell,
introduces, begins selling or theretofore has sold and
desires to continue selling a strong beer in this
state which either:
(1) incorporates or incorporated all or a substantial
part of the unique features of a preexisting low-
point beer brand of the same licensed brewer, or
(2) relies or relied to a significant extent on the
goodwill associated with a preexisting low-point
beer brand;
12. “Brewer” means and includes any person who manufactures for
human consumption by the use of raw materials or other ingredients
any beer or cider upon which a license fee and a tax are imposed by
any law of this state;
13. “Brewpub” means a licensed establishment operated on the
premises of, or on premises located contiguous to, a small brewer,
that prepares and serves food and beverages, including alcoholic
beverages, for on-premises consumption;
14. “Cider” means any alcoholic beverage obtained by the
alcoholic fermentation of fruit juice, including but not limited to
flavored, sparkling or carbonated cider. For the purposes of the
manufacture of this product, cider may be manufactured by either
manufacturers or brewers. For the purposes of the distribution of
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this product, cider may be distributed by either wine and spirits
wholesalers or beer distributors;
15. “Club suite” means a designated area within the premises of
a mixed beverage licensee designed to provide an exclusive space
which is limited to a patron or patrons specifically granted access
by a mixed beverage licensee and is not accessible to other patrons
of the mixed beverage licensee or the public. A club suite must
have a clearly designated point of access for a patron or patrons
specifically granted access by the mixed beverage licensee to ensure
that persons present in the suite are limited to patrons
specifically granted access by the mixed beverage licensee and
employees providing services to the club suite;
16. “Cocktail” means a type of mixed beverage as defined in
Section 7-102 of this title;
17. “Convenience store” means any person primarily engaged in
retailing a limited range of general household items and groceries,
with extended hours of operation, whether or not engaged in retail
sales of automotive fuels in combination with such sales;
18. “Convicted” and “conviction” mean and include a finding of
guilt resulting from a plea of guilty or nolo contendere, the
decision of a court or magistrate or the verdict of a jury,
irrespective of the pronouncement of judgment or the suspension
thereof;
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19. “Designated products” means the brands of wine or spirits
offered for sale by a manufacturer that the manufacturer has
assigned to a designated wholesaler for exclusive distribution;
20. “Designated wholesaler” means a wine and spirits wholesaler
who has been selected by a manufacturer as a wholesaler appointed to
distribute designated products;
21. “Director” means the Director of the ABLE Commission;
22. “Distiller” means any person who produces spirits from any
source or substance, or any person who brews or makes mash, wort or
wash, fit for distillation or for the production of spirits (except
a person making or using such material in the authorized production
of wine or beer, or the production of vinegar by fermentation), or
any person who by any process separates alcoholic spirits from any
fermented substance, or any person who, making or keeping mash, wort
or wash, has also in his or her possession or use a still;
23. “Distributor agreement” means the written agreement between
the distributor and brewer as set forth in Section 3-108 of this
title;
24. “Drug store” means a person primarily engaged in retailing
prescription and nonprescription drugs and medicines;
25. “Dual-strength beer” means a brand of beer that,
immediately prior to April 15, 2017, was being sold and distributed
in this state:
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a. as a low-point beer pursuant to the Low-Point Beer
Distribution Act in effect immediately prior to
October 1, 2018, and
b. as strong beer pursuant to the Oklahoma Alcoholic
Beverage Control Act in effect immediately prior to
October 1, 2018,
and continues to be sold and distributed as such on October 1, 2018.
