Req. No. 1099 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 262 By: Garvin
AS INTRODUCED
An Act relating to alcoholic beverages; amending 37A
O.S. 2021, Section 3 -116, which relates to sales by
licensed wine and spirits whole saler; authorizing
wholesalers to fill orders non-sequentially; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 37A O.S. 2021, Section 3 -116, is
amended to read as follows:
Section 3-116. A. Any manufacturer or subsidiary of a
manufacturer who markets its products solely through a subsidiary or
subsidiaries, a distiller, rectifier, bottler, winemaker or impo rter
of alcoholic beverages, bottled or made in a f oreign country, either
within or without this state, may sell such brands or kinds of
alcoholic beverages to every licensed wine and spirits wholesaler
who desires to purchase the same, on the same price b asis and
without discrimination or inducements, and shall further be required
to sell such beverages only to those persons licensed as wine and
spirits wholesalers.
Req. No. 1099 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
B. The provisions of subsection A of th is section shall not
apply to a brewer except as ot herwise stated herein. In the event a
brewer, who has entered into territorial distri bution agreements
with beer distributors in this state, markets wine and spirits
products in this state either itself o r through a subsidiary or
affiliate, then such brew er, subsidiary or affiliate may elect to
designate beer distributors, with whom it has entered into
territorial distribution agreements, as its designated wholesalers
for any wine and spirit products to be sold by the brewer,
subsidiary or affiliate within said beer distributors ’ existing
territories, provided such beer distributors must al so hold a wine
and spirits wholesaler license. In such event, the beer
distributors shall be deemed designated wholesa lers for the
territory with respect to the designat ed products. Provided, in the
event a beer distrib utor has not obtained a wine and sp irits
license, has elected not to sell wine and spirits in its respective
territory or, in the brewer ’s commercially reasonable discretion, is
not suitable to sell wine a nd spirits in its respective territory,
then the brewer, subsidiary or affiliate may e xtend the territory of
an existing beer distributor, with whom it has entered into a
territorial distribution agreement and who holds a wine and spirits
wholesaler license, for said territory. For purposes of this
subsection only, the phrase “subsidiary or affiliate” shall mean any
entity that the brewer controls, is controlled by, or is under
Req. No. 1099 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
common control with, during the time that the wine and spirits
brands are offered for sale in this state, and “control” shall mean
ownership of more than fifty perce nt (50%) of the voting securities
or assets of, or the ability to dictate the material operations of,
another entity. If the brewer, subsidiary or affiliate sells the
wine and spirits brands to a manufacturer other than one that would
otherwise fall withi n the provisions of this subsection, then the
rights provided in this subsection which relate to the wine and
spirits brands shall terminate. The rights provided to beer
distributors pursuant to Section 3 -111 of this title shall not be
extended to apply to the wine or spirits brands distributed pursuant
to this subsection.
C. No manufacturer shall require a wine and spir its wholesaler
to purchase any alcoholic beverages or any goods, wares or
merchandise as a condition t o the wine and spirits wholesaler
obtaining or being entitled to purchase any alcoholic beverages.
Violation of this section shall be a misdemeanor. Conv iction
hereunder shall automatically revoke the vio lator’s license.
D. In the event a manufacturer or nonresident seller has not
designated a designated wholesaler to sell its products in the
state, the nondesignated products shall be posted in accordance with
the following:
1. On the first business day of each month, the manufacturer
shall post with the ABLE Commission the price of all w ine and
Req. No. 1099 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
spirits it proposes to offer for sale to licensed wine and spirit
wholesalers in this state. All prices shall become effective on the
first business day of the f ollowing month and shall remain in effect
and unchanged for a period of not less than one (1) month. The
posting shall be submitted on a form approved by the ABLE Commission
and shall identify the brand, size, alcohol content and price of
each item intended to be offered for sale. No change or
modification of the posted price shall be per mitted except upon
written permission from the ABLE Commission based on good cause
shown;
2. When a new item is regist ered, or an old item is
discontinued, or any change is made by a manufacturer or nonresident
seller as to price, age, proof, label or typ e of bottle of any item
offered for sale in this state, such new item, discontinued item or
change in price, age, proof , label or type of bottle of any item
shall be listed separately on the cover page of the price schedu le
and, in the case of prices chang ed, shall reflect both the old and
the new price of the item changed. All new items and changes as to
age, proof, label or type of bottle in which any item is offered fo r
sale shall first be submitted in writing to the A BLE Commission for
approval under such requirements as it may deem proper. Approval or
disapproval of price changes shall not be required if filed in
conformity with the provisions of this subsection.
Req. No. 1099 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
a. In addition to the foregoing requirements, the
manufacturer shall, at the same time, o n regular forms
provided by the ABLE Commission, re -register all items
of alcoholic beverage which the manufacturer had
registered and offered for sale in this state duri ng
the previous price period.
b. A short form of price posting may be permitted by the
ABLE Commission for any price period in which no new
item is offered or old item discontinued, or change is
made in the price, age, proof, label or type of bottle
of any item offered by any manufacturer. Such short
form shall contain only such statements as the
Director may require or permit;
3. The brand name, size, proof and type of alcoholic beverages
must be shown on each container sold in this state;
4. No brand of alcoholic beverage shall be listed on a price
list or posting in more than one place , or offered for sale by more
than one method, or at more than one price, except as provided
hereafter:
a. a manufacturer who has posted F.O.B. prices from a
foreign shipping point shall also list the same
item(s) at an F.O.B. point within the continental
United States. Only one United States F.O.B. point
shall be permitted, and
Req. No. 1099 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
b. a manufacturer may list on their price l ist or posting
an item of specific size that may be packaged in more
than one type or design container , provided that the
containers being offered have been approved by the
ABLE Commission;
5. The manufacturer shall sell to the wine and spirits
wholesalers all items of wine and spirits at the current post ed
price in effect on the date of the shipment as s hown on the
manifest, bill of ladin g or invoice;
6. A full and correct copy of each said price registration
shall be transmitted to wine and spirits whol esalers on the same day
such prices are filed with or mailed to the ABLE Commission. Proof
of such mailing or delivery shall be furnishe d the ABLE Commission
by the manufacturer with the price registration or upon request;
7. The sale, or offer to sell, of any item of alcoholic
beverage by a manufacturer to a wine and spirits wholesaler at a
price not in compliance with the price posted w ith the ABLE
Commission may be deemed a violation; and
8. This subsection shall not apply to a manufacturer that has
designated a wine and spirits wholesaler to sell its product in the
state or a brewer who has appointed a beer distributor as a
designated wholesaler pursuant to subsection B of Section 3 -116 of
this title, with respect to designated products.
Req. No. 1099 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
E. Every wine and s pirits wholesaler is authorized to fill
orders non-sequentially. These activi ties shall not constitute a
violation of this title or any rule promulgated under this title.
SECTION 2. This act shall become effective November 1, 2023.
59-1-1099 MR 1/10/2023 4:33:05 PM