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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE JOINT
RESOLUTION 1005 By: Provenzano
AS INTRODUCED
A Joint Resolution directing the Secretary of State
to refer to the people for their approval or
rejection a proposed am endment to Section 2 of
Article XXVIII-A of the Constitution of the State of
Oklahoma; providing that certain restrictions on
manufacturers of alcoholic beverages shall not apply
to small distillers; providing that the term "small
distiller" shall be defined by law; providing ballot
title; and directing filing.
BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES AND THE SENATE OF THE
1ST SESSION OF THE 58TH OKLAHOMA LEGISLATURE:
SECTION 1. The Secretary of State shall refer to the pe ople for
their approval or rejection, as and in the manner provided by law,
the following proposed amendment to Section 2 of Article XXVIII -A of
the Constitution of the State of Oklahoma to read as follows:
Section 2. A. The Legislature shall enact laws providing for
the strict regulation, control, licensing and taxation of the
manufacture, sale, distribution, possession, transportation and
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consumption of alcoholic beverages, consistent with the provisions
of this Article. Provided:
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 distributio n
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
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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.,
d. Except except as provided in this subsection, and
except for a small brewer as defined by law or a small
distiller 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 or a small distiller as
defined by law, 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
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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 Oklaho ma 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:
a. winemakers either within or without this state may
sell wine produced at the winery to adult consumers
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who are at least twenty -one (21) years of age and are
physically present on the premises of the winery or at
a festival or trade show, and
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
off-premises 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 individua l drink
for on-premise on-premises consumption and where food
is prepared and sold for immediate consumption on the
premises. Any winemaker within or without this state
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that annually produces no more than fifteen thousand
(15,000) gallons of wine and elec ts 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 off-premises
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 withou t discrimination to all
on-premise on-premises and off-premise off-premises licensees,
unless otherwise provided by law. Every beer wholesaler must sell
its beer to all on-premise on-premises licensees on the same price
basis and without discrimination an d to all off-premise off-premises
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 on-
premises and off-premise off-premises 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,
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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:
a. who are at least twenty -one (21) years of age,
b. who intend the wine for pers onal use and not for
resale,
c. who will not receive by direct shipment more than six
(6) nine-liter cases of wine from any single winery
per year, and
d. who will not receive by direct shipment more than
thirty (30) nine-liter cases of wine per year.
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
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to time authorized by the state to sell wine for off -premise
consumption or to consumers in this state.
SECTION 2. The Ballot Title for the proposed Constitutional
amendment as set forth in SECTION 1 of this resolution shall be in
the following form:
BALLOT TITLE
Legislative Referendum No. ____ State Question No. ____
THE GIST OF THE PROPOSITION IS AS FOLLOW S:
This measure amends the Article of the Oklahoma Constitution
that deals with alcoholic beverages. The amendments pertain to
small distilleries. The amendments would exclude small
distilleries from the prohibition against manufacturers selling
at retail and would exclude small distilleries from the
requirement that sales can only be made to licensed wholesalers.
This mirrors the language currently in the Constitution
regarding small brewers. As is the case with small brewers, th e
definition of small d istiller would be provided by law.
SHALL THE PROPOSAL BE APPROVED?
FOR THE PROPOSAL — YES _____________
AGAINST THE PROPOSAL — NO _____________
SECTION 3. The Chief Clerk of the House of Representatives,
immediately after the passage of t his resolution, shall prepare and
file one copy thereof, including the Ballot Title set forth in
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SECTION 2 hereof, with the Secretary of State and one copy with the
Attorney General.
58-1-6530 JL 12/28/20