Dual-strength beer does not include a brand of beer that arose as a
result of a brand extension as defined in this section;
26. “Fair market value” means the value in the subject
territory covered by the written agreement with the distributor or
wholesaler that would be determined in an arm’s length transaction
entered into without duress or threat of termination of the
distributor’s or wholesaler’s rights and shall include all elements
of value, including goodwill and going-concern value;
27. “Good cause” means:
a. failure by the distributor to comply with the material
and reasonable provisions of a written agreement or
understanding with the brewer, or
b. failure by the distributor to comply with the duty of
good faith;
28. “Good faith” means the duty of each party to any
distributor agreement and all officers, employees or agents thereof
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to act with honesty in fact and within reasonable standards of fair
dealing in the trade;
29. “Grocery store” means a person primarily engaged in
retailing a general line of food, such as canned or frozen foods,
fresh fruits and vegetables, and fresh and prepared meats, fish and
poultry;
30. “Hotel” or “motel” means an establishment which is licensed
to sell alcoholic beverages by the individual drink and which
contains guest room accommodations with respect to which the
predominant relationship existing between the occupants thereof and
the owner or operator of the establishment is that of innkeeper and
guest. For purposes of this section, the existence of other legal
relationships as between some occupants and the owner or operator
thereof shall be immaterial;
31. “Legal newspaper” means a newspaper meeting the requisites
of a newspaper for publication of legal notices as prescribed in
Sections 101 through 114 of Title 25 of the Oklahoma Statutes;
32. “Licensee” means any person holding a license under the
Oklahoma Alcoholic Beverage Control Act, and any agent, servant or
employee of such licensee while in the performance of any act or
duty in connection with the licensed business or on the licensed
premises;
33. “Low-point beer” shall mean any beverages containing more
than one-half of one percent (1/2 of 1%) alcohol by volume, and not
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more than three and two-tenths percent (3.2%) alcohol by weight,
including but not limited to beer or cereal malt beverages obtained
by the alcoholic fermentation of an infusion by barley or other
grain, malt or similar products;
34. “Manufacturer” means a distiller, winemaker, rectifier or
bottler of any alcoholic beverage (other than beer) and its
subsidiaries, affiliates and parent companies;
35. “Manufacturer’s agent” means a salaried or commissioned
salesperson who is the agent authorized to act on behalf of the
manufacturer or nonresident seller in this state;
36. “Meals” means foods commonly ordered at lunch or dinner and
at least part of which is cooked on the licensed premises and
requires the use of dining implements for consumption. Provided,
that the service of only food such as appetizers, sandwiches, salads
or desserts shall not be considered meals;
37. “Mini-bar” means a closed container, either refrigerated in
whole or in part, or unrefrigerated, and access to the interior of
which is:
a. restricted by means of a locking device which requires
the use of a key, magnetic card or similar device, or
b. controlled at all times by the licensee;
38. “Mixed beverage cooler” means any beverage, by whatever
name designated, consisting of an alcoholic beverage and fruit or
vegetable juice, fruit or vegetable flavorings, dairy products or
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carbonated water containing more than one-half of one percent (1/2
of 1%) of alcohol measured by volume but not more than seven percent
(7%) alcohol by volume at sixty (60) degrees Fahrenheit and which is
packaged in a container not larger than three hundred seventy-five
(375) milliliters. Such term shall include but not be limited to
the beverage popularly known as a “wine cooler”;
39. “Mixed beverages” means one or more servings of a beverage
composed in whole or in part of an alcoholic beverage in a sealed or
unsealed container of any legal size for consumption on the premises
where served or sold by the holder of a mixed beverage, beer and
wine, caterer, public event, charitable event or special event
license; provided, that a beer, cider, or wine mixed with
ingredients nonalcoholic in nature including, but not limited to,
water, juice, sugar, fruits, or vegetables and sold by a small
brewer, brewpub, small farm winery, or winemaker, shall not be
considered a mixed beverage so long as such small brewer, brewpub,
small farm winery, or winemaker does not also hold an on-premises
beer and wine, mixed beverage, caterer, public event, or special
event license, if permitted by law;
40. “Motion picture theater” means an establishment which is
licensed by Section 2-110 of this title to sell alcoholic beverages
by the individual drink and where motion pictures are exhibited, and
to which the general public is admitted;
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41. “Nondesignated products” means the brands of wine or
spirits offered for sale by a manufacturer that have not been
assigned to a designated wholesaler;
42. “Nonresident seller” means any person licensed pursuant to
Section 2-135 of this title;
43. “Retail salesperson” means a salesperson soliciting orders
from and calling upon retail alcoholic beverage stores with regard
to his or her product;
44. “Occupation” as used in connection with “occupation tax”
means the sites occupied as the places of business of the
manufacturers, brewers, wholesalers, beer distributors, retailers,
mixed beverage licensees, on-premises beer and wine licensees,
bottle clubs, caterers, public event and special event licensees;
45. “Original package” means any container of alcoholic
beverage filled and stamped or sealed by the manufacturer or brewer;
46. “Package store” means any sole proprietor or partnership
that qualifies to sell wine, beer and/or spirits for off-premises
consumption and that is not a grocery store, convenience store or
drug store, or other retail outlet that is not permitted to sell
wine or beer for off-premises consumption;
47. “Patron” means any person, customer or visitor who is not
employed by a licensee or who is not a licensee;
48. “Person” means an individual, any type of partnership,
corporation, association, limited liability company or any
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individual involved in the legal structure of any such business
entity;
49. “Premises” means the grounds and all buildings and
appurtenances pertaining to the grounds including any adjacent
premises if under the direct or indirect control of the licensee and
the rooms and equipment under the control of the licensee and used
in connection with or in furtherance of the business covered by a
license. Provided, that the ABLE Commission shall have the
authority to designate areas to be excluded from the licensed
premises solely for the purpose of:
a. allowing the presence and consumption of alcoholic
beverages by private parties which are closed to the
general public, or
b. allowing the services of a caterer serving alcoholic
beverages provided by a private party.
