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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 531 By: Seifried
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5
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6 AS INTRODUCED
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7 An Act relating to alcoholic beverages; amending 37A
7 O.S. 2021, Sections 2-143, 2-144, 2-147, 3-119, 3-
8 120, and 3-121, which relate to licensees; modifying
8 requirements for information to be submitted to the
9 Alcoholic Beverage Laws Enforcement (ABLE) Commission
9 by certain licensees; modifying grounds for refusal
10 of certain licenses; modifying persons prohibited
10 from taking certain action; limiting certain rights
11 and ownership interests of certain persons; updating
11 statutory language; and providing an effective date.
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12
13
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 37A O.S. 2021, Section 2-143, is
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16 amended to read as follows:
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17 Section 2-143. A. Any corporation applying for a mixed
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18 beverage, beer and wine, caterer, public event, beer distributor or
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19 bottle club, or as an equity partner in a wine and spirits
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20 wholesaler, shall submit to the ABLE Commission the following:
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21 1. A certificate of good standing from the office of the
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22 Secretary of State;
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23 2. A list of all corporate officers, directors, executive
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24 committee members or members of a similar governing body and their
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1 addresses, except for a charitable organization exempt from taxation
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2 under Section 501(c)(3),(4),(5),(6),(7),(8),(9),(10), or (19) of the
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3 United States Internal Revenue Code, which shall only be required to
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4 furnish its corporate officers; and
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5 3. A list of all stockholders owning fifteen percent (15%)
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6 forty-nine percent (49%) or more of the stock and their addresses.
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7 B. Any corporation applying for a retail wine or retail beer
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8 license shall submit to the ABLE Commission the following:
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9 1. A certificate of good standing from the office of the
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10 Secretary of State;
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11 2. A list of all corporate officers and directors, except for a
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12 charitable organization exempt from taxation under Section
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13 501(c)(3),(4),(5),(6),(7),(8),(9),(10), or (19) of the United States
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14 Internal Revenue Code, which shall only be required to furnish its
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15 corporate officers; and
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16 3. A list of all stockholders owning fifty-one percent (51%) or
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17 more of the stock.
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18 C. A corporate licensee shall notify the ABLE Commission in
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19 writing of any change in the officers or directors of the
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20 corporation or in the principal managers of premises licensed to the
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21 corporation and shall pay a fee of One Hundred Dollars ($100.00) for
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22 each notification of change. Provided, service organizations which
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23 are exempt under Section 501(c)(8), (10), or (14) of the Internal
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24 Revenue Code shall be exempt from such fee.
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1 D. A corporate licensee shall notify the ABLE Commission any
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2 time a person, any type of partnership, limited liability company or
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3 other entity acquires the percentages specified in paragraph 3 of
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4 subsection A or B of this section, or more, of the stock of the
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5 corporation. Such notification shall be within thirty (30) days of
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6 acquisition, and the corporation shall pay a fee of One Hundred
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7 Dollars ($100.00) for each notification of change.
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8 E. The ABLE Commission may disapprove a change of officers,
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9 directors or principal managers or the acquisition of more than the
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10 percentages specified in paragraph 3 of subsection A or B of this
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11 section of the stock in a licensed corporation if the ABLE
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12 Commission feels that such change would materially affect the
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13 conditions under which the license was issued, such that the license
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14 would not have been issued had such change been in existence at the
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15 time of the original application. If such disapproval occurs, the
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16 ABLE Commission shall notify the licensee in writing and in the case
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17 of a publicly traded corporation, allow a reasonable time for the
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18 licensee to remove such officer, director or manager or for the
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19 stockholder to divest himself or herself of any stock held in excess
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20 of the percentages specified in paragraph 3 of subsection A or B of
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21 this section; provided, a reasonable time may not exceed a ninety-
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22 day period following notification of denial by the ABLE Commission.
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23 Failure to comply with the provisions of this subsection may result
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24 in revocation or suspension of such license.
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1 F. Any person who was an officer or director or who has owned
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2 the percentages specified in paragraph 3 of subsection A or B of
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3 this section or more of the stock in a corporation which has been
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4 denied a license or had a license revoked or suspended pursuant to
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5 the provisions of the Oklahoma Alcoholic Beverage Control Act shall
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6 not own stock in any other corporation seeking a license pursuant to
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7 the provisions of the Oklahoma Alcoholic Beverage Control Act for a
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8 period of twelve (12) months from the date the license was revoked
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9 or suspended.
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10 G. Any person who was a manager or a member owning forty-nine
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11 percent (49%) or more of the total membership interests of a limited
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12 liability company which has been denied a license or had a license
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13 revoked or suspended pursuant to the provisions of the Oklahoma
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14 Alcoholic Beverage Control Act shall not own stock in any
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15 corporation seeking a license pursuant to the provisions of the
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16 Oklahoma Alcoholic Beverage Control Act for a period of twelve (12)
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17 months from the date the license was revoked or suspended.
