2017 Oklahoma Statutes
Title 37A. Alcoholic Beverage
§37A-2-157. Winery self-distribution - Report to Commission on sales - Notice of exceeding production limit - Fines
Text effective Oct. 1, 2018. See, also, Title 37 for text effective until Oct. 1, 2018.
A. Every winemaker or small farm winery electing to directly sell its wines to retailers and restaurants must obtain a winery self-distribution license and pay the applicable license fee and shall register its products and post its prices with the state in the same manner required of the holder of a nonresident seller license.
B. Every winemaker or small farm winery electing to directly sell its wines to retailers and restaurants shall report all sales to retail package stores and restaurants in this state to the ABLE Commission and to the Oklahoma Tax Commission at least monthly, or in accordance with such rules as the ABLE Commission shall promulgate and shall pay to the Tax Commission all excise and other taxes imposed by this state upon such wine in the same manner required of the holder of a nonresident seller license.
C. Any self-distributing winemaker within or without this state who shall, in any calendar year, exceed the production volume limit provided for in subsection B of Section 17 of this act, shall immediately notify the ABLE Commission of such fact and shall thereafter have the option to sell the wines they produce to every licensed wholesale distributor who desires to purchase the same, on the same price basis and without discrimination, and shall thereafter be allowed to sell such beverages only to such licensed wholesale distributors or cease to sell its products in this state.
D. All winemakers who conduct business in this state shall be prohibited from creating, forming or participating in any kind of a cooperative or pooled transportation or distribution arrangement.
E. Any licensed winemaker or winery that sells or distributes its wine directly to a retailer or restaurant in this state after having exceeded the production volume limit provided for in subsection B of Section 17 of this act in any calendar year shall be subject to a fine of Ten Thousand Dollars ($10,000.00). In addition, if the violation is a second or subsequent violation, the winemaker or winery shall not be allowed to transport wine to a retail package store or restaurant for three (3) years from the date of the second or subsequent violation.
F. If Section 2 of Article XXVIIIA of the Oklahoma Constitution is ruled to be unconstitutional by a court of competent jurisdiction, then any licensed winemaker or winery that then continues to sell or distribute its wine directly to a retail package store or restaurant in this state shall be subject to a fine of Ten Thousand Dollars ($10,000.00) per violation.
Added by Laws 2016, c. 366, § 69, eff. Oct. 1, 2018.
NOTE: This section shall become effective October 1, 2018, upon certification of election returns favoring passage of the Constitutional Amendment proposed in Senate Joint Resolution No. 68 of the 2nd Session of the 55th Oklahoma Legislature.
