Oklahoma 2022 Regular Session

Oklahoma House Bill HJR1005 Compare Versions

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2828 STATE OF OKLAHOMA
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3030 1st Session of the 58th Legislature (2021)
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3232 HOUSE JOINT
3333 RESOLUTION 1005 By: Provenzano
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4040 AS INTRODUCED
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4242 A Joint Resolution directing the Secretary of State
4343 to refer to the people for their approval or
4444 rejection a proposed am endment to Section 2 of
4545 Article XXVIII-A of the Constitution of the State of
4646 Oklahoma; providing that certain restrictions on
4747 manufacturers of alcoholic beverages shall not apply
4848 to small distillers; providing that the term "small
4949 distiller" shall be defined by law; providing ballot
5050 title; and directing filing.
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5656 BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES AND THE SENATE OF THE
5757 1ST SESSION OF THE 58TH OKLAHOMA LEGISLATURE:
5858 SECTION 1. The Secretary of State shall refer to the pe ople for
5959 their approval or rejection, as and in the manner provided by law,
6060 the following proposed amendment to Section 2 of Article XXVIII -A of
6161 the Constitution of the State of Oklahoma to read as follows:
6262 Section 2. A. The Legislature shall enact laws providing for
6363 the strict regulation, control, licensing and taxation of the
6464 manufacture, sale, distribution, possession, transportation and
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9191 consumption of alcoholic beverages, consistent with the provisions
9292 of this Article. Provided:
9393 1. a. there shall be prohibited any common ownership between
9494 the manufacturing, wholesaling and retailing tiers,
9595 unless otherwise permitted by this subsection.
9696 Following the effective date of this Article, brewers
9797 may obtain beer wholesaler licenses to distribute
9898 beer, also known as brewery-owned branches, to up to
9999 two (2) territories within the state. Any brewery -
100100 owned branch in operation on the date of adoption of
101101 this Article may not expand its distribution territory
102102 that was in effect on the date of adoption of this
103103 Article. If a brewer maintained one or more licenses
104104 to distribute low-point beer in the state prior to the
105105 effective date of this Article, then up to two (2) of
106106 the brewer's low-point beer distribution licenses
107107 shall automatically convert to beer distributio n
108108 licenses upon the effective date of this Article. All
109109 low-point distribution licenses shall cease to exist
110110 following this conversion date,
111111 b. from the date of adoption of this Article by the
112112 voters until the effective date of this Article,
113113 brewers may continue to obtain and operate up to two
114114 (2) low-point beer brewery-owned branches pursuant to
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141141 the existing low-point beer laws pertaining to the
142142 distribution of low-point beer by brewery -owned
143143 branches,
144144 c. only after the effective date of this Article, the
145145 Legislature may duly enact legislation to require, by
146146 statute, the divestiture of all brewery -branches. If
147147 the Legislature requires brewers to divest, it must
148148 require full divestiture of every brewery -owned branch
149149 in the state, and it shall allow brewers at least (1)
150150 year but no more than three (3) years to complete said
151151 divestiture.,
152152 d. Except except as provided in this subsection, and
153153 except for a small brewer as defined by law or a small
154154 distiller as defined by law , no other member of one
155155 tier may own an interest in a business licensed in a
156156 different tier;
157157 2. A manufacturer, except a brewer or a small distiller as
158158 defined by law, shall not be permitted to sell alcoholic beverages
159159 in this state unless such sales occur through an Oklahoma
160160 wholesaler. A manufacturer, except a brewer, or subsidiary of any
161161 manufacturer, who markets his or her product solely through a
162162 subsidiary or subsidiaries, a distiller, rectifier, bottler,
163163 winemaker or importer of alcoholic beverages, bottled or made in a
164164 foreign country, either within or without this state, may sell such
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191191 brands or kinds of alcoholic beverages to any licensed wholesaler
192192 who desires to purchase the same. Provided, if a manufacturer,
193193 except a brewer, elects to sell its products to multiple
194194 wholesalers, such sales shall be made on the same price basis and
195195 without discrimination to each wholesaler;
196196 3. A brewer, with the exception of a small brewer as defined by
197197 law, shall not be permitted to sell beer in this state unless such
198198 sales occur through an Oklaho ma licensed wholesaler pursuant to a
199199 wholesaler agreement and remain at -rest in the licensed wholesaler 's
200200 warehouse for at least twenty -four (24) hours, unless the sale
201201 occurs through a wholesaler that has obtained a hardship exception
202202 to this twenty-four-hour at-rest requirement. The wholesaler
203203 agreement shall designate the territory within which the beer will
204204 be sold exclusively by the wholesaler;
205205 4. Winemakers either within or without this state may sell wine
206206 produced at their wineries to any licensed wholesaler who desires to
207207 purchase the wine; provided, that if a winemaker elects to sell the
208208 wine it produces to multiple wholesalers, then such sales shall be
209209 made on the same price basis and without discrimination to each
210210 wholesaler. In addition to its sales through one or more licensed
211211 wholesalers, a winemaker may be authorized to sell its wine as
212212 follows:
213213 a. winemakers either within or without this state may
