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SENATE FLOOR VERSION
March 5, 2026
AS AMENDED
SENATE BILL NO. 1442 By: Dossett and Mann
[ alcoholic beverage license fees - production limits
- exception - fine amounts - 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 2, Chapter 190, O.S.L. 2025 (37A O.S. Supp.
2025, 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 two thousand four
hundred (2,400) proof gallons or more annually of 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
except a person making or using such material in the authorized
production of wine or beer, or the production of vinegar by
fermentation), 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. “Event venue” means any nongovernmental location, property,
space, premises, grounds, building or buildings, or other site that
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offers to the general public for rent, lease, reservation, or other
contractual use, for the hosting of a function, occasion, or event,
special, private, or public, of a temporary nature. The location,
property, space, premises, grounds, or building or buildings defined
in this paragraph shall not include those owned, leased, or occupied
by organizations exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section 501(c)(3);
26. “Dual-strength beer” means a brand of beer that,
immediately prior to April 15, 2017, was being sold and distributed
in this state:
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;
27. “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
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distributor’s or wholesaler’s rights and shall include all elements
of value, including goodwill and going-concern value;
28. “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;
29. “Good faith” means the duty of each party to any
distributor agreement and all officers, employees or agents thereof
to act with honesty in fact and within reasonable standards of fair
dealing in the trade;
30. “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;
31. “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;
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32. “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;
33. “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;
34. “Low-point beer” shall mean any beverages containing more
than one-half of one percent (1/2 of 1%) alcohol by volume, and not
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;
35. “Manufacturer” means a distiller, micro-distiller,
winemaker, rectifier or bottler of any alcoholic beverage (other
than beer) and its subsidiaries, affiliates and parent companies;
36. “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;
37. “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,
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that the service of only food such as appetizers, sandwiches, salads
or desserts shall not be considered meals;
38. “Micro-distiller” means any person who produces less than
two thousand four hundred (2,400) proof gallons annually of 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;
39. “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;
39. 40. “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
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
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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”;
40. 41. “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;
41. 42. “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;
42. 43. “Nondesignated products” means the brands of wine or
spirits offered for sale by a manufacturer that have not been
assigned to a designated wholesaler;
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43. 44. “Nonresident seller” means any person licensed pursuant
to Section 2-135 of this title;
44. 45. “Retail salesperson” means a salesperson soliciting
orders from and calling upon retail alcoholic beverage stores with
regard to his or her product;
45. 46. “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;
46. 47. “Original package” means any container of alcoholic
beverage filled and stamped or sealed by the manufacturer or brewer;
47. 48. “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;
48. 49. “Patron” means any person, customer or visitor who is
not employed by a licensee or who is not a licensee;
49. 50. “Person” means an individual, any type of partnership,
corporation, association, limited liability company or any
individual involved in the legal structure of any such business
entity;
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50. 51. “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;
51. 52. “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;
52. 53. “Public event” means any event that can be attended by
the general public;
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53. 54. “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;
54. 55. “Regulation” or “rule” means a formal rule of general
application promulgated by the ABLE Commission as herein required;
55. 56. “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;
56. 57. “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;
57. 58. “Retailer” means a package store, grocery store,
convenience store or drug store licensed to sell alcoholic beverages
for off-premises consumption pursuant to a retail spirits license,
retail wine license or retail beer license;
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58. 59. “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;
59. 60. “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;
60. 61. “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;
61. 62. “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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62. 63. “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;
63. 64. “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);
64. 65. “Sparkling wine” means champagne or any artificially
carbonated wine;
65. 66. “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;
66. 67. “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;
67. 68. “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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68. 69. “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;
69. 70. “Tax Commission” means the Oklahoma Tax Commission;
70. 71. “Territory” means a geographic region with a specified
boundary;
71. 72. “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;
72. 73. “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
containing sugar, whether or not other ingredients are added, and
includes vermouth and sake, known as Japanese rice wine;
73. 74. “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;
74. 75. “Satellite tasting room” means a licensed establishment
operated off the licensed premises of the holder of a small farm
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winery or winemaker license, which serves wine for on-premises or
off-premises consumption; and
75. 76. “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 2-101, as
last amended by Section 3, Chapter 190, O.S.L. 2025 (37A O.S. Supp.
