Charitable Collaboration Brewer License.

A. A charitable collaboration brewer license shall authorize the collaborating licensed brewers and holders thereof:

1. To formulate, manufacture, bottle, package and store the charitable collaboration beer, or any part thereof, on the licensed premises;

2. To sell the charitable collaboration beer in this state to holders of beer distributor licenses;

3. To sell the charitable collaboration beer out of this state to qualified persons for the sole purpose of fundraising for the stated charitable purposes;

4. To sell the charitable collaboration beer in this state to holders of retail licenses;

5. To serve free samples of the charitable collaboration beer produced by the collaborating licensed brewers to visitors twenty-one (21) years of age or older on the collaborating brewery licensed premises;

6. To sell the charitable collaboration beer produced by the collaborating licensee brewers for either on-premises or off-premises consumption to consumers on the brewery premises, or on premises located contiguous thereto;

7. To sell the charitable collaboration beer produced by the collaborating licensed brewers at public events such as trade shows or festivals; and

8. To purchase the charitable collaboration beer produced by the collaborating licensed brewers in retail containers from the holder of a beer distributor license to sell or serve in accordance with this section.

B. Nothing in this section shall prohibit the holder of a charitable collaboration brewer license from also holding or owning an interest in the holder of a brewpub license.

C. For purposes of this section, no visitor may sample more than a total of twelve (12) fluid ounces of the charitable collaboration beer per day. The brewer must restrict the distribution and consumption of charitable collaboration beer samples to an area within the licensed premises designated by the brewer. A current floor plan that includes the designated sampling area must be on file with the ABLE Commission. No visitor under twenty-one (21) years of age shall be permitted to enter this designated sampling area when samples are being distributed or consumed. Samples of the charitable collaboration beer served by a collaborating brewery under this section shall not be considered a sale of beer within the meaning of Article XXVIII-A of the Oklahoma Constitution or Section 1-103 of Title 37A of the Oklahoma Statutes; however, such samples of the charitable collaboration beer shall be considered beer removed or withdrawn from the brewery for use or consumption within the meaning of Section 5-110 of Title 37A of the Oklahoma Statutes for excise tax determination and reporting requirements. Sales and sampling may only occur between the hours of 10:00 a.m. and 2:00 a.m.

D. If a small brewer is a licensed charitable collaborating brewer and such small brewer holds a self-distribution license, it shall authorize the holder thereof to distribute the charitable collaboration beer produced to a holder of a retail beer license, retail spirits license, mixed beverage license, beer and wine license, caterer's license, special event license, public event license, charitable auction license or brewpub license. If a small brewer has elected to distribute through a distributor or self-distribute in a subject territory, for purposes of the charitable collaboration brewer license such small brewer and the other collaborating brewer may elect to do both simultaneously in a subject territory upon notice to the ABLE Commission.

E. The ABLE Commission shall promulgate rules, forms and fees to implement and enforce the charitable collaboration brewer license.

F. When more than one Oklahoma-licensed brewer makes application to the ABLE Commission to develop a charitable collaboration beer offering and seeks to obtain a charitable collaboration brewer license, the ABLE Commission shall evaluate the application based upon any of the following:

1. Whether the collaboration has a legitimate charitable purpose in this state, another state or a national charitable effort;

2. Whether the formula needs approval by any federal regulatory authority;

3. Whether the Oklahoma Tax Commission has been notified of the request for a tax exemption to allow the collaborators to transfer-in-bond products between the licensed premises of the collaborating brewers and whether the Tax Commission approves such transfer-in-bond;

4. The license standing of each licensed collaborating brewer in this state, including, but not limited to, any required storage licenses.

Upon consideration of the application facts and detailed plans submitted by the collaborating brewers, the ABLE Commission shall make its determination whether or not to issue the charitable collaboration brewer license. Upon approval of a charitable collaboration brewer license, such license shall be issued to both licensed brewers for the development and manufacture of a charitable collaboration beer offering. Each licensed brewer shall be required to post the charitable collaboration brewer license at their licensed premises and such license number shall be clearly affixed to any alcohol products stored or transferred-in-bond between the collaborating breweries. The charitable collaboration beer offering shall require a private label approved by the ABLE Commission according to the label requirements promulgated by the ABLE Commission rules.

Added by Laws 2019, c. 422, § 3, eff. Nov. 1, 2019.