214214 sell wine produced at the winery to adult consumers
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241241 who are at least twenty -one (21) years of age and are
242242 physically present on the premises of the winery or at
243243 a festival or trade show, and
244244 b. winemakers either within or without this state that
245245 annually produce no more than fifteen thousand
246246 (15,000) gallons of wine may sell and ship only the
247247 wine they produce directly to licensed restaurants or
248248 other retail stores and outlets that may be from time
249249 to time authorized by the state to sell alcoholic
250250 beverages; provided, however, that any such winemaker
251251 which elects to directly sell its wine under this
252252 subparagraph shall not also use a licensed wholesaler
253253 as a means of distribution, and shall be required to
254254 sell its wines to every restaurant and other retail
255255 store or outlet that may be from time to time
256256 authorized by the state to sell wine for off-premise
257257 off-premises consumption who desires to purchase the
258258 same, as supplies allow, on the same price basis and
259259 without discrimination. As used in this section,
260260 "restaurant" means an establishment that is licensed
261261 to sell alcoholic beverages by the individua l drink
262262 for on-premise on-premises consumption and where food
263263 is prepared and sold for immediate consumption on the
264264 premises. Any winemaker within or without this state
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291291 that annually produces no more than fifteen thousand
292292 (15,000) gallons of wine and elec ts to directly sell
293293 its wine to restaurants and other retail stores and
294294 outlets that may be from time to time authorized by
295295 the state to sell wine for off-premise off-premises
296296 consumption must self -distribute the wine using only
297297 vehicle(s) owned or leased by the winemaker, and
298298 without the use of a common or private contract
299299 carrier.
300300 All provisions of this paragraph are declared to be
301301 interdependent; and
302302 5. Every wholesaler, except a beer wholesaler, must sell its
303303 products on the same price basis and withou t discrimination to all
304304 on-premise on-premises and off-premise off-premises licensees,
305305 unless otherwise provided by law. Every beer wholesaler must sell
306306 its beer to all on-premise on-premises licensees on the same price
307307 basis and without discrimination an d to all off-premise off-premises
308308 licensees on the same price basis within a particular county and
309309 without discrimination. Every wholesaler must receive payment in
310310 full upon receipt of the alcoholic beverage by all on-premise on-
311311 premises and off-premise off-premises licensees. It shall be
312312 unlawful for any wholesaler to grant to any member of the retail
313313 tier, directly or indirectly, any credit, loan, discount, rebate,
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340340 free goods, allowance or other inducement not otherwise expressly
341341 permitted by state law.
342342 B. No alcoholic beverage shall be shipped directly to a
343343 consumer from a manufacturer within or without the state, unless
344344 such shipment has been authorized by law. Provided, if direct
345345 shipment is authorized by law, it shall be limited to the direct
346346 shipment of wine by wineries within or without the state who have
347347 secured all necessary permits and remitted all necessary taxes as
348348 prescribed by the state, to Oklahoma residents:
349349 a. who are at least twenty -one (21) years of age,
350350 b. who intend the wine for pers onal use and not for
351351 resale,
352352 c. who will not receive by direct shipment more than six
353353 (6) nine-liter cases of wine from any single winery
354354 per year, and
355355 d. who will not receive by direct shipment more than
356356 thirty (30) nine-liter cases of wine per year.
357357 C. All laws passed by the Legislature under the authority of
358358 the Article shall be consistent with the provisions of this section.
359359 If any provision of this Article applicable to winemakers is ruled
360360 to be unconstitutional by a court of competent jurisdiction, then no
361361 winemaker shall be permitted to directly sell its wine to
362362 restaurants or other retail stores and outlets that may be from time
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389389 to time authorized by the state to sell wine for off -premise
390390 consumption or to consumers in this state.
391391 SECTION 2. The Ballot Title for the proposed Constitutional
392392 amendment as set forth in SECTION 1 of this resolution shall be in
393393 the following form:
394394 BALLOT TITLE
395395 Legislative Referendum No. ____ State Question No. ____
396396 THE GIST OF THE PROPOSITION IS AS FOLLOW S:
397397 This measure amends the Article of the Oklahoma Constitution
398398 that deals with alcoholic beverages. The amendments pertain to
399399 small distilleries. The amendments would exclude small
400400 distilleries from the prohibition against manufacturers selling
401401 at retail and would exclude small distilleries from the
402402 requirement that sales can only be made to licensed wholesalers.
403403 This mirrors the language currently in the Constitution
404404 regarding small brewers. As is the case with small brewers, th e
405405 definition of small d istiller would be provided by law.
406406 SHALL THE PROPOSAL BE APPROVED?
407407 FOR THE PROPOSAL — YES _____________
408408 AGAINST THE PROPOSAL — NO _____________
409409 SECTION 3. The Chief Clerk of the House of Representatives,
410410 immediately after the passage of t his resolution, shall prepare and
411411 file one copy thereof, including the Ballot Title set forth in
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438438 SECTION 2 hereof, with the Secretary of State and one copy with the
439439 Attorney General.
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441441 58-1-6530 JL 12/28/20
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