Oklahoma Senate Bill SB284

Oklahoma 2024 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23

Caption

Alcoholic beverages; prohibiting alcoholic beverages from being sold for less than a certain amount. Effective date.

Impact

The implementation of SB284 is likely to have a significant impact on state laws governing alcohol sales. By enforcing a minimum markup, the bill aims to enhance consistency across the retail landscape, potentially safeguarding businesses from aggressive price competition that could undermine profit margins. However, it also raises concerns among critics about the implications for consumer choice and the accessibility of alcoholic beverages, especially in communities with diverse socioeconomic contexts. The effective date for this bill is set for November 1, 2023.

Summary

Senate Bill 284, introduced by Senator Seifried, aims to regulate the retail sale prices of alcoholic beverages in Oklahoma. The bill proposes an amendment to Section 3-118 of Title 37A of the Oklahoma Statutes, establishing a requirement that alcoholic beverages sold for both off-premises and on-premises consumption must not be sold at retail for less than a 6% markup on the actual unit cost. This legislative move seeks to standardize the pricing of alcoholic beverages, potentially impacting local retailers and distributors involved in the alcoholic beverage market.

Contention

While the bill is positioned as a means to ensure fair pricing practices within the state, there are notable points of contention among lawmakers and stakeholders. Proponents argue that the markup requirement will help protect local businesses from losing profits to underpriced products, particularly those from large suppliers. Conversely, opponents contend that such regulations could limit competition and lead to higher prices for consumers overall. Additionally, some retailers fear that the strict markup limits could disadvantage smaller businesses that rely on flexibility in pricing to attract customers.