A. The provisions of this section shall be in effect except as otherwise provided in Article XXVIII-A of the Oklahoma Constitution.
B. Subject to the provisions of subsection D of this section, every licensed brewer or cider manufacturer authorized to sell its beer or cider in this state shall:
1. Enter into a distributor agreement with a licensed distributor, as defined herein, to sell the designated brands, including brand extensions, of the brewer or cider manufacturer. The agreement shall designate the sales territory of that licensed distributor and the designated brands to be sold by the licensed distributor. All such distributor agreements shall specifically authorize this sale of the designated brands by a licensed distributor within that sales territory. All such distributor agreements shall further provide that the licensed brewer or cider manufacturer who desires to sell a brand extension of a low-point beer in Oklahoma must assign the low-point beer brand extension to the licensed distributor to whom the licensed brewer or cider manufacturer granted the exclusive sales territory to the low-point beer brand from which the brand extension resulted;
2. Sell its registered and approved designated brands only to a licensed distributor with whom that brewer or cider manufacturer has a distributor agreement designating the sales territory of the licensed distributor and the designated brands to be sold by the licensed distributor;
3. Authorize only one licensed distributor for each designated sales territory. Such licensed distributor shall be the only licensed distributor for the designated brands of the authorizing brewer or cider manufacturer within that designated sales territory; and
4. Designate who is responsible for the distribution of its designated brands.
C. Subject to the provisions of subsection D of this section, any and all licensed distributors possessing the rights to distribute a low-point beer brand in a specific territory prior to the introduction of that low-point beer's correlating beer brand extension in that specific territory shall retain the right to distribute the low-point beer from which the brand extension resulted.
D. 1. No later than August 2, 2018, a brewer shall assign the exclusive right to distribute a beer brand, including brand extensions thereof, to the low-point beer distributor who was, prior to October 1, 2018, assigned the exclusive distribution rights to the low-point beer from which the brand extension arose without charge or payment of compensation, unless the low-point beer distributor is, on October 1, 2018, a brewer of beer or low-point beer and has therefore been distributing low-point beer pursuant to a license to so distribute, subject to the provisions of subsection E of this section. This subsection shall not apply to a small brewer as defined in Section 1-103 of this title.
2. With respect to brand extensions which arise after October 1, 2018, the brewer or cider manufacturer shall assign the exclusive right to distribute the brand extension to the distributor who has been assigned the exclusive distribution rights to the beer or cider from which the brand extension arose, without charge or payment of compensation.
3. With respect to a brand of beer or cider which was, prior to April 15, 2017, distributed in this state only as strong beer or cider pursuant to the Oklahoma Alcoholic Beverage Control Act then in effect, if a low-point version of the brand is introduced after April 15, 2017, no later than August 2, 2018, the brewer or cider manufacturer shall assign the exclusive rights to distribute the low-point version of the brand to the distributor who was, immediately prior to the introduction of the low-point version of the brand, assigned the exclusive distribution rights to the strong version of the brand without charge or payment of compensation.
4. No later than August 2, 2018, with respect to dual strength beer, the brewer thereof shall assign the exclusive right to distribute the brands represented by the dual strength beer to either the low-point beer distributor or the nonresident seller who had theretofore been assigned the exclusive distribution rights in the territory to either version of the dual strength beer; provided, however, whichever party is selected by the brewer must compensate the party that was not selected by the brewer for the loss of the distribution rights with respect to that particular territory. Whichever party is selected shall obtain the requisite distributor license and shall be subject to the provisions of the Oklahoma Alcoholic Beverage Control Act.
5. Compensation for the purposes of this provision shall be the fair market value of the party losing its distribution rights with respect to the beer within that specific territory. Fair market value shall be determined as set forth in Section 3-111 of this title and shall take into account all aspects of brand valuation, including but not limited to:
E. If a brewer, whether directly or through an affiliate, maintained one or more licenses to distribute low-point beer in this state prior to October 1, 2018, then up to two of the brewer's low-point beer distribution licenses shall automatically convert to beer distribution licenses on October 1, 2018, and such brewer shall be permitted to continue to distribute beer in two territories within which it currently distributes without the appointment of a distributor for such period of time as determined by the Legislature and consistent with the Constitution of the State of Oklahoma; provided however, it shall not be permitted to distribute beer outside of the territory unless it enters into a distributor agreement with an independent licensed distributor as provided in paragraph 1 of subsection B of this section. This section shall not apply to small brewers that have elected to self-distribute.
F. If, on October 1, 2018, a licensed distributor possesses inventory of a brand that it is no longer authorized to distribute within this state, such inventory shall be sold to a licensed distributor authorized to distribute such brand, at a price not to exceed the total of the actual purchase price of the selling distributor plus the cost of inbound and outbound shipping to the purchasing distributor. The provisions of this paragraph shall not apply to inventory purchased on or after September 15, 2018.