This exception shall in no way limit the licensee’s concurrent
responsibility for any violations of the Oklahoma Alcoholic Beverage
Control Act occurring on the licensed premises;
50. “Private event” means a social gathering or event attended
by invited guests who share a common cause, membership, business or
task and have a prior established relationship. For purposes of
this definition, advertisement for general public attendance or
sales of tickets to the general public shall not constitute a
private event;
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51. “Public event” means any event that can be attended by the
general public;
52. “Rectifier” means any person who rectifies, purifies or
refines spirits or wines by any process (other than by original and
continuous distillation, or original and continuous processing, from
mash, wort, wash or other substance, through continuous closed
vessels and pipes, until the production thereof is complete), and
any person who, without rectifying, purifying or refining spirits,
shall by mixing (except for immediate consumption on the premises
where mixed) such spirits, wine or other liquor with any material,
manufactures any spurious, imitation or compound liquors for sale,
under the name of whiskey, brandy, rum, gin, wine, spirits, cordials
or any other name;
53. “Regulation” or “rule” means a formal rule of general
application promulgated by the ABLE Commission as herein required;
54. “Restaurant” means an establishment that is licensed to
sell alcoholic beverages by the individual drink for on-premises
consumption and where food is prepared and sold for immediate
consumption on the premises;
55. “Retail container for spirits and wines” means an original
package of any capacity approved by the United States Bureau of
Alcohol, Tobacco, Firearms and Explosives;
56. “Retailer” means a package store, grocery store,
convenience store or drug store licensed to sell alcoholic beverages
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for off-premises consumption pursuant to a retail spirits license,
retail wine license or retail beer license;
57. “Sale” means any transfer, exchange or barter in any manner
or by any means whatsoever, and includes and means all sales made by
any person, whether as principal, proprietor or as an agent, servant
or employee. The term sale is also declared to be and include the
use or consumption in this state of any alcoholic beverage obtained
within or imported from without this state, upon which the excise
tax levied by the Oklahoma Alcoholic Beverage Control Act has not
been paid or exempted;
58. “Seltzer” means any beverage containing more than one-half
of one percent (0.50%) of alcohol by volume and obtained by the
alcoholic fermentation of malt, rice, grain of any kind, bran,
glucose, sugar, or molasses and combined with carbonated water and
other flavoring and labeled as “beer” by the Internal Revenue Code;
provided, that seltzer shall not include carbonated beverages mixed
with wine or spirits;
59. “Short-order food” means food other than full meals
including but not limited to sandwiches, soups and salads.
