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ENGROSSED SENATE
BILL NO. 531 By: Seifried of the Senate
and
Archer of the House
[ alcoholic beverages - licensees - requirements -
refusal - action - rights and ownership interests -
effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 37A O.S. 2021, Section 2-143, is
amended to read as follows:
Section 2-143. A. Any corporation applying for a mixed
beverage, beer and wine, caterer, public event, beer distributor, or
bottle club license, or as an equity partner in a wine and spirits
wholesaler, shall submit to the ABLE Alcoholic Beverage Laws
Enforcement (ABLE) Commission the following:
1. A certificate of good standing from the office Office of the
Secretary of State;
2. A list of all corporate officers, directors, executive
committee members, or members of a similar governing body and their
addresses, except for a charitable organization exempt from taxation
under Section 501(c)(3), (4), (5), (6), (7), (8), (9), (10), or (19)
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of the United States Internal Revenue Code of 1986, as amended,
which shall only be required to furnish its corporate officers; and
3. A list of all stockholders owning more than fifteen percent
(15%) or more of the stock and their addresses.
B. Any corporation applying for a retail wine or retail beer
license shall submit to the ABLE Commission the following:
1. A certificate of good standing from the office Office of the
Secretary of State;
2. A list of all corporate officers and directors, except for a
charitable organization exempt from taxation under Section
501(c)(3),(4),(5),(6),(7),(8),(9),(10), or (19) of the United States
Internal Revenue Code of 1986, as amended, which shall only be
required to furnish its corporate officers; and
3. A list of all stockholders owning fifty-one percent (51%) or
more than fifteen percent (15%) of the stock.
C. A corporate licensee shall notify the ABLE Commission in
writing of any change in the officers or directors of the
corporation or in the principal managers of premises licensed to the
corporation and shall pay a fee of One Hundred Dollars ($100.00) for
each notification of change. Provided, service organizations which
are exempt under Section 501(c)(8), (10), or (14) of the Internal
Revenue Code of 1986, as amended, shall be exempt from such fee.
D. A corporate licensee shall notify the ABLE Commission any
time a person, any type of partnership, limited liability company,
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or other entity acquires the percentages specified in paragraph 3 of
subsection A or B of this section, or more, of the stock of the
corporation. Such notification shall be within thirty (30) days of
acquisition, and the corporation shall pay a fee of One Hundred
Dollars ($100.00) for each notification of change.
E. The ABLE Commission may disapprove a change of officers,
directors, or principal managers or the acquisition of more than the
percentages specified in paragraph 3 of subsection A or B of this
section of the stock in a licensed corporation if the ABLE
Commission feels that such change would materially affect the
conditions under which the license was issued, such that the license
would not have been issued had such change been in existence at the
time of the original application. If such disapproval occurs, the
ABLE Commission shall notify the licensee in writing and in the case
of a publicly traded corporation, allow a reasonable time for the
licensee to remove such officer, director, or manager or for the
stockholder to divest himself or herself of any stock held in excess
of the percentages specified in paragraph 3 of subsection A or B of
this section; provided, a reasonable time may not exceed a ninety-
day period following notification of denial by the ABLE Commission.
Failure to comply with the provisions of this subsection may result
in revocation or suspension of such license.
F. Any person who was an officer or director or who has owned
the percentages specified in paragraph 3 of subsection A or B of
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this section or more of the stock in a corporation which has been
denied a license or had a license revoked or suspended pursuant to
the provisions of the Oklahoma Alcoholic Beverage Control Act shall
not own stock in any other corporation seeking a license pursuant to
the provisions of the Oklahoma Alcoholic Beverage Control Act for a
period of twelve (12) months from the date the license was revoked
or suspended.
G. Any person who was a manager or a member owning more than
fifteen percent (15%) of the total membership interests of a limited
liability company which has been denied a license or had a license
revoked or suspended pursuant to the provisions of the Oklahoma
Alcoholic Beverage Control Act shall not own stock in any
corporation seeking a license pursuant to the provisions of the
Oklahoma Alcoholic Beverage Control Act for a period of twelve (12)
months from the date the license was revoked or suspended.
