Oklahoma voters would decide whether small wineries in the state should be given back the right to distribute their own products to liquor stores and restaurants under legislation approved Monday by the state House.
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The measure, passed after months of negotiations between winemakers and liquor wholesalers, would order a statewide referendum on a constitutional amendment to permit wineries in Oklahoma and other states to sell their products directly to package liquor stores and restaurants.
A similar measure was approved by the Senate last year.
Voters approved a statewide referendum in 2000 that allowed small Oklahoma wineries to sell directly to retail establishments, but a federal judge struck it down in 2006 after liquor wholesalers argued that it discriminated against out-of-state wineries who were not given the same rights. The measure had passed in all 77 counties with 78 percent of the vote.
Wholesalers have opposed the new legislation over concerns that self-distribution by winemakers will erode the three-tiered system of producer, wholesaler and retailer that has defined alcohol distribution in Oklahoma for almost 50 years.
But small wineries in Oklahoma have said large wholesalers will not distribute their products because there is too little demand. Consequently, the products are not available in liquor stores and restaurants — even in the same community where the winery is located.
Supporters have said that under the current system, a winery that wants to sell a case of wine to a local liquor store must transport the wine to a warehouse in Oklahoma City or Tulsa, where it has to sit for 24 hours before it can be trucked back to the liquor store in the winery's hometown.
Current law also allows warehouses to charge a markup in price of about 20 percent to Oklahoma wineries who make their own wine and want to sell it in small restaurants on their own property.
The measure approved by the House places a 10,000-gallon ceiling on the amount of wine a winery produces each year before it must stop self-distributing and use the services of a liquor wholesaler.
The bill's author, House Democratic Leader Danny Morgan of Prague, has said 10,000 gallons is roughly equivalent to 50,000 bottles of wine, or about 4,000 cases.
Wholesalers have expressed concern that the measure could open the door for wineries in other states to also self-distribute and flood Oklahoma with out-of-state wines. Morgan said he hopes the measure will encourage wineries in other states to locate in Oklahoma.
The House voted 83-15 for the measure and 87-11 on a separate resolution calling for a constitutional amendment.
The measures, Senate Bill 995 and Senate Joint Resolution 29, now go back to the Senate for debate and a vote.
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Our legislators need to go back to Constitutional Law 101. They need to look into the concept of "discriminatory in effect" where it comes to interstate commerce. If you're requiring out of state companies to use company trucks to deliver goods, you're placing them at a competitive disadvantage compared to local wineries! These idiots are spending a ton of money trying to get a Oklahoma Constitutional Amendment added which they have to know is unconstitutional. This incompetence has no excuse.
I agree with Lawrence. The Legislature is giving away boat-loads of my money to the Sonics without my say but won't support local, small businesses? Let the liquor wholesale monopoly go and give small business a chance to grow and compete.
Why do we have to vote on something so insignificant - this only means the winerys can cut out some of the middle men and make it more affordable. However, when it comes to GIVING a professional basketball team millions of dollars in tax free breaks there is no vote of the people???
C'mon legislators, You always claim to be for small business people, so prove it, and OK this legislation.
The Winery owners have been trying for over a decade to do something positive for the state, and add to our growth and culture. Wine is indeed the "Nectar of the gods", and our Oklahoma wineries produce varities that are comparable to anything from the west coast. So give them an opportunity to market it!!
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Thank you for joining our conversations on NewsOK.com. We encourage your discussions but ask that you stay within the bounds of our terms and conditions. Please help us by reporting comments that violate these guidelines. To review our rules of engagement, go to Commenting and posting policy.
Leave a comment. Log in below or sign up (it's free).Editor's note: It is not our intent to offer comments on crime or fatality stories.
The Winery owners have been trying for over a decade to do something positive for the state, and add to our growth and culture. Wine is indeed the "Nectar of the gods", and our Oklahoma wineries produce varities that are comparable to anything from the west coast. So give them an opportunity to market it!!