A. Every winemaker or small farm winery electing to directly sell its wines to retailers, mixed beverage licensees, beer and wine licensees, and restaurants must obtain a winery self-distribution license and pay the applicable license fee and shall register its products and post its prices with the state in the same manner required of the holder of a nonresident seller license.

B. Every winemaker or small farm winery electing to directly sell its wines to retailers, mixed beverage licensees, beer and wine licensees, and restaurants shall report all sales to retail package stores, mixed beverage licensees, beer and wine licensees, and restaurants in this state to the ABLE Commission and to the Oklahoma Tax Commission at least monthly, or in accordance with such rules as the ABLE Commission shall promulgate and shall pay to the Tax Commission all excise and other taxes imposed by this state upon such wine in the same manner required of the holder of a nonresident seller license.

C. Any self-distributing winemaker within or without this state who shall, in any calendar year, exceed the production volume limit provided for in subsection B of Section 2-105 of this title, shall immediately notify the ABLE Commission of such fact and shall thereafter have the option to sell the wines they produce to every licensed wholesale distributor who desires to purchase the same, on the same price basis and without discrimination, and shall thereafter be allowed to sell such beverages only to such licensed wholesale distributors or cease to sell its products in this state.

D. All winemakers who conduct business in this state shall be prohibited from creating, forming or participating in any kind of a cooperative or pooled transportation or distribution arrangement.

E. Any licensed winemaker or winery that sells or distributes its wine directly to a retailer, mixed beverage licensee, beer and wine licensee or restaurant in this state after having exceeded the production volume limit provided for in subsection B of Section 2-105 of this title in any calendar year shall be subject to a fine of Ten Thousand Dollars ($10,000.00). In addition, if the violation is a second or subsequent violation, the winemaker or winery shall not be allowed to transport wine to a retail package store or restaurant for three (3) years from the date of the second or subsequent violation.

F. If Section 2 of Article XXVIIIA of the Oklahoma Constitution is ruled to be unconstitutional by a court of competent jurisdiction, then any licensed winemaker or winery that then continues to sell or distribute its wine directly to a retail package store, mixed beverage licensee, beer and wine licensee or restaurant in this state shall be subject to a fine of Ten Thousand Dollars ($10,000.00) per violation.

Added by Laws 2016, c. 366, § 69, eff. Oct. 1, 2018. Amended by Laws 2018, c. 113, § 2, eff. Oct. 1, 2018.

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.