SECTION 2. AMENDATORY 37A O.S. 2021, Section 2-144, is
amended to read as follows:
Section 2-144. A. Any limited liability company, formed as
provided for in the Oklahoma Limited Liability Company Act, may
apply for a mixed beverage, beer and wine, bottle club, caterer,
public event, beer distributor, retail wine, or retail beer license
issued pursuant to the Oklahoma Alcoholic Beverage Control Act. Any
limited liability company applying for a license shall submit to the
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ABLE Alcoholic Beverage Laws Enforcement (ABLE) Commission, the
following:
1. A Certificate certificate of Good Standing good standing
from the Office of the Secretary of State;
2. The Articles articles of Organization organization with all
amendments and corrections filed with the Office of the Secretary of
State with proof that same has been filed in accordance with the
Oklahoma Limited Liability Company Act;
3. The name and address of the resident agent;
4. The name and address of the manager;
5. The operating agreement;
6. A current list of the full name, social security number, and
address of each member owning more than fifteen percent (15%) of the
total membership interests; and
7. A copy of the issued Certificate certificate of Membership
Interest membership interest for each member.
B. A limited liability company licensee shall notify the ABLE
Commission in writing of any change in the manager of the licensed
company within thirty (30) days of the change and shall pay a fee of
One Hundred Dollars ($100.00) for each notification of change.
C. A limited liability company shall notify the ABLE Commission
in writing any time a membership is assigned or members are added or
disassociated of any membership interest of more than fifteen
percent (15%) of the total membership interest within thirty (30)
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days of the change. The limited liability company shall pay a fee
of One Hundred Dollars ($100.00) for each notification of change.
D. The ABLE Commission may disapprove a change of manager or
new membership in a licensed liability company if the ABLE
Commission feels that such change would materially affect any
conditions under which the license was issued, such that the license
would not have been issued had such change been in existence at the
time of the original application. If such disapproval occurs, the
ABLE Commission shall notify the licensee in writing and allow a
reasonable time for the licensee to remove such manager or for a
member to be disassociated from the company; provided, a reasonable
time shall not exceed a ninety-day period following notification of
denial by the ABLE Commission. Failure to comply with the
provisions of this subsection may result in revocation or suspension
of such license.
E. Any person who has been a licensee, a partner in a license,
an officer, director, or a stockholder owning more than fifteen
percent (15%) or more stockholder of the stock in a corporation
holding a license revoked or suspended, pursuant to the provisions
of the Oklahoma Alcoholic Beverage Control Act, shall not serve as a
manager or be a member owning more than fifteen percent (15%) of the
total membership interests in a limited liability company seeking a
license pursuant to the provisions of the Oklahoma Alcoholic
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Beverage Control Act for a period of twelve (12) months from the
date the license was revoked or suspended.
F. Any person who has been a manager, member owning more than
fifteen percent (15%) of the total membership interests, or
participant in any business entity which was a manager or member
owning more than fifteen percent (15%) of the total membership
interests of a limited liability company which has been denied a
license or has had a license revoked or suspended, pursuant to the
provisions of the Oklahoma Alcoholic Beverage Control Act shall not
serve as a manager or member in a limited liability company seeking
a license pursuant to the provisions of the Oklahoma Alcoholic
Beverage Control Act for a period of twelve (12) months from the
date the license was revoked or suspended.
G. Any person who has been convicted of a felony for which a
pardon has not been granted shall not be elected as a manager or be
a member of a limited liability company.
