Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB262 Compare Versions

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5353 STATE OF OKLAHOMA
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5555 1st Session of the 59th Legislature (2023)
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5757 SENATE BILL 262 By: Garvin
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6363 AS INTRODUCED
6464
6565 An Act relating to alcoholic beverages; amending 37A
6666 O.S. 2021, Section 3 -116, which relates to sales by
6767 licensed wine and spirits whole saler; authorizing
6868 wholesalers to fill orders non-sequentially; and
6969 providing an effective date.
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7575 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
7676 SECTION 1. AMENDATORY 37A O.S. 2021, Section 3 -116, is
7777 amended to read as follows:
7878 Section 3-116. A. Any manufacturer or subsidiary of a
7979 manufacturer who markets its products solely through a subsidiary or
8080 subsidiaries, a distiller, rectifier, bottler, winemaker or impo rter
8181 of alcoholic beverages, bottled or made in a f oreign country, either
8282 within or without this state, may sell such brands or kinds of
8383 alcoholic beverages to every licensed wine and spirits wholesaler
8484 who desires to purchase the same, on the same price b asis and
8585 without discrimination or inducements, and shall further be required
8686 to sell such beverages only to those persons licensed as wine and
8787 spirits wholesalers.
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139139 B. The provisions of subsection A of th is section shall not
140140 apply to a brewer except as ot herwise stated herein. In the event a
141141 brewer, who has entered into territorial distri bution agreements
142142 with beer distributors in this state, markets wine and spirits
143143 products in this state either itself o r through a subsidiary or
144144 affiliate, then such brew er, subsidiary or affiliate may elect to
145145 designate beer distributors, with whom it has entered into
146146 territorial distribution agreements, as its designated wholesalers
147147 for any wine and spirit products to be sold by the brewer,
148148 subsidiary or affiliate within said beer distributors ’ existing
149149 territories, provided such beer distributors must al so hold a wine
150150 and spirits wholesaler license. In such event, the beer
151151 distributors shall be deemed designated wholesa lers for the
152152 territory with respect to the designat ed products. Provided, in the
153153 event a beer distrib utor has not obtained a wine and sp irits
154154 license, has elected not to sell wine and spirits in its respective
155155 territory or, in the brewer ’s commercially reasonable discretion, is
156156 not suitable to sell wine a nd spirits in its respective territory,
157157 then the brewer, subsidiary or affiliate may e xtend the territory of
158158 an existing beer distributor, with whom it has entered into a
159159 territorial distribution agreement and who holds a wine and spirits
160160 wholesaler license, for said territory. For purposes of this
161161 subsection only, the phrase “subsidiary or affiliate” shall mean any
162162 entity that the brewer controls, is controlled by, or is under
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214214 common control with, during the time that the wine and spirits
215215 brands are offered for sale in this state, and “control” shall mean
216216 ownership of more than fifty perce nt (50%) of the voting securities
217217 or assets of, or the ability to dictate the material operations of,
218218 another entity. If the brewer, subsidiary or affiliate sells the
219219 wine and spirits brands to a manufacturer other than one that would
220220 otherwise fall withi n the provisions of this subsection, then the
221221 rights provided in this subsection which relate to the wine and
222222 spirits brands shall terminate. The rights provided to beer
223223 distributors pursuant to Section 3 -111 of this title shall not be
224224 extended to apply to the wine or spirits brands distributed pursuant
225225 to this subsection.
226226 C. No manufacturer shall require a wine and spir its wholesaler
227227 to purchase any alcoholic beverages or any goods, wares or
228228 merchandise as a condition t o the wine and spirits wholesaler
229229 obtaining or being entitled to purchase any alcoholic beverages.
230230 Violation of this section shall be a misdemeanor. Conv iction
231231 hereunder shall automatically revoke the vio lator’s license.