2025, Section 2-101), is amended to read as follows:
Section 2-101. A. Except as otherwise provided in this
section, the licenses issued by the ABLE Alcoholic Beverage Laws
Enforcement (ABLE) Commission, and the annual fees therefor, shall
be as follows:
1. Brewer License.................................. $1,250.00
2. Small Brewer License.............................. $125.00
3. Distiller License..................... $3,125.00 $1,000.00
4. Micro-distiller license .......................... $325.00
5. Winemaker License................................. $625.00
5. 6. Small Farm Winery License....................... $75.00
6. 7. Rectifier License............................ $3,125.00
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7. 8. Wine and Spirits Wholesaler License.......... $3,000.00
8. 9. Beer Distributor License....................... $750.00
9. 10. The following retail spirits license fees
shall be determined by the latest Federal
Decennial Census:
a. Retail Spirits License for cities and
towns from 200 to 2,500 population.......... $305.00
b. Retail Spirits License for cities and
towns from 2,501 to 5,000 population........ $605.00
c. Retail Spirits License for cities and
towns over 5,000 population................. $905.00
10. 11. Retail Wine License........................ $1,000.00
11. 12. Retail Beer License.......................... $500.00
12. 13. Mixed Beverage License..................... $1,005.00
(initial license)
$905.00
(renewal)
13. 14. Mixed Beverage/Caterer Combination
License........................................ $1,250.00
14. 15. On-Premises Beer and Wine License............ $500.00
(initial license)
$450.00
(renewal)
15. 16. Bottle Club License........................ $1,000.00
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(initial license)
$900.00
(renewal)
16. 17. Caterer License............................ $1,005.00
(initial license)
$905.00
(renewal)
17. 18. Annual Special Event License.................. $55.00
18. 19. Quarterly Special Event License............... $55.00
19. 20. Hotel Beverage License..................... $1,005.00
(initial license)
$905.00
(renewal)
20. 21. Airline/Railroad/Commercial Passenger Vessel Beverage
License........................................ $1,005.00
(initial license)
$905.00
(renewal)
21. 22. Agent License................................. $55.00
22. 23. Employee License.............................. $30.00
23. 24. Industrial License............................ $23.00
24. 25. Carrier License............................... $23.00
25. 26. Private Carrier License....................... $23.00
26. 27. Bonded Warehouse License..................... $190.00
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27. 28. Storage License............................... $23.00
28. 29. Nonresident Seller License .................. $750.00
29. 30. Manufacturer License:
a. 50 cases or less sold in Oklahoma in
last calendar year........................... $50.00
b. 51 to 500 cases sold in Oklahoma in
last calendar year........................... $75.00
c. 501 cases or more sold in Oklahoma in
last calendar year.......................... $150.00
30. 31. Manufacturer’s Agent License.................. $55.00
31. 32. Sacramental Wine Supplier License............ $100.00
32. 33. Charitable Auction License..................... $1.00
33. 34. Charitable Alcoholic Beverage License......... $55.00
34. 35. Winemaker Self-Distribution License:
a. produced ten thousand (10,000) gallons
or less in last calendar year............... $350.00
b. produced more than ten thousand
(10,000) gallons but no more than
fifteen thousand (15,000) gallons in
last calendar year.......................... $750.00
35. 36. Annual Public Event License................ $1,005.00
36. 37. One-Time Public Event License................ $255.00
37. 38. Small Brewer Self-Distribution License:
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a. produced fifteen thousand (15,000)
barrels or less in last calendar year....... $350.00
b. produced more than fifteen thousand
(15,000) barrels in last calendar year...... $750.00
38. 39. Brewpub License............................ $1,005.00
39. 40. Brewpub Self-Distribution License............ $750.00
40. 41. Complimentary Beverage License................ $75.00
41. 42. Satellite Tasting Room License............... $100.00
42. 43. Event Bartender License....................... $50.00
B. 1. There shall be added to the initial or renewal fees for
a mixed beverage license an administrative fee, which shall not be
deemed to be a license fee, in the amount of Five Hundred Dollars
($500.00), which shall be paid at the same time and in the same
manner as the license fees prescribed by paragraph 12 of subsection
A of this section; provided, this fee shall not be assessed against
service organizations or fraternal beneficiary societies which are
exempt under Section 501(c)(19), (8) or (10) of the Internal Revenue
Code.