SECTION 3. AMENDATORY 37A O.S. 2021, Section 2-147, is
amended to read as follows:
Section 2-147. A. The ABLE Alcoholic Beverage Laws Enforcement
(ABLE) Commission shall refuse to issue a mixed beverage, beer and
wine, bottle club, public event, caterer, retail wine, or retail
beer license, either on an original application or a renewal
application, if it has reasonable grounds to believe and finds any
of the following to be true:
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1. That the applicant, in the case of a natural person, is
under twenty-one (21) years of age or has been convicted of a felony
within fifteen (15) years prior to the application date;
2. That the applicant, in the case of a corporation, has a
stockholder who owns more than fifteen percent (15%) or more of the
stock, an officer, or a director who is under twenty-one (21) years
of age;
3. That the applicant, in the case of any type of partnership,
has a limited partner who owns more than fifteen percent (15%) of
the total partnership interests or has any general partner who is
under twenty-one (21) years of age;
4. That the applicant, in the case of a limited liability
company, has a member who owns more than fifteen percent (15%) of
the total membership interests or has a manager or member who is
under twenty-one (21) years of age;
5. That the applicant or any type of partner, in the case of
any type of partnership, has a limited partner owning more than
fifteen percent (15%) of the total partnership interests or has a
general partner who has been convicted of a felony within fifteen
(15) years prior to the application date;
6. That the applicant, in the case of a corporation, has a
stockholder owning more than fifteen percent (15%) of the stock, an
officer, or a director who has been convicted of a felony within
fifteen (15) years prior to the application date;
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7. That the applicant, in the case of a limited liability
company, has a manager or a member owning more than fifteen percent
(15%) of the total membership interests or a manager who has been
convicted of a felony within fifteen (15) years prior to the
application date, and such manager or member has an ownership
interest greater than fifty percent (50%);
8. That the applicant has made false statements to the ABLE
Commission;
9. That the applicant is not the legitimate owner of the
business for which a license is sought or that other persons have
undisclosed ownership interests in the business;
10. That the applicant or any partner, within twelve (12)
months after being issued a license, either on an original
application or a renewal application, has violated any provision of
the Oklahoma Alcoholic Beverage Control Act or rule of the ABLE
Commission promulgated pursuant hereto. Provided, however, that if
the ABLE Commission, during the twelve-month period, has suspended
any license sought to be renewed, such renewal application may be
approved if the term of the suspension has been completed and the
applicant has complied with any special conditions imposed in
connection with the suspension;
11. That the applicant is not the real party in interest, or
intends to carry on the business authorized by the license as the
agent of another;
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12. That the applicant is a person who appoints or is a law
enforcement official or is an employee of the ABLE Commission;
13. That the applicant does not own or have a written lease for
the premises for which a license is sought; or
14. That the applicant or any partner, spouse, employee, or
other person affiliated with the applicant is not in compliance with
the tax laws of this state as required in Article XXVIIIA XXVIII-A
of the Oklahoma Constitution.
B. 1. The ABLE Commission may refuse to issue a mixed
beverage, beer and wine, bottle club, public event, or caterer
license, either on an original application or a renewal application,
if it has reasonable grounds to believe and finds any of the
following to be true:
a. that the applicant or any type of partner, in the case
of a natural person, has been convicted of a felony
described in paragraph 2 of this subsection within
twenty-five (25) years of the application date,
b. that the applicant, in the case of any type of
partnership, has a limited partner owning more than
fifteen percent (15%) of the total partnership
interests or a general partner who has been convicted
of a felony described in paragraph 2 of this
subsection within twenty-five (25) years of the
application date,
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b. c. that the applicant, in the case of a corporation,
has a stockholder owning more than fifteen percent
(15%) of the stock, an officer, or a director who has
been convicted of a felony described in paragraph 2 of
this subsection within twenty-five (25) years of the
application date, and
c. d. that the applicant, in the case of a limited
liability company, has a manager or a member owning
more than fifteen percent (15%) of the total
membership interests or a manager who has been
convicted of a felony described in paragraph 2 of this
subsection within twenty-five (25) years prior to the
application date, who has been convicted of a felony
described in paragraph 2 of this subsection.
2. The provisions of this section shall apply to the following
felony offenses:
a. an alcohol-related offense,
b. a violent crime as defined in Section 142A-1 of Title
21 of the Oklahoma Statutes, or
c. a crime which would subject a person to registration
pursuant to the Sex Offenders Registration Act.