Provided, that popcorn, chips and other similar snack food shall not
be considered short-order food;
60. “Small brewer” means a brewer who manufactures less than
sixty-five thousand (65,000) barrels of beer annually pursuant to a
validly issued small brewer license hereunder;
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61. “Small farm wine” means a wine that is produced by a small
farm winery with seventy-five percent (75%) or more Oklahoma-grown
grapes, berries, other fruits, honey or vegetables;
62. “Small farm winery” means a wine-making establishment that
does not annually produce for sale more than fifteen thousand
(15,000) gallons of wine as reported on the United States Department
of the Treasury Alcohol and Tobacco Tax and Trade Bureau, Report of
Wine Premises Operations (TTB Form 5120.17);
63. “Sparkling wine” means champagne or any artificially
carbonated wine;
64. “Special event” means an entertainment, recreation or
marketing event that occurs at a single location on an irregular
basis and at which alcoholic beverages are sold;
65. “Spirits” means any beverage other than wine or beer, which
contains more than one-half of one percent (1/2 of 1%) alcohol
measured by volume, and obtained by distillation, whether or not
mixed with other substances in solution and includes those products
known as whiskey, brandy, rum, gin, vodka, liqueurs, cordials and
fortified wines and similar compounds, but shall not include any
alcohol liquid completely denatured in accordance with the Acts of
Congress and regulations pursuant thereto;
66. “Strong beer” means beer which, prior to October 1, 2018,
was distributed pursuant to the Oklahoma Alcoholic Beverage Control
Act, Section 1-101 et seq. of this title;
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67. “Successor brewer” means a primary source of supply, a
brewer, a cider manufacturer or an importer that acquires rights to
a beer or cider brand from a predecessor brewer;
68. “Tax Commission” means the Oklahoma Tax Commission;
69. “Territory” means a geographic region with a specified
boundary;
70. “Vintage distilled spirit” means a package or packages of
distilled spirits that are:
a. in the original manufacturer’s unopened container,
b. not owned by a distillery, and
c. not otherwise available for purchase from a licensed
wholesaler within this state;
71. “Wine and spirits wholesaler” or “wine and spirits
distributor” means and includes any sole proprietorship or
partnership licensed to distribute wine and spirits in this state.
The term “wholesaler”, as used in the Oklahoma Alcoholic Beverage
Control Act, shall be construed to refer to a wine and spirits
wholesaler;
71. 72. “Wine” means and includes any beverage containing more
than one-half of one percent (1/2 of 1%) alcohol by volume and not
more than twenty-four percent (24%) alcohol by volume at sixty (60)
degrees Fahrenheit obtained by the fermentation of the natural
contents of fruits, vegetables, honey, milk or other products
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containing sugar, whether or not other ingredients are added, and
includes vermouth and sake, known as Japanese rice wine;
72. 73. “Winemaker” means and includes any person or
establishment who manufactures for human consumption any wine upon
which a license fee and a tax are imposed by any law of this state;
73. 74. “Satellite tasting room” means a licensed establishment
operated off the licensed premises of the holder of a small farm
winery or winemaker license, which serves wine for on-premises or
off-premises consumption; and
74. 75. “Straw testing” means the consumption of a de minimis
amount of an alcoholic beverage by sanitary means by the holder of
an employee license, twenty-one (21) years of age or older, to
determine the quality or desired flavor profile of such alcoholic
beverage that has been serviced, or is to be served, to a patron.
Words in the plural include the singular, and vice versa, and
words imparting the masculine gender include the feminine, as well
as persons and licensees as defined in this section.
SECTION 2. AMENDATORY 37A O.S. 2021, Section 2-110, as
last amended by Section 1, Chapter 417, O.S.L. 2024 (37A O.S. Supp.
2024, Section 2-110), is amended to read as follows:
Section 2-110. A. A mixed beverage license shall authorize the
holder thereof:
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1. To purchase alcohol, spirits, beer and/or wine in retail
containers from the holder of a wine and spirits wholesaler and beer
distributor license as specifically provided by law;
2. To sell, offer for sale and possess mixed beverages for on-
premises consumption only, provided:
a. the holder of a mixed beverage license issued for an
establishment which is also a restaurant may purchase
wine directly from a winemaker and beer directly from
a small brewer who is permitted and has elected to
self-distribute as provided in Article XXVIII-A of the
Oklahoma Constitution, and
b. the holder of a mixed beverage license that is also a
holder of a retail wine license or retail beer license
or both a retail wine license and retail beer license
shall not be prohibited from the on-premises sale of
wine or beer, according to the license held, for off-
premises consumption, subject to the limitations of
the retail wine license or retail beer license; and
3. To sell spirits in their original packages for consumption
on its premises under the following conditions:
a. spirits in their original packages shall remain and be
consumed in the club suite of a mixed beverage
licensee and may not be removed from the club suite if
not consumed in their entirety at or before the
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conclusion of the period for which the club suite was
made available to a specific patron or patrons by the
mixed beverage licensee, and
b. spirits in their original packages to be consumed in
the club suite are provided exclusively by the mixed
beverage licensee.