Added by Laws 2016, c. 366, § 78, eff. Oct. 1, 2018. Amended by Laws 2017, c. 364, § 14, eff. Oct. 1, 2017; Laws 2018, c. 209, § 1, eff. Oct. 1, 2018; Laws 2019, c. 322, § 14, emerg. eff. May 7, 2019.
NOTE: Laws 2016, c. 366, was conditionally effective upon passage of State Question No. 792, Legislative Referendum No. 307, which was adopted at election held on Nov. 8, 2016.
Structure Oklahoma Statutes
§37A-1-101. Short title - Oklahoma Alcoholic Beverage Control Act.
§37A-1-102. Policy and scope of act.
§37A-1-104. Creation and purpose of ABLE Commission - Members - Interim licenses.
§37A-1-105. Commission member qualifications – Organization.
§37A-1-106. Exercise of police power.
§37A-1-107. Commission powers and duties.
§37A-1-108. Commission Director - Powers and duties.
§37A-1-109. Powers and authority of peace officers.
§37A-1-110. Restrictions on Commission members and employees – Penalties.
§37A-1-112. Good standing with Oklahoma Tax Commission required.
§37A-2-101. Annual license fees - Administrative fees.
§37A-2-102. See the following versions:
§37A-2-102.1. Charitable Collaboration Brewer License.
§37A-2-102v1. Brewer license - Small brewer license - Small brewer self-distribution license.
§37A-2-102v2. Brewer license - Small brewer license - Small brewer self-distribution license.
§37A-2-103. Distiller license.
§37A-2-104. Winemaker license.
§37A-2-105. Winemaker self-distribution license.
§37A-2-106. Rectifier license.
§37A-2-107. Wine and spirits wholesaler license.
§37A-2-108. Beer distributor license.
§37A-2-109. Retail spirits license - Retail wine license - Retail beer license.
§37A-2-110. See the following versions:
§37A-2-110v1. Mixed beverage license.
§37A-2-110v2. Mixed beverage license.
§37A-2-111. Bottle club license.
§37A-2-113. Caterer license - Rules and restrictions.
§37A-2-114. Special event license - Public event licenses.
§37A-2-115. Special event licenses - Rules and restrictions.
§37A-2-116. Hotel beverage license.
§37A-2-117. Hotel beverage license - Rules and restrictions.
§37A-2-118. Airline/railroad/commercial passenger vessel beverage license.
§37A-2-119. Airline/railroad/commercial passenger vessel beverage license - Qualifying licensee.
§37A-2-120. Wholesaler's agent license.
§37A-2-122. Industrial license.
§37A-2-124. Private carrier license.
§37A-2-125. Bonded warehouse license.
§37A-2-127. Sacramental wine supplier license.
§37A-2-128. On-premises beer and wine license.
§37A-2-129. Charitable auction or charitable alcoholic beverage event license.
§37A-2-130. Mixed beverage/caterer combination license.
§37A-2-131. Small farm winery license.
§37A-2-132. Brewpub license - Brewpub self-distribution license.
§37A-2-134. Additional hours license.
§37A-2-135. Manufacturer's license - Nonresident seller license.
§37A-2-136. Manufacturer's agent license.
§37A-2-137. Restriction against additional licenses or permits outside of this Act.
§37A-2-140. Personal use permit.
§37A-2-141. Applicants for certain licenses to publish a notice of intention to apply.
§37A-2-142. Information to be furnished by license applicants.
§37A-2-143. Information to be furnished by corporate applicants.
§37A-2-143.1. Promulgation of rules for employee license payment plans.
§37A-2-144. Information to be furnished by limited liability company applicants.
§37A-2-145. Eligibility of persons pardoned for a felony.
§37A-2-148. Grounds to revoke or suspend licenses.
§37A-2-149. Written notice of denial, suspension or revocation of licenses.
§37A-2-150. Hearing for aggrieved person.
§37A-2-151. Commission authority to conduct initial hearing.
§37A-2-152. Appeal from order of Commission - District court appeal - Supreme Court appeal.
§37A-2-154. Display of license.
§37A-2-158. Suspension of licenses by Governor in cases of natural disaster or civil disturbance.
§37A-2-159. Complimentary beverage license.
§37A-2-160. Satellite tasting room license.
§37A-2-161. Curbside pickup and delivery.
§37A-3-102. Commission authority to promulgate rules.
§37A-3-105. Wineries - Shipping to other states - Monthly report of shipments.
§37A-3-106. Direct Wine Shipper's Permit – Requirements.
§37A-3-107. Scope of statutory regulation for sales and distribution of designated brands of beer.