2. There shall be added to the fee for a mixed beverage/caterer
combination license an administrative fee, which shall not be deemed
to be a license fee, in the amount of Two Hundred Fifty Dollars
($250.00), which shall be paid at the same time and in the same
manner as the license fee prescribed by paragraph 13 of subsection A
of this section.
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C. Notwithstanding the provisions of subsection A of this
section:
1. The license fee for a mixed beverage or bottle club license
for those service organizations or fraternal beneficiary societies
which are exempt under Section 501(c)(19), (8) or (10) of the
Internal Revenue Code shall be Five Hundred Dollars ($500.00) per
year; and
2. The renewal fee for an airline/railroad/commercial passenger
vessel beverage license held by a railroad described in 49 U.S.C.,
Section 24301, shall be One Hundred Dollars ($100.00).
D. An applicant may apply for and receive both an on-premises
beer and wine license and a caterer license.
E. All licenses, except as otherwise provided, shall be valid
for one (1) year from date of issuance unless revoked or
surrendered. Provided, all employee licenses shall be valid for two
(2) years.
F. The holder of a license, issued by the ABLE Commission, for
a bottle club located in a county of this state where the sale of
alcoholic beverages by the individual drink for on-premises
consumption has been authorized, may exchange the bottle club
license for a mixed beverage license or an on-premises beer and wine
license and operate the licensed premises as a mixed beverage
establishment or an on-premises beer and wine establishment subject
to the provisions of the Oklahoma Alcoholic Beverage Control Act.
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There shall be no additional fee for such exchange and the mixed
beverage license or on-premises beer and wine license issued shall
expire one (1) year from the date of issuance of the original bottle
club license.
G. In addition to the applicable licensing fee, the following
surcharge shall be assessed annually on the following licenses:
1. Nonresident Seller License...................... $2,500.00
2. Manufacturer License:
a. 50 cases or less sold in Oklahoma in
last calendar year.......................... $100.00
b. 51 to 500 cases sold in Oklahoma in
last calendar year.......................... $225.00
c. 501 cases or more sold in Oklahoma in
last calendar year.......................... $450.00
3. Wine and Spirits Wholesaler License............. $2,500.00
4. Beer Distributor................................ $1,000.00
5. Retail Spirits License for cities and towns
over 5,000 population.......................... $250.00
6. Retail Spirits License for cities and towns
from 2,501 to 5,000 population................. $200.00
7. Retail Spirits License for cities and towns
from 200 to 2,500 population................... $150.00
8. Retail Wine License............................... $250.00
9. Retail Beer License............................... $250.00
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10. Mixed Beverage License............................ $25.00
11. Mixed Beverage/Caterer Combination License........ $25.00
12. Caterer License................................... $25.00
13. On-Premises Beer and Wine License................. $25.00
14. Annual Public Event License....................... $25.00
15. Small Farm Winery License......................... $25.00
16. Small Brewer License.............................. $35.00
17. Complimentary Beverage License.................... $25.00
The surcharge shall be paid concurrent with the licensee’s
annual licensing fee and, in addition to Five Dollars ($5.00) of the
employee license fee, shall be deposited in the Alcoholic Beverage
Governance Revolving Fund established pursuant to Section 5-128 of
this title.
H. Any license issued by the ABLE Commission under this title
may be relied upon by other licensees as a valid license, and no
other licensee shall have any obligation to independently determine
the validity of such license or be held liable solely as a
consequence of another licensee’s failure to maintain a valid
license.
SECTION 3. AMENDATORY 37A O.S. 2021, Section 2-103, as
amended by Section 5, Chapter 338, O.S.L. 2023 (37A O.S. Supp. 2025,
Section 2-103), is amended to read as follows:
Section 2-103. A. A distiller or micro-distiller license shall
authorize the holder thereof:
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1. To manufacture, bottle, package and store spirits on
licensed premises;
2. To sell spirits in this state to licensed wholesalers and
manufacturers only;
3. To sell spirits out of this state to qualified persons; to
purchase from licensed distillers, micro-distillers, and rectifiers
in this state, and import spirits from without this state for
manufacturing purposes in accordance with federal laws and
regulations;
4. To serve free samples of spirits produced only by the
licensee to visitors twenty-one (21) years of age and older. For
purposes of this section, no visitor may sample more than a total of
three (3) fluid ounces of spirits per day. The distiller shall
restrict the distribution and consumption of spirits samples to an
area within the licensed premises designated by the distiller. A
current floor plan that includes the designated sampling area shall
be on file with the ABLE Commission. No visitor under twenty-one
(21) years of age shall be permitted to enter the designated
sampling area when samples are being distributed and consumed.