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18 SECTION 2. AMENDATORY 37A O.S. 2021, Section 2-144, is
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19 amended to read as follows:
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20 Section 2-144. A. Any limited liability company, formed as
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21 provided for in the Limited Liability Company Act, may apply for a
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22 mixed beverage, beer and wine, bottle club, caterer, public event,
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23 beer distributor, retail wine or retail beer license issued pursuant
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24 to the Oklahoma Alcoholic Beverage Control Act. Any limited
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1 liability company applying for a license shall submit to the ABLE
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2 Commission, the following:
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3 1. A Certificate of Good Standing from the Office of the
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4 Secretary of State;
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5 2. The Articles of Organization with all amendments and
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6 corrections filed with the Office of the Secretary of State with
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7 proof that same has been filed in accordance with the Limited
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8 Liability Company Act;
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9 3. The name and address of the resident agent;
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10 4. The name and address of the manager;
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11 5. The operating agreement;
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12 6. A current list of the full name, social security number and
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13 address of each member owning forty-nine percent (49%) or more of
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14 the total membership interests; and
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15 7. A copy of the issued Certificate of Membership Interest for
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16 each member.
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17 B. A limited liability company licensee shall notify the ABLE
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18 Commission in writing of any change in the manager of the licensed
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19 company within thirty (30) days of the change and shall pay a fee of
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20 One Hundred Dollars ($100.00) for each notification of change.
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21 C. A limited liability company shall notify the ABLE Commission
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22 in writing any time a membership is assigned or members are added or
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23 disassociated within thirty (30) days of the change. The limited
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1 liability company shall pay a fee of One Hundred Dollars ($100.00)
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2 for each notification of change.
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3 D. The ABLE Commission may disapprove a change of manager or
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4 new membership in a licensed liability company if the ABLE
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5 Commission feels that such change would materially affect any
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6 conditions under which the license was issued, such that the license
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7 would not have been issued had such change been in existence at the
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8 time of the original application. If such disapproval occurs, the
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9 ABLE Commission shall notify the licensee in writing and allow a
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10 reasonable time for the licensee to remove such manager or for a
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11 member to be disassociated from the company; provided, a reasonable
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12 time not exceed a ninety-day period following notification of denial
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13 by the ABLE Commission. Failure to comply with the provisions of
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14 this subsection may result in revocation or suspension of such
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15 license.
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16 E. Any person who has been a licensee, a partner in a license,
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17 an officer, director or fifteen percent (15%) a limited partner
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18 owning forty-nine percent (49%) or more stockholder of a corporation
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19 holding a license revoked or suspended, pursuant to the provisions
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20 of the Oklahoma Alcoholic Beverage Control Act, shall not serve as a
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21 manager or be a member owning forty-nine percent (49%) or more of
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22 the total membership interests in a limited liability company
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23 seeking a license pursuant to the provisions of the Oklahoma
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1 Alcoholic Beverage Control Act for a period of twelve (12) months
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2 from the date the license was revoked or suspended.
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3 F. Any person who has been a manager, member owning forty-nine
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4 percent (49%) or more of the total membership interests, or
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5 participant in any business entity which was a manager or member
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6 owning forty-nine percent (49%) or more of the total membership
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7 interests of a limited liability company which has been denied a
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8 license or has a license revoked or suspended, pursuant to the
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9 provisions of the Oklahoma Alcoholic Beverage Control Act shall not
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10 serve as a manager or member in a limited liability company seeking
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11 a license pursuant to the provisions of the Oklahoma Alcoholic
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12 Beverage Control Act for a period of twelve (12) months from date
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13 the license was revoked or suspended.
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14 G. Any person who has been convicted of a felony for which a
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15 pardon has not been granted shall not be elected as a manager or be
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16 a member of a limited liability company.
