A. A beer distributor license shall authorize the holder thereof:

1. To purchase and import into this state cider from persons authorized to sell the same who are the holders of manufacturer's licenses, and their agents who are the holders of manufacturer's agent licenses;

2. To purchase and import into this state beer or cider from persons authorized to sell the same who are the holders of brewer's or small brewer's licenses;

3. To purchase beer and cider from licensed beer distributors in this state;

4. To sell in retail containers to retailers, on-premises beer and wine, mixed beverage, caterer, special event, public event, hotel beverage and airline/railroad beverage licensees or any other licensee permitted to sell beer to consumers in this state, beer and cider which has been received, unloaded and stored at the holder's self-owned or leased and self-operated warehouses before such sale, unless otherwise permitted by this section;

5. To sell beer and cider in this state to beer distributors and out of this state to qualified persons, including federal instrumentalities and voluntary associations of military personnel on federal enclaves in this state over which this state has ceded jurisdiction;

6. To donate beer and cider to organizations, associations or nonprofit corporations organized for political, fraternal, charitable, religious or social purposes or to charitable events; and

7. To transport wine, spirits, beer and cider in vehicles owned, leased or operated by the beer distributor, a subsidiary of the beer distributor, or its agent, in addition to any nonalcoholic items. Provided, if the beer distributor transports wine and spirits, a valid wine and spirits wholesaler license must be maintained by the beer distributor or affiliated entity having common ownership with the licensed beer distributor.

B. In the event that no in-state beer distributor for a particular brewer or manufacturer is willing to deliver beer or cider to a county or counties located within the state, the ABLE Commission may grant an economic hardship exemption to an out-of-state beer distributor for a particular brewer and waive the at-rest requirement set forth in this section, upon a good-faith showing that:

1. It is economically infeasible or impractical for an in-state beer distributor for a particular brewer to deliver to the county or counties due to remoteness, or population, or both;

2. No in-state beer distributor of a particular brewer or manufacturer objects to the waiver within thirty (30) days of receiving written notice of the economic hardship application sent by the ABLE Commission; and

3. The out-of-state beer distributor agrees to pay all necessary licensing fees and remit all applicable taxes to the State of Oklahoma.

C. The economic hardship exemption provided for in subsection B of this section shall renew annually, provided that no in-state beer distributor for a particular brewer or manufacturer submits an executed distribution agreement to assume responsibility to distribute the beer in the subject county or counties at least sixty (60) days prior to the renewal date of the exemption. The in-state beer distributor who has executed a distribution agreement to assume responsibility to distribute beer in the subject territory shall compensate the out-of-state distributor the fair market value of the distribution rights of the territory as determined pursuant to Section 3-108 of this title.

D. Provided, nothing in this section shall require an Oklahoma licensed beer distributor with an Oklahoma designated territory on the effective date of this act to meet the hardship provisions in subsections B and C of this section to continue to operate as a licensed Oklahoma beer distributor.

Added by Laws 2016, c. 366, § 20, eff. Oct. 1, 2018. Amended by Laws 2017, c. 364, § 12, eff. Oct. 1, 2018; Laws 2019, c. 322, § 4, emerg. eff. May 7, 2019.

NOTE: Laws 2016, c. 366, was conditionally effective upon passage of State Question No. 792, Legislative Referendum No. 370, which was adopted at election held on Nov. 8, 2016.