Samples of spirits served by a distiller under this section shall
not be considered a sale of spirits within the meaning of Article
XXVIII-A of the Oklahoma Constitution or Section 1-103 of this
title; provided, such samples of spirits shall be considered removed
or withdrawn from the distillery for use or consumption within the
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meaning of Section 5-110 of this title for excise tax determination
and reporting requirements;
5. To sell spirits produced by the licensee for either on-
premises or off-premises consumption to consumers on the licensed
distillery premises or in an area controlled by the licensee located
contiguous to the licensed distillery premises and at one (1)
location controlled by the licensee located in the same county as
the licensed distillery premises but not contiguous to the licensed
distillery premises. Spirits offered for sale by the Oklahoma
licensed distiller will have been sold to and shipped to an Oklahoma
licensed wine and spirits wholesaler and then made available for
purchase by the Oklahoma licensed distiller for sale; and
6. To sell spirits at public events such as trade shows or
festivals. Products offered for sale by the Oklahoma licensed
distiller will have been sold to and shipped to an Oklahoma licensed
wine and spirits wholesaler and then made available for purchase by
the Oklahoma licensed distiller.
B. Spirits sold pursuant to paragraphs 5 and 6 of subsection A
of this section shall not exceed fifteen:
1. Fifteen thousand (15,000) gallons per calendar year in
combination by a distiller; or
2. Two thousand four hundred (2,400) proof gallons per calendar
year in combination by a micro-distiller.
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C. Spirits sold pursuant to paragraphs 5 and 6 of subsection A
of this section shall be a final sale. Licensed distillers may
offer for sale non-alcoholic substances which may be added to
spirits by the consumer after final sale. Substances used for on-
premises consumption shall be non-alcoholic in nature and shall not
be considered part of the manufacturing process.
SECTION 4. AMENDATORY 37A O.S. 2021, Section 2-142, as
amended by Section 1, Chapter 3, O.S.L. 2025 (37A O.S. Supp. 2025,
Section 2-142), is amended to read as follows:
Section 2-142. A. No license provided for in the Oklahoma
Alcoholic Beverage Control Act shall be issued except pursuant to an
application filed with the ABLE Commission. The ABLE Commission
may, however, provide for a form of simplified application for
renewal of a license. Payment of the prescribed fee shall accompany
each application for a license.
B. Every applicant for an original license, except applicants
for an employee, charitable event, special event or airline/railroad
beverage license, shall also furnish the following:
1. A tax receipt proving payment of ad valorem taxes, including
real and personal taxes, or furnish to the ABLE Commission
satisfactory evidence that no taxes are due or delinquent;
2. A certificate of zoning issued by the municipality in which
the applicant proposes to locate the applicant’s principal place of
business under the license, or by the county if the principal place
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of business is located outside the incorporated limits of a
municipality, certifying that the applicant’s proposed location and
use thereof comply with all municipal zoning ordinances or county
zoning regulations if applicable;
3. A certificate issued by the municipality in which the
applicant proposes to locate the applicant’s principal place of
business under the license, or by the county if the principal place
of business is located outside the incorporated limits of a
municipality, certifying that the applicant’s existing or proposed
operations under the license comply with all municipal or county
fire codes, safety codes, or health codes, if applicable;
4. Authorization, on forms furnished by the ABLE Commission,
for complete investigation of the applicant’s current financial
status as it relates to the application for a license, including but
not limited to access to bank accounts, loan agreements and
financial statements;
5. A deed, management agreement, purchasing agreement or lease;
and
6. Proof of liability insurance covering both bodily injury and
property damage.
C. The certificates required by paragraphs 2 and 3 of
subsection B of this section shall be signed by the mayor of the
municipality or the chair of the board of county commissioners
issuing same, unless the municipality, by ordinance, or the county
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designates some other officer or entity to issue the certificates.
Applications for such certificates shall be in writing and shall
contain information in such detail as the municipality or county may
reasonably require describing the location and nature of operations
to be conducted under the license. Municipalities and counties
shall be required to act on all applications for such certificates
within twenty (20) days of receipt of the written application.
D. Municipalities and counties may grant conditional
certificates for premises proposed for licensed operations for which
construction, modification or alteration is not completed.