SECTION 4. AMENDATORY 37A O.S. 2021, Section 3-119, is
amended to read as follows:
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Section 3-119. It shall be unlawful for any manufacturer,
brewer, wine and spirits wholesaler, beer distributor, or person
authorized to sell alcoholic beverages to a wholesaler, or any
employee, officer, director, stockholder owning more than fifteen
percent (15%) or more of the stock, limited partner owning more than
fifteen percent (15%) of the total partnership interests of a
limited partnership, limited liability company member owning more
than fifteen percent (15%) of the total membership interests of a
limited liability company, any type of general partner, managing
partner, manager, member, or agent thereof, to directly or
indirectly:
1. Have any financial interest in any premises upon which any
alcoholic beverage is sold at retail or in any business connected
with the retailing of alcoholic beverages; provided, nothing in this
act Section 1-101 et seq. of this title shall prohibit the operation
of a mixed beverage licensee, beer and wine licensee, or caterer
licensee by an entity which has common owners with the holder of a
small brewer license or a brewpub license;
2. Lend any money or other thing of value, or to make any gift
or offer any gratuity, to any package store, retail wine, retail
beer, mixed beverage, beer and wine, public event, or bottle club
licensee or caterer;
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3. Guarantee any loan or the repayment of any financial
obligation of any retailer, mixed beverage, beer and wine, public
event, or bottle club licensee or caterer;
4. Require any wine and spirits wholesaler, beer distributor,
retailer, mixed beverage, on-premises beer and wine licensee, public
event, or caterer to purchase and dispose of any quota of alcoholic
beverages, or to require any retailer to purchase any kind, type,
size, container, or brand of alcoholic beverages in order to obtain
any other kind, type, size, container, or brand of alcoholic
beverages;
5. Sell to any retailer, mixed beverage, on-premises beer and
wine licensee, public event, or caterer any alcoholic beverage on
consignment, or upon condition, or with the privilege of return, or
on any condition other than a bona fide sale; provided, the
following shall not be considered a violation of this paragraph:
a. delivery in good faith, or through mistake,
inadvertence, or oversight, of an alcoholic beverage
that was not ordered by a retailer, mixed beverage
licensee, on-premises beer and wine licensee, caterer,
public event, or special event licensee to such
licensee,
b. replacement of product breakage that occurred while
the alcoholic beverages were in transit from the
wholesaler to the licensee, or
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c. replacement of cork-tainted wine that makes the
product unsaleable as long as the licensee notifies
the wine and spirits wholesaler of the defect in
writing within ninety (90) days after delivery of the
product; or
6. Extend credit to any retailer, other than holders of Federal
Liquor Stamps on United States government reservations and
installations, mixed beverage, public event, or on-premises beer and
wine licensee or caterer, other than a state lodge located in a
county which has approved the retail sale of alcoholic beverages by
the individual drink for on-premises consumption. The acceptance of
a postdated check or draft or the failure to deposit for collection
a current check or draft by the second banking day after receipt
shall be deemed an extension of credit. Violation of this section
shall be grounds for suspension of the license.
SECTION 5. AMENDATORY 37A O.S. 2021, Section 3-120, is
amended to read as follows:
Section 3-120. No mixed beverage, beer and wine, caterer,
public event, or bottle club licensee, general partner in any type
of partnership, limited partner owning more than fifteen percent
(15%) of the total partnership interests in any type of limited
partnership, manager or member of a limited liability company owning
more than fifteen percent (15%) of the total membership interest of
a limited liability company, officer, director, or stockholder of
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any corporate licensee owning more than fifteen percent (15%) of the
stock shall have any right, title, lien, claim, or interest,
financial or otherwise, in, upon, or to the premises, equipment,
business, or merchandise of any package store, beer distributor,
brewer, manufacturer, or wholesaler. The provisions of this section
shall not prohibit a person who is an officer or director of a
fraternal or veteran’s organization which is a tax exempt
organization under Section 501(c)(8), (10), or (19) of the Internal
Revenue Code of 1986, as amended, and which holds a license issued
by the ABLE Alcoholic Beverage Laws Enforcement (ABLE) Commission
from having a right, title, lien, claim, or interest in the
premises, equipment, business, or merchandise of a package store.
SECTION 6. AMENDATORY 37A O.S. 2021, Section 3-121, is
amended to read as follows:
Section 3-121. No manufacturer, brewer, wine and spirits
wholesaler, beer distributor, general partner in any type of
partnership, limited partner owning more than fifteen percent (15%)
of the total partnership interests in any type of limited
partnership, manager or member of a limited liability company owning
more than fifteen percent (15%) of the total membership interest of
a limited liability company, or officer, director, or stockholder of
any nonresident seller, brewer, or manufacturer licensee, owning
more than fifteen percent (15%) of the stock shall have any right,
title, claim, or interest, financial or otherwise, in, upon, or to
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the premises, equipment, business, or merchandise of any mixed
beverage, beer and wine, caterer, public event, or bottle club
licensee.
SECTION 7. This act shall become effective November 1, 2025.
Passed the Senate the 27th day of March, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2025.
Presiding Officer of the House
of Representatives