§ 2. Enactment of laws by Legislature--Direct shipment of alcoholic beverages--Direct sales of ...
Oklahoma Statutes AnnotatedConstitution of the State of Oklahoma [Annotated]
OK Const. Art. 28-A, § 2
§ 2. Enactment of laws by Legislature--Direct shipment of alcoholic beverages--Direct sales of wine
1. a. there shall be prohibited any common ownership between the manufacturing, wholesaling and retailing tiers, unless otherwise permitted by this subsection. Following the effective date of this Article, brewers may obtain beer wholesaler licenses to distribute beer, also known as brewery-owned branches, to up to two (2) territories within the state. Any brewery-owned branch in operation on the date of adoption of this Article may not expand its distribution territory that was in effect on the date of adoption of this Article. If a brewer maintained one or more licenses to distribute low-point beer in the state prior to the effective date of this Article, then up to two (2) of the brewer's low-point beer distribution licenses shall automatically convert to beer distribution licenses upon the effective date of this Article. All low-point distribution licenses shall cease to exist following this conversion date,
b. from the date of adoption of this Article by the voters until the effective date of this Article, brewers may continue to obtain and operate up to two (2) low-point beer brewery-owned branches pursuant to the existing low-point beer laws pertaining to the distribution of low-point beer by brewery-owned branches,
c. only after the effective date of this Article, the Legislature may duly enact legislation to require, by statute, the divestiture of all brewery-branches. If the Legislature requires brewers to divest, it must require full divestiture of every brewery-owned branch in the state, and it shall allow brewers at least (1) year but no more than three (3) years to complete said divestiture. Except as provided in this subsection, and except for a small brewer as defined by law, no other member of one tier may own an interest in a business licensed in a different tier;
2. A manufacturer, except a brewer, shall not be permitted to sell alcoholic beverages in this state unless such sales occur through an Oklahoma wholesaler. A manufacturer, except a brewer, or subsidiary of any manufacturer, who markets his or her product solely through a subsidiary or subsidiaries, a distiller, rectifier, bottler, winemaker or importer of alcoholic beverages, bottled or made in a foreign country, either within or without this state, may sell such brands or kinds of alcoholic beverages to any licensed wholesaler who desires to purchase the same. Provided, if a manufacturer, except a brewer, elects to sell its products to multiple wholesalers, such sales shall be made on the same price basis and without discrimination to each wholesaler;
3. A brewer, with the exception of a small brewer as defined by law, shall not be permitted to sell beer in this state unless such sales occur through an Oklahoma licensed wholesaler pursuant to a wholesaler agreement and remain at-rest in the licensed wholesaler's warehouse for at least twenty-four (24) hours, unless the sale occurs through a wholesaler that has obtained a hardship exception to this twenty-four-hour at-rest requirement. The wholesaler agreement shall designate the territory within which the beer will be sold exclusively by the wholesaler;
4. Winemakers either within or without this state may sell wine produced at their wineries to any licensed wholesaler who desires to purchase the wine; provided, that if a winemaker elects to sell the wine it produces to multiple wholesalers, then such sales shall be made on the same price basis and without discrimination to each wholesaler. In addition to its sales through one or more licensed wholesalers, a winemaker may be authorized to sell its wine as follows:
b. winemakers either within or without this state that annually produce no more than fifteen thousand (15,000) gallons of wine may sell and ship only the wine they produce directly to licensed restaurants or other retail stores and outlets that may be from time to time authorized by the state to sell alcoholic beverages; provided, however, that any such winemaker which elects to directly sell its wine under this subparagraph shall not also use a licensed wholesaler as a means of distribution, and shall be required to sell its wines to every restaurant and other retail store or outlet that may be from time to time authorized by the state to sell wine for off-premise consumption who desires to purchase the same, as supplies allow, on the same price basis and without discrimination. As used in this section, “restaurant” means an establishment that is licensed to sell alcoholic beverages by the individual drink for on-premise consumption and where food is prepared and sold for immediate consumption on the premises. Any winemaker within or without this state that annually produces no more than fifteen thousand (15,000) gallons of wine and elects to directly sell its wine to restaurants and other retail stores and outlets that may be from time to time authorized by the state to sell wine for off-premise consumption must self-distribute the wine using only vehicle(s) owned or leased by the winemaker, and without the use of a common or private contract carrier.
All provisions of this paragraph are declared to be interdependent; and
5. Every wholesaler, except a beer wholesaler, must sell its products on the same price basis and without discrimination to all on-premise and off-premise licensees, unless otherwise provided by law. Every beer wholesaler must sell its beer to all on-premise licensees on the same price basis and without discrimination and to all off-premise licensees on the same price basis within a particular county and without discrimination. Every wholesaler must receive payment in full upon receipt of the alcoholic beverage by all on-premise and off-premise licensees. It shall be unlawful for any wholesaler to grant to any member of the retail tier, directly or indirectly, any credit, loan, discount, rebate, free goods, allowance or other inducement not otherwise expressly permitted by state law.
B. No alcoholic beverage shall be shipped directly to a consumer from a manufacturer within or without the state, unless such shipment has been authorized by law. Provided, if direct shipment is authorized by law, it shall be limited to the direct shipment of wine by wineries within or without the state who have secured all necessary permits and remitted all necessary taxes as prescribed by the state, to Oklahoma residents:
C. All laws passed by the Legislature under the authority of the Article shall be consistent with the provisions of this section. If any provision of this Article applicable to winemakers is ruled to be unconstitutional by a court of competent jurisdiction, then no winemaker shall be permitted to directly sell its wine to restaurants or other retail stores and outlets that may be from time to time authorized by the state to sell wine for off-premise consumption or to consumers in this state.
Credits
Added by State Question No. 792, Legislative Referendum No. 370, adopted at election held on Nov. 8, 2016.
OK Const. Art. 28-A, § 2, OK CONST Art. 28-A, § 2
Current with amendments approved through June 30, 2020.
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