Conditional certificates shall indicate that the proposed premises
will comply with the municipal or county zoning, fire, safety and
health codes. The granting of conditional certificates shall not
relieve the applicant of the duty of obtaining the certificates
required by paragraphs 2 and 3 of subsection B of this section after
completion of the construction, modification, or alteration.
E. A municipality or county shall issue the certificates
required by paragraphs 2 and 3 of subsection B of this section
within ten (10) days after all final inspections are completed.
Thereafter if a licensee fails to maintain compliance with
municipal or county zoning ordinances and codes, the mayor or chair
of the board of county commissioners or their designee, shall
forthwith notify the ABLE Commission in writing setting forth
details of the noncompliance.
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F. Within ten (10) days of the receipt of all information
required in subsections B through E of this section, the ABLE
Commission shall notify the applicant in writing of any deficiencies
in the application with a description of what actions need to be
taken to cure the deficiencies. The applicant shall then have a
reasonable period of time to provide the additional information
sufficient to complete the application. Upon a completed
application, the ABLE Commission shall issue or deny the license
within twenty (20) days of the applicant’s final submission. The
ABLE Commission’s denial of issuance of a license shall be in
writing and shall state with specificity the reasons for the denial.
G. Upon issuance of any license, the ABLE Commission shall
furnish the Oklahoma Tax Commission with a list of such licenses.
H. In the event of denial of an application for a license, the
ABLE Commission shall refund to the applicant the amount of the
tendered fee, less ten percent (10%), which it shall retain as cost
of processing the application.
I. Any licensee, except an employee licensee, who fails to
renew the license prior to the expiration date of the license, shall
be subject to a late renewal penalty as provided by rules of the
ABLE Commission. Further, any licensee, except an employee
licensee, who fails to renew the license within sixty (60) days of
the expiration of the license shall be required to submit a new
license application. An employee licensee who fails to renew prior
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to the expiration of the license shall be required to submit a new
license application; provided, however, that under no circumstances
shall any licensee, including an employee licensee, whose license to
serve or sell alcoholic beverages has expired, continue to serve or
sell alcoholic beverages.
J. The requirements in this section shall be required for a
public event license applicant, except for those certificates
required by paragraphs 2 and 3 of subsection B of this section as
the events are temporary in nature and the locations are not
permanently licensed.
K. Micro-distiller license applicants shall not be required to
provide a certificate of compliance from a municipality or county
provided that the micro-distiller licensee:
1. Is located outside of the corporate limits of any
municipality;
2. Remains under the production limit set forth in subsection B
of Section 2-103 of this title;
3. Is not open to the public for tours, tastings, or events;
4. Is in a stand-alone building of less than five thousand
(5,000) square feet; and
5. Employs three or fewer individuals, not including owners or
independent contractors.
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SECTION 5. AMENDATORY 37A O.S. 2021, Section 2-148, as
amended by Section 1, Chapter 128, O.S.L. 2023 (37A O.S. Supp. 2025,
Section 2-148), is amended to read as follows:
Section 2-148. A. Any license issued pursuant to the
provisions of the Oklahoma Alcoholic Beverage Control Act by the
ABLE Commission, after due notice and hearing, may be revoked or
suspended if the ABLE Commission finds or has grounds to believe
that the licensee has:
1. Procured a license through fraud, or misrepresentation, or
concealment of a material fact;
2. Made any false representation or statement to the ABLE
Commission or the Oklahoma Tax Commission in order to prevent or
induce action by the ABLE Commission or the Tax Commission;
3. Maintained an unsanitary establishment or has supplied
impure or otherwise deleterious beverages or food;
4. Stored, possessed, mixed or served on the premises of a
bottle club any alcoholic beverage upon which the tax levied by
Section 5-101 of this title has not been paid as provided for in the
Oklahoma Alcoholic Beverage Control Act, in a county of this state
where the sale of alcoholic beverages by the individual drink for
on-premises consumption has not been authorized;
5. Misrepresented to a customer or the public any alcoholic
beverage sold by the licensee;
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6. Had any permit or license issued by the Tax Commission and
required by the Oklahoma Alcoholic Beverage Control Act, suspended
or revoked by the Tax Commission; or
7. Is not in compliance with the tax laws of this state as
required in Article XXVIII-A of the Oklahoma Constitution.