232232 D. In the event a manufacturer or nonresident seller has not
233233 designated a designated wholesaler to sell its products in the
234234 state, the nondesignated products shall be posted in accordance with
235235 the following:
236236 1. On the first business day of each month, the manufacturer
237237 shall post with the ABLE Commission the price of all w ine and
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289289 spirits it proposes to offer for sale to licensed wine and spirit
290290 wholesalers in this state. All prices shall become effective on the
291291 first business day of the f ollowing month and shall remain in effect
292292 and unchanged for a period of not less than one (1) month. The
293293 posting shall be submitted on a form approved by the ABLE Commission
294294 and shall identify the brand, size, alcohol content and price of
295295 each item intended to be offered for sale. No change or
296296 modification of the posted price shall be per mitted except upon
297297 written permission from the ABLE Commission based on good cause
298298 shown;
299299 2. When a new item is regist ered, or an old item is
300300 discontinued, or any change is made by a manufacturer or nonresident
301301 seller as to price, age, proof, label or typ e of bottle of any item
302302 offered for sale in this state, such new item, discontinued item or
303303 change in price, age, proof , label or type of bottle of any item
304304 shall be listed separately on the cover page of the price schedu le
305305 and, in the case of prices chang ed, shall reflect both the old and
306306 the new price of the item changed. All new items and changes as to
307307 age, proof, label or type of bottle in which any item is offered fo r
308308 sale shall first be submitted in writing to the A BLE Commission for
309309 approval under such requirements as it may deem proper. Approval or
310310 disapproval of price changes shall not be required if filed in
311311 conformity with the provisions of this subsection.
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363363 a. In addition to the foregoing requirements, the
364364 manufacturer shall, at the same time, o n regular forms
365365 provided by the ABLE Commission, re -register all items
366366 of alcoholic beverage which the manufacturer had
367367 registered and offered for sale in this state duri ng
368368 the previous price period.
369369 b. A short form of price posting may be permitted by the
370370 ABLE Commission for any price period in which no new
371371 item is offered or old item discontinued, or change is
372372 made in the price, age, proof, label or type of bottle
373373 of any item offered by any manufacturer. Such short
374374 form shall contain only such statements as the
375375 Director may require or permit;
376376 3. The brand name, size, proof and type of alcoholic beverages
377377 must be shown on each container sold in this state;
378378 4. No brand of alcoholic beverage shall be listed on a price
379379 list or posting in more than one place , or offered for sale by more
380380 than one method, or at more than one price, except as provided
381381 hereafter:
382382 a. a manufacturer who has posted F.O.B. prices from a
383383 foreign shipping point shall also list the same
384384 item(s) at an F.O.B. point within the continental
385385 United States. Only one United States F.O.B. point
386386 shall be permitted, and
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438438 b. a manufacturer may list on their price l ist or posting
439439 an item of specific size that may be packaged in more
440440 than one type or design container , provided that the
441441 containers being offered have been approved by the
442442 ABLE Commission;
443443 5. The manufacturer shall sell to the wine and spirits
444444 wholesalers all items of wine and spirits at the current post ed
445445 price in effect on the date of the shipment as s hown on the
446446 manifest, bill of ladin g or invoice;
447447 6. A full and correct copy of each said price registration
448448 shall be transmitted to wine and spirits whol esalers on the same day
449449 such prices are filed with or mailed to the ABLE Commission. Proof
450450 of such mailing or delivery shall be furnishe d the ABLE Commission
451451 by the manufacturer with the price registration or upon request;
452452 7. The sale, or offer to sell, of any item of alcoholic
453453 beverage by a manufacturer to a wine and spirits wholesaler at a
454454 price not in compliance with the price posted w ith the ABLE
455455 Commission may be deemed a violation; and
456456 8. This subsection shall not apply to a manufacturer that has
457457 designated a wine and spirits wholesaler to sell its product in the
458458 state or a brewer who has appointed a beer distributor as a
459459 designated wholesaler pursuant to subsection B of Section 3 -116 of
460460 this title, with respect to designated products.
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512512 E. Every wine and s pirits wholesaler is authorized to fill
513513 orders non-sequentially. These activi ties shall not constitute a
514514 violation of this title or any rule promulgated under this title.
515515 SECTION 2. This act shall become effective November 1, 2023.
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517517 59-1-1099 MR 1/10/2023 4:33:05 PM