B. Sales and service of mixed beverages by holders of mixed
beverage licenses shall be limited to the licensed premises of the
licensee unless the holder of the mixed beverage license also
obtains a caterer license or a mixed beverage/caterer combination
license, or if the holder of a mixed beverage license is an
Entertainment District Tenant Party as defined in Section 2393 of
Title 68 of the Oklahoma Statutes. A mixed beverage license shall
only be issued in counties of this state where the sale of alcoholic
beverages by the individual drink for on-premises consumption has
been authorized. A separate license shall be required for each
place of business.
C. Sales and service of mixed beverages by holders of mixed
beverage licenses of an Entertainment District Tenant Party shall be
limited to the premises of an Entertainment District. For purposes
of this subsection, premises may be defined as the designated area
of an Entertainment District as defined in Section 2393 of Title 68
of the Oklahoma Statutes.
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D. 1. Holders of a mixed beverage license shall not be
prohibited from obtaining and holding a retail beer license or
retail wine license or both a retail beer license and retail wine
license; provided, that each holder qualifies and maintains the
qualifications for each license held as set forth in this title and
the rules promulgated by the Alcoholic Beverage Laws Enforcement
(ABLE) Commission; and
2. Nothing in this section shall be construed to prohibit the
sale of vintage distilled spirits pursuant to Section 4 of this act.
E. Upon application, a mixed beverage license shall be issued
for any place of business functioning as a motion picture theater,
as defined by Section 1-103 of this title. Provided, that upon
proof of legal age to consume alcohol, every patron being served
alcoholic beverages shall be required to wear a wrist bracelet or
receive a hand stamp identifying the patron as being of legal age to
consume alcohol. This requirement shall only apply inside a motion
picture theater auditorium where individuals under the legal age to
consume alcohol are allowed.
F. Holders of a mixed beverage license with a licensed premises
on a business establishment that meets the classification of a golf
course or country club pursuant to the most recently adopted North
American Industry Classification System (NAICS) may also sell beer
in sealed original packages for on-premises consumption. Such
holders’ sales of more than two sealed original packages to one
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person at one time for on-premises consumption shall not be
considered an unlawful inducement to stimulate consumption of
alcoholic beverages under the Oklahoma Alcoholic Beverage Control
Act, and patrons may remove sealed original packages from the
licensed premises.
SECTION 3. AMENDATORY 37A O.S. 2021, Section 6-113, is
amended to read as follows:
Section 6-113. A. It shall be unlawful for any person, firm or
corporation to possess any alcoholic beverages with the intent to
sell the same without having first procured a license therefor from
the ABLE Commission as now provided for by law. All alcoholic
beverages found in the possession or under the control of any person
or persons, firm or corporation who, on the same date, or within
fifteen (15) days prior thereto, has violated Section 153 of this
act, shall be seized by the arresting officer and shall be forfeited
to the State of Oklahoma, as provided for in Section 167 of this
act; provided, property seized by a county or municipal law
enforcement officer shall be forfeited to the county or municipality
in which the seizure of the property took place, whichever is
appropriate, as provided for in Section 167 of this act.
B. Nothing in this section shall be construed to prohibit the
sale of vintage distilled spirits pursuant to Section 4 of this act.
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SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 6-130 of Title 37A, unless there
is created a duplication in numbering, reads as follows:
A person twenty-one (21) years of age or older who is not
licensed to sell alcohol in this state may sell vintage distilled
spirits if the person is:
1. An administrator, executor, receiver, or other fiduciary who
receives and sells vintage distilled spirits in execution of
fiduciary capacity;
2. A creditor who receives or takes possession of vintage
distilled spirits as security for, or in payment of, debt, in whole
or in part;
3. A public officer or court official who levies on vintage
distilled spirits under order or process of any court or magistrate
to sell same in satisfaction of the order or process; or
4. Any other person not engaged in the business of selling
alcoholic beverages who receives and sells vintage distilled spirits
packages in an amount of twenty-four vintage distilled spirits
packages or fewer in the preceding twelve (12) months.
SECTION 5. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND INSURANCE
February 20, 2025 - DO PASS AS AMENDED