B. The ABLE Commission may revoke or suspend the license of any
mixed beverage, caterer or bottle club licensee if the ABLE
Commission finds or has grounds to believe that such licensee:
1. Has acted as an agent of a manufacturer, brewer or
wholesaler of alcoholic beverages;
2. Is a manufacturer, brewer or wholesaler of alcoholic
beverages;
3. Has borrowed money or property or accepted gratuities or
rebates from a manufacturer, brewer or wholesaler of alcoholic
beverages;
4. Has obtained the use of equipment from any manufacturer,
brewer or wholesaler of alcoholic beverages or any agent thereof;
5. Has violated any of the provisions of the Oklahoma Alcoholic
Beverage Control Act for which mandatory revocation or suspension is
not required;
6. Has been convicted within the past twenty-five (25) years,
of a violation of any state or federal law relating to alcoholic
beverage for which mandatory revocation or suspension is not
required; or
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7. Is not in compliance with the tax laws of this state as
required in Article XXVIII-A of the Oklahoma Constitution.
C. The ABLE Commission may revoke or suspend the license of any
retail, mixed beverage, caterer or bottle club licensee if the ABLE
Commission finds or has grounds to believe that such licensee has
borrowed money or property or accepted gratuities, discounts,
rebates, free goods, allowances or other inducements from a wine and
spirits wholesaler or beer distributor.
D. The ABLE Commission shall have the authority to revoke the
license of any licensee if the ABLE Commission finds:
1. That the licensee knowingly sold alcoholic beverages or
allowed such beverages to be sold, delivered or furnished to any
person under the age of twenty-one (21) years or to any person
visibly intoxicated or adjudged insane or mentally deficient;
2. That the licensee, any general or limited partner of the
licensee, or in the case of a corporation, an officer or director of
the corporation, has been convicted of a felony or is not in
compliance with the tax laws of this state as required in Article
XXVIII-A of the Oklahoma Constitution. Provided, an employee
license may be issued and held by a person who has been convicted of
a felony if such conviction was not for a violent offense specified
in paragraph 2 of Section 571 of Title 57 of the Oklahoma Statutes
or an offense under the provisions of this title; and
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3. That, in the case of a wine and spirits wholesaler, beer
distributor, retail spirits, retail wine or retail beer licensee,
the holder of the license or any member of a general or limited
partnership which is the holder of such a license, has been
convicted of a prohibitory law relating to the sale, manufacture or
transportation of alcoholic beverages which constitutes a felony.
E. If the ABLE Commission shall find by a preponderance of the
evidence as in civil cases that a licensee has knowingly sold any
alcoholic beverage to any person under the age of twenty-one (21)
years, after a public hearing, the ABLE Commission shall have the
discretion as to the revocation of a license or administration of
fines.
F. The ABLE Commission shall have the authority to promulgate
rules to establish a penalty schedule for violations of any
provision of the Oklahoma Alcoholic Beverage Control Act or any rule
of the ABLE Commission. The schedule shall provide for suspension
or revocation of any license for major and minor violations as
determined by the ABLE Commission. Penalties shall be increasingly
severe with each violation by a licensee.
Provided, that for a fourth major violation by a licensee within
a twenty-four-month period, the penalty shall be mandatory
revocation of license. The twenty-four-month period shall be
calculated from the date of the most recent violation as set forth
in an order signed by the Director or the designee of the Director.
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G. The ABLE Commission or the Tax Commission may impose a
monetary penalty in lieu of or in addition to suspension of a
license. The amount of the fine for a major violation shall be
computed by multiplying the proposed number of days of the
suspension period by One Hundred Dollars ($100.00). The amount of
the fine for a minor violation shall be computed by multiplying the
number of days of the proposed suspension period by Fifty Dollars
($50.00). Fines imposed on a micro-distiller licensee shall not
exceed Five Thousand Dollars ($5,000.00) per each violation.
H. The failure of any licensee to pay a fine or serve a
suspension imposed by the ABLE Commission or the Tax Commission
shall result in the revocation of the license of the licensee.
I. If the ABLE Commission or the Tax Commission finds that
public health, safety or welfare require emergency action, and
incorporates a finding to that effect in its order, summary
suspension of a license may be ordered pending proceeding for
revocation or other action, pursuant to the provisions of Section
314 of Title 75 of the Oklahoma Statutes.
SECTION 6. This act shall become effective November 1, 2026.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND INSURANCE
March 5, 2026 - DO PASS AS AMENDED