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17 SECTION 3. AMENDATORY 37A O.S. 2021, Section 2-147, is
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18 amended to read as follows:
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19 Section 2-147. A. The ABLE Commission shall refuse to issue a
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20 mixed beverage, beer and wine, bottle club, public event, caterer,
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21 retail wine or retail beer license, either on an original
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22 application or a renewal application, if it has reasonable grounds
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23 to believe and finds any of the following to be true:
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1 1. That the applicant, in the case of a natural person, is
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2 under twenty-one (21) years of age;
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3 2. That the applicant, in the case of a corporation, has a
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4 stockholder who owns fifteen percent (15%) forty-nine percent (49%)
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5 or more of the stock, an officer, or a director who is under twenty-
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6 one (21) years of age;
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7 3. That the applicant, in the case of any type of partnership,
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8 has a limited partner who owns forty-nine percent (49%) or more of
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9 the total partnership interest, or has any partner who is under
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10 twenty-one (21) years of age;
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11 4. That the applicant, in the case of a limited liability
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12 company, has a member who owns forty-nine percent (49%) or more of
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13 the total membership interests, or has a manager or member who is
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14 under twenty-one (21) years of age;
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15 5. That the applicant or any type of partner or limited partner
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16 owning forty-nine percent (49%) or more of the total partnership
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17 interests has been convicted of a felony within fifteen (15) years
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18 prior to the application date;
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19 6. That the applicant, in the case of a corporation, has a
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20 stockholder owning fifteen percent (15%) forty-nine percent (49%) of
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21 the stock, an officer or a director who has been convicted of a
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22 felony within fifteen (15) years prior to the application date;
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23 7. That the applicant, in the case of a limited liability
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24 company, has a manager or a member owning forty-nine percent (49%)
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1 or more of the total membership interests who has been convicted of
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2 a felony within fifteen (15) years prior to the application date,
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3 and such manager or member has an ownership interest greater than
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4 fifty percent (50%);
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5 8. That the applicant has made false statements to the ABLE
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6 Commission;
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7 9. That the applicant is not the legitimate owner of the
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8 business for which a license is sought or that other persons have
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9 undisclosed ownership interests in the business;
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10 10. That the applicant or any partner, within twelve (12)
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11 months after being issued a license, either on an original
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12 application or a renewal application, has violated any provision of
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13 the Oklahoma Alcoholic Beverage Control Act or rule of the ABLE
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14 Commission promulgated pursuant hereto. Provided, however, that if
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15 the ABLE Commission, during the twelve-month period, has suspended
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16 any license sought to be renewed, such renewal application may be
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17 approved if the term of the suspension has been completed and the
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18 applicant has complied with any special conditions imposed in
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19 connection with the suspension;
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20 11. That the applicant is not the real party in interest, or
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21 intends to carry on the business authorized by the license as the
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22 agent of another;
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23 12. That the applicant is a person who appoints or is a law
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24 enforcement official or is an employee of the ABLE Commission;
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1 13. That the applicant does not own or have a written lease for
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2 the premises for which a license is sought; or
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3 14. That the applicant or any partner, spouse, employee or
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4 other person affiliated with the applicant is not in compliance with
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5 the tax laws of this state as required in Article XXVIIIA of the
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6 Oklahoma Constitution.
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7 B. 1. The ABLE Commission may refuse to issue a mixed
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8 beverage, beer and wine, bottle club, public event or caterer
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9 license, either on an original application or a renewal application,
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10 if it has reasonable grounds to believe and finds any of the
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11 following to be true:
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12 a. that the applicant or any type of partner or limited
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13 partner owning forty-nine percent (49%) or more of the
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14 total partnership interests has been convicted of a
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15 felony described in paragraph 2 of this subsection,
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16 b. that the applicant, in the case of a corporation, has
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17 a stockholder owning fifteen percent (15%) forty-nine
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18 percent (49%) of the stock, an officer or a director
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19 who has been convicted of a felony described in
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20 paragraph 2 of this subsection, and
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21 c. that the applicant, in the case of a limited liability
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22 company, has a manager or a member owning forty-nine
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23 percent (49%) or more of the total membership
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24 interests who has been convicted of a felony within
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1 twenty-five (25) years prior to the application date,
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2 who has been convicted of a felony described in
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3 paragraph 2 of this subsection.
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4 2. The provisions of this section shall apply to the following
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5 felony offenses:
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6 a. an alcohol-related offense,
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7 b. a violent crime as defined in Section 142A-1 of Title
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8 21 of the Oklahoma Statutes, or
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9 c. a crime which would subject a person to registration
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10 pursuant to the Sex Offenders Registration Act.