§37A-3-110. Licensed beer distributor - Sales and distribution restrictions.
§37A-3-112. Operation and maintenance conditions for brew pubs.
§37A-3-113. Small brewers - Sales to licensed distributors or retailers - Direct sales to consumers.
§37A-3-114. Resale of beer restrictions for retailers - Violations – Penalties.
§37A-3-115. Withdrawal of beer from retailer's stock.
§37A-3-116.1. Manufacturers without a designated wholesaler - Posting requirements.
§37A-3-116.2. Designated wholesalers or beer distributors - Posting requirements.
§37A-3-116.3. Wholesalers - Electronic publishing of price catalog.
§37A-3-116.4. Top brand products – Offered to all wholesalers without discrimination.
§37A-3-117. Sale of alcoholic beverages packaged with nonalcoholic promotional items.
§37A-3-118. Retail sales of alcoholic beverages - Minimum price markup – Exceptions.
§37A-3-122. Business interests in interactive entertainment facilities.
§37A-3-126. Bottle clubs - Restrictions on hours to dispense, serve or consume alcoholic beverages.
§37A-4-101. Municipal authority to enact ordinances.
§37A-4-103. Municipal zoning authority.
§37A-4-104. Municipal occupational tax.
§37A-4-105. County occupational tax.
§37A-4-106. Enforcement of the Oklahoma Alcoholic Beverage Control Act.
§37A-5-101. Excise tax on alcoholic beverages.
§37A-5-102. Intent of excise tax.
§37A-5-103. Excise tax exemptions.
§37A-5-104. Distribution of excise tax revenue.
§37A-5-106. Gross receipt tax revenue - General Revenue Fund.
§37A-5-107. Mixed beverage tax permit - Violations – Penalties.
§37A-5-109. Credit or refund for money paid for stamps.
§37A-5-112. Distributor permit - Wholesaler permit - Permit applications.
§37A-5-116. Hearing to determine whether taxes are unpaid - Order to confiscate and forfeit.
§37A-5-117. Sale of forfeited alcoholic beverage.
§37A-5-119. Alcoholic beverages other than beer - Sealed cases required.
§37A-5-120. Licensees required to keep books and records.
§37A-5-122. Manufacturer and brewer subject to licensing - Monthly itemized and verified report.
§37A-5-124. Bond required for manufacturers, brewers, importers, brokers and others.
§37A-5-127. County excise boards - Yearly revenue estimates.
§37A-5-128. Alcoholic Beverage Control Fund - Alcoholic Beverage Governance Revolving Fund.
§37A-5-129. Oklahoma Viticulture and Enology Center Development Revolving Fund.
§37A-5-130. Authority to promulgate rules on labeling of alcoholic beverages.
§37A-5-131. Alcoholic beverage not labeled in conformity with rules.
§37A-5-132. Brand label required - Application for registration of brand label - Form – Fees.
§37A-5-133. Refilling of containers prohibited - Infused drinks requirements.
§37A-5-136. Tax discount for mixed beverage tax permit holders.
§37A-6-101. Prohibited acts - Violations – Penalties.
§37A-6-102. Prohibited acts of licensees.
§37A-6-102.1. Serving of tasting flights.
§37A-6-103. Prohibited acts of retail spirits licensees.
§37A-6-104. Prohibited acts of wholesaler licensees.
§37A-6-106. Prohibited acts of bottle club licensees.
§37A-6-107. Prohibited acts of special event or caterer licensees.
§37A-6-108. Prohibited acts of holders of retail wine or retail beer licenses.
§37A-6-111. Authority to remove persons while making arrests.
§37A-6-113. Unlawful to possess alcoholic beverages with intent to sell without procuring a license.
§37A-6-116. False or fraudulent return in connection with any tax imposed by Act – Penalties.
§37A-6-118. Unlawful selling, delivering, possessing and buying alcoholic beverages – Penalties.
§37A-6-120. Selling, furnishing or giving alcoholic beverages to persons under 21 - Penalties.
§37A-6-122. Payment of federal tax for liquor dealers prima facie evidence.
§37A-6-123. Selling alcoholic beverages during unauthorized day or hours – Penalties.
§37A-6-124. Permitting a person to be drunk or intoxicated on licensed premises – Penalties.
§37A-6-125. Violations of Act with no specific penalty – Penalties.
§37A-6-127. Purpose of issuing search warrants – Forfeiture.
§37A-6-128. Order to show cause for witnesses before Commission – Penalties.
§37A-6-129. Powdered alcohol - Unlawful use, purchase, sale or possession.
§37A-7-101. Short title - Oklahoma Cocktails To Go Act of 2021.
§37A-7-104. Third-party delivery services not permitted .
§37A-7-105. Delivery or carry out not permitted in certain situations.