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11 SECTION 4. AMENDATORY 37A O.S. 2021, Section 3-119, is
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12 amended to read as follows:
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13 Section 3-119. It shall be unlawful for any manufacturer,
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14 brewer, wine and spirits wholesaler, beer distributor or person
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15 authorized to sell alcoholic beverages to a wholesaler, or any
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16 employee, officer, director, stockholder owning fifteen percent
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17 (15%) forty-nine percent (49%) or more of the stock, limited partner
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18 owning forty-nine percent (49%) or more of the total partnership
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19 interests of a limited partnership, limited liability company member
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20 owning forty-nine percent (49%) or more of the total membership
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21 interests of a limited liability company, any type of general
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22 partner, managing partner, manager, member or agent thereof, to
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23 directly or indirectly:
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1 1. Have any financial interest in any premises upon which any
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2 alcoholic beverage is sold at retail or in any business connected
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3 with the retailing of alcoholic beverages; provided, nothing in this
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4 act shall prohibit the operation of a mixed beverage licensee, beer
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5 and wine licensee or caterer licensee by an entity which has common
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6 owners with the holder of a small brewer license or a brewpub
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7 license;
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8 2. Lend any money or other thing of value, or to make any gift
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9 or offer any gratuity, to any package store, retail wine, retail
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10 beer, mixed beverage, beer and wine, public event or bottle club
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11 licensee or caterer;
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12 3. Guarantee any loan or the repayment of any financial
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13 obligation of any retailer, mixed beverage, beer and wine, public
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14 event or bottle club licensee or caterer;
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15 4. Require any wine and spirits wholesaler, beer distributor,
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16 retailer, mixed beverage, on-premises beer and wine licensee, public
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17 event or caterer to purchase and dispose of any quota of alcoholic
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18 beverages, or to require any retailer to purchase any kind, type,
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19 size, container or brand of alcoholic beverages in order to obtain
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20 any other kind, type, size, container or brand of alcoholic
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21 beverages;
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22 5. Sell to any retailer, mixed beverage, on-premises beer and
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23 wine licensee, public event or caterer any alcoholic beverage on
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24 consignment, or upon condition, or with the privilege of return, or
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1 on any condition other than a bona fide sale; provided, the
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2 following shall not be considered a violation of this paragraph:
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3 a. delivery in good faith, through mistake, inadvertence
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4 or oversight, of an alcoholic beverage that was not
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5 ordered by a retailer, mixed beverage licensee, on-
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6 premises beer and wine licensee, caterer, public event
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7 or special event licensee to such licensee,
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8 b. replacement of product breakage that occurred while
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9 the alcoholic beverages were in transit from the
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10 wholesaler to the licensee, or
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11 c. replacement of cork-tainted wine that makes the
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12 product unsaleable as long as the licensee notifies
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13 the wine and spirits wholesaler of the defect in
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14 writing within ninety (90) days after delivery of the
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15 product; or
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16 6. Extend credit to any retailer, other than holders of Federal
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17 Liquor Stamps on United States government reservations and
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18 installations, mixed beverage, public event or on-premises beer and
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19 wine licensee or caterer, other than a state lodge located in a
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20 county which has approved the retail sale of alcoholic beverages by
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21 the individual drink for on-premises consumption. The acceptance of
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22 a postdated check or draft or the failure to deposit for collection
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23 a current check or draft by the second banking day after receipt
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1 shall be deemed an extension of credit. Violation of this section
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2 shall be grounds for suspension of the license.
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3 SECTION 5. AMENDATORY 37A O.S. 2021, Section 3-120, is
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4 amended to read as follows:
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5 Section 3-120. No mixed beverage, beer and wine, caterer,
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6 public event or bottle club licensee, general partner in any type of
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7 partnership, limited partner owning forty-nine percent (49%) or more
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8 of the total partnership interests in any type of limited
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9 partnership, manager or member of a limited liability company,
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10 officer, director, or stockholder of any corporate licensee owning
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11 more than fifteen percent (15%) forty-nine percent (49%) of the
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12 stock shall have any right, title, lien, claim or interest,
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13 financial or otherwise in, upon or to the premises, equipment,
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14 business or merchandise of any package store, beer distributor,
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15 brewer, manufacturer or wholesaler. The provisions of this section
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16 shall not prohibit a person who is an officer or director of a
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17 fraternal or veteran's organization which is a tax exempt
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18 organization under Section 501(c)(8),(10) or (19) of the Internal
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19 Revenue Code and which holds a license issued by the ABLE Commission
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20 from having a right, title, lien, claim or interest in the premises,
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21 equipment, business or merchandise of a package store.
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22 SECTION 6. AMENDATORY 37A O.S. 2021, Section 3-121, is
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23 amended to read as follows:
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1 Section 3-121. No manufacturer, brewer, wine and spirits
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2 wholesaler, beer distributor, general partner in any type of
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3 partnership, limited partner owning forty-nine percent (49%) or more
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4 of the total partnership interests in any type of limited
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5 partnership, manager or member of a limited liability company, or
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6 officer, director or stockholder of any nonresident seller, brewer,
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7 or manufacturer licensee, owning more than fifteen percent (15%)
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8 forty-nine percent (49%) of the stock shall have any right, title,
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9 claim or interest, financial or otherwise in, upon or to the
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10 premises, equipment, business or merchandise of any mixed beverage,
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11 beer and wine, caterer, public event or bottle club licensee.
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12 SECTION 7. This act shall become effective November 1, 2025.
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Req. No. 368 Page 15Every fact on this page links to its source, starting with the official bill record.